Finding the best loan
Finding the best loan for you doesn't have to be a difficult process, especially if you know your score, how much you have to put down and how much you have for closing costs. FHA, VA, USDA, Conventional? This is sooooo confusing! But here is some information that you may find useful!
An FHA is a loan that is backed by the federal government. It affords mortgages for lower credit scores as low as 500 (however down payments will be higher, as much as 10%). A credit score of 580 can afford you the opportunity of putting as little as 3.5% down. The downside as the borrower is you pay mortgage insurance (an upfront premium of 1.75% of the loan amount and an annual premium of between .45
% to 1.05% annually, which protects the lender on default. Terms on the FHA loan can be 15 or 30 years at a fixed rate. This loan is best if you can't qualify for a conventional loan due to credit OR if you don't have a lot of cash saved to put down on the home.
A VA Loan is a loan made to veterans of the military who can acquire a certificate of eligibility, which can be acquired online at VA.gov or through your chosen lender. The VA loan is made by private lenders that are partially backed by the Department of Veterans Affairs. The VA loan allows for 100% financing of the loan amount and is more flexible with its more lenient credit and income restrictions. Having your Realtor understand the VA process is critical to getting you the best possible outcome for the VA loan. You could potentially get into a home with ZERO out of pocket, to include closing costs!
The USDA loan is a 100% no money down mortgage made available that is backed through the US Department
of Agriculture. It is geographically restricted as it offers loans in more rural areas. The loan is only offered as a fixed rate product. Although the USDA loan does require an upfront mortgage insurance premium
Conventional is a mortgage loan for scores starting at 620 with down payments as low as 3%. Primary Mortgage Insurance (PMI) can be
.05% to 1% of the loan amount per year. Terms on the Conventional loan can be 10, 15, 20 or 30 years at either a variable or a fixed rate. If you have cash on hand for down payment and closing costs than the conventional mortgage could be the best loan for you. Lenders of conventional loans are not as restricted as government backed loans, although the government has special rules for over site, lenders can set their own guidelines.
Tampa Mortgage Lenders | Home Loans
Ocean Blue Mortgage
14562 Vista Ln
Largo, Florida 33774
Office: (727) 859-3702
Don't be afraid to shop a few lenders to see who may give you the best deal. In these days of technology it is easy to gain access about your credit score before you even need to apply. Banks like Wells Fargo offer free credit score programs where you can see your score through your account.
Make sure you have an idea of how your credit shapes up. Things may have happened in the past to cause you to be late on payments for your car or credit card and they will negatively affect your score. More commonly unpaid medical bills may appear from past medical bills that you may or may not even be aware of. Getting these things cleaned up prior to you applying for a mortgage would be to your advantage.
Based on your score you can search the internet for rates, however any rate you see will be subject to a review of an and all documents necessary for your loan. Therefore it can change. Some of my clients have used the inline lending companies, however I have found that the more local lenders understand the market in Tampa Bay and more importantly know the Florida home buying process.
You can ask your Realtor for a few lenders they may have used for transactions. You may find the transactions may run a bit smoother that way!
Remember ask questions and always read any fine print on any lending documents so there are no surprises!
Mark and Jeanmarie Zabilowicz
Tampa Bay Premier Realty
Team Z Realtor / Partner
5314 Van Dyke Rd
Lutz, Florida 33558
Direct: (813) 694-4110