Sarasota homes for sale get big thumb’s up from FHA mortgage financing, allowing buyers (both 1st time and repeat buyers) to grab the keys to their new homes with EASY qualifying terms.
Sarasota homes for sale welcome EASY FHA mortgage financing terms
Woo-Hoo, FHA (aka “taxpayers”) is giving money away to buy a house! 
FHA is not (just) for 1st time buyers & lower-priced starter homes. Not so-Not so. You can fall in love with a Sarasota home for sale and get financed up to $442,500! How great is that?
Even better, it’s not difficult to qualify to buy a (primary) home today.
Note: Forget the 580 minimum score requirement. FHA gets people’s attention with it, but you need between 640-650 middle credit score (out of your 3 credit scores) to meet minimum requirements.
As you clearly can see from the guidelines above, you do NOT need perfect credit.
Please click Read More below now for the secret to grabbing the keys to your new home. And you thought it was difficult or even impossible to get a home loan today.
IT’S EASY TO GET FINANCED FOR YOUR NEW HOME!
Further, FHA allows higher ratios, meaning FHA will allow you to allocate 31% of your GROSS monthly income (combined if husband/wife or partner/partner) toward a monthly house payment.
The 43% back-end ratio you see in the guidelines above includes housing payment + credit card bill + car payments + child support, etc.
The challenges I’m seeing today include:
- Many house hunters have a judgment or recent (< 2 years) collections/charge-offs.
- Many carry HIGH revolving debt…debt they don’t have the money to pay off (btw, high revolving debt HAMMERS a credit score. Keep in mind, 30% of your FICO comes from amount of revolving debt).
- Strangely, many house “wanters” can’t get a VOR, that is, a verification of rents paid.
- They also don’t have at least 12 months’ canceled checks or proof of paying rent.
Sure, it’s more challenging to get a mortgage today than it was b/t 2002-2006. As you can see, just barely is it more challenging.
Taxpayers help home buyers grab the keys!
Thanks to all of us taxpayers, Federal Housing Administration (FHA) insures nearly 30 percent of new loans — by far the largest backer of mortgages to first-time buyers.
If you’re not aware, the FHA does not make loans; rather, the FHA insures against default.
FHA makes buying a house pretty darn easy:
- Pay an upfront MIP (or mortgage insurance premium) in the amount of 2.25% of the total loan amount. Don’t freak, as you’re able to wrap these fees into the total amount financed.
- You also need to come up with a 3.5% down payment (that is, 3.5% of the purchase price.
- You need a credit score of at least 580 to qualify, though realistically most mortgage banks underwriting FHA loans require a 620-650.
Aside from the middle credit score needed, you really should be able to grab the keys to your new home pretty easily.
Before you start the FHA loan process, be prepared to provide some information to your loan officer. Have it ready now to save time later.
- Address to your place of residence (past two years)
- Social Security numbers
- Names and location of your employers (past two years)
- Gross monthly salary at your current job(s)
- Pertinent information for all checking and savings accounts
- Pertinent information for all open loans
- Complete information for other real estate you own
- Approximate value of all personal property
- Certificate of Eligibility and DD-214 (for veterans only)
- Current check stubs and your W-2 forms (past two years)
- Personal tax returns (past two years), current income statement and business balance sheet for self-employed individuals
In addition, you will need to pay for a credit report and appraisal of the property.
Call me now if you want to buy (or sell) a house in or around Sarasota. If you have equity and don’t want to keep dropping your price, let’s talk about owner financing. Are you aware many good people today simply cannot bank qualify for various reasons (e.g. credit issues, identity theft, no w-2 income, etc).
Sarasota homes for sale get help from FHA mortgage financing to help alleviate heavy Sarasota foreclosures. Please scroll down now to leave a comment or ask me a question about FHA financing. I want to hear from you. Thanks!
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