If you have any doubts if Florida FHA and VA home loans are the answer to financing a home with little or no money down, read this carefully. This year in real estate is getting off to a very slow start. Home prices are dropping sharply as the bubble has burst in Florida. What goes up must come down is a fact. 2007 is predicted to be the year for foreclosure.
It is a fact that sub prime lenders bit off more than they could chew so to speak, as did many home buyers. Now the surviving lenders are sitting back, licking their wounds and searching for strategies to boost their business. It simply became to easy to get a loan. Lenders were offering 100 percent mortgage financing to home buyers with far less than perfect credit. The lenders were offering no income verification programs, no proof of employment, no cash reserve programs to home buyers that had already proven in their past credit history that they could make some mistakes. At one point in the summer of 2006 it appeared that anyone could get a home loan.
It seemed that the basic qualifications were that the borrower be able to fog a mirror. Those days are now gone and more than likely forever. It has always been my opinion that there isn't any better home loan program's on the market than FHA and VA insured home loans. FHA and VA home loans provide up to 100 percent financing for borrowers who qualify. For a borrower to qualify they must meet FHA and VA underwriting guidelines. The home buyers credit can be less than perfect. If the borrower has ever filed bankruptcy, the bankruptcy must be discharged 2 or more years and the borrower must show that they have established new credit, as well as paid their debts on time since the bankruptcy has discharged. The home buyer must be able to also verify good employment, income and a good rental or previous mortgage history.
A credit score is not a factor in qualifying a candidate for an FHA or VA mortgage. The FHA and VA mortgage programs have low fixed rates, as do conventional mortgage financing programs. These rates are also far below the rates of sub prime lenders. Once again, I feel that FHA and VA insured home loans are the best thing available for home buyers to buy the home of their dreams with little to no down payment requirements. It is a great time to buy a home now, as prices have fallen and sellers are anxious to sell their homes at big losses and discounts to the home buyer. Good luck.
Glenn Keller is a veteran Florida mortgage broker and is associated with Bretlin Home Mortgage of Florida in Saint Augustine, Florida. To learn more about buying a home with an FHA or VA mortgage, visit his website at http://www.bretlinfloridamortgage.com
