Being a first-time homebuyer is exciting especially if you are looking for your first house that you’ll call your own. However, this is also challenging especially since real estate prices have increased and it’s harder to buy a house in cash.

Good thing there are First Time Homebuyer FHA Home Mortgage Loans to help you out.

Mortgage Capital is your best choice when it comes to getting an FHA home mortgage loan.

How to Apply for a Home Mortgage Loan as a First Time Home Buyer in Florida

The first thing to do to apply for a home mortgage loan as a first-time home buyer in Florida is to search for a reputable lender.

Mortgage Capital is one of the best, if not the best, private money lenders for home mortgages in Florida. We will then guide you through the entire credit process and assess your background to determine how much you should spend on your first house.

We then recommend that you take a homebuyer crash course to learn more about real estate financing, budgeting, credit, and other vital topics about homeownership.

After that, you look for a certified real estate realtor to find the right house for your needs. This also ensures that your budget and expectations are met. Once you have chosen a house, inform your realtor and they will coordinate with the mortgage loan lender.

When all of these are set, you then finalize the application with the lender and provide all needed documents to speed up the approval process. While the lender does the title and appraisal search, you can start looking for a homeowner’s insurance.

The attorney and realtor will then finalize the deal and sign all documents for you to take ownership of the home.

FHA Home Mortgage Loan Requirements

Applying for an FHA home mortgage loan comes with many requirements. The first one being the downpayment.

Downpayment varies depending on your financial background and portfolio. But the average downpayment can go to as low as 3.5% of the total contract price.

This is ideal for homebuyers who do not have liquid cash to make large downpayments, but have a stable income from a corporate job.

Credit rating is another important rating for loan applicants. A credit rating of at least 600 is the ideal score for applicants for them to be approved for an FHA home mortgage loan. But at Mortgage Capital, we can accommodate even up to as low as a 550 credit rating.

The borrower should have a high debt-to-income ratio (DTI) to qualify for an FHA home mortgage loan. Your DTI should not go beyond 36%. But there are still some instances when borrowers with a DTI of 43% can still be approved if they have a high enough monthly earning and bank statement.

Note that FHA home mortgage loans require borrowers to pay insurance premiums upfront. The borrower should also pay the annual premium to stay up-to-date with the security of their investment.

Best Mortgage Brokers for First Time Home Buyers in Florida

FHA loans are popular among first-time home buyers because of the lower downpayment and more flexible terms.

Even medium to low-income borrowers can apply and qualify for a loan as long as they have a stable source of income and have the necessary documents to prove their capability to repay the loan.

What is a Good Interest Rate for a First Time Home Buyer Mortgage Loan?

The ideal interest rate for first-time home buyers is 6.75% for purchasing a property and 6.6% for refinancing houses. These are in a 30-year fixed payment scheme.

Mortgage Capital can help you get these rates, or even possibly lower depending on your financial backdrop and submitted document requirements. The higher your credit rating is and the lower your DTI ratio gets, the better the chances that you’ll get a lower interest rate.

Rules for Buying Your First Home for First Time Home Buyer Mortgage Loans

FHA loans are a great choice if you have a low credit score because you can still qualify for a mortgage. However, the catch is that you will get a higher interest rate and more fees.

You should also have a low DTI or debt-to-income ratio to qualify. Most lenders require a DTI of at most 43% for a borrower to be approved.

Best Mortgage Loans for a First Time Home Buyer in Florida

Conventional loans usually require a high credit score, which makes it harder for first-time home buyers to qualify knowing that most of them are still starting out in their career or business.

Traditional loans also require you to buy your own private mortgage insurance if you are making a downpayment of less than 20% of the total value. What’s more, is that FHA loans have lower interest rates compared to conventional loans.

Mortgage Capital is your best choice if you are looking for the best mortgage brokers for first-time home buyers in Florida.

We offer different home mortgage loans for your planned home purchase. Our mortgage loan specialists will also help analyze your situation and financial backdrop so you can get the ideal mortgage loan plan.

FHA Home Mortgage Loan Limits 2022

The loan limit set by the FHA for single-unit properties ranges around $420,000 to $970,000.

Mortgage Capital offers FHA loans that have very competitive interest rates. We also help you choose the best mortgage loan option for you by providing in-depth information about the loans.

We give you the freedom to compare different mortgage offers and what their respective APR are. The closing costs, fees, and miscellaneous insurance you should get are all disclosed so you can choose the best one for your needs.

How Much Can I Get a Home Mortgage Loan as a First Time Home Buyer?

The amount you can loan depends on how much your income is. Most mortgage lenders can offer amounts around four or five times that of your come. However there are also cases when they might offer you lower than these.

What Credit Score Do I Need to Get a Mortgage as a First Time Home Buyer?

First-time home buyers should have a good understanding of how low a downpayment can get so they can choose the right one for them.

FHA loans can go as low as 3.5% for qualified borrowers and are usually available to those who have a 580 or higher credit score. You can still apply for an FHA loan with a credit score of 500 but you need a 10% downpayment. 

Who Qualifies for a First Time Home Buyer Mortgage Loan?

First-time home buyers with a credit score of at least 620 are eligible to apply for an FHA mortgage loan. The borrower should also have a 43% DTI ratio at most, alongside a stable source of income with at least two years of employment.