Reason #1: Lack of Stable Job History

The first thing lenders look when deciding whether to grant you a Florida home loan is evidence that you’ve had and will most likely maintain a stable job history. For sure, you’ll need to account for the last 2 years of work history. You’ll also need to furnish your most recent 2 years W2 statements as well as a recent pay stub in order for most lenders to issue you a pre-approval letter.

Reason #2: Insufficient Income

Even if you can show a steady work history, you must be able to also show that you can afford the Florida home loan you’re seeking. As a rule, you’ll want to be sure that you have a minimum of 2 and 1/2 times your monthly debt payments coming in as monthly income.

Reason #3: Poor Credit History

Most Florida home loan mortgage lenders today require a 620 minimum credit (FICO) score, and you’ll need a 700 score or higher to get some of the more attractive rates being advertised. As a rule, you can expect your interest rate to be better the higher your credit score rates. Low but acceptable credit scores in the high 600s will get you lower than optimal mortgage interest rates.

Bottom line: If you can’t get a Florida home loan approval, it is likely due to insufficient income, too much debt, or your inability to document your income or assets. The only thing you can do if you fall into any of these categories is wait it out. In time, if you work on each of these areas, a mortgage approval will be in the cards for you.

Top 3 Reasons Why You Can’t Qualify for a Florida Home Loan is from Florida Home Loan Report

Should you be thinking about a house purchase between now and Nov thirty, 2009, and you intend to live in your Winter Haven home for three years or more, then you simply must employ this true $8,000 tax allowance. Couple this credit with a minimal 3.5 % FHA mortgage downpayment or a real 100 % financed USDA Agricultural Development – and you seem to have a recipe for some heavy money savings.

To make absolutely sure you understand some of the key parts of this tax allowance, I have pulled together answers to 5 of the most often asked First-time Home Buyer Tax Credit queries I have fielded over the last months.

Who Qualifies for the $8,000 First-Time Home Buyer Tax Credit?

You are eligible to receive this tax credit so long as you adhere to the following:

• You have never owned a home – or, have not owned one in the past 3 years – determined by HUD 1 date when previous home was sold (Note: If married and you did not own a home within the last 3 years, but your spouse did, then you do not qualify)
• You have or will buy your home as a primary residence between January 1 and November 30, 2009
• You can show that if you owned a rental property or vacation home, it was not used as a primary residence over the last 3 years
• If you’re unmarried and you are buying the home with another person who owned a home within last 3 years but you did not, you can “designate” the tax credit to you – qualifying you as the First Time Home Buyer (FTHB)
• If your parents cosign on a mortgage (and own a home) and the you are the FTBH, then they are eligible for the tax credit.
• Non-US Citizens may qualify if they meet resident-alien status (IRS Pub 519)
• Revenue or Housing Bond financing are eligible for tax credits.

What Types of Properties are Eligible for the Tax Credit?

• Primary Residence – Single family, 2-4 units (must occupy one unit) town homes, condos, manufactured homes, mobile homes and houseboats.  Yes, houseboats!
• For new construction – The “Purchase Date” is the date that you begin to occupy the home (between Jan 1 and Nov. 30, 2009) Note: You can have owned land and be in the process of building.

What Income Limits Are Associated with the Tax Credit?

• $75,000 Single Person (Partial Credit up to $95,000)
• $150,000 Married Couple (Partial Credit up to $170,000)
• Totals are based on Adjusted Gross Income (AGI) line on IRS Form 1040, 1040A or 1040EZ

What Exact Amount is Awarded via the Tax Credit?

• You may be eligible to receive a maximum of $8,000, or the amount equal to 10% of home’s sales price – up to this amount. If you buy for $75,000, then you are eligible for only $7,500.
• Up to Maximum of $8000
• Partial Tax Credit if income exceeds $75,000 or $150,000

Does the Tax Credit Have to be Repaid?

• No.  As long as you stay in the home for a minimum of 3 years, you do not have to pay back the tax credit.
• Note: If you sell within 3 years, the entire tax credit needs to be repaid!

Need to make an application for the 1st time Home Buyer Tax Credit? Be certain to download and complete IRS First-Time Home Buyer Credit Form 5405.

As always, you want to talk with your tax pro per how this tax subsidy will impact your finances. Having said that, if you are intending to get a Florida home in the future – or any time up thru Nov thirty, 2009 – taking the $8,000 First Time Home Buyer tax subsidy is a no-brainer!

Frequently Asked Questions (FAQs) About the $8,000 First-Time Home Buyer Tax Credit is from Florida Home Loan Report

Too often these houses are passed by due to minor, to not-so-minor damage, and buyers are uncertain they can secure finance for the house purchase AND the house maintenance.

What’s more, most banks only provide permanent financing, and routinely need enhancements to be finished before funding long-term loans. Using 203 ( k ) rehabilitation loans, home buyers can get only 1 single mortgage to cover the price of both the purchase and the rehab of the home they are purchasing.

To provide funds to cover the home’s purchase and rehab, the mortgage amount is predicated on the projected cost of the property ( after repairs ), taking into account the price of the work. To keep the danger to the mortgage bank at a minimum, the mortgage ( the maximum acceptable amount ) is fit for endorsement by HUD as shortly as the mortgage proceeds are disbursed and a rehab escrow account is established. At about that point the bank has a fully-insured mortgage and can breath relatively simple.

What Properties Qualify for for 203 ( k ) Rehabilitation Loans?

According to the HUD web site, 203 ( k ) rehabilitation mortgages may be used to purchase any one to four-family home – although it’s at least one year old. The quantity of units on the site must be satisfactory according to the provisions of local zoning wants. All newly made units must be attached to the current dwelling.

Engaging Fact : Houses that used to be demolished, or will be razed as an element of the rehab work, are eligible provided some of the present foundation system remains in effect. As well as everyday home rehab projects, this program can be employed to convert an one-family dwelling to a two-, three-, or four-family dwelling. It is feasible to move an existing house ( or modular home ) onto the mortgaged property. The sole condition here, though, is that loan proceeds will not be released till the new foundation has been checked and the home has been correctly placed and secured to the new foundation.

If you are having a look at foreclosed, bank-0wned, or short sale property, but are worried about the repairs wanted to get the home into livable condition, the 203 ( k ) rehabilitation loan just could be your answer. Not only are you able to get a mortgage for the property, but you will get enough to cover the repairs needed to make it home sweet home.

Florida 203(k) Rehab Loans – Basic Overview is from Florida Home Loan Report