What You Need to Know Before Getting a Mortgage Loan in Florida

While owning a home is considered to be part of the goals of most generations, it hasn’t been easy for millennials and gen Z. But there have been solutions to this issue in recent years.

It’s all jokes and games when it comes to millennials and their goal-setting (getting a good job, owning a house, planning for the future). But jokes aside, this generation is still overcoming complex barriers when it comes to being homeowners. 

 

In Florida, there are many options that people can look more into to make the dream of owning a house a reality. The US Federal Housing Administration (FHA) offers a series of mortgages that people can qualify for, even if their credit score is low. 

 

But before getting into this, let’s explain the basic definitions. 

What’s a mortgage loan? 

According to Investopedia, a mortgage loan is “a document submitted to a lender when you apply for a mortgage to purchase real estate.” This document requires extensive information, including the property considered, financial situation (that’s why your credit score matters), employment history, and more. The lender uses the information to make their decision to approve the loan. 

Now, what if you’re not a US citizen? Believe it or not, if you’re a recent immigrant or you have a professional or education visa, you’re most likely to ask for a mortgage, but that comes with some extra steps. 

It depends on your residency status, which is divided into the following groups: 

    - Permanent residents with a green card 

    - Non-permanent resident with a valid visa 

    - “Foreign nationals” 

And that’s where the FHA steps in. Since they have relatively low credit score requirements, it’s one of the best options for non-US citizens. Besides providing information of a lender that fits their risk profile, people must also either show proof of permanent residency in the country or use the home as primary residence, add a valid social security number, and employment authorization documents. 

How do I know if I qualify for an FHA loan? 

This is the most affordable option if you’re a first-time homebuyer and if: 

    - You’re at least 18 years of age; 

    - You can show proof of income; 

    - You plan to live in the house as your primary residence; 

    - You have a debt-to-income ratio of less than 50%. 

Once you have all of these things in order, you’re ready to ask for a mortgage loan, and when you get approved, your homeowner dreams begin.