Author: kollin.yelensky

If you’re in possession of a homeowner’s insurance policy, chances are that it does not have a provision protecting you in the event of a flood. In fact, this is a common misconception among homeowners. A survey conducted in 2013 found that 44% of Americans were under the impression that they were covered against flooding, but only 15% reported having purchased flood coverage. Since most policies don’t cover flood damage, it is always a smart idea to consider such coverage.

When is Flood Insurance Required?

If your home falls within an area at high-risk for flooding and your mortgage is serviced by a federally regulated or insured lender, they are obligated to require you to maintain flood coverage on your property. However, you may want to consider flood insurance even if you are not in a high-risk area since more than 20% of flood insurance claims are in low to moderate risk flood areas. Additionally, the average flood claim is about $30,000 and can be much higher in certain cases.

Though flood insurance is offered through the NFIP, the policies themselves are sold and administered by private insurance companies and are usually not expensive. Keep in mind that most flood policies don’t take effect until 30 days after signing the policy, so proactively buying coverage before the rainy season is always a smart idea.

To learn more about flood insurance and whether or not it’s right for you, contact Butler Mortgage. Our professionals have been helping Central Florida families like yours to get the financing they need for more than 20 years. For questions, or to speak with one of our representatives, call us today at 407-931-3800.

The end is in sight. When you finally hear the words “clear to close” from your loan officer, a wave of relief often rushes over you. The statement “clear to close” refers to the underwriter approving all your documentation necessary for the closing department to begin drafting the closing disclosures and scheduling the closing date with the title company.

Here is some of what you can expect during your mortgage closing:

The Down Payment and Cash-to-Close

Though you’ve been barraged with mortgage disclosure documents over and over throughout the process, you will receive your final mortgage numbers a few days before closing. These numbers will include your closing costs, escrow amounts, interest rates, and cash-to-close.
It is possible for these figures to fluctuate somewhat from your initial disclosure. For example, underestimating the amount for the escrow portion of your payment can cause your cash-to-close and estimated mortgage payment to increase. Keep an eye on these amounts throughout the process and be prepared for the costs on closing day.

Signing the Closing Documents

Ideally, the final documents you sign at the closing table should be exactly the same as your final set of mortgage disclosures, which should be similar to your original disclosures as well. Once you’ve verified that, you can expect to sign your legal name on about 50 pages worth of documents.

Once finished signing all of the required documentation, the closing documents will be sent to your lender’s closing department via fax or scan.

It typically takes 15-20 minutes to receive a funding number, which essentially means that the title agent can disburse all funds accordingly.More importantly, it means that you are now officially a homeowner!

Buying a home, especially your first home, can be a daunting process. With more than 20 years of experience in the Central Florida area, you can trust Butler Mortgage to find a mortgage product that perfectly suits your needs. You can also rest assured that we’ll be here to help you every step of the way, including on closing day. Contact us today at 407-931-3800 or online to request a complimentary consultation.

Home ownership is a wonderful thing. It comes with benefits that you won’t find anywhere else, including building equity and affording your family the ability to settle down in one particular area. On top of that, there are numerous home ownership benefits to be had when tax season rolls around each year.

Here are some great ways in which owning a home can make your life easier at tax time.

Mortgage Interest Deductions

Mortgages and buying a home are long-time commitments, with a typical term of 30 years. Fortunately, any interest you pay on your mortgage may be tax deductible, so long as it does not exceed $1 million in one year. If you’re married and filing your taxes separately, that threshold drops to $500,000 respectively. The amount of interest you can deduct is somewhat dependent on your yearly income as well.  Such deductions can phase out at higher income levels, so be sure to check with your CPA to determine what amount, if any, is deductible.

Property Taxes as Deductions

Claiming your property taxes is a fantastic way to reduce your yearly taxable income. If your mortgage is set up with an escrow account, you can get an idea for how much to deduct by looking at how much you’ve paid in taxes on the escrow statement.

Other Notable Deductions

Deducting your mortgage interest and property tax are the largest tax-related home ownership benefits, but there are other deductions as well. If you’ve taken out a home equity loan or line of credit, you may be able to deduct that interest up to $100,000. Home upgrades that reduce energy use or are related to medical care can often be deducted as well.

Buying a home can be intimidating, but taking advantage of all of the benefits that home ownership has to offer can make the process much less stressful. We know that every situation is different, and we strive to create mortgage solutions that suit your specific needs. Contact us today at 407-931-3800 with any questions.

*Please consult with your accountant to find out whether these benefits of home ownership pertain to your specific situation.

Securing a home loan can be stressful.  Being successful in obtaining a loan depends on things like your credit, work history, and available assets, among other factors. The Federal Housing Administration created the FHA loan in 1934 to help increase homeownership and insure mortgage loans from private lenders, which helped promote lending to individuals with a less than perfect credit history.

FHA loans allow homebuyers to provide a small downpayment while still securing a mortgage at a competitive interest rate. An FHA-approved lender like Butler Mortgage can help you acquire your FHA loan. Lenders are comfortable offering FHA loans because the FHA insures the mortgages.

Qualifying for an FHA Loan

In order to qualify for an FHA loan, you will need to meet certain criteria that includes:

• A credit score that is 580 or higher.
• The property must be owner occupied.
• The property must be either a single-family residence, a townhome, a condominium, or a manufactured home.
• A minimum downpayment of 3.5 percent, which could be gifted to you from a relative.
• Establishing an impound (or escrow) account, which means that in addition to the principal and interest portion of your payment, you will pay your property taxes and homeowner’s insurance monthly, and the lender will forward those amounts accordingly.
• Providing your lender with your past two years of employment history. If you were attending school during this time, that might count towards your work history if your current job is in a field related to your education.
• Providing proof of income that shows you can meet the maximum debt to income ratio requirement which is currently 43 percent, though exceptions may be made if your credit is strong.

Choose Butler Mortgage for Your FHA Loan Needs

Butler Mortgage is your local FHA-approved lender. We have worked with many of your neighbors in Central Florida since we first opened our doors in 1994, and built a business on trust. We understand every customer is different, and we are committed to finding a mortgage product that best suits your needs. Contact us today at 407-931-3800 or online to request a free consultation.

A loan can be very helpful when you are ready to purchase a home, but you should understand what you are getting yourself into prior to signing. When applying for a loan, you want the best deal possible so here are some important questions to ask your mortgage company before signing:

1. What is the Interest Rate?

Depending on the loan you apply for and your credit history, you will be offered an interest rate. You want to ensure your interest rate is reasonable enough so that you can afford the monthly payments without burdening your household.

2. What Documents Do I Need?

When you need a loan, it can be a time-sensitive issue, so you want to do everything you can to speed up the process. By finding out what documents you need before applying, you can get the ball rolling and receive a quicker response.

3. What Type of Loan is Best?

There are many different types of loans suited for various family situations, such as conventional mortgages, FHA loans, USDA Loans, VA Loans, and more. There are also refinance mortgages, loans for purchasing 2^nd homes or investment properties, and construction loans. Varying interest rates, qualification criteria, payment types, and other factors all play a part in selecting the best loan for you. Talk to the lender and guarantee that you receive a loan that fits your needs.

4. What is the Minimum Down Payment?

Different types of mortgage loans require different levels of down payment. Once you know how much you will need to put down, you can assess your finances to determine if you will have enough for things like closing costs, regular living expenses, furnishing your new home, etc. Many people would rather pay a small down payment, but if you make a larger one, you will have smaller monthly payments.

5. Can I Lock My Rate?

Interest rates tend to change, and if you don’t take one you are given, you run the risk of losing it and getting a higher rate later. Locking your rate gives you peace of mind by allowing you to hold on to the preferred rate throughout the process and avoid any spikes in the market.

Apply with Butler Mortgage

Getting a mortgage loan stays with you for a long time, so it is imperative that you ask all the right questions and get the best loan for you. Butler Mortgage wants to work with you and use our 20+ years of experience and many loan programs to meet your unique needs. Call us at 407-931-3800 and request a free consultation today.

If you are on the fence about applying for your first mortgage, it is completely understandable. A mortgage is a big commitment and must be thought through effectively. As a first-time home buyer, there are many ways that you can benefit from your first mortgage that make it entirely worth it. By taking advantage of these opportunities, you can save money and manage your loan with ease.

Tax Deductions

In most cases, first-time home buyers can deduct the interest they pay on their mortgage. Though certain restrictions apply, such as not having a mortgage for more than 1 million dollars, this is an easily attainable way to save money on your first mortgage.

Low Down Payment

There are programs in which you can put as little as 5%, 3.5%, or even 0 percent down in certain geographic areas or if you are a Veteran. Gone are the days where first time homebuyers needed to put 20% down or more.

Historically low rates

Take advantage of low interest rates before they go up. A lower rate could save you hundreds of dollars per month.

Apply for Your First Mortgage

For first-time buyers, your first mortgage offers many rewards from which you could benefit. At Butler, we have over 20 years of experience with all types of home buyers and would be honored to help you with your first loan. You can request a free consultation at 407-931-3800 or visit us at www.butlermortgage.com to pre-qualify for a mortgage in Central Florida today.

If you would like to buy a house, but you don’t have a perfect credit rating or you have a limited amount of funds for a down payment, an FHA loan might just be the right choice for you.

What is an FHA home loan?

FHA home loans are mortgages backed by the Federal Housing Administration. These loans are available from a variety of private lenders. Similar to the private mortgage insurance with conventional loans, FHA borrowers are required to pay a mortgage insurance premium, which helps to protect the lender should the borrower default. There is an upfront portion of the MIP that is financed into the loan amount and a smaller amount that is added to your monthly payment.

Benefits of an FHA home loan

One of the primary advantages of an FHA loan is that such loans are government-backed and thus have relaxed criteria for qualifying. Many potential homeowners, particularly first-time buyers without a lengthy credit history, can get an FHA loan even when they have been turned down for a traditional bank loan.

FHA loans are often available at interest rates lower than those of traditional home loans. Down payment requirements are as low as 3.5 percent, less than the 5% percent required on conventional loans. There is more flexibility with FHA loans for the seller to contribute toward the buyer’s closing costs (up to 6% of the loan amount) as well.

How We Can Help

To learn more about FHA loans and whether this type of loan is right for you and your family, contact Butler Mortgage . Our professionals have been helping Central Florida families like yours to get the financing they need for more than 20 years. For questions, or to speak with one of our representatives, call us today at 407-931-3800.

If you’ve served in the U.S. Army, Navy, Marine Corps, Air Force or Coast Guard, your nation thanks you by offering a myriad of veterans’ benefits, one of which is access to government-sponsored mortgages for purchasing homes or refinancing existing loans.

What are VA home loans?

VA home loans are available to service personnel, veterans, and eligible spouses. These loans are available through private lenders and, in most cases, are the most affordable loans on the market.

Benefits of a VA home loan over a conventional home loan

VA home loans offer a number of advantages, which can include:

• No down payment

  Unlike traditional loans that can require a minimum down payment of up to 20 percent, VA home loans require zero down payment.

• No private mortgage insurance

  For traditional loans, where the down payment is less than 20 percent, the lender requires the borrower to purchase private mortgage insurance (PMI). This is a monthly fee over and above your principal and interest payment. No PMI is required for a VA home loan.

• Lower interest rates

  While interest rates on VA loans fluctuate with market conditions, they are typically a quarter of a percent lower than conventional interest rates.

Let Us Help

To learn more about VA home loans and whether this is the right choice for you and your family, contact Butler Mortgage. We have been helping Central Florida families like yours for more than 20 years, and would love to tell you more about how we can help. For questions, call 407-931-3800.

2017 promises to be a year of growth for Kissimmee’s housing market. After peaking in the early 2000s, the area experienced significant declines that are only now correcting themselves. These corrections are attributed to renewed interest in alternatives to the crowded Orlando market.

Prices

Prices are the key factor in this area’s renaissance. Averaging less than $200,000 for prime selections, it’s easy to see why the 2017 Kissimmee home value forecast is optimistic. Those price projections include recent increases that have reached double-digit percentages at times.

Expanding Market

Another reason Kissimmee is quickly becoming the choice for Central Florida home buyers is a growing number of additions to the market. Contractors have seen substantial growth in the area thanks to developers who are spotting the need for affordable housing solutions. They are betting on this level of prosperity to continue at least through 2017 and likely into 2018. With the city implementing a 2015-2030 plan for development, there’s no reason to think they’re wrong.

Lack Of Problems

No problematic issues appear to be on the horizon for this 2017 Kissimmee Home Value Forecast. In fact, Kissimmee is expecting a steady year regarding jobs and city development. That may seem boring to those outside the housing industry, but there’s nothing better for home buyers seeking a stable deal.

How We Can Help

Butler Mortgage has been Kissimmee’s mortgage choice for more than two decades. Our experienced loan officers know how to navigate every challenge of real estate based lending. Call 407-931-3800 now to learn about our mortgage solutions for Kissimmee’s flourishing housing market.

New homebuyers are always looking for a loan that will help them buy the house of their dreams. Butler Mortgage offers several different mortgage loan programs to help you purchase your first home. Choose from one of the following programs and apply online to get started today.

Conventional Loans

Conventional loans are mortgage loans that conform to guidelines established by two federal agencies – Fannie Mae and Freddie Mac. They typically require at least a 5% down payment, but you can avoid paying mortgage insurance if you can come up with a 20% down payment. If you qualify for a conventional loan, Butler Mortgage can help you get the best rates and terms to purchase your home.

FHA Loans

The Federal Housing Administration (FHA) is an organization that insures loans to homebuyers who may not qualify for conventional mortgages. The down payment requirement is less (3.5%) and the qualifying guidelines are more flexible with regards to income and credit history. The interest rates are typically very low, but FHA loans require mortgage insurance to be paid regardless of the down payment or term of the loan.

USDA Loans

USDA loans are backed by the United States Department of Agriculture. The advantage of this type of mortgage loan is that it does not requires a down payment. That’s right… 0%!  However, USDA loans are limited to certain geographic areas and to individuals and couples who earn less than established guidelines. Your mortgage professional will quickly determine whether you qualify for this type of loan.

VA Loans

VA loans exist to help veterans and active-duty personnel get into a home with a 0% down payment. Butler Mortgage thanks you for your service to our country! We can help you get started on a VA loan and point you in the right direction regarding the forms and documentation you will need.

Work with the Experts

As you prepare to purchase your new home, do your research and trust the expert professionals at Butler Mortgage. Since 1994 we have been helping the residents of St. Cloud, Kissimmee, Lake Nona, and other areas of Central Florida, including Osceola, Orange, Polk, and Lake Counties to get in the home of their dreams. Contact us online or at 407-931-3800 for more information on our new home buyer loans and to request a free consultation.