Category: Blog

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.

Many individuals aren’t aware of what their rights are when it comes to their credit report. In fact, many have never even heard the words ‘Fair Credit Reporting Act.’ The FCRA is responsible for regulating the collecting, use, and distribution of any consumer information, including that of consumer credit reports. The goal of this act is to help protect you from any willful or negligent inaccurate information in your reports.

The Facts

Here are a few important things you need to know about the Fair Credit Reporting Act:

• Consumer credit reports are filled with information relating to your credit, such as the statuses of your credit accounts and bill payment history.
• Reports include such information as to whether you are making your payments on time, the amount of credit you have out there, how much credit you currently have available, the amount of credit in use and whether a debt collector is collecting on any money you owe or not.
• A credit report can also contain information about your payments on a rental property.
• Liens, bankruptcies, and judgments are listed on your credit report and provide valuable insight as to your current obligations and financial status.

Butler Mortgage Can Help

All of these things are crucial to whether or not you can get a mortgage. If something isn’t accurately represented in your credit report, the mortgage experts at Butler Mortgage can help. Our experts understand that you have every right to dispute that information and have it removed. Don’t allow inaccurate information to remain in your credit file. Discover your rights under the Fair Credit Reporting Act. If you have any questions about what the FCRA means for you, call us today at 407-931-3800.

Reverse mortgages are an available option for seniors that own their home or have low balances left on their mortgages. This type of mortgage will convert the equity of the home into a lump payout, a line of credit, or a monthly payment. Seniors may choose one of these options or combine them. When a senior acquires a reverse mortgage, the loan will have no monthly fee as long as they continue to live in the home.

There are many benefits a senior will experience from a reverse mortgage. Here a few of them:

1. Remain in Your Home

   You may continue to live in your home with no monthly mortgage payments. You will be able to use the equity you’ve already built up for whatever you choose.

2. Tax-Free

   Because the reverse mortgage is a loan, any funds you receive — either as a monthly payment or as a lump sum — are tax free.

3. No Restrictions on Use

   You may choose to use the funds in any way you like. You may pay off other debts, make purchases, or take a much-needed vacation.

4. Proceeds Options Are Flexible

   You may choose how you would like to receive your funds. You may either receive a lump sum or monthly payments. You may also choose a line of credit. Depending on your wants or needs, you can combine all three options.

5. Federally Insured Protection

   Reverse mortgages are federally insured. If the lender holding your reverse mortgage loan defaults, you will continue to receive the benefits of the loan.

6. Other Assets Remain Safe

   If you have your home in a reverse mortgage, your other assets or income are not considered for the lender.

How We Can Help

The benefits of a reverse mortgage outweigh the negatives for seniors. It’s a great option to help with other debt, increase a financial portfolio, or simply enjoy your golden years by taking vacations or making purchases you otherwise weren’t able to do, and the experts at Butler Mortgage can help. Call us today to speak with one of our financial specialists and come up with a plan that suits your unique circumstances. For questions, or to take the first step towards a reverse mortgage, call us today at 407-931-3800.

Purchasing a home is one of life’s most important events. Your real estate agent will help you with their knowledge about properties, but for information regarding financing and home mortgages, you’ll need to talk with a mortgage company. When you meet with the mortgage company, it’s important to ask several questions before finalizing any home purchase.

1. Qualifying Factors for a Mortgage

   Find out what requirements you must meet regarding your credit history, employment, liabilities and assets, and income. Your mortgagor will review all of your information to see if you qualify. They will also discuss different types of loans available to you, including government programs, such as FHA and VA, as well as first-time homebuyer loans.

2. Minimum Down Payment

   The amount of money you have as a down payment will affect your monthly payments and also be a deciding factor if additional mortgage insurance is necessary.

3. Interest Rate Information

   Interest rates can fluctuate from day to day and are dependent upon things such as your loan type, down payment, and credit scores. Ask your loan originator how your personal situation may affect the interest rate you will receive. It is possible to lock the interest rate for a specified amount of time.

4. Prepayment Penalties

   It’s important to know if you will have any penalties should you pay the mortgage off early. You may be penalized if you reduce your principal, or refinance.

Trust our Experts

These are just a few of the important questions you should ask when meeting with a mortgage company. Although your real estate broker does not generally partake in mortgages, they can offer you some information if you’re unsure of appropriate questions to ask. It’s important to ask these questions to seasoned mortgage professionals, and you can trust the experts at Butler Mortgage. To speak with one of our experienced professionals and make a plan that best suits your needs, call us today at 407-931-3800.