Delray Beach is one of the fun communities in Palm Beach County, Florida. It is located near Boca Raton in the Sunshine State – Florida. If you are looking to purchase one of the many Delray Beach homes for sale, it would be ideal to learn the differences between a traditional mortgage and the loans offered by FHA programs.
There are two traditional ways people finance their homes. The first is via cash and the second is via mortgage loans. If you notice the number of homebuyers looking for Delray Beach homes for sale, you’ll notice that very few people go for a traditionally subprime mortgage compared to the number of people trying their luck to qualify. Federal Housing Authority Loan (FHA). This is for the reason that there are many advantages that come with an approved FHA compared to the traditional mortgage loan system. This article will name some of the top reasons why many consider an FHA loan from risky mortgages.
* Qualifying is much easier to achieve
FHA mortgage lenders are more than willing to offer loans with lower qualification requirements for the reason that FHA insures your Delray Beach mortgage. The credit qualification requirements are not very stringent in fact, there is no minimum FICO score required to qualify. Those who have declared bankruptcy are allowed to apply to purchase a home after at least one year of bankruptcy and two years after foreclosure.
* Competitive interest rates
Lower interest rates mean lower cost when it comes to home buying and after home purchase. Since all FHA loans are federally insured, it is likely that these loans will have lower interest rates and other costs associated with them significantly lower price.
* Minimum down payment
Not many people have enough money to afford to pay the down payment especially if it is very high. For these people, getting an offer that only requires a 3% down payment is a blessing and a lucky offer. Sometimes there are also loans that allow 100% financing so it will be a great offer for those who do not have a lot of money to pay off. Also, this would be an ideal offer for people who might need money to pay for something else urgent.
* Assists and protects defaulting borrowers to avoid foreclosure
The Federal Housing Authority is an organization that has been in the industry for a long time. This means that it is well funded and established in its own right. In saying this, you will understand why it is more preferred than other traditional mortgage lenders. The organization guarantees the borrowers protection at the point when they will face difficulties after buying the house. The organization offers different types of options to provide borrowers with different options in order to prevent foreclosure of your dream Delray Beach property.
So, if you are among those who are planning to purchase one of the reliable and reliable Delray Beach MLS available for sale homes for sale and are at a loss between choosing subprime loans or mortgages under the FHA program, consider At least you’ve learned some valuable insights to make your decision-making a little faster. It will make your planning and procedure faster when it comes to thinking about what financing to use in case you don’t have enough cash to pay your dream home with cash!