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Delray Beach is one of the pleasant communities in Palm Beach County, Florida. It is actually 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 is ideal that you learn the difference between conventional mortgages and loans offered by the FHA programs.
There are two traditional ways that people finance their homes. First through cash and second through mortgage loan. If you observe the number of homebuyers searching for Delray Beach homes for sale, you’ll see that the number of people taking out traditionally risky sub-prime mortgage loans is very small compared to the number of people who Those who try their luck to qualify. Federal Housing Authority (FHA) loan. It stands to reason that there are many advantages that come with FHA approved loans when compared to the traditional mortgage lending system. This article will name some of the top reasons that lead many people to consider FHA loans in comparison to riskier mortgage loans.
* Very easy to qualify
FHA mortgage lenders are willing to make loans with lower qualification requirements because the Federal Housing Authority insures your Delray Beach mortgage. The credit qualification requirements are not very stringent as a matter of fact, there is no minimum FICO score required to qualify. People who have filed bankruptcy are allowed to apply to buy a home at least one year after bankruptcy and 2 years after foreclosure.
* Competitive interest rates
Lower interest rates mean lower home purchase and post-home purchase costs. Since all FHA loans are insured by the federal government, these loans are likely to have a lower interest rate and the other costs associated with it are noticeable at a lower rate.
* Minimum down payment
Many people do not have enough money to pay the down payment, especially if it is very high. For these people, an offer that requires only 3% down payment is considered a blessing and an offering of good luck. Sometimes, there are also loans that allow 100% financing, so this would be a great proposition for those who do not have much money to pay. Also, it would be an ideal proposition for those who may need money to pay for some other urgent need.
* Helps and protects borrowers who fall behind on payments to avoid foreclosure
The Federal Housing Authority is one such organization that has been in this industry for such a long time. This means that it is well funded and established in itself. Having said that, you will understand why it is more preferred than other traditional mortgage lenders. The organization assures borrowers of security in case they face difficulties after purchasing a home. The organization offers a variety of options to provide borrowers with a variety of options to prevent foreclosure of your dream Delray Beach real estate.
So, if you are one of those who are planning to buy one of the Delray Beach homes for sale in a reliable and trustworthy Delray Beach MLS and you are between choosing a risky subprime mortgage loan or a loan under the FHA program If you’re somehow confused, at least you’ve learned some valuable ideas to speed up your decision-making a bit. When it comes to thinking about what type of financing to use if you don’t have enough money to pay cash for your dream home, it will make your planning and actions quicker!
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