There are many first-time homebuyers who have heard their friends or family speak highly about an FHA mortgage loan. An FHA loan is a mortgage that is insured by the Federal Housing Administration, which is a government agency within the United States Department of Housing and Urban Development. The interest rates are significantly lower than other types of mortgage loans. Here are some facts you should know about getting an FHA mortgage loan in Delray Beach, FL:
- If you have less-than-perfect credit, it is OK. According to the Federal Housing Administration, also known as the FHA, as of September 2010, the minimum credit scores needed for FHA mortgage loans depend on the type of loan the home borrower is searching for and needs. Even those with credit score from 500 to 579 may be able to borrow 90% loan-to-value.
- The FHA requires a down payment of 3.5% of the entire purchase price of a home. Borrowers can make the down payment in three ways. They can pay the down payment using their own savings. They can use a monetary gift they received from a family member or they can pay the down payment using a grant from a state or local government down-payment assistance program. This 3.5% down payment is mostly want attracts first-time homebuyers to obtaining a FHA mortgage loan.
- The FHA allows closing costs to be paid by home sellers, builders, or mortgage lenders in Delray Beach, FL. The closing costs can include an appraisal, credit report, or title expenses. It’s important to know that mortgage lenders typically charge a higher interest rate on the loan if they do, in fact, agree to pay closing costs.
- It is required for all homebuyers getting an FHA loan to have two mortgage insurance premiums. The upfront premium is 1.75% of the loan amount and it is paid when the person borrowing the loan gets the loan. Nonetheless, it can be financed as part of the loan amount. The second premium is the annual premium and it varies based on the length of the loan, the initial loan-to-value ratio, and the actual amount of money being borrowed.
- FHA insurance is not intended, under any circumstance, to be an easy way out for borrowers who feel unhappy about their mortgage payments. Mortgage brokers in Delray Beach, FL can offer some relief to individuals who have an FHA-insured loan, have suffered an extremely serious financial hardship, and are struggling to make their monthly payments. They can either offer a temporary period of forbearance, do a loan modification that would lower the interest rate or extend the payback period, or give a deferral of part of the loan balance at no interest. This kind of financial hardship relief is allowed with an FHA loan.
Ace Mortgage Loan Corporation is mortgage loan company that is not the same as all the other mortgage companies. This mortgage company has over 20 years of experience in helping Delray Beach, FL residents get an FHA loan. Their home loan experts can answer any questions and confusions you may have on an FHA loan or on another kind of loan. They have their clients’ best interests at heart. They want them to be able to get the home loan they can afford to buy the home they want. They want their American Dream to come true once and for all. If you live in Delray Beach, FL or in one of its surrounding cities and you are looking for assistance in getting a mortgage loan, call Ace Mortgage Loan Corporation today at (954) 777-4774 and get started on your unique home buying journey.