Low Down Payment Options for a Home Mortgage in Boca Raton

When you are ready to make your dream house a reality, you will likely need a home mortgage in Boca Raton. Because of changes to mortgage requirements, you may have noticed that the down payments for homes can be quite expensive. In fact, your down payment will likely be the most expensive part of buying a home, as it is probably the largest payment you will make in full. However, if you’re looking for a lower down payment that won’t leave your bank account in shambles, there are options!

Is FHA the Best Choice for a Low Down Payment Home Mortgage in Boca Raton?

If you’re looking for a less expensive home buying experience, FHA loans may be the way to go. Originally, FHA loans were created during the year 1934 to deal with the Great Depression. However, within the last few years, FHA loans have become a top choice for young people and for those who have lower income amounts. The individuals who are choosing this type of loan the most, however, are new homebuyers. You may be wondering what makes an FHA loan so drastically different from other mortgages, such as a conventional loan? According to current standards, FHA loans only require as low as a 3.5% minimum down payment. Conventional loans, for example, require a 20% down payment.

However, these particular percentages range depending on the buyer’s credit score. A borrower with a credit score under 500 is not eligible to receive an FHA loan. A borrower with a credit score of 500-589 is required to make down payments of 10%, and so on and so forth. However, the higher your credit scores, the better off you will be.

At Ace Mortgage Loan Corp., we understand that many young people and first-time homebuyers have less money to use as a down payment. While each homebuyer is different, it’s important to have a professional walk side-by-side with you as you make this life-changing decision. The type of home mortgage in Boca Raton you choose is a big decision. Call us today at (954) 777-4774 for guidance that will last!

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