Owning a home is the dream of many people since it’s an opportunity to own a house and have a place to call their own. Buying a home is a goal many people dream of, but reaching it can be a challenge. Many people have taken to exploring different options to afford their own home and one of them is taking out a loan. This helps the homeowner to realize their goal and to finally own the home of their dreams. When taking out a loan though, many potential homeowners will come to face a variety of options to choose from.

What is an FHA Loan?

FHA loans in Fort Lauderdale is one option potential homeowners can look into to help them to realize their dream of owning a home. The FHA or Federal Housing Administrations was created in 1934 by the National Housing Act and has been around for over 70 years. The FHA was created originally to give lenders and creditors an incentive to finance less fortunate people in the nation by allowing them to buy a house if they were unable to afford a standard loan. The offer has only grown since then and has been gaining a stronger support from various leaders across the country.

The FHA loan is an excellent option since it gives creditors an incentive to provide a potential homeowner with a home loan for a smaller down payment. Normally, 20% of a home’s worth is the down payment in order to qualify for a loan. FHA loans are insured so in the unfortunate event a borrower defaults on a payment, the lender will still get their money back. This benefits potential homeowners since they are able to obtain a home loan with a smaller down payment.

FHA loans in Fort Lauderdale

What is a Conventional Home Loan?

NHL lending has helped many people to realize their dreams of owning a home for the first time. The other option many people have explored is a conventional home to realize their dream of owning a house. The conventional home loan also referred to as a conforming home load, is a mortgage that follows the guidelines of Fannie Mae and Freddie Mac. This type of loan may have either an adjustable or fixed rate depending on the lender.

Fixed rate mortgages mean they have a set interest rate that will remain the same for the entire time of the mortgage term that can last from ten to thirty years. Adjustable rate loans, on the other hand, have a term for over thirty years with a low introductory rate that will last for a long period of time.

Which Loan is the Better Option?

Here at NHL lending, our goal is to educate our clients on the options they have available to them to make the right decision when it comes to home ownership. We understand how this is a dream of many people, but when making such an important financial decision it’s best to do it right the first time. Many homeowners sink their savings into their home and for many, it’s a chance to finally own their first house.

FHA loans in Fort Lauderdale may be an option for people who have the means to take care of a home but are unable to afford the down payment. The FHA loan gives them an avenue towards home ownership without having to put down the full 20% down payment to own a home.

Conventional loans are the option for potential homeowners who may have the means to set down the 20% down payment for a home but are worried about high-interest rates. This will give them a chance to be able to have a mortgage and feel more financially secure in the years to come.

The type of loan a potential homeowner takes out depends on their financial needs and goals. Each of these loans offers an avenue towards home ownership that may have otherwise been unavailable to people.