Wilton Manor FHA loans are a type of loan that allow for a smaller down payment and requires a lower minimum credit score. Just like any mortgage package, there are pros and cons. FHA loans aren’t for everyone. But how do you know if it’s right for you? If you’re not sure what an FHA loan is, let’s take a look at what exactly an FHA loan is and if it’s right for you.
What is an FHA Loan?
FHA loans are a type of a home loan the Federal Housing Administration insures. An FHA loan requires a small down payment and has lower closing costs and allows for a relaxed lending standard. This helps homeowners who don’t qualify for a conventional mortgage. A down payment on an FHA loan can be as little as 3.5%. This allows lower and middle income borrowers to be able to afford a house they wouldn’t normally qualify for with a conventional home loan. The loan terms for an FHA loan range from 15 to 30 years and come with a fixed interest rate.
How do FHA Loans Work?
Private lenders issue FHA loans and the FHA provides the lender with a guarantee reduce the lender’s risk. The FHA promises to repay lenders if you default on the loan. In order to fund that obligation, the FHA charges you a borrowers fee. This is a modest, ongoing fee that is attached to each monthly payment. Depending on the risk the FHA takes with your loan will determine the fee amount. Wilton Manor FHA loans are available for multiple types of properties including single family homes, duplexes, manufactured homes, and other types of properties. Choosing a loan that lasts 15 years or less will lower your premiums.
How Do I know If You Qualify?
If you have a valid social security number, have proof of US citizenship or evidence of legal permanent residency or eligibility to work in the US, are old enough to sign a mortgage under your individual state’s borrowing laws, and are looking to buy a one to four unit property, have a credit score of at least 580, and have a qualifying debt to income ratio, you qualify.
The FHA was set in place in 1934 to ensure that those with poor to medium credit and how had zero to little savings were able to afford housing. The purpose of this was to boost the stagnant housing market that was left devastated by the Great Depression.
Choosing a Mortgage Company
Wilton Manor FHA loans are a great choice for many people who aren’t confident about their credit score. But choosing the right mortgage company is essential to getting mortgage that works best for you. It’s important that you choose someone who offers you the best possible loan, as well as a lender who has your best interest at heart. With so many different lenders out there, especially for FHA loans, you may begin to feel overwhelmed because of the options. Just be sure to do your research and do your due diligence. You don’t want to jump at the first offer. Shop around, compare rates and packages, and decide what works best for you. Wilton Manor home loans may be right for you.
Let Us Help You Get the Home of Your Dreams
Are you tired of not living in the home of your dreams? Do you feel like your dream home is out of reach because of your current financial situation? You never know what’s possible until you start researching. Wilton Manor FHA loans may be the mortgage package that’s right for you. If you’re curious about FHA loans, how they work, and if they’re right for you give us a call. Our team of professional lenders are ready and waiting to answer all of your questions about lending, mortgage rates, interest rates, and whatever other questions you might have. Stop worrying if you’ll ever be able to get into the home of your dreams and start taking action. The home of your dreams might be even closer than you realize. Call us today to find out if FHA loans in Wilton Manor are right for you and your family.