The Real estate sector is certainly recovering from the housing market crisis of 2007, although at a slow pace, with the housing rates still quite high for most home buyers. Luckily, with the current low interest rates and the availability of FHA loans for everyone, you can now own your dream home in Florida. But before you make a decision of taking up such a loan, you should first focus on the facts and try to understand what this entails.
Here is a detailed review of these types of mortgage loans that will help in making the wise decision.
What are FHA loans?
FHA is a simple abbreviation that stands for Federal Housing Administration. This type of mortgage loans are insured by the Federal Government agency; thus the abbreviation FHA. However you should note that the mortgages are not issued by the Federal Housing Administration, they just facilitate the insurance for the loans. It is the FHA loan brokers who are the providers of the actual housing financing products to all qualifying home buyers. Therefore you would need to apply for the mortgage from any approved FHA loan lenders.
Why FHA Mortgage loans are the better option
There are multiple loan options that you can take when financing your dream home in Florida. Aside from FHA, the other loans available are such as;
– Conventional mortgages
– VA mortgages
– Refinance loans
– USDA loans
Obviously, every loaning option has different sets of requirement and qualification, but FHA has been popularly preferred to all mainly due to the following reasons –
Easier to qualify
Credit qualification is perhaps the major hindrance for people to access loans. Over the past years, home buyers would only qualify for loans if they had a credit score of higher than 640; it is only recently that the biggest lenders in the market have lowered their minimum requirement to 600. However, for people who have less than perfect credit ratings they can get access to FHA mortgages from as low as 580 scores.
Low Down Payments
Raising a considerate down payment is also another worry for borrowers. With this type of mortgage loan the lowest down payment can be as low as 3.5%, which is quite low considering that other financing options may require up to 10% deposit. Therefore FHA allows loan seekers with modest savings to get financing for their dream homes.
Lower Interest Rates
FHA mortgage loans are highly competitive in the market place; this can only be good to borrowers as they can enjoy some very low interest rates over the long term of their loan period. Interest rates depend on different lenders, therefore you should look for the best rates in the market.
Where to get the best FHA loan financing in Florida
If you are looking to get finance for your development project or you have spotted great house you would like to own in Florida, you should consider contacting American Portfolio Mortgage Company. They are VA loan originators as well as experts in other financing options such as FHA loans, USDA, conventional loans. They also provide solutions on how to refinance your existing mortgage. Whatever your housing financing needs are, visit http://www.myhomemortgage.net/ and learn how you can get assistance.