Boca Raton FHA Buyer Information

Boca Raton - FHA Loans, A Great Choice for Buyers

If you are looking for FHA real estate in Boca Raton we have put some valuable information together for you. According to a recent survey from the Home Buying Institute, 87% out of 12,000 potential buyers are planning on applying for an FHA home loan in connection with their home purchase. The survey revealed that close to 54% of those buyers said the reason they prefer an FHA loan is the low minimum down payment required. With an FHA loan, buyers only need to put a minimum down payment of 3.5% of the total purchase price compared to a conventional loan that requires a 20%-30% down payment. That is a huge difference for buyers who don’t have a huge down payment saved, but want to take advantage of today’s affordable home prices. FHA allows buyers who could not otherwise qualify for a traditional home mortgage to achieve the American Dream.

Reasons Why More Buyers Choose FHA

• Lower credit scores required (580 or higher, although most lenders require 620 for a 3.5% down payment. Scores under 580 require a 10% minimum down payment. )

• Easier to qualify for the loan

• They did not make enough income to qualify for a traditional mortgage

• Did not have enough credit established to qualify for a traditional mortgage

• Seller’s contribution to closing costs of a maximum 3.0% (effective April 5, 2010)

With an FHA loan, the seller is allowed to contribute up to 3% of the total purchase price towards the buyer’s closing costs. This was reduced from 6% effective April 5, 2010. If you are purchasing a Boca Raton condo or a condo in any of the surrounding areas, you need to make sure the condo building is FHA approved. You can verify this by going to the FHA website at https://entp.hud.gov/idapp/html/condlook.cfm or by asking your Realtor or your lender. Keep in mind that some townhouse subdivisions are governed by condo associations instead of homeowner associations so it is important to ask your Realtor this question first if you are getting an FHA loan, because you won’t be able to obtain a loan if the building is governed by a condo association and not on the approved FHA list. The following are FHA approved condo buildings in the Boca Raton area:

Boca Glades

Boca Country Estates Condo

Coach Houses of Town Place

Villa Sonrisa Two

Town Place Condo Association

Boca Cove

Lake Windwood Condominium

Mizner on the Green

FHA loan limits vary by state and area so you should check with your lender to verify the limit.

For Palm Beach County and the Boca Raton and surrounding areas, the loan limits for a single-family home are $423,750.