Delaware FHA Loans

The Delaware housing market is certainly in excellent shape if you're considering purchasing your first home. Housing prices are at their lowest point in several years thanks to the slightly slower pace of the United States economy, and sellers are generally willing to negotiate. If you're thinking about finally buying that dream home, now is your chance! It's still important, however, to obtain a reasonable loan on your property, and Delaware FHA loans are a great choice for many first time homebuyers today.

Benefits of FHA Loans

The Delaware housing market is certainly in excellent shape if you're considering purchasing your first home. Housing prices are at their lowest point in several years thanks to the slightly slower pace of the United States economy, and sellers are generally willing to negotiate. If you're thinking about finally buying that dream home, now is your chance! It's still important, however, to obtain a reasonable loan on your property, and Delaware FHA loans are a great choice for many first time homebuyers today.

The Delaware FHA loan program is administered by the Federal Housing Administration, which is a government agency. It's primary goal is to make home buying accessible to people who might otherwise have difficulty getting a loan because of their credit history or the amount that they've been able to save for a down payment. To accomplish its goal, the FHA works with lenders to provide a guaranty program that ensures that their loans are easier to qualify for and have terms that are fair and affordable to home buyers across the country. There are several great advantages to taking out a Delaware FHA loan including

  • interest rates which are competitive with other loan programs
  • fewer points to pay at closing than traditional programs
  • less cash required for a down payment (3.5% down vs the traditional 20%)
  • relaxed credit standards and willingness to work with customers who have bankruptcies on their records

Delaware FHA Loan Limits

fha refinance

Indeed, Delaware FHA loans can be a great option with very few drawbacks if you're looking for a way to buy that first home. Be aware, however, that there are limits on how much money you can borrow under the Delaware FHA program, and the amount is based on the cost of living in your area.

The maximum is adjusted each year and is based on the median home prices in the country, and then adjusted for the housing market in each area, which enables even buyers in high cost of living areas to take advantage of the FHA program. The current limit, for instance, in Dover is $376,250, while the limit in Wilmington is $420,000. Both these figures are based on single family dwellings, so check with your lender regarding the limits for multi-family dwellings.