Ft. Lauderdale Market Conditions- Buying Under 400k Through FHA is Wise!

It seems that the Ft. Lauderdale real estate market is perfectly capable of absorbing as many homes available under $400k that become available.

According to Trendgraphix, single-family inventory levels show a much different picture when comparing the number of homes available and sold above and below the $400k price point. When looking at the available inventory in and around the greater Ft. Lauderdale real estate market, it's clear that $400k is the magic price point to strive to stay below. Presently, market conditions approximate 6.3 months of inventory under $400k and nearly triple or 17.9 months if priced over $400k.

There is no doubt the price point is directly affected by the inability to get an efficient mortgage loan without the help from FHA. FHA, the Federal Housing Authority, guarantees loan amounts to qualified borrowers up to $417k in the greater Ft. Lauderdale area. As long as the loan amount stays below this point, FHA currently demands a minimum down payment of 3.5% of the purchase price. In many cases, the dollars sought are no more than a first, last and security deposit for a luxury rental. Since sellers can currently contribute 3% toward the buyer's closing costs on a minimal down payment, the cash needed to buy a home through FHA amounts to little difference in the overall landscape of the real estate purchase.

FHA allows the borrower to get a great low interest loan with less than perfect credit. More importantly, FHA loans are assumable to the next qualified borrower. The banks that are loaning money through conventional sources need a much higher down payment, they generally cost more in fees, your credit needs to be squeaky clean and the loan is NOT assumable.

Buying a home today is fraught with many challenges. Why not try to make the process a bit lighter. First, get a great realtor who knows that's going on in today's real estate market . Next, make sure you get a great mortgage broker who is not going to add on a bunch of unnecessary charges to pad the bill. Finally, get some assistance from an inspector who can guide you on whether the home you've selected will be the home of your dreams or save you from an awful nightmare.

If you'd like that type of representation, click here and let's chat.