Special offer

Delaware FHA loans - Help buyers purchase homes despite under qualifications

Mortgage and Lending with Stonebridge Mortgage

  The Housing Market today is quite volatile, and the best idea for buyers is to find the safest deal ever for their housing concerns. For banks, their first priority is to assure repayment of the mortgage, as well as making sure customers are 100% sure that they are able to pay for their mortgages. The Delaware FHA or Federal Housing Administration is a federal agency, which came into existence as part of FDR’s New Deal in the 1930’s. The goal of the Administration is to ensure banks’ ability to lend money to potential homeowners by providing insurance, which is paid for by the homebuyer. While the down payments are low, and even in some cases nothing, the Delaware FHA loan amounts are significantly lower, causing the necessity of a lower quality home.

During the depression, housing loans had all gone into default because of massive job loss and massive repayment inability; thus, banks were reluctant to loan out mortgages to depression survivors because of credit history. This killed the housing market into the early 1930’s, thus the Delaware FHA was created, in a hope of rekindling the Housing Market after the Depression era. Because of this, and other legislations put into motion, the housing market rekindled, and the market had revived with post-WWII home purchases. The Administration continued to serve low and middle-income families in purchasing new homes as well as assisted struggling banks with lending mortgages for these potential homeowners.

With a Delaware FHA Loan, the possibility of owning a home is raised significantly because the need for a high credit score is practically abolished as well as the need to prove a high amount of income. The banks have an insurance policy on the home, meaning if the owner can no longer make payments on mortgages, the insurance paid by the homeowner can cover the payments and the balance on the home whether temporarily or permanently, resulting in the “foreclosure” of the home.

The idea of lower down payments and lower loan amounts is very appealing to lower and middle-income families who would not otherwise be able to put together enough money to give a down payment, even though the monthly payments are easier to handle.


At Stonebridge Mortgage loan officers are available to answer questions about Delaware FHA loans, as well as information regarding the qualifications and requirements for approval. Visit www.stonebridgemortgage.com 27 hours a day 7 days a week for more information or to begin the application process.


Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

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