FHA Loans Are Back And Ready To Play Ball
March 26th, 2008 categories: Real Estate News
FHA loans are off the bench and are back in the home loan game.In recent years FHA loans took the bench while conventional loans had the field of buyers. Up until now I haven’t had a buyer go for an FHA loan in 5 years. Now most of my buyers are going for an FHA loans for a couple of reasons.
#1 The conforming loan rate increase. As part of the president’s stimulus package the conforming loan limit for the Greater Sacramento Area changed from $417,000 to $580,000. What does this mean? It means that you can finance $580,000 with out having to get a jumbo loan. Jumbo loans, especially in recent months have had much higher interest rates. This increase is only good until December 31st, 2008.
#2 Lower down payment requirements. Most conventional loans at this time require at least a 10% down payment to purchase, while FHA requires a smaller 3% down payment. Less cash to close makes the FHA loan appeal to more buyers.
1 Thing to know about qualifying for an FHA loan:
You need to have a satisfactory payment history for 12 months. This is one of their requirements, so it is advisable to get all of your ducks in a row with qualification before going out home shopping. With all of the financing changes in the market it is critical to know what your options are before go out looking. As always having a professional in your corner can insure that your home buying experience is a home run and not a strike out. If you are starting your home buying process give us a call. We would be happy to sit down with you, and discuss your options. 916-628-4598 or 916-628-8086
For more information on FHA loans go to WWW.FHA.COM
f7exgqw7rp26evnj