FHA has changed their guidelines for home purchases. It's a great time to refinance your home if you've previously signed on for an adjustable rate mortgage or ARM. There's been an increase of FHA loan applications and agency officials believe the recent federal takeover of mortgage financiers Fannie Mae and Freddie Mac will only add to its numbers. It's also a great time to buy, period. As Donald Trump said last night on Larry King Live:
"It's an unbelievable time to buy a house and especially if a bank happens to own it because they've put the money in so it's not a question of getting financing. The money is already there. Go out and make a deal. The banks want to unload their stock. They have thousands and millions of houses. Go out, see what they have, get yourself a great house, they will give you financing."
If you're smart, now is the time to get a deal on a home. Just being smart doesn't cut it though. You also need to be prepared both credit-wise and with your down payment. FHA has tightened their belts and in Ohio, there are no longer seller funded gift programs to cash in on. Many home owners are flocking to fixed rates which are still low. (What is FHA?)
FHA Changes:
This summer, the federal housing rescue bill was passed. It increased the down payment amount needed for FHA loan borrowers. 3.5 percent is now the minimum amount required for borrowers up from 3 percent starting October 1st, 2008. Nonprofit gift programs such as Ameridream will no longer be available. This means no more seller funded gifts to buyers for down payment assistance.
On October 1st, 2008, FHA will also increase their fees. Borrowers will need to pay their mortgage insurance premiums upfront in the amount of 1.75 percent of the purchase price as opposed to the previous 1.5 percent. Annual premiums will also increase to .55 percent up from .5 percent.
FHA Benefits:
FHA is still a great choice for home financing if your credit score is not perfect and you can't quite swing 5 or 10 percent down. Rates are great. When you purchase a home or refinance using FHA, your loan becomes assumable. Having an assumable loan means down the road, a buyer can purchase your home assuming your current rates, etc. This is a great benefit for selling if interest rates go up or if the market changes. It's a selling feature that sets you apart.
Ohio's FHA's qualifications as far as inspections have also decreased so you're able to make more decisions when it comes to the condition of the property you're going to purchase. They used to be strict with certain small things like handrails on steps which many home buyers disagreed with. While there are still inspections and safety guidelines, the reports can benefit you as a home buyer when negotiating the final sale. FHA is recommended by most lenders over conventional loans.
For more information on FHA loans, getting approved for a mortgage or information on getting started with purchasing a home, contact Andrew Ginter by email or call 440-781-8737 anytime.
"It's an unbelievable time to buy a house and especially if a bank happens to own it because they've put the money in so it's not a question of getting financing. The money is already there. Go out and make a deal. The banks want to unload their stock. They have thousands and millions of houses. Go out, see what they have, get yourself a great house, they will give you financing."
If you're smart, now is the time to get a deal on a home. Just being smart doesn't cut it though. You also need to be prepared both credit-wise and with your down payment. FHA has tightened their belts and in Ohio, there are no longer seller funded gift programs to cash in on. Many home owners are flocking to fixed rates which are still low. (What is FHA?)
FHA Changes:
This summer, the federal housing rescue bill was passed. It increased the down payment amount needed for FHA loan borrowers. 3.5 percent is now the minimum amount required for borrowers up from 3 percent starting October 1st, 2008. Nonprofit gift programs such as Ameridream will no longer be available. This means no more seller funded gifts to buyers for down payment assistance.
On October 1st, 2008, FHA will also increase their fees. Borrowers will need to pay their mortgage insurance premiums upfront in the amount of 1.75 percent of the purchase price as opposed to the previous 1.5 percent. Annual premiums will also increase to .55 percent up from .5 percent.
FHA Benefits:
FHA is still a great choice for home financing if your credit score is not perfect and you can't quite swing 5 or 10 percent down. Rates are great. When you purchase a home or refinance using FHA, your loan becomes assumable. Having an assumable loan means down the road, a buyer can purchase your home assuming your current rates, etc. This is a great benefit for selling if interest rates go up or if the market changes. It's a selling feature that sets you apart.
Ohio's FHA's qualifications as far as inspections have also decreased so you're able to make more decisions when it comes to the condition of the property you're going to purchase. They used to be strict with certain small things like handrails on steps which many home buyers disagreed with. While there are still inspections and safety guidelines, the reports can benefit you as a home buyer when negotiating the final sale. FHA is recommended by most lenders over conventional loans.
For more information on FHA loans, getting approved for a mortgage or information on getting started with purchasing a home, contact Andrew Ginter by email or call 440-781-8737 anytime.
posted by Cleveland Real Estate at
9/22/2008
1 Comments:
Nice Article...
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