Last summer we had a melt down in the mortgage industry, and for a short period of time, getting a loan of any type was difficult. But now the mortgage companies have a way to get people into a home with little or no money down.
The Federal government (that would be president Bush and Congress), have passed laws that allow FHA to insure loans of up to 97 percent. With some very legal gift programs that the sellers can participate in, buyers can usually get into a home for a very small amount of cash. You still have to qualify for the loan, and it has to be your personal residence. But things are not as bad as the media would have you believe.
A large percentage of the Nashville real estate I've sold this year were purchased with $1000 dollars down payment. Most of my homes are at least $200,000, so we are talking about good homes in good areas with very little down payment.
It's time to get off the sidelines and start building equity.
Larry,
This is just about 100% of my loan business right now, and people are buying and selling with FHA and DPA programs.
Mike in Tucson
Larry, that is good for the real estate and the mortgage business... I hope that this helps turn the market around...
It's what all first time home buyers are doing now. Get used to the extra time and paperwork.
I do most of my loans FHA and currently have several that will close using the 97% plus 3% DPA and most have seller concessions to help cover closing costs. These are great programs that many people can qualify for! FHA is definitely the way to go is you need financing above 80% LTV! Prove your income, prove your assets, primary residence, 2 months PITI, and ratios in line and you should be good to go!
Larry,
I think the FHA loan program is having a comeback. For a while, they were not competitive but now they are very attractive since the B-paper collapse.