Just a few years ago, in my marketplace not many considered getting an FHA loan because it was thought to be a difficult process and there were other easier to obtain mortgages available.
How things have changed. Today, FHA seems to be on the tip of the tongues of buyers. Recently, every potential buyer I have spoken to wants to find a home that could be purchaesd with an FHA loan.
So what does FHA stand for? The acronym stands for Federal Housing Administration.
First Time buyers are not the only ones that are attracted to this product. It's true that you can get an FHA loan if you purchase a Fixer-upper. However, they are even used for reverse mortgages, so popular now with seniors.
FHA has become a little darling, especially since the economic downturn which saw the demise of many other popular mortgage products. It is extremely attractive because of the low down payment. You can put down as little as 3.5% of the purchase price and your credit can be less than perfect, although there are still guidelines that have to be met, such as:
You need a minimun of 2 years worth of work history. I recently learned that if you are a recent college graduate the time spent in school could be factored into the employment equation, but, you have to provide the diploma.
Since I am a real estate professional, I educate myself about the various mortgage products available. However, I depend on the mortgae professionals to provide in-depth information. Jeff Belonger, a mortgage professional based in New Jersey, has written extensively on FHA . His postings are a must read as he compares conventional loans with FHA and shows you how to get the best out of the product.
One important point you have to keep in mind is that FHA has limits on the amount it will lend and this varies even from county to county. I have provided a chart of the limits in the market area I typically cover.
FHA LIMITS FOR NY COUNTIES
| Property Types |
Columbia |
Dutchess |
Ulster |
| Single Family |
$276,250 |
$443,750 |
$406,250 |
| Duplex |
$353,650 |
$568,050 |
$520,050 |
| Triplex |
$427,450 |
$686,650 |
$628,650 |
| Four-Plex |
$531,250 |
$853,350 |
$781,250 |
So buyers now is the time to get that FHA loan and possible benefit also from the tax credit.
Jennifer Fivelsdal- Broker- JFIVE HOMES REALTY LLC - 845-758-6842- jennifer@jfivehomes.com and www.jfivehomes.com
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Well written Jennifer. This is an easy read and I like how you tied it into the areas in which you typically work.