With the new mortgage insurance guidleine changes, options for low money down financing for home buyers with credit scores <680 have become restricted.  One great option that remains is FHA financing, which only requires a 3% borrower investment.  There are also still a few down payment assistance programs available which allow a buyer to effectively get FHA financing with no money down (although their future is in doubt).

Another positive note, FHA is expected to relax some of their guidelines in the near future to help during the credit crunch.  This is in line with their mission of helping low to moderate income families obtain affordable financing. 

The FHA Modernization Bill has passed both the Senate and the House of Representatives and the final details are now being worked out.  Within 2-3 months it is expected that the President will sign the final version and FHA will reduce their down payment requirement to between 0 and 1.5%. 

FHA loan limits have also been increased temporarily until the end of the year and may remain in place longer.  The new loan limits for single family residences in the Trinagle Region of NC are:

Wake County $295,000

Chatham County $331,250

Durham County $331,250

Johnston County $295,000

To find out the limit in your county, you can search online at the HUD Website or contact us.

VanDyk Mortgage is an FHA DE (direct endorsement) lender and licensed by the Department of Housing and Urban Development as a Full Eagle FHA lender.  Our company has worked with FHA for over 20 years and our branch staff has over 5 years of experience in FHA financing, having closed hundreds of FHA purchases and refinances.  If you have any questions on how these changes affect you or if you need any assistance, please contact us.

Roland Carrillo, PhD
Branch Manager
VanDyk Mortgage
Email: rjcarrillo@gmail.com
Website: http://www.mymortgageanalysis.com/