We all know that sub-prime lending is harder and harder to find. 100% financing has all but disappeared. But did you know that the vacuum has been filled by FHA? This may be the catalyst needed to get first time homebuyers in, freeing sellers to trade up to their dream home. We have a clog in the system right now. There are plenty of buyers out there looking, but the current lending and economic situations have them hesitating. Conflicting messages about housing and recession leave buyers uncertain, but they may be missing a great opportunity. With FHA, there are requirements for a down payment, usually 3%. Gift funds, however, can be used for down payments and sellers can contribute up to 6% towards closing costs. Rates are historically low and FHA loans are assumable. When your buyers are ready to trade up in a few years, their buyers can assume the FHA mortgage loan at today's rates.
In New Haven County, FHA loan limits are $387,500, a number that covers a great portion of our housing stock. Our inventory is ample, although we don't have a glut of properties on the market. If you are looking to fix up a house, FHA renovation programs will loan up to 110% percent of the value of a home.
We can all agree that keeping the housing market strong is key to the well being of our communities and the economy at large. By getting this information out to our clients, we can participate in the recovery of the housing market. Things have picked up this Spring, and there is no shortage of people wanting to buy. As Realtors, we just need to help them along.
Comments(0)