In light of the changing mortgage industry, many people are under the mistaken impression that they will now have to have incredible FICO scores, 20% for a down payment on top of their closing costs in order to purchase a home. This has been the impression given by the media but also by some uninformed professionals in the industry.

This is simply not the case.

FHA has stepped up to the plate to take the pressure of the housing mess. If someone is able to find a home inside the sales price requirement of FHA http://www.fha.com/lending_limits.cfmwhich is currently $275,000 in Benton and Franklin Counties of Washington (fairly easy considering the average home price currently is under $200k here) then the down payment requirement is 3%. It's generally a good idea to plan for up to 3% for your closing costs, which will include the lender fees, and title and escrow fees.

So, you're looking at around 6% out of pocket to purchase. HOWEVER-

There are down payment assistance programs still available that are FHA approved. See this page for information http://www.fha.com/fha_programs.cfm These grants can be used for your down payment, thus dropping your out of pocket to 3% of the purchase price.

The Tri City area is one of the few markets in the country that has not experienced the housing meltdown of the rest of America. Projections are the area will continue a healthy 3-5% annual increase in value, and we still are ranked among the most affordable housing markets in the country.

So, talk to a mortgage consultant who's an expert with FHA and the grant programs, get yourself qualified for a home loan amount that has a payment you are comfortable with, and then go to a Realtor professiional to begin your home search!