Part of my job is staying informed so I can give advice to my Fort Hood home buyers and sellers.  I owe it to them to be a good source of reliable information.    

For the past two weeks, I've been staying in particularly close touch with local lenders, checking in on movement in interest rates.  I'm also checking on the availability of funds for federally insured loan programs (VA and FHA). 

GOOD NEWS:  The lenders assure me that money is available to lend on VA and FHA loans.  All you have to do is qualify for the loan, as in the past. 

VA LOANS:  This is a true NO MONEY DOWN loan.  As of yesterday, if you have a credit score of at least 620 and meet the income to debt ratios and other requirements, you could get your VA loan at 6.5% fixed rate for 30 years.   

If your credit score is between 580 and 619, you can still get a VA loan, but will pay a little higher interest rate.    

Today, the rate for a 620 score is up to 7%.  Still not a bad rate, all things considered.    But rates are moving.  They may go higher.    If you are thinking of buying, this might be the time to do it.  Sellers are motivated.  UPDATE:  VA and FHA Rates were back to 6.5% on Oct. 2.

FHA LOANS:  As of yesterday, for a 620 score, you would pay about the same rate as the VA loan, but you must make at least a 3% down payment.   As an example:  On a $100,000 home, you must pay $3,000 down out of your own pocket and finance $97,000.  You are allowed to receive your down payment funds as a gift from a relative, if that is an option.  FHA is a little more flexible for buyers who have had some problems in the past due to medical or family issues that may have affected their credit score. 

NOTE:  FHA has terminated all down payment assistance programs as of today.   As of January 1, 2009, the minimum down payment requirement will increase to 3.5% of the purchase price of the home.

The FHA insured loan rate is 7% for a 30 year fixed loan today.

TO RECAP:  If you qualify for a VA or FHA loan, money is available for you to buy a home at Fort Hood, at reasonable interest rates, fixed for 30 years.    Rates may be headed for an upward trend, but that is to be determined.

Click here to prequalify for a VA or other home loan. There is no charge for this service!