I just went to an FHA class sponsored by Wells Fargo. For many years, the housing prices in Anacortes and the FHA loan limits did not even come close to matching up - so we didn't see a lot of FHA loans processed here.
Now, thanks to new FHA limits in our county and some great prices in Anacortes, there are lots of properties that qualify. In some cases, the house price can go as high as $305K with the minimum amount down.
FHA can be a great option not just for first-time buyers, but for any buyers looking for low down-payment options. There is no income limit, just loan cap amounts. It can also work really well for people looking to get their kids into something (co-sign) for very little money down. This is a great alternative to conventional financing for investment property that can require big downpayments. As long as one of the co-signers is going to live in the house for a year (in most cases) the FHA low down payment requirements can be applicable. The FHA buyer can end up with a very attractive, very low-interest, fully assumable loan - something that could be a real value-added feature of a property when it is sold in the future.
Down payments on FHA loans can be gifts from a family member or close friend.
For sellers, FHA offers lots of great options. Seller contributions to buyer closing costs are allowed, as are loan buy-downs, points, etc. that can be offered as buyer incentives.
FHA property inspections have loosened up a lot since the old days, as well, and the appraisal process is really no more rigorous than a conventional appraisal.
FHA also has some great options for rehab loans and reverse mortgages.
It is definitely a new day for FHA - especially in Anacortes! Check it out!
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