With all the changes out there its good for Realtors to know about the benefits of alternative financing. Since 100% financing went away with some of the lenders -USDA has been a popular choice amongst some buyers. I've found VA and Texas Vet both viable options for many of my buyers recently. Its great to have options! Here are some main points of each FHA and USDA. To consider.
FHA
* Allows 3% Gift Money for Down Payment
* Allows up to 6% Seller Concessions
* Rates as Low at 5.375% / 5.638 APR - Depending on Fico and Loan Amount
* 24 Hour Underwriting/24 hour Conditions/24 hour docs - Close in 7 days
* Allows Double Wide Manufactured homes 50k minimum Loan Amount
* Monthly and Financed MI
* 2 years after BK 7 Discharge - OK
FHA HUD Purchase
* $100. Down Payment
* Allows up to $5K For Repairs with Escrow hold back
* Borrower can do repairs
* Allows up to 6% Seller Concessions (Must be negotiated on the contract)
* Down to 580 Middle Score
USDA
* 100% Financing - Requires no Down Payment
* No limit on seller Contributions
* 2% Funding Fee may also be financed (max 102% LTV)
* No Monthly MI
* 3 Years required from BK 7 Discharge
* Single Family Homes, town houses and approved Condo's in eligible rural areas
* No Manufactured Homes Allowed
* Down to 580 Middle Score
* Call for Property Address and Income Eligibility
If you are a buyer interested in buying real estate in Central Texas -feel free to call or email me at any time! I provide my clients with up to date, useful information and you get a skilled negotiator working for you! www.CentralTexasAgent.com
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