Yesterday, I attended Countrywide Home Loans' seminar for real estate agents regarding government financing or FHA/VA financing. Although most of the information was not new to me, I did learn a few new things and wanted to pass on the information.
In the past few months, FHA financing has been increasing among buyers. Last month, 44% of the loans closed by Countrywide were FHA financing...this is way up from a year ago. Loan limits have changed also for FHA -
2007 - FHA loan limit was $362,790
2008 - FHA loan limit rose to $580,000
2009 - FHA loan limit has decreaed to $474,950
With the median price in Elk Grove last month, December 2009, for closed sales being $242,950, the FHA loan limit is well above the median home price!
Advantages to FHA financing include:
- Low down payment options on owner occupied properties including 2-4 unit building - effective 1/1/09 the down payment has increased to 3.5%.
- Eligible for financing despite challenged credit
- Borrower's entire cash investment can be gifted by family members, employers or other approved sources such as a county or state bond program.
- No reserves required on all 1-2 unit properties.
- Seller contributions allowed up to 6% on all LTV's.
- Non occupant co-signor can be used to quality
- Assumable loans
And for those buyers who are Veterans! Countrywide's representatives feel that the VA loans will be increasing this year...The VA No-No is the only national 100% financing loan program available today!
VA loan benefits include:
- No down payment with full entitlement up to $417,000 (100% financing)
- No private mortgage insurance is required
- Seller contributions allowed up to 4% of established reasonable value
- More flexible underwriting than conventional financing
- Fixed rate programs and 3/1 ARM reinstated
- Assumable loans
Resources for FHA/VA financing programs
FHA Mortgage limits: https://entp.hud.gov/idapp/html/hicostlook.cfm
FHA Home Page: http://hud.gov/
VA Forms: http://www.va.gov/vaforms
Obtain military records: http://vetrecs.archives.gov/
Certificate of eligibility: http://vip.vba.va.gov/
For more information on obtaining FHA or VA financing, contact Albert Chavez of Countrywide Home Loans at (916) 230-1537 or www.AlbertChavez.com
To search all available homes in the Elk Grove/Sacramento area, go to www.ModeandDurhaM.com.
Lori Mode and Bruce Durham, Keller Williams Reality, Elk Grove