Countrywide's Government Financing Seminar

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