Maryland Mortgages Q&A , Qualifying, Documents, Call Lenn, 800-711-7988

Q&A Maryland Home Loans, Qualifying, Documents Required for Financing, 800-711-7988

QUESTION:  I've been advised that an FHA loan is a good option for us. We have reasonable credit but not very high credit scores. Also, can we get closing help with an FHA loan?

ANSWER:  FHA financing is hard to beat.

Mortgage interest rates are very low on a historical basis.  For the past few years, rates have been good, but with the recent 1/2 % or more drop it is helping clients buy more house for the same payment.

Home Buyers can receive up to 6% of the purchase price from the seller to go towards closing costs, escrows, and rate buy downs.  You, with the help of your buyer's agent, may be able to negotiate a seller contribution that not only pays for the local closing costs but helps give buyers a lower interest rate and payment for the years they live in that house.

                                      

Using the services of an experienced Realtor who understands mortgage programs is key to this savings.   The home buyer's benefits begins with researching the history of homes for sale.  For instance, a home owner who has owned his home for many years is more likely to have equity from which they can help the home buyer.  Closing costs in most Maryland counties will cost from about 3.5% to about 5% or more, depending on points and program used.   Home sellers who have only owned a home for 1 -3 years, unless a significant down payment was used, or the seller has cash to bring to the closing table, are not likely to be able to help a home buyer with financing. 

Finally, rates for FHA financing have been in the 3 1/2-4% range. We are talking real rates, not just the hype.. Consumers are getting 30 year, fixed rates, no penalties, easy qualifications, low down payments.

Many customers are making purchase decisions and take advantage of the low FHA requirement of 3 1/2% down.   There are many ways to make the FHA loan work to a customers advantage and that is where having the right loan officer and company will payoff as well. 

Now is an exciting time to buy a home.  Remember the FHA loan is for anyone, not just first time home buyers. If you have bought a home before or are a first time buyer you can qualify. The only restriction is that you can have only one FHA insured loan at a time. With the great low rates and low home prices....now is a beneficial time for anyone to buy a home.