Fairfax VA Mortgage
Fairfax, Virginia is a northern Virginia area that encompasses Fairfax county along with the independent city of Fairfax, which has separate political entities from the county. As part of the metro Washington DC area, residents of Fairfax enjoy an area rich in history, recreation, great schools, and wonderful amenities. In fact, the area is such a nice place to call home that Forbes recently listed Fairfax as the #3 town in their list of 'top 25 places to live well'.
Home prices in Fairfax range from sub-$100K to beyond the $1 million price point. In 2016, the low sale price was just $33,000, and the highest priced home to sell was $1.49 million. The average price of the 2,173 sales was $499,166 for the year. Homes in Fairfax sold pretty quickly, too, in 2016. 41 days was the average amount of time a home spent on the market.
For more detailed information on Fairfax, VA and local homebuying info you can click on the house!
Fairfax VA FHA Loans
Fairfax, Virginia FHA loans have a minimum down payment requirement of only 3.5%, and that can come entirely in the form of a gift. FHA also allows up to 6% sellers assistance toward closing costs, so while home values may be higher than the national median, Fairfax home buyers can still purchase a new home without a large savings for down payment. Since Fairfax is considered a high cost area, HUD allows FHA borrowers to finance up to $636,150 in 2017.
FHA loans are very borrower friendly, especially for low-moderate income buyers. Credit requirements are more forgiving than conventional loans, and rates are generally lower than conventional counterparts. FHA ARM Loans also offer the stability of a maximum 1% rise in interest rate after the initial fixed rate period.
The one negative to FHA loans is that with less than a 10% down payment, the PMI is attached to the mortgage loan for the life of the loan (until the home is sold or a refinance takes place). For this reason, FHA loans are great first loans, but not the best permanent loans with less than 10% down.
Fairfax VA Conventional Loans
Conventional loans are also a great Fairfax VA Mortgage option. Conventional loans require 3% down (for first time buyers, 5% for everyone else), along with great rates, and affordable PMI rates for folks with good credit (conventional PMI is not as forgiving as FHA for lower FICO scores). With 20% or more down payment, borrowers do not need to have PMI at all with a conventional loan.
In Fairfax, $636,150 is the maximum conventional loan amount available in 2017. Like FHA, sellers assistance is allowed to help buyers with closing costs, but with less than 10% down, a seller may only contribute up to 3% of the purchase price. With 10% or more down, sellers may contribute up to 6%.
Conventional rates can be extremely low or a bit higher, as it works on a sliding scale - the better the credit and higher the down payment, the better the loan terms. Rates are higher as down payment & FICO scores decrease, which is why it's such a good idea to get preapproved and talk with a loan officer at least a few months before buying to see if there's a way to improve your loan terms when the time comes to buy.
Other Loan Programs
Fairfax VA VA Loans are available with a 0% down payment requirement to qualified buyers. With such close proximity to DC and a large military presence, VA loans are a wonderful resource for the area, as for many people they are the best loans out there with the most attractive terms - low rates, little to no money out of pocket required to buy, and low or no mortgage insurance requirements, depending on details of military service.
Jumbo loans in Fairfax, VA are loans that exceed the conventional, FHA, or VA loan limits. In Fairfax, financing up to $5 million is available for higher priced properties, and many jumbo programs require only 10% down, with some great rates and terms.
Portfolio "Niche" products work to fit unique circumstances which prevent buyers from accessing the loan products discussed above. Bank statement loans, asset depletion (using assets for income), and loans for foreign nationals all fall into this bucket. Many of these loans can be done with conventional or jumbo loan amounts as well, making them a resource for everyone to use. Typically, rates are a bit higher and down payment requirements slightly greater, but these products help more people into homes that otherwise would be forced to rent.
If you have any questions on any of these loan products or others, you can ask an expert here.
Fairfax, VA offers a tremendous opportunity for people to enjoy a very high quality of life and convenient access to history, recreation, tremendous employment opportunities, and all that the metro DC area has to offer. If you're considering buying a home in Fairfax or the surrounding areas, or would like more area-specific information, I would highly recommend Amanda Davidson and her team. Amanda and her team know the local marketplace, and focus their expertise on the fine details of buying and selling real estate to ensure their clients have a one of a kind experience that other Realtors aren't offering.
If you have any questions about an Fairfax, VA mortgage, call 484.680.4852 or ask an expert here. We specialize in residential home purchase loans and refinances.