Are you looking to buy a home in Orange County at or under $725,000? Have good credit and decent income, but no money down? You should think about FHA financing before the loan limites are adjusted back down.
Here's some interesting facts about the current FHA program:
- FHA loans are assumable ..... this fact alone could become a very attractive proposition in 2-5 years from now when interest rates are in double digits.
- You can ask the Seller to pay up to 6% of the sales prices towards your recurring and non-recurring closing costs.
- Gift funds from immediate relatives for downpayments are allowable for FHA buyers.
- You could actually buy a home with zero out of pocket expense if you have a relative that will "gift" you the downpayment and the seller pays 6% of closing and prepaids.
- FHA does not reduce the appraised value for a "declining neighborhood" by 5% like Fannie Mae.
- Even with all these great benefits, it is actually easier to qualify for an FHA loan than it is for a conforming conventional loan.
- FHA is open to every legal resident of the US
The loan limits are expected to adjust back down by the end of 2008, so don't wait!
Comments(0)