Gone are the days of 80/20 loans, 100% stated loans, or reduced documentation loans. We are now back in the realm of Government subsidized loans. FHA loans are making a strong come back and along with them are programs like the Nehemiah Grant. This program allows the buyer to negotiate having the seller pay a 3% down payment on the buyer's behalf as well as 3% of the sales price towards the buyers closing costs. The rates for the program follow the FHA guidelines and are quite good in comparison to conventional loan products. Recent ranges were between 5.875%-6.250% on a 30 year fixed depending on the lender involved. These loans do include mortgage insurance, but right now so does every other conventional product out there that is more than an 80% Loan to Value. And in most cases, the amount of monthly MI required by the FHA product is less than that of conventional. As before, you can acquire an FHA loan with “less than perfect” credit. Having a good work and rental history is important, but minor infractions on your credit are generally accepted.
Another 100% financing product is that in the form of a Rural loan. In order to stimulate buyers into purchasing in rural areas, the government is supporting a 100% rural loan in specific locations. You would need to buy property in the designated areas, but the loan would finance it completely. As with the FHA loan, the guidelines for this product are not nearly as stringent as the current conventional loan products and non-perfect credit is allowed. In some cases, we are even seeing them allow more “credit issues” than the normal FHA product.
If you are looking to purchase a home in Snohomish county and would like to discuss your financing options give me a call at 425-773-3149. It is never too early to establish relationships with a great real estate agent and loan officer and to start charting your course towards owning a home!
Jacquie Cliff - The Amazon Negotiator
Real Estate Agent, Loan Officer and Accredited Buyers Representative serving:
Lynnwood, Bothell, Mill Creek, Seattle, Bellevue, Marysville, Mountlake Terrace, Edmonds, Everett, Snohomish, Kirkland and the surrounding areas!
Call me with any of your real estate questions at 425-773-3149 or email me at Jacquie@jacquiecliff.com anytime!