Monday, November 26, 2012

FHA Guidelines Changing SOON, So Buy That House or Refinance NOW!

The cost to get an FHA loan is going UP. And SOON. Federal Housing Administration loans were created to help first time homebuyers purchase a home with a lower down payment than with a traditional Conventional Loan. Typical Conventional loans require a 20% down payment, while an FHA loan only requires a 3.5% minimum. For example, every $100,000 in purchase price for your home will cost you $20,000 in down payment for a Conventional loan, while it will only cost $3,500 in down payment for an FHA loan. That with the market's understanding that FHA buyers usually also do not have enough for closing costs, sellers usually accept paying up to 3% for the buyer's closing costs (another $3000 per $100k purchase price) with an FHA loan. With an FHA loan, however, you have to pay Mortgage Insurance. It currently is arranged that, once you pay off 20% of the value of the loan, you can stop paying mortgage insurance. That is changing, sometime in 2013. This will make it even more expensive for first time homebuyers to purchase a home, as this will now last throughout the life of the loan. As in 30 years.

More info in this article:

I strongly believe that a SHORT SALE is your best possible option if you are dealing with a frustrating mortgage! I have seen it liberate so many people and set them on the path for better home ownership, conquering debt and relieving much of the stress that was in their life! For a FREE consultation to see if a SHORT SALE or a LOAN MODIFICATION is right for you, do not hesitate to CALL ME at 661-706-6922!

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