The New FHA
August 19th, 2008 categories: Buyer's Advice, Seller's Advice
New reports are showing that FHA loan production is approaching 1/3 of new loan submissions!!! And that number is expected to rise as Fannie/Freddie continue to modify their guidelines.
With current loan limits of $729,750 in Orange County (valid through 12/31/08 for 1 unit property. Limits vary per county). FHA is becoming the
loan of choice for clients with less than 20% down.
FHA has other benefits as well:
1) Minimum 3.5% Down Payment (Better than any conventional loan)
2) Non-Occupant Co-Borrowers (So Mom & Dad can help their kids buy their first home)
3) Buyers with less than perfect credit (In today’s world…a lot of folks!)
4) All funds can be gifted (Don’t need any of their own money)
5) 6% Seller Concessions (Recurring and Non-Recurring Closing Costs)
6) No Reserve Requirements (No money in the bank)
