FHA

FHA Loans

FHA loans have been around since 1934 but in previous years we haven’t needed them with all of the other financing options available.  With the recent tightening of credit terms, FHA loans are back and can be a great option for buyers who might not otherwise be able to purchase a home.  FHA  stands for Federal Housing Administration.  FHA doesn’t actually lend the money but insures the loan for your lender.   There are caps on the amount of an FHA loan and it is based on the lending area.  In Metro Atlanta - the loan limit is $346,250.   The loan limit does change from time to time and it can be higher in more expensive markets and less in lower priced markets.  As of today - the FHA rate was VERY competitive - 4.5% for a year 30 year fixed compared to 4.375% for a non-FHA loan.  

Advantages of FHA loans:

• Down payment as little as 3.5% of the sales price.  Most conforming loan programs require a minimum of 5% down.
• Lower credit scores for buyers.  600 minimum
• Easy qualifying guidelines. Gift/Grant funds may be allowed for down payments.
• Non-occupying co-borrowers allowed.  Perfect for a buyer just starting out in the job market and who may not yet have established credit.  A parent can co-sign the loan and not have to live in the property!
• Seller Contributions can be up to 6% of the sales price.  Helps a buyer who is short on cash as a seller can contribute towards closing costs &  pre-paids (interest, property taxes) also called escrows.
• Has a fixer- up loan program.  Great option for some of the homes presently on the market.
• You may even be able to include energy improvements into an FHA-Efficient Mortgage

FHA loans aren’t for everyone but a great opportunity for many buyers.  FHA website has more information for you or contact me  and we’ll find a lender who will help you decide which loan program is best for you.

FHA

Interest Rates - 4.17.09

Interest rates today:

4.5% for an FHA Loan (up to $346,250 loan amounts in  Georgia)

4.375% for a 30 year fixed - conforming loan (loan is less than $417k)

5.5% for Jumbo loans (more than $417k) - excellent credit scores & buyer adding equity into the deal

These rates are according to Suntrust Mortgage and are good for aquisition loans as well as refinancing and as always there will be underwriting conditions that will need to be met - such as credit scores, income & debt amounts.   It is a great time to buy with these amazing rates and a great supply of inventory on the market.    

If you are interested in more information and details - contact me.