Well here's the GREAT NEWS for all of you FHA Buyer's and Realtors with clients using the FHA Loan Product... The National Association of Mortgage Brokers are meeting today in Washington DC and it has been put on ice until further notice.
If you're looking to buy a home now might be the best time to do so.
Tuesday, February 23, 2010
Breaking News for FHA
Over the past few months there has been much talk raising the FHA Down Payment amount from 3 1/2% to 5%. For some people, that increase could be a huge obstacle to buying in todays' market. In addition it could also effect you if you're the seller as well.
Think about this; when my parents purchased their home in the 1980's they had to put down 20%, but they only paid $60,000 for the home. So let's do some math $60,000 x 20% is $12,000 down payment plus their closing cost. Today's market value on that same home that my parents still own is approximately $500,000 if a buyer was to purchase that home using an FHA Loan with 3 1/2% their down payment would be $17,500 plus closing cost and if they agreed to increase the down payment to 5% $500,000 x 5% $25,000 plus closing cost that's a big difference!
1. Prices are still low
2. Interested are also at record lows
3. Your Down Payment is still as little as 3 1/2%
And let's not forget about the attractive tax incentive of $8,000 for first time home buyers. That incentive is money back to you through your 2010 taxes. And while we are excited about it and know $8,000 can mean a lot, we always focus on getting you the right home for the right price.
Call us today to talk about your specific home needs. 714-720-2555
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