HUD announced a few minutes ago the new maximum home price that you can buy with an FHA loan. The limit went from $304,000 to $412,350. THIS IS TERRIFIC NEWS for buyers and sellers.
One of the best ways to buy a home right now is with an FHA LOAN. Credit requirements are underwritten by a HUMAN BEING. They’re likely to not pay much attention to credit dings such as medical collections. You don’t even have to have lots of trade lines. They’ll use things that don’t show up on your credit report such as the cell phone bill, or auto insurance, or utility bills as “alternative trade lines.
We were hoping they would reduce the down payment requirement, but we’ll take what we can get. FHA still requires a 3% down payment, but the seller can pay the closing costs.
Zero Down loans helped create the mess with the mortgage markets in the first place, so a mere 12,370 for a down payment will open the doors for a whole lot more buyers, and help a expand the pool of buyers which will be a big help for the sellers.
FHA loans allow the downpayment to be a gift. Maybe Dad or Mom or Grandma can help you get into a home. Uncle Jack can’t gift you the money, but his great team of loan officers can help figure out how to get you into a home.