The Advantages of FHA Loans
In many regions of the US, FHA loans have not been utilized for years, so a lot of real estate agents and mortgage originators aren't familiar with this great resource. The following are a just a few of the recent changes that have made FHA loans a more attractive option again for some consumers looking to buy a new home or refinance an existing one:
1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values surpassed FHA loan limits in many regions of the US. The recent enactment of this important legislation, however, increased FHA loan limits up to $729,500 in many high-cost regions of the US through the end of the year. FHA loan limits vary by county, so give us a call for loan limits in your area.
2) The FHA changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans because the appraisals were too strict and certain fees were non-negotiable. The FHA has greatly loosened these guidelines to make it easier for both buyers and sellers.
3) FHA loans are much cheaper now. Because FHA loans are federally insured, they tend to trade at a higher premium in the secondary market. This means lenders can often charge a lower rate.
Other FHA Benefits:
1) FHA loans are typically not credit-score driven. Borrowers usually can have a lower score than with other products and still qualify for a good rate.
2) FHA loans require as little as 3.5% down, and allow a) Sellers to finance up to 6% of the buyer's costs to close; b) Homeowners to take cash out up to 95% of the home's value; and c) Homeowners to consolidate first and second mortgages up to 97% of the home's value.
3) FHA loans allow down-payment assistance programs that are not seller-funded. *It is important to note that there are 22 ways in which FHA allows the funds for buyer contribution, including relative gifts and loans.
4) FHA loans allow non-occupying co-signers (i.e., mom/dad) to co-sign on the mortgage, even if the occupying signer (i.e. son/daughter) has no income. Note that specific restrictions apply.
Please let me know if I can assist you in any way.
Michelle Johnson / Broker
direct: 1.503.320.5141
via email : michellejo@johnlscott.com
via web: www.johnlscottsherwood.com
For the past many, many months “positive” news in housing has actually meant “not-quite-as-negative-as-expected” news. However, I can honestly say that in perusing the headlines today I actually saw more good reports than negative ones regarding the housing market. This goes without mentioning that the stock market too seems to be on an extensive rally. In addition, the Treasury Department has finally released more details on a promising plan intended to deal with the toxic assets on the balance sheets of the banks.
Things appear to be gaining some positive momentum in housing.
Nobody has the tools to assist first time home-buyers like we do!
Check out our First Time Home-Buyer Service, then give us a call!
Michelle Johnson / Broker & Preferred Realtor for Sherwood and surrounding area real estate.
Buyer / Seller Direct 503/320.5141
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Please take a moment to read this weeks market update brought to you by The Johnson Teams Lender Partner - Steve Nassar
Mortgage rates are better this week. A lot happened this week and for once it wasn’t all bad. Although unemployment worries continue to be in the headlines, retailers reported better than expected numbers for February. Since consumer spending represents two-thirds of all economic activity, a retail recovery is seen as a major lynchpin in an economic turnaround. Optimistic news from the financial sector as well as Bank of America, JPMorgan Chase and Citigroup assure investors that they are operating at a profit for the first part of 2009 and therefore will not requiring additional bailout dollars. Investors have reacted favorably to these rays of hope and stocks actually increased for 4 days in a row.
Make an appointment today to work with the areas Preferred Real Estate Team - Whether selling or purchasing a home, we are committed to creating an wonderful experience.
This Weeks Rate Sheet
Just a note to let you know that the Portland metro area is doing much better than many may have thought. Excellent projected job growth and population growth expected to be at or near the top! That means that we will be assisting our clients by helping them get in on the "bottom" of the market with a primary home or investment purchase so they can position themselves for prosperity in the future.
I have inserted a link below to the 2009 Portland/Vancouver Prosperity Index for you to take a look at. It will give you a great indication of where our metro area is headed.
2009 Portland Prosperity Index
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Michelle Johnson / Broker
www.JohnLScottSherwood.com
Buyer/ Seller Direct : 503/320.5141
What really is the definition of a market bottom?
Take a moment to read this insightful article by our team member and lender Steve Nassar. If you are trying to time the bottom of the market before purchasing Oregon real estate, this is a Must Read!
Click Here To Read Full Article
Posted by: Michelle Johnson-
Our Premier Real Estate Team welcomes the opportunity to serve your real estate needs. You may contact us by email , book an appointment online with us, or simply call us direct at 503/320.5141.
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