Is the Life Line for 1st Time Buyers History?
For many buyers, FHA mortgages are the least expensive way to finance a home. The sole exception are military home buyers, past or present service people, who have the advantage of 0 down VA financing available. Still the 3.5% down payment for FHA loans is much easier to save up than the 10% and very often 20% down payment required for Conventional financing. Thus, there popularity with young and less well financed buyers.
I share the newsletter article from Al Clark as I know you will heare the news that FHA loan size are being cut. You may not know this is important to you but it is. If know that the loan limits set by FHA determines the maximum loan that FHA will insure, then you know a smaller loan value in a high price market could mean you can NOT QUALIFY for this low down payment load if your LOAN VALUE IS TOO HIGH.
But don't be alarmed!!! In Hampton Roads, for example, there is no change to the loan limit from 2012/2013. Thus, business as normal. If you are reading this blog from outside Hampton Roads, you will want to contact your mortgage officer. He or she will
know what the limit in your market is and whether there has been any change.
Knowing what your options are prior to starting the home search in Spring 2014, it a very smart move. Should you be actively looking now, make the call today to see if you are impacted!
Happy New Year!!!