FHA Financing is Back!!!

Actually it never really went away. Years ago, a large percentage of metro area home sales were involved with FHA financing. With the advent of alternative subprime mortgages, for which we are hearing about so much in the media, FHA lost much of its marketshare. The FHA program now is back in full force. Area statistics show that FHA loans have jumped in the last month 23% of all first mortgages. That compares to 1.8% two years ago and these numbers are on the rise.

Why is this program so good for First Time Homebuyers? First of all it requires a low down payment, a more lenient qualification guideline and the rates right now are so low it is an incredible deal! There is also the option for the buyer to receive a gift to use for their down payment.

FHA mortgage loans are not just limited to First Time Homebuyers! The FHA Program has been revamped in part from the Federal Governments Economic Stimulus plan. The FHA loan limits have increased to $365,000. Great news or buyers!

If you are not familiar with FHA financing, now is the time to learn. If you would like to receive more information on FHA loans or other financing programs let me know and I will get you in touch with a Mortgage Consultant.