The FHA program gives potential homebuyers many advantages, including the following: low cash investment (3% down payment), not credit score driven (allowing for less stringent credit requirements), extremely competitive interest rates, and now limits high enough to provide more choice in home sizes, locations, neighborhoods, and potentially higher quality construction and features. This move will obviously see an increase in FHA home loans and home sales, taking up some of the slack left by the disappearance of the subprime market.

In addition to this news, FHA also allows for seller funded down payment assistance programs, giving buyers an even greater opportunity to buy a home with little or no down payment, interest rates that are as competitive as any in the market, and relaxed credit requirements. Between now and the end of the year, Buyers have the ability and the chance to buy more house than in the past. We also have more inventory to choose from because of the slowdown in the market which gives buyers more leverage in negotiating a more attractive price.

With all that FHA has to offer, with the condition of the current market, and with interest rates as low as they are, it is hard to come up with a reason not to buy a home AT THIS TIME! If we can answer any specific questions, please let us know.

Generally the higher your credit score, the better the interest rate, allowing you to receive a smaller mortgage payment or purchase a more expensive home. The difference between a 620 score and a 660 score can mean the difference of a 1%, which on a $200,000 home loan can mean over $100 per month over 30 years, or a whopping $36,000.

If you have had some credit challenges, it can also mean the difference between getting a loan and not. For many first time home buyers, the FHA loan is a popular choice because of its low down payment and low interest rate, but many lenders require a minimum score of 580. You may qualify for that today, but with the changes to the credit scoring system, that could change. If you are unsure what you score is, have it checked out at Equifax Credit. If you want to raise your score, check out Veracity Credit Optimization, a company that many mortgage companies refer clients to.