What is an FHA Loan?
March 28th, 2009 Posted in Real Estate
An FHA loan is offered by conventional lenders, but the government insures the loan which means less risk to the lender. For some folks, an FHA loan may be the only game in town in today’s market.
For the borrower, an FHA may be attractive because they require a much lower down payment (3.5%) and are available to borrowers with less than stellar credit, but sellers are precluded from contributing any funds or incentives to the down payment.
FHA maximum loan limits may go up to a maximum of $625,500 in expensive markets, but remember you still must qualify to make the payment, taxes, hazard insurance and mortgage insurance.
There is also a new program through FHA called the “Hope for Homeowners” program that enables homeowners to refinance into FHA-backed loans insuring the home for 96.5% of its original value.
For further information, contact your local mortgage professional. If you do not know any mortgage professionals in San Luis Obispo North County, we do have two mortgage professionals from Metrocities Mortgage in our local Keller Williams Realty Paso Robles Office who are available 7 days a week for your convenience. Feel free to give them a call at (805) 369-7777 for more information.
If you would like to search the MLS for listings in and around Paso Robles, visit my website. If you have any real estate questions or general questions about Paso Robles or San Luis Obispo North County, please contact me via email or call me at (805) 235-0234 for more information.
It starts with a dream…
Tags: credit, FHA, hope for homeowners, Keller Williams Realty, paso robles, Paso Robles real estate, refinance, Sherry Lee Cox