FHA is Gaining Popularity
With many lenders not allowing for 100% financing any longer-- the FHA Loan is making a comeback. Most people think that FHA has something to do with first time home buying- but that is NOT the case and with new standards that allow for less hoops to jump through, it is actually a great option. The current projection is that over 25% of all loans in 2008 will go FHA. Here are the basics:
Current FHA loan amount is $271,050
Minimal 2.25% down payment required
May use down payment assistance programs and/or gifts
Easier qualifying factors such as no specific credit score needed, no income limits, flexible debt-to-income ratios and unlimited FHA use.
FHA loans are assumable
FHA appraisals are not as hard on condition of property as in the past