Tuesday, August 12, 2008

FHA Loans Gain Status In Today's Market

Lack of having the required down payment is the second most common reason potential buyers give as to why they don’t or can’t buy a house (just behind high home prices).

When times were good and money was cheap, the ability to fog a mirror was about all it took to get a home loan; lack of a down payment was rarely an issue and FHA-type loans were seldom used. But now most traditional lenders are demanding 5% or more down.

FHA however still guarantees loans with just 3% down. The difference between 5% down and 3% down may not sound like much, but it’s $6000 on a loan of $300,000. In fact, with the allowable FHA limit in Deschutes County now at $447,500, a buyer can get in to a house with a down payment of nearly $9000 less than a traditional lender would require.

If not having enough for a down payment is one reason why you've been holding off from buying a house, call me to find out more about FHA and other low down payment options. You might be closer to making your dream of being a home owner come true than you think!

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