FHA LOAN FACT SHEET
FHA loans are great loans for buyers!
- Loan limits are still 406,350 until 12/31/2008, for 2009 $368,000 is the loan limit for all surrounding counties except Boulder County which will be $402,500
- Credit scores 580 and up (pricing increase for below 620)
- 6% seller contribution allowed (no down payment assistance from seller. CHFA still available but rates are 7.625) great way to buy the rate down and get your buyers into a house they may not have been able to buy previously.
- No required reserves.
- Assumable with qualification
Low Down Payment
· 3% on loans that obtain FHA case number prior to end of year
· 3.5% on loans for 2009
Mortgage Insurance
· 1.75% up front premium. Example: 200,000 x 1.75% = $3,500 (added to loan or paid up front)
· .55% per year. Example: 200,000 x .55% = 1,100 (per yr) / 12 = 91.67 per month.
Appraisal
· Similar to conventional, no cosmetic repairs required
· No well and septic
Fees and Payment
· Fees same as a conventional loan
· Seller can pay all closing costs up to 6% (great rate buy down opportunity)
· Payment is an average of 90 per month cheaper based on a 5% down conventional loan at 200,000 much more on credit scores below 680.
Now is a great time to buy! Please do not hesitate to contact me with any questions.
Your friend in the Real Estate business,
Shelli Dore
www.ShelliDore.com