For homebuyers with less than 10% down, FHA is the only financing available
With the conventional mortgage market disappearing from the financial market, FHA financing is the only option available for homebuyers with less than a 10% down payment. Where the conventional lender requires a FICO of 720 and a down payment of 10%, a borrower may qualify for FHA financing with a FICO in the 600’s and with a down payment of only 3.5%. An additional benefit of an FHA loan is it allows sellers to finance all of the buyer’s costs to close.
If you or someone you know is thinking about buying or refinancing a home, give me a call. A complimentary consultation will determine the right loan for your financial goals and needs.
Interest rates at the beginning of this week were at 5.00%. As of today, August 20, 2009, rates were at 4.75%. As long as inflation is kept under control, rates should stay within the range of 4.5% to 5.5% for the rest of the year. I would expect if rates drop under 4.75% we may see a small refinance boom for those who missed the last wave of low interest rates.
Need more information? Call Joe Elizondo of Northeast Financial at 323-256-7833 or email Joe at neast-financial @ sbcglobal.net.