Creative Financing 101 » low downpayment loans

New Limits Announced on FHA Mortgages

Jamie Beck — Tue, 03 Mar 2009 00:53:51 +0000

Recently, the Department of Housing and Urban Development released the new limits on FHA-insured mortgages. Previously, potential homeowners in some areas complained that they could not take out an FHA loan because properties in their county exceeded the loan limits. The increased limits are a result of legislation included in the new stimulus bill and are good through the end of the year (December 31, 2009).

According to a letter from this governmental organization, the lower floor on FHA loans (borrowers in lower-cost areas are able to take out a mortgage for up to this amount) are as follows:

One-Unit $729,750
Two-Unit $934,200
Three-Unit $1,129,250
Four-Unit $1,403,400

The ceiling on FHA mortgages for higher-cost areas has been raised in areas such as Los Angeles County, New York county, Salt Lake county, and DC. These limits are as follows:

One-Unit $271,050
Two-Unit $347,000
Three-Unit $419,400
Four-Unit$521,250

This is good news for credit worthy borrowers who can’t qualify for traditional loans because they don’t have a 20% down payment. FHA-insured mortgages allow borrowers to make a down payment as low as 3.5% and issuers are often able to overlook credit report flaws.

To find the FHA loan limit in your area, take a look at the HUD FHA Mortgage Limit Website.

See Also:

FHA Mortgage Guide

Answers to Common FHA Loan Questions

Can I Make a Lower Down Payment on an FHA Loan?

Jamie Beck — Fri, 27 Feb 2009 05:39:09 +0000

Now that most lenders require a mandatory 20% down payment, potential borrowers are frantically searching for alternatives. Fortunately, one of the best ways to make a small down payment is relatively easy: take out an FHA insured loan.

The FHA (Federal Housing Authority) is a government agency designed to help citizens purchase their own homes. While they do not give loans directly, they do insure loans from traditional lenders. Most major banks and mortgage brokers can help you take out an FHA loan.

The down payment on an FHA mortgage can be as low as 3.5% – in today’s market that’s outrageously low. Generally, FHA loans have rates comparable to other mortgages, and their fees are often lower. However, borrowers must pay monthly mortgage insurance fees.

More info on FHA loans can be found here:

Answers to Common FHA Mortgage Questions

FHA Mortgage Guide

FHA Loans Step-by-Step

Stimulus Bill Could Raise Limits on FHA Loans

Jamie Beck — Wed, 11 Feb 2009 06:10:22 +0000

A version of the stimulus bill currently making its way through Congress proposes to increase the limits on FHA loans.

Inman News reports:

“The House version of the bill would restore the upper limits for Fannie Mae, Freddie Mac and FHA loan guarantee programs to $729,750 in high-cost housing markets, where they stood for much of 2008 before being reduced to $625,500 — a step endorsed by many real estate industry groups.”

There’s no guarantee that this provision will appear in the final legislation. But, if it does, homeowners living in higher cost of living areas (such as Los Angeles, San Francisco, and New York) will have the ability to buy more expensive properties with the benefits of an FHA loan. In most areas throughout the country, $729,750 would get you a pretty amazing mansion. But, in big cities like those listed previously, homeowners pay about that much for a nice, 3br/2ba home in a good neighborhood.

FHA-insured loans allow homeowners to buy with a low down payment (3%) and minimal closing costs.

photo credit: ktylerconk

See Also:

FHA Loan Basics

FHA Loans Step-by-Step

Countrywide Fast and Easy Loan

Jamie Beck — Sat, 05 Apr 2008 09:24:43 +0000

The Countrywide Fast and Easy Loan helps extremely qualified borrowers with excellent credit skip some of the traditional paperwork and verifications required for loans. Borrowers can purchase a primary residence with as little as 5% down or a secondary / investment residence for as little as 10% down.

Countrywide Fast and Easy Loan Qualifications

Fast and Easy borrowers must meet the standard mortgage qualifications with these exceptions: they are only required to turn in limited documentation, there is no income verification, and there is only verbal job verification. Borrowers must have extremely high credit scores to qualify and put at least 5-10% down.

Countrywide Fast and Easy Loan Terms

Borrowers can use the Fast and Easy program alongside almost any loan including ARMs, fixed-rates, and interest only. Borrowers generally pay for their convenience with a higher interest rate than they would receive through a traditional program.

Applying for a Countrywide Fast and Easy Loan

You can apply for a Countrywide Fast and Easy Loan by contacting a mortgage broker or calling Countrywide directly (1-888-231-7074). You can visit their website for more details about this program.