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FHA-insured products are simply another item in a lender's financial bag -- there's nothing mysterious about them. They provide a great rate with a lower monthly Mortgage Insurance for high LTV loans; also, the property requires an FHA appraisal, which costs about $50 more than normal. Otherwise, FHA loans are just like any other loan -- the government simply 'insures' the contract.
Your prospective CT residence may not be affected by a current 'declining market' valuation -- you won't know until you make application.
I'd suggest working with a realtor in CT -- find a good area, decide on a price range, and look into the feasibility of your getting that high-LTV loan. If not, you can always opt to do a lease/purchase on an attractive property -- after 12-months you'll have some equity built up, you'll have more saved, etc. -- make sure you stipulate a purchase price now, rather than agreeing to a value 12-months from now, though. A good realtor will easily find this for you -- they are very common, right now.
You can easily make application by phone/FAX/email with a broker -- you can easily search homes with your CT realtor on his/her website and with email MLS links. No problem! GOOD LUCK!!! Don't delay your plans to move East without exhausting the good help that's available (free) to you from both realtors and mortgage brokers!!!
FHA-insured products are simply another item in a lender's financial bag -- there's nothing mysterious about them. They provide a great rate with a lower monthly Mortgage Insurance for high LTV loans; also, the property requires an FHA appraisal, which costs about $50 more than normal. Otherwise, FHA loans are just like any other loan -- the government simply 'insures' the contract.
Your prospective CT residence may not be affected by a current 'declining market' valuation -- you won't know until you make application.
I'd suggest working with a realtor in CT -- find a good area, decide on a price range, and look into the feasibility of your getting that high-LTV loan. If not, you can always opt to do a lease/purchase on an attractive property -- after 12-months you'll have some equity built up, you'll have more saved, etc. -- make sure you stipulate a purchase price now, rather than agreeing to a value 12-months from now, though. A good realtor will easily find this for you -- they are very common, right now.
You can easily make application by phone/FAX/email with a broker -- you can easily search homes with your CT realtor on his/her website and with email MLS links. No problem! GOOD LUCK!!! Don't delay your plans to move East without exhausting the good help that's available (free) to you from both realtors and mortgage brokers!!!
Thank you the good advice, we never thought of FHA Loans but after doing some research they seem a good choice. Never thought of the Lease option, will have to look into that.
We have a purchase price already in mind and are sticking to it, its well below what we are able to borrow, but high enough to afford a nice home in the area we will be looking at, we want it that way so that we are not struggling to pay the mortgage etc, there are some horror stories out there of people maxing themselves out and finding that they can't afford the mortgage when taxes etc go up.
Some folks who agree to sell their home through a lease/purchase arrangement do so with up to 5-years until close-of-escrow. If the owner is happy to receive rental income for 5 years, knowing that he/she will be getting a lump-sum to payoff the principal-due, you can build-up some equity and buy the home in a 'refinance' loan product at that time. Look into the lease/purchase agreement as your best way to move forward -- ask a realto's advice, as they are doing alot of these right now.
You will still need to qualify for the loan amount you expect to need.
How does FHA handle issues with older homes with old electrical, etc...
Will FHA insure a loan with outdated equipment?
I'm currently looking at a home and I can see a new circuit box needs to be installed and obviously I would not be in a position to do that work until I own it and the owner is too distressed to lay out the work pre-closing. The home also needs a new water heater which would be purchased post-closing.
Other than those items, the home is in great shape structually and cosmetically. So its not really a rehab.
An FHA rehab 203(k) would need to address minimum $5000 in needed work.
This information is from HUD: (under appraisals)
Appraisal & Property Requirements Water Heater: 1. All water heaters must have a non-adjustable temperature and pressure-relief valve. 2. The water heater must comply with local building codes regardless of its location. 3. Rental water heaters are not acceptable. Electrical Service: 1. May be either circuit breakers or fuses. 2. Appraisers should examine the electrical box to ensure that there are no frayed or exposed wires. 3. Existing 60-amp service is acceptable if it appears that this is adequate amperage for the appliances present in the property, or those considered "standard" if the present appliances appear to be less than found in the "standard" home. 4. Knob and tube wiring is acceptable if found to be in good condition and a minimum of 60-amps.
Keep in mind that with an FHA loan you will get better rates than you could with any conventional 30 year program at 100%, and many at 80%, so it's a very viable option. I'm not sure if you are hesitant because you feel that there is a stigma attached to this program, or because you are not understanding the concept of a down payment assistance program, but you absolutely can purchase a home with an FHA loan using a DPA without coming out of pocket.
Well, I'm glad I saw this. I never looked into FHA loans before because I assumed government programs like this would have a maximum income or asset cap. I am a first time home buyer and am able to put 20% down. I'll have to see if there will be any advantage to getting an FHA loan vs. a conventional loan. Thanks.
And, as of today March 6, all banks and brokers have been offically notified of the increased maximum loan amounts which FHA will insure. In my county in AZ, the amount was raised by 24% from $263,150 to $346,250. This will be great news for many people who need to approach their purchase or refinance through an FHA-insured product. Hooray!!!
You can get 100% financing if you qualify for the USDA Rural Housing Guarantee Loan the closing cost are financed and no private mortgage insurance. Loan up to 2% over the appraised value.
I am not sure what the guidelines for the loan are in other states but I would think since it is a government backed loan it would be just about the same across the board.
yea USDA is the same everywhere but you need to live in a rural area.
you can search on their website to see if the home/area qualifies
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FHA Appraisal
