FHA mortgages are playing a big part in the ongoing Port St. Lucie housing recovery.  Most of the lenders we talk to say that FHA is now is a big percentage of the loans they are making.    The down payment can be a gift from a family member, and the seller is allowed to give the buyer a concession of 6% of the purchase price for the closing costs and prepaids (homeowners insurance, escrowed taxes and insurance)

httpvh://www.youtube.com/watch?v=QkeBHt-2YvkThe lending criteria for FHA loans is less stringent than on conventional loans, but it is not a repeat of the mortgage fiasco a few years ago. With FHA, you must prove your income and you will not be given a loan you cannot afford in a year.  The loan limit  in the Treasure Coast  is up to $375,000 purchase price.   The lower interest rates today standing at 5.20% (9/06/09) according to www.Bankrate.com and the IRS $8,000 tax credit for first time home buyers are spurring more and more buyers into making a home purchase.  In the last 9 1/2 month period, FHA loans are 50% more than they were during the same time last year – back when very few buyers were considering buying a home in the near future.

Mark Zandi at Moody’s Economy.com said,” Without FHA, the housing slide would be much more severe.   We wouldn’t be talking about a recovery now.  We’d still be talking about a crash.” If you are in the market for a home, call us. We will set you up an auto search to find the home you want and a lender that specializes in FHA loans.

 

 

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