Colorado Springs Vintage Homes Blog
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7 important things to know about FHA Loans
Colorado Springs Vintage Homes is happy to feature a great article by
Harry Venik with Adams Mortgage, LLC
For a free Buyers Guide, Email Kathy Torline at KTorline@msn.com
Related Articles:
The Advantages of FHA Loans
The following are a just a few of the recent changes that have made FHA loans a more attractive option again for some consumers looking to buy a new home or refinance an existing one:
(1) Congress passed the Stimulus Act of 2008. During the recent housing boom, home values sur
passed FHA loan limits in many regions of the US. The recent enactment of this important legislation, however, increased FHA loan limits up to $729,500 in many high-cost regions of the US through the end of the year. FHA loan limits vary by county; current limits for El Paso County $ 325,000(1unit ), $ 416,050 (2units), $502,900 (3units), and $ 625,000 (4units).”
(2) The FHA has changed its appraisal and fee negotiating guidelines. In the past, many sellers steered clear of FHA loans because the appraisals were too strict and certain fees were non-negotiable. The FHA has greatly loosened these guidelines to make it easier for both buyers and sellers.
(3) FHA loans are much cheaper now. Because FHA loans are federally insured, they tend to trade at a higher premium in the secondary market. This means lenders can often charge a lower rate.
Other FHA Benefits:
(4) FHA loans are typically not 
credit-score driven. Borrowers usually can have a lower score than with other products and still qualify for a good rate.
(5) FHA loans require as little as 3.5% down, and allows
a) Sellers to finance up to 6% of the buyer’s costs to close;
b) Homeowners to take cash out up to 95% of the home’s value; and
c) Homeowners to consolidate first and second mortgages up to 97% of the home’s value.
(6) FHA loans allow down-payment assistance programs that are not seller-funded. *It is important to note that there are 22 ways in which FHA allows the funds for buyer contribution, including relative gifts and loans.
(7) FHA loans allow non-occupying co-signers (i.e., mom/dad) to co-sign on the mortgage, even if the occupying signer (i.e. son/daughter) has no income. Note that specific restrictions apply.
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Kathy (719-287-1049) KTorline@msn.com
