FHA continues to offer First Time Home Buyers a low down payment oppertunity in the Bay Area

FHA continues to offer First Time Home Buyers a low down payment oppertunity in the Bay Area

With the Federal tax incentive for home buyers nearing its sundown on April 30 and concerns with rising interest rates, FHA mortgage loans continue to offer first time home buyers in the Bay Area a low down payment opportunity for a home loan.

FHA Mortgage Loans: Low Down Payment and Down Payment Options-

Coming up with 20% down for a home loan can be challenging if you are a first time home buyer new to the work force. FHA currently allows a low down payment 0f 3.5% and the ability to allow gift funds from relatives to purchase your home. FHA also allows for the use of city Down Payment Assistance programs that we will discuss in future articles.

As an FHA approved lender I can evaluate your credit and determine a loan payment that can fit your budget.

FHA and closing costs-

Closing costs can be a significant amount when buying or refinancing a home. FHA allows for some alternatives to out of pocket closing costs.

  • Seller Contributions: FHA recently reduced the allowable seller credit from 6% to 3%, but seller contributions can help take the burden off of funding large impound accounts, etc.
  • Lender paid closing costs: FHA guidelines permit mortgage lenders to advance payment of closing costs in exchange for a higher interest rate.  If this option is considered I would be happy to calculate the amount this will cost you over time and see if its an option to consider.

If you believe FHA is an option to help you reach your path of  home ownership as a first time home buyer I would be happy to discuss this and many other options with you. As a Loan consultant at Vintage Mortgage Group I have the ability to act as a Bank and a Broker to provide you with the best options. For more information on FHA or City Down Payment Assistance programs please request more information below.

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