Thursday, May 1, 2008

May Finance Corner

FHA Mortgages Storm Back

As the credit crunch continues to play out, our old friend, the FHA (Federal Housing Administration) mortgage, has re-emerged and is playing a significant role in the current housing market. And, as the saying goes, this ain't your father's FHA.

To begin with, the limits for the Cincinnati area (including Hamilton, Butler, Clermont, and Warren counties) have been raised to a whopping $337,500! That's quite a bit of house in our market. Some lenders are seeing more than 50% of home purchases now using some type of FHA financing.

To make them even more attractive, the 3% down payment equity and closing costs can be addressed in a number of different ways including seller concessions and grant funds. FHA loans also come in a variety of flavors that will even help you as a homeowner make improvements when you purchase a home or refinance your current home.

But wait! There's more. FHA loans are even assumable. That means your home could become a very attractive buy if interest rates were to rise and you need to sell your home. An assumable, fixed rate FHA mortgage could be just the thing that distinguishes your home from others on the market.

I've only scratched the surface of FHA loans in today's market. To learn more contact me for assistance in finding a lender that can help identify the right program for you. You can also find additional information at the FHA website.