New FHA rules to help buyers

The Federal Housing Administration is an agency of the federal government. The FHA insures private loans issued for new and existing housing.. The FHA was created by Congress in 1934, and in 1965 became part of the Department of Housing and Urban Development's Office of Housing. The FHA's mission is offering help borrowers get the amounts they qualify for, and to assist lenders by reducing the risk of issuing loans

A mortgage loan from a lender that is insured by the Federal Housing Administration has been considered the magic pill for buyers who cannot meet regular qualifying criteria. Because the loan is guaranteed by the Government, buyers are allowed a lower down payment and can borrow more than would normally be allowed on their income. In addition, the F.H.A. interest rates are usually below private market levels.

Here are some of the new changes.

• The new rules have lifted the ceiling on loan amounts in the program to $417,000. This allows more expensive loans to be purchased with in FHA loan.
• Now, instead of a 3% down payment, one only needs 1.5% of the home purchase price as a down payment.

A few points to remember is they still look at income to debt ratio and decent credit scores.

FHA loans are fixed rate loans so will not start with a teaser rate and then jump up in a few years.

Hopefully this will make it easier for the first time homebuyer to get a loan.

Brian Ellwanger

Broker/ Owner Four Sail Realty

www.4sailrealty.com

Losing your home to foreclosure you have options

Your not alone. Due to many economical factors and other tradegies that happen in life people losing their homes to foreclosure is a fast paced phenomenon. You do have options and walking away is one of them but don't do it without a fight!! Read below to find out what you can do!

Which option works best for you?
Option #1 Refinance your mortgage. You must have equity in your home.
Option #2 Renegotiate your loan. Waive payments temporarily.
Option #3 Sell your house. Must have some equity to cover closing costs.
Option #4 Short Sale your house. Sell your house for less than you owe.
Option #5 Give your home to the bank. Deed in Lieu of Foreclosure. Affects credit.
Option #6 File bankruptcy. Not the worst choice. Affects credit rating.
Option #7 Do nothing. This is the worst choice. Seriously damages credit rating.

Your best bet like always is seek professional help!

Written by Brian Ellwanger
Broker/owner
Four Sail Realty
Longmont Colorado
303-775-4121
www.4sailrealty.com

We are here to help!
We are a company of licensed real estate brokers and mortgage bankers in Colorado. We specialize in helping home owners escape the foreclosure process. We fight for you. Timing is of the essence. Do not wait until it is too late. You have options. You have rights. You are not alone. We are here to help.
We are here to consult with you. You can get answers to your questions in many ways at your convenience.
CALL Toll free 1-800-234-0686 Ext 4004, press 0 to speak with a rep or press 2 to leave us a voice message.
Email us at: brian@mesanetworks.net

*The information contained on this page is for informational purposes only, and should not be considered as legal advice or legal counsel. The information is deemed reliable but not guaranteed

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