Wishing For a House?
No, you don't need perfect credit and a 20% down payment to buy a house. Despite what you may hear, there are still loan programs available for people with minor credit blemishes and lower balances in their down-payment piggy bank. I've heard rumors of some conventional mortgage programs being available, but I know for sure that FHA offers a solid option for first time home buyers and others who need an affordable inroad to home ownership. FHA loans offer competitive rate, too...these are not those nasty sub prime loans we've all heard way too much about lately.
Dreams Come True-You Can Own Your Own Home
If you have a good job history, documented income, plan to live in the house, and a debt load that still allows you to comfortably pay a mortgage payment, consider FHA financing. Credit history requirements, as I said, are a bit more flexible and this kind of mortgage requires only 3.5% down.
(Renters Note: This is about as much as it would cost you in up-front costs associated with renting a home. Consider the benefit of investing this money in your own home!)
Closing costs, which include title insurance and other expenses over and above the down payment, can be offset with a seller contribution of up to 6% of the sale price. This is often enough to cover all of these expenses.
Please note that this information is provided as an overview of the program and is not an offer of financing. Your individual circumstances as provided on your mortgage application will determine your qualification for an FHA loan.
How Much Can You Borrow?
Requirements for these mortgages change fairly often, even more so recently as the government tries to stimulate the housing market through various means, so it is important to have up-to-date information on down payment requirements and mortgage loan limits for FHA financing to avoid pain and aggravation as you proceed in pursuing your home ownership dream.
Every county in the country has its own FHA loan limit, based on some strange formula involving area classification, median sale price and the phase of the moon. Monroe County, which is the Pocono county closest to New Jersey and the Route 80 corridor, has a low-ish limit compared to other areas and even compared to neighboring counties. Keep this in mind as you contemplate your purchase.
You can find out what the 2009 FHA mortgage loan limit is in any area in the country here, or check out this handy-dandy list of 2009 Pocono Mountain area, single-family home, FHA loan limits:
Monroe County: $271,050
Carbon County: $305,900
Pike County: $625,500
Wayne County: $271,050
For information on lenders who participate in FHA loan programs and other facets of your Pocono home buying experience, don't hesitate to contact me through this website, via email firstname.lastname@example.org, or by phone 570.421.8950 ext 394.