Orange County CA Real Estate Tip: The Truth About The “Credit Crisis”
General Real Estate Information / News
By now we’ve all heard buzz about the supposed “credit crisis,” with tales of all Orange County CA real estate buyers being required to put 20% to purchase a home and then still having to search to find a lender who will write a loan. It seems the press just can’t get enough of all the “misery” in the
To be sure, we are in the middle of what might be considered the biggest disservice ever perpetrated on potential home buyers. The truth is that mortgage money is as available today as it was a year ago and loans are being made every day with little or no money down. Who are these lenders and where can you find one? They may be right down the street - you just have to know where to look!
Federal Housing Administration (FHA) loans are making a huge impact on the mortgage industry; recent estimates show that about one out of five mortgages is an FHA loan. Although FHA loans never “went away,” their re-emergence is a result of the collapse of the sub-prime market. Technically, FHA doesn’t require a minimum credit score; in reality, however, lenders typically will not approve an FHA loan with a credit score below 500. That is still a far cry from the notion that an 800 score is the only thing lenders care about.
The biggest advantage of an FHA loan may be that it requires only a 3% down payment. You read that correctly – 3%! Moreover, that 3% can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. On top of all this, FHA mortgage rates are as good or better than their conventional counterparts.
Extremely competitive rates, low or no down payment, and easier qualifying. No wonder FHA loans are so popular!
Please call me at 949-481-3739 or visit GuideToLocalRealEstate.com if you would like more information about FHA loans, a referral to a reputable local lender, or help getting into your first
Related Links:
Date: Thursday, May, 8th 2008 @ 09:23:36 AMViews: 83
Be the First to Comment on this Post!.