First Time Home Buyer's Will Need a Little More Money Down

FHA loans have always been a great option for first time home buyers because they require little money down and they are more lenient on credit scores. Recently, FHA changed the requirements for borrowers. The changes are as follows:

• Minimum Down-payments have increased from 3% to 3.5%
• Mortgage Insurance Premiums have increased slightly. This means your payment will be a little higher. (Note: Mortgage Insurance covers the bank that issues the loan in case the borrower defaults they are covered for up to 20% of the mortgage amount.)

The advantages of the FHA program, especially for first time homebuyers or buyers with limited down-payments, are still just as compelling:

• The entire down-payment can be a gift from family
• The seller can contribute up to 6% towards buyer’s closing costs and down-payment assistance programs like CHAFA.
• Maximum loan amounts have substantially improved from years past ($271,050 for El Paso County)
• Credit requirements are more flexible than traditional loans.

If you'd like to find out if you qualify for a loan, please give me a call at 719-330-8531.