Home Buying in 11783>Question Details

Mrs.list, Home Buyer in Nassau, NY

How will the recovery bill affect FHA loans?

Asked by Mrs.list, Nassau, NY Fri Oct 3, 2008

We'll be looking to buy a home next year. I have an excellent credit score (above 740) and my husband's is just a few points under 740 and we make a reasonable income but have a lot of student loan debt and some credit cards that we will be paying down aggressively over the next year.

We won't be able to come up with the 20% down for a home but we will have some money saved for a down payment. I was looking at the FHA site, which seems to have more relaxed standards for down payments. Will this change with the new recovery bill? I know that there is no more down payment assistance but can we still get a mortgage without the 20% down with all of this housing mess that we're in?

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Answers

4
FHA loans seem to be solid still. Check with a local lender, however the current 3% down FHA is changintg to 3.5% down effective Jan '09.
1 vote Thank Flag Link Sun Oct 5, 2008
Hi,

You will still be able to get FHA financing with 3% down payment or more. Your credit score is great; your income will have to be verified during the loan process. Pay off most if not all of your student loans and credit cards if possible before you apply for a loan, as that will impact negatively as for as the purchase price/loan borrowed is considered.

In regards to the down payment assistance programs, there is one that still exist today, Sony Ma, go to this website for more information.
http://www.nyhomes.org/

Good Luck
Barbara
1 vote Thank Flag Link Sun Oct 5, 2008
I strongly suggest looking into conventional financing with either Fannie Mae or Freddie Mac. Both offer between 3% to 5% down payment programs. Through these programs you'll also be able to enjoy far less expensive mortgage insurance premiums and or lender paid insurance premiums. These loans also have less restrictions when it comes to purchasing condominiums or planned urban developments that have associations. Now unfortunately I do not service NY but I will be more than happy to answer any other questions you may have and or offer some unbiased guidance. Best of luck with your new purchase.
0 votes Thank Flag Link Tue Nov 26, 2013
Hello, I am a real estate agent in Wantagh and pair up as a mother daughter team with my mother, who has been in the business for a number of years. I see you posted this blog nearly a year ago and was wondering if you were still interested in buying a home this year. We live in Seaford and are very active in the area's market. My name is Brittany and my number is 516-376-2580. My mother's name is Lucie and her number is 516-353-9965.
0 votes Thank Flag Link Tue Jul 21, 2009
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