HI Valerientn,

Not part of your question....but an important consideration for you if you are considering an FHA loan. An FHA loan will require an FHA inspection. An FHA loan can not be underwritten unless it passes this inspection or any deficiencies are corrected. Do advise your Realtor that you will be pursuing an FHA loan before you begin searching for properties so that you can become familiar with this requirement.

Best,
Deborah

Hi Valerientn,

I am standing on my prior post with an addendum.

FHA minimum downpayment is 3.5%.

HUD is the authoritative source for anything to do with FHA loans. A direct quote from HUD delivered live to industry leaders and the media at a national conference is a reliable source. This was less than 1 week ago. The paragraph I cited was an exact quote.

Your question was about FHA’s minimum downpayment and that has been fully answered with consistency from several real estate agents.

There are sometimes programs available for certain properties, or limited to persons meeting very requirements that offer grants or other types of assistance or either downpayments or closing costs. None of us online would be able to inform you if such might be applicable in your situation.

The people who have suggested that you look into this avenue have done so with sincere desire that you, and every potential buyer out there, know that these programs exist and explore that possibility.

Best of luck to you.
Deb

"This will allow eligible homebuyers to access the funds immediately at the closing table. "


You mention being sure to be informed by a Professional. The above is your statement of your opinion as a Professional of what can now be done because of what Shaun Donovan or Hud said.

Is it accurate/true?
"MOST of us that have answered here are licensed Real Estate Professionals"

Who would have left the impression that " This will allow eligible homebuyers to access the funds immediately at the closing table. "

Wow. Sorry, Valerie for this string wandering off. Ok, the fact is, each lender is different. Not all lenders are banks. Each state is different. THE BEST way to know what you are or are not eligible for is to check with your lender. MOST of us that have answered here are licensed Real Estate Professionals, and we are providing our professional opinion based upon our experiences in transactions and dealing with lenders in our area. We cannot know all lenders and options everywhere. The important thing to do, as a Buyer, is to be informed by a professional that is in the field your question is about. If you have already chosen a lender, follow up with them.

There are all kinds of different maybes, gonna be maybes, about this being done by States and the Fed. Gov.
Has been for over a year now, I just think while it's open to discussion, may be good, might happen, suggesting it should influence the decision to buy right now as if it is going to happen for sure is not providing an accurate picture of the situation. Will anyone stake their career in Real Estate on it is going to happen? Why should a buyer make a financial decision based partly or fully on it at this time? Why is it even being presented as something to consider? You cannot use the Tax Credit for your Downpayment and no one knows for sure if anyone will be able to this year.

Agents should be checking with the lenders before the announcement not making the announcement then telling the buyers to check. The person putting out the info should do the verifying when it's presented as information from an authority. Just my opinion.

Hi Valerientn,

I attended the National Association of Realtors Midyear Conference in Washington DC last week. At that conference, the Secretary of Housing and Urban Development Shaun Donovan stated:

"We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a downpayment. So FHA will permit trusted FHA-approved lenders and HUD-approved nonprofits, as well as state and local governmental entities to "monetize" the tax credit through short-term bridge loans. We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. FHA will be publishing the details shortly."

The above is a direct quote from the prepared speech delivered at the Real Estate Summit at the NAR Midyear Conference.

FHA guidelines require 3.5% down. There are some local programs which may help homebuyers that could reduce that amount. The FHA guideline, however, is 3.5%. To find out if there is a local program in your area, check with lenders and Realtors who specialize in FHA or first time homebuyers.

Good Luck
Deborah Madey - Broker
Peninsula Realty Group - New Jersey

We were told this morning that is available in some states although not ours. it basically functions as a no interest loan which is paid bakc after the credit is received.

Thank you, Dunes, for that information. It does state at the end of the paste, though, that one should check with the lender for program availability. I hope this does become widely available, down payments are the hardest for first-time homebuyers to come up with. Now that HUD has raised it to 3.5%, it is more difficult now than before we entered into this mess.

Paula, It's possible your information about the Tax Credit is incorrect. Perhaps you may be interested in reading these.
http://activerain.com/blogsview/1075899/using-first-time-hom…

http://activerain.com/blogsview/1074376/false-info-flying-ar…
This is not some new idea or the first time it's been suggested it's just around the corner.
http://activerain.com/blogsview/806180/-7500-tax-credit-as-a…

"This will allow eligible homebuyers to access the funds immediately at the closing table. "
Maybe a touch inaccurate.
Dunes

Valerie, It is currently 3 1/2% of the loan. If you are interested, I just received some interesting info from ViewHomes.com-
NEW INFORMATION OF $ 8,000 TAX CREDIT

Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, on Tuesday said that the Federal Housing Administration will permit its lenders to allow homebuyers to use the $8,000 tax credit as a down payment.

Previously, most buyers wouldn't receive the funds until after they filed their tax return, and that deterred some people from using the credit.

Donovan says FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans.

This will allow eligible homebuyers to access the funds immediately at the closing table.

Check with your lender for more information and availability.

-Hope that helps!

Paula Scrivner, ABR
865-806-5559 mobile
865-966-1111 office

It is 3 1/2% but we have a program in TN where you only have to come up with 1%.
Please let me know if I can be of help.
Lilo

it is 3.5% of purchase price.