We sugget that you speak with a mortgage broker in your area. They will be able to advise you on your credit score (FICO), what programs are available, FHA limits and guidelines. You can also discuss with the mortgage broker if cashing out equity is a good thing to do right now. Every person's situation is different - what is good for one may not be good for another. In working with a good mortgage broker, you can come up with a plan on how to achieve your goals.
Bob & Richelle Ward, Realtors, ABR
Prudential Connecticut Realty
email: email@example.com... more
Generally speaking 3.5% is the minimum downpayment for FHA. A few days ago the National Association of Realtors came out with a statement that HUD would allow first time homebuyers to use their tax credit to finance their downpayment. Turns out this announcement was premature and the program has not yet been implemented.
However, if you are a first time homebuyer and you opt to use THDA in conjunction with FHA, THDA can provide a no-interest 2nd mortgage which WILL allow you to use your tax credit for your downpayment. For more information click here: http://www.thda.org/singlefamily/stimulus/stimulus.html... more