- First, FHA loans, which aren't just for first time buyers, provide a great low down payment situation. Typically the minimum required down payment amount is 3.5% of the purchase price. Sellers are also allowed to contribute up to 6% of the sales price to help cover closing costs and pre-paid items. Credit score requirements are for FHA loans are a bit lower, with a minimum accepted score of 620 (FICO). FHA loan limits are broken up by unit size - a single family home purchase limit is currently $295k. There are no real property location limitations but the loan can be used in conjunction with the 203k- which I'll write more about on Monday. Check out this neat FHA loan limit widget I found- you can scroll through some different counties by clicking the arrows.
- Next, USDA loans. These 100% financing loans are insured by the Dept. of Agriculture and were initially engineered to encourage urban sprawl. This program does have certain geographic limitations, you can navigate through the map and check out eligible areas here. First click "single family housing" on the left side under property eligibility, accept the disclaimer, click on North Carolina and find your county. You'll see eligible USDA areas in pink and ineligible areas in beige. The current minimal credit score required is around 580. USDA loans do not require monthly mortgage insurance and the rates are pretty close to the market average (par). There are some income requirements for USDA loans, but it is determined per county, per household size, etc - call me for more details on that. Just for an example, the max income level for a home in Wake County with no dependents and two people over 18 but under 65, no disabilities, it's $88.4k combined. Great opportunity in my opinion.
The $8,000 tax credit can be obtained by a first time home buyer using either of these loans - usually your accountant can amend your 08' taxes and you'll get a refund check back in the mail. This credit ends at the end of November. More on these programs in future posts.
The market improved a bit today - mainly because there was quite a bit of negative consumer info released. Apparently the economy isn't improving as quickly and as steadily as expected. Cheers and have a great weekend.
DNJ Mortgage
1350 Sunday Drive
Raleigh, NC 27607
919-459-6560
1350 Sunday Drive
Raleigh, NC 27607
919-459-6560
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