Larry Bettag always has great information to share.
FHA has had some major changes this past year. The most negative one is that the downpayment has changed from 3 to 3.5%. But really that's the extent of negative changes. The rest of FHA and it's changes have been lateral or better.
FHA is the best thing out there. Really, as a program, FHA has single handedly saved real estate lending. You really can't go wrong with FHA.
First Time Home Buyers can still:
1) Get a gift for the entire downpayment;
2) Allow people who won't live in the house co-sign with the borrower who will live in the house;
3) Credit is still a factor, but the credit parameters are so much more relaxed for FHA than for conventional or any other type of loans.
4) Lack of credit is generally not a reason to deny a borrower;
5) Appraisal guidelines have been relaxed to be more similar to those of Fannie Mae and Freddie Mac appraisals. The bottom line is that Appraisals don't have the same stigma that they once had years ago.
6) FHA mortgages are assumable. That means that you may have the ability to sell your mortgage along with your home. Pretty cool huh?
Needless to say....while I like to posiiton myself as someone know really knows my business, the business has changed even more to FHA this past year because of the usefulness of FHA in these markets. Markets aside....even if markets were great FHA has become so useful that most buyers do consider it for homebuying needs.
Shirley this really is a good time for first time home buyers to take advantage of this opportunity to purchase a home. It takes a good realtor like yourself to explain all the avenues and reasons to use this opportunity.
Good Informatin
Shirley - I don't necessarily view the 3.5% as a detriment, but, this is a great list. I think the biggest plus is the de-emphasis of the FHA appraisel making it more in line with Freddie & Fannie.