Author Box
Articles Categories
All Categories
Articles Resources

Buying a House Today May Be Cheaper and Easier Than Ever

February 22, 2012 | Comments: 0 | Views: 142

Credit Score of 500 is now OK for FHA.

Starting with Wells Fargo, and followed closely behind by the other major banks, 500 to 579 is now an acceptable credit score to obtain a government backed loan. FHA commissioner David Stern-upon pressure from some members of congress, and of course the formative National Association of Realtors has decided to make the change. Soon after the debacle of '08 which threw the economy into a tail spin, Freddie and Fanny required the major banks to only lend to borrowers with at least a F.I.C.O. score of 650. Many argued that the bank's credit policies were a knee jerk reaction and were restricting an already sluggish market by as much as twenty percent. Under the new guidelines, banks can loan to borrowers with a score as low as 500. Now these prospective homeowners must have at least ten percent down, and funds gifted to them or any other sort of down payment assistance is prohibited. Scores from 580 to 599 can get a loan with five percent down, and anyone over 600 can get the conventional FHA down payment of 3.5.

More Than Ever It Is Now Cheaper to Buy Then Rent.

According to Trulia, buying a home in the United States makes more sense then renting in over half of the country, and in almost three-quarters of the metro areas. With mortgage rates as low as they are, and the supply outweighing the demand four or five to one, it has never been a better time to buy a home. Even after World War Two when houses were being built like hotcakes, the ratio of income to mortgage payments were not as low as they are in 2012. To put it simply-in the history of this country it has never been more affordable to own a home. Now some are still leery, thinking the market will go lower, but it reminds me of a story my economics professor used to tell us. Do the cliff divers of Acapulco jump when they see water of when they see rocks?

5,000 Grant for First Time Military Buyers

Whether you are an active duty personnel, a veteran, a retired member of any of the armed forces, or an employee of the U.S. Department of Defense and the Department of Homeland Security, you are eligible to apply for a 5K grant that goes towards a down payment and closing costs. As long as it is your first home purchase, the national Pentagon Credit Union Foundation is offering this grant. Just ask any local lender about this program. They will be able to assist you further.

John Ducey Associate Broker Keller Williams RealtySullivan County NY Real Estate

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Conventional Fha Down


Down Payment


Credit Score


Sullivan County Real Estate

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Liva l Real Estate > Buying l November 20, 2012 lViews: 258

The main reason why people tend to be apprehensive about moving homes is that it entails packing everything in the home, transporting it and then unpacking it in the new home. The entire process of

By: Ringo Star l Real Estate > Moving Relocating l October 27, 2012 lViews: 211

There are a number of benefits to owning a second home. Buying to let is a long term investment. The property will usually accumulate value over time and also can generate rent on a shorter term

By: Alan Trotter l Real Estate > Investing in Real Estate l October 19, 2012 lViews: 241

Building a home, especially your first one, can be an incredibly daunting task - there are a number of factors, including budget and planning, that must be taken into account before any sort of

By: John K. Taylor l Real Estate > Building a Home l July 10, 2012 lViews: 333

When you're ready to sell your house, the first thing you'll probably do is find a real estate agent to help you through the process. It can be so inviting to seek out the discount Realtors who offer

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 263

You see the signs everywhere, especially in a strong economy: For Sale By Owner. For some reason, many people believe they'll do a better job of selling their homes without the assistance of a real

By: W Josh Anderson l Real Estate > Selling l July 10, 2012 lViews: 241

The documents are inevitable to assess your age, income, employment and residence. For the loan to be petitioned from the bank, you need the right procedure of application.The documents are

By: Simon Lival Real Estate > Buyingl November 20, 2012 lViews: 258

There are many reasons to buy real estate. Consider all of the options and benefits it could provide.

By: Alfred Ardisl Real Estate > Buyingl April 27, 2012 lViews: 202

Buying Flippers...what to look for. Are flippers that good of a deal?

By: Terry Osburnl Real Estate > Buyingl April 26, 2012 lViews: 207

Purchasing a home mortgage loan can be a confusing and stressful process. When contemplating how much money to put down on your home loan, consider these benefits of making a larger down payment.

By: Alex Gomoryl Real Estate > Buyingl April 25, 2012 lViews: 265

Is it smarter to rent or buy a house in this market? The answer may surprise you.

By: Rich Hilliardl Real Estate > Buyingl April 24, 2012 lViews: 176

"When is the best time to buy a house?" This is a common question that we often hear from first-time home buyers. Many analysts would tell you that buying in a cold real estate market is a time to

By: Jason Miskowicl Real Estate > Buyingl April 24, 2012 lViews: 201