Mortgage Discussion for the Panhandle area

It has never been more obvious to me that government loans are the way to not only survive but thrive in a less than perfect market. With the 100% opportunities still available with VA and USDA (Rural Development) these loans are the best choice for those customers that will fit the guidelines. Those that do not, FHA is still the leader in the market. Between SHIPP ( if qualified) and the DAP (Down Payment Assistance Programs such as Nehemiah and Ameridream) plenty of prospective home buyers still have opportunities to buy a home with less than perfect credit and no cash for down payment. Spring is here and Summer is fast approaching. Buyers are looking and with the FHA new limits at $271,050.00 more buying power exist to make 2008 a good year. Here are some quick facts that may help you decide what a customer can buy and how:

FHA

1. Loan limits are $271,050.00
2. Nonoccupying co-borrower can be used for credit, income or assets
3. Less than 580 credit score is considered with good history in the past 12 months
4. 97.75% loan to value loans with SHIPP or DAP helping the downstroke
5. Collections generally do not need to be paid if not affecting title
6. Previous chapter 7 Bankruptcy or foreclosures are OK over 2 years
7. Current chapter 13 bankruptcy is OK with 1 year pay history 
8. Lack of credit or no credit will close as well
9. 1 year self employed borrowers can close if they have a 2 year history in the same field of work
10. Cash to close can come from gift, DAP, SHIPP, sweat equity, even cash kept at home will be considered

VA

1. Over $417,000.00 can be considered
2. Reasonable credit accepted
3. 100% Loans
4. Seller can pay all closing cost + up to 4% of loan for other buyers needs
5. Higher debt loads are always considered
6. No mortgage insurance saving money in monthly payment

USDA

1. Lend off appraised value not purchase price
2. 102% Loan to value
3. Can lend over purchase price for closing cost, pre-paids or other credit needs
4. Less than perfect credit is OK with good past 12 months
5. 620 score credit is approved no questions asked
6. Less than 620 is acceptable with explanations (closed a 535 this week)
7. Must be in USDA area and meet income restrictions
8. No assets needed if no cash at closing
9. No mortgage insurance = lower monthly payments

All 3 have rates hovering around 6% so no subprime here. Hope this helps.