As most of you know from previous posts, FHA loans (loans that are insured by the government), only requires 3% money down on the purchase of a new home. Most of you might be saying WOW THATS FANTASTIC, others, not so much. Still, it is exciting in the mortgage industry because there are non-profit organizations such as Nehemia and Ameridream that gift up to 6-10% of the purchase price to cover things like closing costs, the FANTASTIC 3% down payment, and if there is still money to be gifted it could be used for repairs.
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There is a new term out there that many of you probably don’t know about, and its called EEM – Energy Efficient Mortgage. Thats whats next on the blog.. check back for more.
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July 18, 2008 at 2:53 pm
Brad Clemons
Another great option for FHA mortgage holders is that they are assumable. Many people do not realize that government loans are assumable. In today’s real estate market many people have little or no equity and need to move. By advertising their assumable mortgage the buyer would need to credit qualify with the current lien holder but could assume the seller’s mortgage.
Both parties could save thousands of dollars and the seller could use their real estate agent to find another house with more money in their pocket.