The average first-time homebuyer in today’s market is buying using FHA (Federal Housing Administration) financing for a number of reasons, one of biggest being the ability to get into a home for as little as 3.5% down payment and seller paid closing costs up to 6%. Conversely, there are certainly 3% down payment programs available in the Conventional Loan Market, but they require higher credit scores and have lesser allowable seller contributions.
BUT, oh yes, there’s always a BUT and this is a BIG ONE. FHA guidelines are changing and seller contributions are going down, from 6% to 3%! Using a $200,000 purchase price, that’s 6,000 additional reasons to buy now. Your minimum investment just went up significantly. Do you have an extra $6,000 laying around in your bank account?

As a homebuyer in today’s real estate market, it may feel a bit like we’re asking for a whole lot more than you feel we should need to know. Let me ask you, if you were borrowing someone $150,000 for Burnsville real estate, what would you want to know about them?

On an FHA loan, mortgage insurance is required to be paid in the form of both upfront mortgage insurance premium and an annual mortgage insurance premium. Currently, these amount as set at 1.75% upfront and .55% annually for minimum down 30 year fixed rate mortgages. The change, that is scheduled to begin April 4, 2010, increases the upfront premium to 2.25% and leaves the annual premium at .55% for 30 year fixed rate mortgages.

This is one of Carrie’s favorite quotes of all time. Living my this quote has helped her to become the premier home loan specialist in Dakota and Scott counties. “You can have anything you want in life, if you just help enough other people get what they want.” – Zig Ziglar

For real?? Yes, your 720 credit score may not be all it’s cracked up to be. To get a home loan, your mortgage lender have to validate your credit.
So you’ve been told you have great credit and to focus on your number, whatever that might be and then I jump in and tell you that 720 you’ve worked so hard for just might not cut it anymore? What’s up with that?!? I know, it’s next to impossible to catch onto this moving target out there known as your credit score.