Tuesday, March 17, 2009

FHA Home Loans in the San Fernando Valley

FHA Loans Become Popular Choice Newly discovered FHA loans, which require low down payments but charge higher interest to borrowers with lower credit ratings, have quickly become a wildly popular choice for home buyers.

The loans require a down payment of only 3.5 percent, while conventional loans require down payments of 10 percent or higher.

However, the products also are drawing some unfavorable comparisons to now-abolished subprime loans.

Finance professionals, however, stress that unlike the infamous subprime mortgages of years past, FHA lenders go out of their way to verify income and ensure that they are not approving "liar loans."

Source: Palm Beach Post (Fla.), Jeff Ostrowski (03/16/09)

Richard's Notes: Getting an FHA home loan is like a double-edge sword. One one hand, the home-buyer can qualify for a home-loan with a minimum down payment of 3.5%. On the other hand, FHA offers are being pushed-aside by sellers who prefer to sell their homes to buyers who have at least 10% down.

Homes priced between $250,000 to $400,000 are selling very quickly in the
San Fernando Valley real estate market. If you are a first time buyer or investor, expect multiple-offers. Bank owned homes are selling within days with multiple offers, over-bidding, and cash offers.

If you are considering purchasing a home with an FHA home loan, the chance of having a successful purchase increases if you are purchasing a home over $450,000. For a professional consultation, please call me.
Richard Johnston, Rodeo Realty
818-730-4128

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