With new FHA changes (HR 3221) taking affect on October 1st there has been a lot of confusion regarding the down payment required for FHA loans. A lot of realtors were informed that starting October first the minimum down payment would be 3.5%. THIS IS NOT TRUE! The 3.5% minimum down payment will not take effect until January 1st 2009.
Given that Colorado is a low closing cost state the minimum down payment until Jan. 1st 2009 is as follows:
Lower of Sales Price/Appraised Value Down Payment
$50,000 or less 1.25%
$50,001 to $125,000 2.35%
$125,001 or greater 2.85%
As you can see above the minimum down payment isn’t even 3% regardless of the purchase price!
FHA is a wonderful program for first time homebuyers as well as seasoned buyers. The rates are better than conventional financing and the required down payment is much less. When the 3.5% required down payment goes into effect FHA will still be more advantageous than conventional financing.
Eligible source of down payment assistance:
-gift from family member
-gift from employer
-loan from family member (must disclose the terms of the loan)
I have 4 years of Mortgage experience in the Denver Metro area. My timing wasn't perfect to enter into real estate but I've made the best of it. I've made an effort to build my business on personal relationships.
I attribute mysuccess to sticking to the basics, as others focused on subprime and otherrisky lending I've stayed on a path of make sense deals.
Iam employed by a rock solid national bank whois inline withthe ethics I think are so important. As the industry flounders Summit Mortgage as awhole continues to grow.
We have systems in place that allow me to provide a smooth lending process:
-in house underwriting
-in house closing
-in house funding
*I focus on first time homebuyers. As a young home owner myself I find it very rewarding to offer others the privelidge of home ownership.
Even though the US housing market isn't doing so well I'm very excited about the optimistic outlook of the Denver real estate market.
Sincerely,
Michael Shotnik
Direct Mortgage Banker
Summit Home Mortgage
mshotnik@summit-mortgage.com
303-800-4595
