First Time Home Buyer Preferred Loan * Up to 6% Seller Closing Assistance * High LTV * Loan limit up to $729,750 in some locations in MD and VA. Will probably be reduced to $625,000 in 2009. These loans are all being revised at the end of 2008. Call Lenn for the latest limits and regulation, 800-711-7988.

The FHA loan is a favorite for First Time Home buyers. However, FHA financing is available to all home buyers who do not already
have an FHA loan. FHA permits a borrower to have only one property financed by FHA at a time.

FHA mortgage loans offer a wonderful opportunity for Maryland or Virginia home buyers to limit the amount of money they need to buy up front because the FHA loan permits home buyers to finance part of their closing costs.

Home buyers will need at least 3% of the purchase price of their own money and that money can be a gift from close family member. That is changing to 3.5% beginning 2009. Also, the Down Payment Assistant Programs may be eliminated altogether so smart home buyers will start to save for their down payment.

Homefinders.com can help you locate First Time Home Buyer down payment assistant. Not all home buyers will qualify. This program is limited by income. Call Lenn Harley, 800-711-7988 to determine if you qualify for the First Time Home Buyer GRANT of $10,000.

Under FHA financing, the seller can pay up to 6% of the purchase price for closing help for the buyers. So, the FHA loan is popular with first time home buyers in Maryland and Virgina.

Other features that make the FHA loan popular is the high Loan to Value ratio (LTV) permitted. While most conventional loans permit approximately 28% of a borrowers gross monthly income to be devoted to their house payment, FHA loan guidelines permit approximately 30% or more of the gross monthly income for housing. It is not unusual to see an LTV loan of 35% for home buyers with good credit and low monthly debt payment in addition to the mortgage payment.

Borrowers must meet normal credit approval standards, but FHA permits higher debt ratios than most conventional loans. FHA is also more forgiving of minor credit problems that have been corrected.

Another good feature FHA program is the ability of borrowers to qualify with a NON-OCCUPANT CO-BORROWER. Usually a family member who will co-sign for the mortgage loan, but will not be living in the home purchase financed.

The 203(K) Mortgage Loan
The solution to the FIXER UPPER.

The 203(k) mortgage loan is a loan that permits home buyers to finance the purchase of their home of choice AND finance remodelling costs. This makes buying foreclosures, older homes that need upgrading, homes that need expansion, garage, etc. to meet neighborhood standards, possible under the FHA 203(k) loan. This makes more homes attractive to home buyers looking for a good buy.

Homefinders.com is experienced with the FHA 203(k) loan and will gladly walk you through the process if you decide to buy a "FIXER UPPER" home.

Home buyers must still meet the 3%-3.5% of the purchase price of their "own money", but a bit of sweat equity and financing repairs and upgrades may provide a very good home for a very good price.