The mortgage industry is in a flux right now. Companies that funded sub-prime loans are hurting, actually they are closing their doors. Respectable companies that routinely made good loans found themselves in a liquidity crisis and are shutting their doors as well.
As the pendulum swings towards the conservative side of lending, many would be home-buyers are finding themselves scrabbling to find funding for their new home.
Buyers who aren’t blessed with a huge down payment are turning to FHA mortgages. FHA loans are backed by the government and could be the answer for many. 100% financing may be going the way of the dinosaur, remembered fondly but extinct.
Saving for a home is back in vague.
FHA requires only a 3% down-payment. Three percent down is not a lot of money, it’s a manageable down payment. The source doesn’t have to be the borrower, the down-payment can come from family in the form of gift funds.
Saving for a home has many benefits.
Mortgage investors love to see buyers with down payments. Families pull together when they have a common goal. The unity of purpose creates a strong bond for everyone involved. The
About the Author
Kristal Kraft
Kristal has been helping buyers and sellers in Colorado since 1984. She enjoys sharing her knowledge of the Metro Denver Real Estate market via blogging and in person while driving around the beautiful Rocky Mountain town of Denver! For fun, Kristal enjoys shooting things with a Canon. Visit Denver Photo Blog
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Kristal Kraft
