Author Login | Popular Articles | RSS Feeds | Sitemap

Home | Finance | Real-estate


FHA Down Payment 3% or 3.5% - Neither

By: Michael Shotnik

Michael Shotnik
Mortgage Banker
Denver, CO

Link: denver1stmortgage.com

FHA Down Payment Confusion - Denver, CO

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)

Michael Shotnik
Mortgage Banker
Denver, CO

Link: denver1stmortgage.com

Article Source: http://www.articlesnatch.com

About the Author:
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 Licenced(LMB100017466), bonded and insured.

| Print | Ezine Ready | |

Recent Real-Estate Articles

  • Commercial Real Estate India – Golden Opportunity for Lifetime Investment! By: charles king2 - Real Estate business in India is on a rising spree owing to the changing economic trends,increased value of the GDP (Gross Domestic Product), and liberal government policies in recent times. Many Asian countries as well as Non-Resident Indians in U.K and U.S.A consider India to be their favorite destination for real estate investments for commercial as well as residential purposes.
  • Exploring The United Kingdom For A Home By: Martin2 Johnson2 - Property Portals: A New Way To Advertise And Find Property Almost everyone is online nowadays and surfing the Internet has become as much a part of international culture as places like McDonald’s and beverages like Coca-Cola. So there shouldn’t be any surprise to find people buying, selling or renting property over the Internet.
  • Things to Consider Before Leasing Office Space for Your Business By: avinash - Office space is often an important need for a business facing growth and requiring full time staff. Shifting from working at home or even going straight into small business office space needs planning and preparation as well as an ideal deal of negotiation to make sure the deal makes sense for you and your business.
  • Getting the better deal on foreclosed properties in Houston. By: Joseph Smith - In Houston this year alone the percentage of real estate sales made up of foreclosed properties was well over 15%. With an increasing pool of defaulted properties coming back on the market with much smaller price tags, it’s no wonder Houston is big on the real estate map right now.
  • How To Add More Cash To Your Monthly Bottom Line Through Wholesaling Houses By: Terry Wygal The Quick House Buyer - If you're looking to get started in real estate business or you simply want to add more cash to your monthly bottom line, then you need to know a number of things. There are different strategies that you can implement in order to get started.
  • The Care and Feeding of the Clients From Hell By: Kevin Bilberry - I'm sure that every real estate agent has had one or two of these. If you haven't, you will. The Clients from Hell, to whom your fee for doing most of the work of finding them a home means that you suddenly have no life except for them and get very, very Irate at the suggestion that you are not on call 24/7.
  • Should You Carry A Gun To Home Showings? By: Kevin Bilberry - Realtors are in a dangerous profession. The news frequently carries stories about Realtors who were robbed, raped and murdered while showing homes or at open houses. House showings and open houses are a dangerous proposition for the lone Realtor, especially in isolated locations. In cases like these, carrying a concealed gun can provide security and safety.
  • Beach fronts and ski locales in the Great Lakes State for less on the foreclosure listings. By: Joseph Smith - The Great Lakes State, Michigan has the longest freshwater shoreline in the world. Not surprisingly, it also has the third largest number of registered recreational water vehicles in the country. So if your dream real estate location includes a lake house or cabin, with plenty of boating and water-sports, then this is probably the best place to start looking for cheap properties on the foreclosure listings.
  • MLS Flat Fee Listing : An Affordable Way to Market FSBO Homes By: Nishika Jones - Homeowners who want to sell their properties on their own have various ways to advertise their homes for sale to reach a wider target market. One of these is the flat fee multiple listing service (MLS). Marketing is crucial in selling real estate properties hence, it’s important that FSBO home sellers take advantage of the different marketing methods available to them.
  • Top 5 safest places to live in South Africa

    By: Lavana James - South Africa is a nation in transition and, as with all change, there is the inevitable fallout. One of the main areas of concern in our fledgling democracy is safety and security, an area that has taken a bit of a beating in recent years.

Search Ebay

Still can't find what you are looking for? Search for it!


Submit Your link to the Open Link Directory Project

Copyright 2005-2008 MJE Sales, LLC. All Rights Reserved.
Proud member of the ArticleCkr Search Network Search Network!
ArticleSnatch.com is free for both publishers and authors to use and is supported entirely from advertising revenue.
Use of our service is protected by our Privacy Policy and Terms of Service.