FHA is one of the most popular financing options today for all buyers of primary residences, not only first time buyers!
Some facts about FHA financing-
FHA has maximum loan limits by county.
For Ohio they are:
Cuyahoga, Geauga, Lorain, Medina counties =$298750
Erie, Huron, Ottawa & Sandusky counties=$271050
Summit & Portage counties=$330000
So in cuyahoga, lorain, medina & geauga counties that means roughly a maximum sale price of $304000 with the minimum 3.5% downpayment.
FHA requires 3.5% downpayment & it is the only loan program that allows the ENTIRE downpayment to be a gift. The seller may contribute up to 6% of the sale price to pay the buyers closing costs, points & prepaids.
FHA loans have an Upfront mortgage insurance premium that is financed & a monthly mortgage insurance premium. The Upfront mortgage insurance premium is currently 1.75% of the base loan amount (sale price minus downpayment), but with beginning with all case numbers ordered on or after April 5, 2010 the upfront mortgage insurance premium is being raised to 2.25% of the base loan amount which will raise the buyers loan amount & make the buyers house payment slightly higher.
FHA is the only program that allows a credit score as low as 620.
FHA rates are currently around 5% with no origination points. There may be points charged due to loan amounts or buyers credit score.
You can also get more information at my FREE Homebuyers seminar on FEb 25, 2010 at 5201 Waterford Dr, Sheffield Village, OH 44035 from 6:30-8pm. Door prizes, refreshments & closing costs discounts for all that attend.
Seating is limited so reserve your seat today by calling 440.452.3894