It's one thing to have steady income, good credit, and a healthy debt-to-income ratio, but it's another to have the amount of cash to close. Buyers in Southern California are challenged with extremely large down payments that many are unable to afford. Thus, this change provides more borrowing power for those individuals.
Both FHA and Conforming loan balances are now higher in nearly every county across the nation, signaling a healthy and growing economy and market. This could make the difference for those renting and looking to become homeowners in 2017.
Not only do FHA loans now allow lower down payments, but they are also much more flexible and accommodating to the difficult situations that face potential homebuyers. Some of these things include:
- Debt-to-income ratios as high as 55%
- Credit scores as low as 580 for loans up to $424,100 and as lows as 640 for loans exceeding this amount
- 3-year waiting period on previous short sale
- 3-year waiting period on previous foreclosure
- 2-year waiting period for Chapter 7 bankruptcy
- Allows a borrower to refinance a second mortgage with LTV (loan-to-value) up to 95.6%
There's been a lot of buzz about the potential 2017 holds for many renters looking to become homeowners. Now, with these new FHA limits in effect, this could be a very favorable vehicle to help consumers fulfill their home-buying dreams.
Author:Kurt Galitski Phone: 714-957-6677 Dated: January 2nd 2017 Views: 274 About Kurt: After 15 years of founding and running a successful boutique real estate office in Costa Mesa as a l...
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With seven consecutive years of five-star status in Orange Coast Magazine, The Kurt Real Estate Group is among the elite. No matter where they’ve gone, they’ve set record sales. Whether you’re a buyer, seller, or investor, Kurt and his team work diligently, honestly, and with the utmost professionalism and are passionate about helping you achieve your real estate goals.
Kurt is ranked among the top two percent of Coldwell Banker agents nationwide. Kurt’s experience investing in and flipping homes and his connections with the Hollywood Film Industry give him an unparalleled edge and keen insight into market trends. The opportunity presented to you in working with Kurt is why The Kurt Real Estate Group is recognized as one of the top real estate teams in Orange County.
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"Kurt and his team managed my rental property for 16 months as well as helped me then sell it in 2015. Every step of the way, he was always available, and very easy to work with. He handled issues with my tenant promptly and firmly, and when we transitioned to selling the property, he ensured that I got the best price for my property and went above and beyond to make sure that I had a buyer who could close escrow...Read more on Yelp"