Oakland East Bay California Real Estate Update
Thursday, October 11, 2007

Recent Mortgage Loan Changes

5 Things You Must Know about Recent Mortgage Loan Changes
"....Insider Secrets that can make owning your Dream Home possible..."
Increased Ability To Finance Your Closing Costs
You can now finance up to 100% of your closing costs thanks to recent changes in Federal Housing Administration (FHA) guidelines, compared to the old limit of 57%. This is very good news for the first time home buyer who typically has less cash available at the time of closing.
Increased FHA Limits
There FHA loan amount maximums have increased, which is particularly helpful for people living in high cost housing markets. FHA 's mortgage limit is now tied to local housing costs. The limit is now 95% of the median home price, or 75% of the Fannie Mae maximum loan amount, which ever is lower. This is another avenue for the first time home buyer to achieve the dream of home ownership.
Increased Accessibility to Down Payment Assistance Programs
With the rapid increase in home prices over recent years, more and more people are having the dream of home ownership ripped from their hands. Typically one had to go through a rigorous process to qualify for a down payment assistance program. Today, there are now programs which have very little hassle. Ask your mortgage broker if they have access to such options.
Rapid Loan Approval
One of the latest innovations in the mortgage industry is the advent of computerized loan approval. These programs provide both rapid loan approval and more uniform loan approval practices. This type of approval is done by scoring a borrower's credit worthiness which quantifies the risk they will default on the loan. Does your mortgage broker use such a program?
Affordable Mortgages Which Don't Verify Income
These loans are perfect for those people who are self employed, real estate investors, retired persons and anyone who doesn’t want to have to prove their income. It is essential to have a good credit score in order to qualify for non income verified loan.

# posted by Dave and Carla Higgins @ 9:02 AM


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