The second big change covered by the 2008 housing bill is the loss of down payment assistance from not-for-profit organizations to fund down payments for FHA loans.  What this means to the consumer is that they will have to provide their own down payment money, or obtain gift money from family in order to fund their own down payments.  In addition the required down payment on an FHA loan will increase to 3.5%.  While this could not necessarily be construed as a positive development, down payment assistance will be available until September 30th of 2008 so consumers who wish to avail themselves of these programs should begin looking seriously to purchase as soon as possible.  To recap on the
benefits of the FHA loan:

• Loan amounts up to $271,050
• 3.5% down payment required vs. 5.0% for conventional financing
• Lower monthly mortgage insurance
• Higher debt ratios than conventional mortgages
• Broader credit score tolerances than conventional mortgages
• Common sense underwriting
• The ability of a parent or family member to be a non-occupying co-borrower

FHA still remains an outstanding loan product for many consumers.  Past credit issues, no reserve requirements, and the new higher loan level make it the best loan for many borrowers, not just first-time homebuyers.  The days of assuming that conventional lending is the best product for the high credit score buyer are over.  In many cases due to changes in rules by Fannie Mae and Freddie Mac, FHA is less expensive for the buyer.

Call me today!

DAVID MENNEN
Mortgage Consultant, Owner

Tippecanoe Mortgage, Inc.
1221 S. Creasy Lane, Suite J
Lafayette, IN 47905
Direct: (765) 448.3200
Fax: (765) 448.6398
Email: dmennen@tippecanoemortgage.com
Website: www.DavidMennen.com

The #1 FHA Lender in Tippecanoe County - Since 2003!

P.S. If you are ready to talk with us right now, call 765-448-3200. If you miss us, please leave your name and number. We will get right back to you.

P.S.S. On my website I offer tons of free consumer reports to help renters, buyers, sellers and homeowners looking to refinance. To get your own FREE copy of these reports, just go to http://www.davidmennen.com/buyer_reports.html!

Local Mortgage services for Greater Lafayette, West Lafayette Indiana, Purdue, Tippecanoe County, and the surrounding areas. Local Service with internet rates! Free Quotes! Visit my website for great financial information. http://www.davidmennen.com/