MYTHS ABOUT FHA LOANS
RISMEDIA, July 3, 2010—FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA). 

“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87% today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.” 

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes. 

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option. 

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location. 

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers. 

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%. 

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan. 

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment. 

FIRST TIME BUYER'S TAX CREDIT IS OVER, BUT RATES ARE STILL AT AN ALL TIME LOW If you wanted to purchase a home this year,the opportunity is still available to you! Right now, interest rates are extraordinarily low and they will not be that way for long. The Feds are still watching the rate of growth in our economy and they use the rates to slow growth. So don't get caught in their net and certainly don't let the best opportunity pass you by!  

FINANCING OPPORTUNITIES AVAILABLE FOR FIRST TIME BUYERS 

USDA
No, It's not about beef! It's about Rural Housing Service – The bill provides an additional $500 million to existing USDA Rural Housing programs. The RHS provides both a guaranteed loan program and a direct housing loan program for those meeting the program’s eligibility criteria. The direct loan program will receive $270 million while $230 million will be allocated for unsubsidized guaranteed loans. It has been reported that this level of funding would provide for an additional 192,000 homeowners. CALL NOW to get information on whether or not you are one of those 192,000 possible home owners! 

NACA
Have you heard of NACA-(Neighborhood Assistance Corporation of America)?
Would you like to obtain a mortgage with the lowest interest rate possible in today's market?
Then CALL ME TODAY ABOUT NACA
NACA makes your mortgage payment affordable. Any home buyer can purchase a home thru NACA with low interest rate, no downpayment and no closing costs. NACA has over $10 billion in mortgage commitments for working people to purchase homes on the best terms anywhere with one mortgage product for all homebuyers The Lowest Interest Rate: one-percent below market rate for a conventional “A” credit loan with the below incredible terms:
no down payment, no closing costs, no application fees, no private mortgage insurance, no requirement for perfect credit. Call today for more details!Serving NACA buyers relocating to Rockland, Orange, Ulster and Dutchess Counties.
(Success Power Brokers and NACA are not affliated. This is a mortgage product that is being recommended by this individual real estate broker associate. Call TODAY for details and to get registered for the program). 

SONYMA LOANS via NEW YORK STATE 

SONYMA offers 5 unique programs to help in your quest to become a first-time homeowner, all of which offer below market interest rates, a low downpayment, no prepayment penalties and assistance with closing costs. These 5 programs are:
Low Interest Rate Program: A standard mortgage loan for first-time homebuyers
Remodel New York: A program that offers a below market fixed-rated mortgage to first-time homebuyers who purchase a home with the intent of renovating
Achieving the Dream: Offers low interest rates to lower-income first-time homebuyers
Construction Incentive Program: A program that offers 100% financing to first-time homebuyers who purchase a home under construction or rehabilitation
Homes for Veterans: Specifically designed for military veterans, this program allows qualified veterans to apply for any SONYMA program with added favorable terms
Both the Construction Incentive Program and Achieving the Dream offer additional savings to homebuyers who purchase new energy efficient homes according to the New York ENERGY STAR Labeled Homes program.  

Am I eligible?
Each of the 5 programs have specific requirements according the type of loan. Please see NY Homes for details on each. In order to qualify for any of SONYMA's programs, you must: 

Have a 2 year history of a reliable, verifiable source of income prior to applying for a loan
Have a credit history proven to qualify you for a home loan
Have the ability to afford all projected costs of homeownership as well as any current debt payments
Have the ability to afford a downpayment and closing costs
Be a first time homebuyer
Occupy the SONYMA-financed home as your primary residence
Just as you must meet the above requirements in order to qualify for a SONYMA loan, so does the house you are seeking to purchase. In order to qualify, a home must: 

Be located in New York State
Not be used for commercial or business purposes
Be a maximum of 5 acres
Have a minimum of 500 square feet living space
Be an existing or newly constructed single family home, or
Be a 2, 3 or 4 family unit at least 5 years old and has been used solely as a residence during the past 5 years, or
Be a 2 family home at least 5 years old and located in a Target Area*
Have a sale price that does not exceed the Purchase Price Limits**
* A Target Area is a tract of land which has been designated by the Federal government as economically distressed. Call about purchase price limits. 

How does it work?
Each of SONYMA's 5 programs are designed to give assistance to first-time homebuyers , and is financed through the sale of tax exempt bonds.  

Are there any alternatives?
If you are not a first-time homebuyer, you may still qualify for a SONYMA loan if you seek to purchase a home in a Targeted Area.  

Do I really need this type of loan?
If you qualify according to the above requirements it is recommended that you choose a SONYMA loan, as the SONYMA programs can make purchasing your first home a feasible option. If, however, you can afford a conventional mortgage and downpayment, you may want to consider other options through your local lender.  

BANK OWNED PROPERTIES In 2010, this will still a great opportunity for the first time buyer to get into a solid property paying a lot less. However, if you are not that savvy with the loan programs available for "distressed properties", it may not be such a good idea. There are over 100 of such properties currently on the market in Orange County, Rockland County, Sullivan County, Ulster County and Dutchess County, These properties are being purchased by smart buyers who have realized the trend. No one has a crystal ball to know when this trend will end, so the time to move is NOW! Strike while the iron is hot!