Creative FHA loans — No Money out of pocket

Hi Jeff, I have few listings that are currently listed below appraised value and I have them advertised as great for FHA down payment assistance as you have your equity already and that can be used as down payment. Great success story you just have to market it correctly and educate your buyers. Have a great Sunday!

Nope, the shift is on back to the FHA and VA financing because of two things: FHA got more competitive with thier terms and rules and Conventional got harder to obtain.  It closed the gap between the two and so to work with a lender who does not have FHA in their bag is a limiting idea for your clients!

I have used Ameridream...it's a great program...not many realtors are aware of it ....        

SONJA.....  This type of financing is perfect for those homes that are listed below market value. Or even those homes that can appraise for a little more than what the seller is listing it for, but doesn't want to go lower in price.  thanks for your feedback and have a great Sunday also....

RON....  what do you mean FHA got more competitive?  The only two things that have changed is.... 

• much less restrictive on the appraisals

• and raising the maximum loan amounts in most areas

Other than that, rates and pricing have always been the same as conventional loans. And yes, conventional is higher priced now, depending on your credit score and because of the declining market areas. But yes, working with a lender that doesn't have FHA in their bag of programs is limiting the way that they can finance a home.

KONNIE......  yes, Ameridream is another good program.  I see some loan officers advertise these other DPA companies as being cheaper...  I will not try another company, even if it saved my client $200.  To much risk involved, especially since I have had so much success with Nehemiah.

Jeff, as always, great information.  thanks for sharing and keep up the good work

I use both Nehemiah (www.getdownpayment.com) and AmeriDream (www.ameridream.org) programs - Nehemiah's good up to 6% while AmeriDream's good up to 10% in funds for down payment and/or closing cost assistance. They can be used as "gift of funds" and are great for borrowers who don't have the minimum downpayment needed to qualify, or would like to preserve their liquid assets for emergencies or other expenses. If you don't know how it works, Nehemiah has a Webinar you can attend. The next one you can register for is June 19th.

Jeff, I was watching TV last night and they have a new gimmick out now for tv ads.  This commercial said they where Authorized by the US Goverment to offer special clients fha loans.  WHat a load of......the crap went deeper as the ad went on

Do you know FHA's policy on decling market properties?  Is there something I can read for a crash course for a client?  Thanks for your help. 

To Laura:

FHA addressed the issue of financing in down markets in a September letter to lenders:

"The purpose of the appraisal is to provide the lender/client with an accurate, and adequately supported, opinion of market value.   It is the appraiser's responsibility to determine whether a property being appraised is located in a declining market....

"If a property is located in a declining market, the appraiser must provide an explanation in the "Market Conditions" section of the appraisal report that includes relevant information in support of the conclusions relating to trends in property values, demand/supply and marketing time.  The appraiser must also provide a description of the prevalence and impact of sales and financing concessions and/or down payment assistance in the subject's market area.  Other areas of discussion may include days on market, list-to-sale price ratios, and/or financing availability."

"The mortgagee's responsibility is to properly review the appraisal and determine that the appraised value used to support the mortgage is accurate and adequately supported."