So you think you can't qualify for a loan? Think again!

After the proverbial real estate bubble popped, the fed and the banks restricted loans to such a degree only those with high credit scores could hope to purchase a home. Things have changed, but it seems that most people are unaware of the changes.

Currently one of the easiest loans to qualify for are FHA loans require a minimum of a 620 score, less than 5% down ( currently at 3.5% ), steady employment for the last 2 years with equal or increasing pay and the new payment shouldn't exceed 30% of your gross income.

The FHA has increased two key features of an FHA loan the Private Mortgage Insurance went from 1.75% to 2.25% and the down payment may increase from 3% to 5%. They have also decreased maximum closing cost assistance to the buyer from 7% to 3%

So, how do these changes compare?

Lets take a home selling at $200,000 - Remember I am not a loan officer, this is only intended to serve as an example, and to help dispel some of the misconceptions about buying homes.

OLD FHA Loan New FHA Loan
Guidelines Guidelines

Max Closing Cost $14,000 (7%) $6,000 (3%)
PMI $3,500 (1.75%) $4,500 (2.25%)
Down Payment $6,000 (3%) $10,000 (5%)
Interest rate 6% 4.25%

Estimated payment: $1,431+pmi 1,277 +pmi

As is evident even with the change in interest rates are helping to keep the home buyers monthly payments lower than in the past. However, these interest rates will not last! To take advantage of them call me today. Not let mis-information sway you, let me put you in contact with a loan officer who can give you the facts and figures based on your current situation. Even if you think your credit score is low!