Update 3/09: FHA guidelines have been changed since this post was written.
For clarity, FHA has a minimum down payment requirement of 2.25%.
BUT, FHA does require buyers to put at least 3% of the purchase price into the transaction.
So, the buyer is needs to at least pay, with out-of-pocket monies towards closing costs equal to 0.75% of the complete transaction.
So with a particular loan for say $100,000.....
The buyer would have to put a minimum down payment of $2,250. The rest of the out of pocket monies would need to be put towards the transaction - such as the closing costs - which in this case - $750, all equalling $3,000.
Most loan officers in my area, AT LEAST IN MY EXPERIENCE, do not always clarify this and just express that buyers are require to put the straight 3% toward the down payment. Therefore, the whole 3% amount DOES go into the transaction - cut and dry.
If this is not understood, this factor can throw a monkey wrench into the negotiations of a deal....until it is explained and clear by all parties involved!
There you go! Hope this helps.
(01/2009 UPDATE - Please note: This information is current for the date and time that this blog post was written. FHA does change policy and procedure and this above information may not apply at the time that you may be reading this. Please check with a reputable lender to find out the current happenings of FHA lending or go to: Department of Housing and Urban Development ).
I have lived in Eastern Connecticut all my life.
CT State Bird - Robin
This is the housing market I know so well!
Where else can you go to a high school that has BEAUTIFUL historical buildings with old world architectural detail & an art museum like NFA (Norwich Free Academy )
. In the same day you can go to one of the most beautiful beaches 
in the country -- along Long Island Sound. Then in the evening -- you can go out to dinner at a choice of two of the largest Casinos in the world.
Living in Connecticut allows for one to experience the wonder of the changing seasons.
* The joy of a warm & breezy Summer's day 
along the shoreline 
*The beautiful colors of a New England Autumn in its glory 
*The first glance of the white Winter 
landcape after the
1st fallen snow of the year 
Laurel - CT State Flower
*The welcome reappearance of green & flowers in the heart of Spring 
All of this is what living in Eastern Connecticut is all about.
*********************
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Eastern CT
(Northeast corner & Mystic region - also known as Southeastern CT)
is right in the center of New York City, NY & Boston, MA with travel time of about 2 hours to each city by car
&
It is about one hour or less from Hartford, CT and Providence, RI
For more fun things to do in Connecticut & the surrounding area - check these out:
To learn more about Eastern CT and the housing market here contact me!
With permission - photos are from www.bigstockphoto.com ©Copyright. All rights served.
~~~
About the Author:
Marlene is a licensed Realtor for the Dan Sperduto Home Selling Team of Eastern CT. Please feel free to contact Marlene to find out more about the UNIQUE and successful marketing systems used by this award winning team of Realtors. To find real estate listings including homes for sale, search for properities from our agency AND from the MLS at www.dansperduto.com.
ERA REALTY PROs
170 Flanders Road ~ Niantic, CT 06357 ~ (860) 886-7000 x121
106 Westcott Road ~ Danielson, CT 06239 ~ (860) 779-1943 x121
Direct (860) 884-6169 ~ Fax (860) 691-5011
Copyright © By Marlene Pellegrini, All Rights Reserved. *EASTERN CONNECTICUT... SO MANY CHOICES, SO MUCH TO ENJOY!*
ADVANTAGES OF GETTING A PRE-APPROVAL FOR A MORTGAGE LOAN
If you have been pre-approved for a mortgage then you have given a lender authority to check your credit report and most likely also given them access to your financial data.
In return, the lender has agreed to give you a mortgage loan approval and most likely a mortgage pre-approval letter .
Being pre-approved will give you peace of mind knowing exactly what you can afford and where your comfort zones with price range and total monthly payment are.
As your Realtor®, I can search for a home for you knowing what you can afford so I don't waste your time showing you properties that are out of your price range. It also tells me that you are serious about finding a home.
When the right property is found and you put an offer on the home, your offer holds strong to the person(s) selling the property. If there is more than one offer on the table, and yours comes with pre-approval letter and the others don't, yours holds as a more reliable offer .
Being pre-approved shows the seller that you have prepared for a home purchase in advance and that you are ready, willing and able to buy their home and you have the ability to close quickly , if necessary.
A list of reputable mortgage lenders can be provided to you, just ask me !
| ERA REALTY PROs ~ 170 Flanders Road ~ Niantic, CT 06357 Office (860) 886-7000 x121 Fax (860) 691-5011 ~ www.MarleneWillSell.com |
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EXPERIENCE THE DIFFERENCE!...With a UNIQUE APPROACH to home selling & buying. YOU WILL SEE THE DIFFERENCE. Serving Windham and New London Counties. www.MarleneWillSell.com
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Even in this current market, we will produce RESULTS!!
Houses are selling... we can testify to that. Even in this market, if a house is priced right and is marketed well it will SELL. We just put a house on the market and it SOLD in 12 days!!! We had another one that just recently SOLD in 15 days!!! And another one in 23 days!!! What more can you ask for!!!!!
EXPERIENCE THE DIFFERENCE
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As a Realtors®, we know home buyers & sellers today want to be smart about their real estate experience.You want to be informed about what is going on. There are many choices to make during this process. we are committed to guiding our clients from the 1st phone call through to a successful closing.
In case you are wondering...
A Realtor ® is a member of the National Association of Realtors®, an organization that has established a strict Code of Ethics -- procedures for professional standards, that members are expected to subscribe to. This is an oath that we take very seriously.
We hold a fiduciary relationship of trust and confidence with our clients and customers, conducting specific duties for them in an ethical manner.
I have lived in Eastern Connecticut all my life.
This is the housing market I know so well!
Where else can you go to a high school that has BEAUTIFUL historical buildings with old world architectural detail & an art museum like NFA (Norwich Free Academy). In the same day you can go to one of the most beautiful beaches in the country -- along Long Island Sound. Then in the evening -- you can go out to dinner at one of the most fabulous Casinos in the world.
Living in Connecticut allows for one to experience the wonder of the changing seasons.
All of this is what living in Eastern Connecticut is all about.
"Marlene... All the effort you had put into answering my questions quickly and also doing all the research on this particular property was wonderful. Thank you". - Amanda A. of Stonington, CT......
.....Click here for more testimonials
License in CT
A member of ECAR, CAR and NAR
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