In today’s real estate market, FHA loans are more popular than ever before. It was not that long ago that virtually anyone could qualify for a loan, and it was rather easy to buy a home with zero money down. A 100% loan now a days is virtually non-existent! Many conventional loan programs want the buyer to come up with 10-20% down in order to qualify for the conventional loan.
Why FHA Loans for Berks County Real Estate is a Winner!
The beauty of an FHA loan is that you can buy a home with as little as 3.5% down, and on top of that greatness, you can also ask the seller to pay up to 6% of the purchase price for closing cost assistance as part of your negotiations.
As of the date of this article, The most you can borrow under FHA for a single family home in Berks County is currently $271,050. FHA is offering mortgage financing of up to 97% Loan to value mortgage financing! However, many people do not realize that FHA will let the borrow use a range of sources to come up with the 3.5% difference, including funds from gifts, grants, relatives and government loans. No further home mortgage program known today has the flexibility that FHA can provide.
What considerations should I be aware of with FHA loans with Berks County Real Estate?
When purchasing a home using FHA, there is an inspection which an FHA appraiser will do to make sure the property complies with the FHA program. It is important to note that not all homes will qualify for FHA financing. Here is a brief list of points to keep in mind when looking at homes to purchase using FHA financing.
FHA Appraisers will evaluate many aspects of the home including, but not limited to the following:
- Peeling or chipped paint
- Signs of mold or mildew
- All windows operate properly
- Missing or inoperable electrical outlets, plates, switches
- Missing flooring
- Evidence of possible structural failure
- Roof must have 2 years + remaining on expected life
- Water stains on walls or ceilings
- Missing bathroom fixtures and/or cabinet doors
- Signs of termite damage
- Missing kitchen fixtures or cabinets
- Faulty or defective mechanicals (electrical, plumbing, heating)
- Missing built-in appliances
- Dampness or water in basement
- Well/Septic – does inspection report indicate repairs are needed?
- Cracks in Foundation
If you are thinking of buying a home, please consider this if you plan to use FHA as your funding source. If you would like assistance in buying a home, call our office! We are hear to help you successfully buy a home. FHA is a great way to get into a home with little money down, but you just need to be aware of all the factors than can affect your loan success. We have great mortgage connections to help you get started! Call Us Today!