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2009-12-16 17:45:47
Financing is available!

Yes, you can still buy a home!

With all the press of late you'd think it would be next to impossible to purchase a home! While it's true that the days of drive up financing are long gone, it's still quite easy to get a home financed assuming you meet the requirements for an FHA loan.

Here are the basic requirements:

1) You will need cash for a down payment. The minimum amount is 3.5%. So let's say you want to buy a home priced at $200,000. You'll need $7,000 down. This money can come from a relative but you can't simply take a cash advance on your credit card because that would show up on your credit report.

2) Closing costs can be paid for by the seller on your behalf, up to 6% of the price of the home. This is huge! It means that the only money you'll need is the 3.5% down payment!

3) All your monthly debt payments (mortgage, car payment, credit cards, student loans, etc) added up can not be more the 41% of your combined gross monthly income. For example, if you and your spouse make $5,000 per month combined gross income and your only debt payments are $500 for the car and $250 for credit cards you'd have $1,300 left over for your home payment each month.

$5000 X .41 $2,050
Car Payment $500
Credit Cards $250
Left Over $1,300

4) Your credit score must be above 620. Don't rely on those online credit reports, the scores are not the same as your loan officer will see.

5) The price of the home you're purchasing must be below the FHA maximums for your county.

Salt Lake $729,750
Summit $729,750
Davis $397,500
Weber $397,500
Utah $323,750
Wasatch $431,250

So as you can see, the hurdle is set pretty low at 3.5% for a down payment. Once upon a time you needed 20% to buy a home. So things aren't as bad as they may seem.

Blog Archive
2019-01-28 09:56:07
The Gamble of Overpricing Your'e Home

2017-10-30 10:07:23
Salt Lake County single-family home median price reaches $330,000

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Most Salt Lake County Homes Sell for Under $350,000

2017-08-07 15:45:17
Median Single Family Home Prices Reach $327,000 in Salt Lake County

2017-02-07 13:11:41
Is There a Housing Bubble?

2017-02-07 13:03:48
Predictions for 2017: Total Residential Home Sales

2017-01-31 09:34:22
Q 4 Housing Report

2016-02-11 10:24:38
2016 Forecast for Salt Lake area Housing Market

2016-01-25 18:11:50
Local Home Sales Data 4th Quarter 2015

2015-04-27 11:40:31
Mistakes people make when selling a home

2015-04-27 11:36:59
Save for down payment or buy a home now?

2015-04-27 11:31:13
Salt Lake Home Sales Climbed 16% in the First Quar

2015-02-06 12:20:37
Salt Lake County housing market positive for 2015

2015-01-15 15:10:58
FHA Mortgage Insurance Premiums Reduced by 0.50%

2014-02-05 15:27:36
Salt Lake Housing Prices Returning near 2007 Highs

2014-01-27 16:51:39
Salt Lake home sales in 2013 are highest on record

2013-10-31 09:38:09
Condo sales at a 7 year-high

2013-10-30 10:45:15
Median single-family home prices reach 255k

2013-02-12 17:09:58
Salt Lake County 2013 Housing Forecast

2013-01-23 13:57:04
'Fiscal Cliff' Real Estate Provisions

2013-01-02 09:23:42
Cliff Bill Retains Mortgage Debt Relief

2012-12-10 11:26:33
Home Buyers need to be ready to compete!

2012-10-23 15:25:42
Median Single Family Home Prices Increase 7.5%

2012-07-23 10:31:38
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2012-05-09 16:01:14
National Report says SLC is among top 10 places to

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