FHA loans for First Time Homebuyers, Fixed Rate, Fair credit in Maryland, VA, PA, by Tim Marose

www.tmmortgagegroup.com

Home values have decreased over 12% Nationwide in the last year. Many parts of the country have been hit even harder. Maryland has definitely seen home values drop, but not quite at the pace of other parts of the country such as Florida, California, and Nevada.

This drop in value can help many first time homebuyers find a great deal on a new home. An FHA loan is an extremely popular option for many due to the requirement of just 3% down, as well as less stringent lending guidelines. An FHA loan also allows homeowners to have the down payment money "gifted" to them by a family member. Literally thousands of people every day are purchasing a new home without using any of their own money.

A very popular aspect of an FHA purchase is a seller concession. This is basically cash back to the buyer. The amount can be as high as 6% of the purchase price. A $200,000 loan through FHA could put $12,000 of the seller´s money towards all closing costs. It is easy to see why these loans have become so popular in the last year.

FHA does have minimum requirements, and a certified mortgage professional can help you qualify. Most lenders will require a credit score of 580 or higher, although exceptions can be made. A good payment history on rent or previous mortgage is also a very important aspect to the program. New homeowners should also be able to document income and have 3% of the purchase price in assets such as checking, savings, 401k, etc.

To find out more about FHA loans for first time homebuyers, go to www.tmmortgagegroup.com or call 1800-696-1424.