FHA changes require more downpayment for buyers
If you are considering buying a house and don’t have at least 3.5% to put towards your downpayment, then we need to talk – and talk soon. For effective October 1, many of the downpayment assistant plans will be going by the way side thanks to new government regulations.
What does this mean to buyers in Delaware, Ohio?
As the mortgage market has tightened up and the pure 100 percent financing options have evaporated many home buyers have been using Ameridream and Mehemiah programs where the seller will pay for 3 percent of the buyer’s downpayment.
On October 1, those options will be gone. And the 3 percent downpayment requirement will now be 3.5 percent. So on a $100,000 house, the required downpayment will be $3,500 rather than $3,000; $7,000 on a $200,000 house, etc.
What are my options?
- Hurry! — If you are counting on the seller to help you in the purchase, contact me today and we need to get you moving and in contract.
- Find a Rich Uncle? – While the program does away with the ability of the seller to assist in financing, it doesn’t limit gifts from family.
- HUD Me –Â HUD Homes are becoming quite the rage, and for good reason. Thanks to another initiative a HUD home can be purchased for $100 down and you get $2,500 towards closing costs.
All of these spell out an unique opportunity to buy real estate in Delaware, Ohio in the next couple of months.
Photograph by Dani Simmonds and used via license of Stock.xchng.
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Hey I have checked out the Nehemiah website and there is still some hope for seller funded downpayment assistance. There was a new bill introduced that could save it and they are looking for support on this. Check out the website. http://www.dpagroundswell.org/
Thanks for stopping by Vicki.
The Nehemiah programs have been on the chopping block for nearly two years; and I’m amazed they’ve lasted this long. Will they continue? Maybe. But, we need to keep our options open.
This is good to know, considering we were one of those people who would have needed 100% financing. But alas, we have even less money now. Do you have anything for sale for 20 bucks?
I have a sleeping bag. Will that work? :p