There has been much confusion lately it seems on the
advantages and exclusive use of FHA financing and I wanted to check & see what is going on in our area. As all real estate is local, let's see what is going on just in Schaumburg Townhomes.
What I found was actually quite eye opening as what the media spin would like us to believe and what is actually closing are two different things. Two good financing posts recently are very conflicting. John Mulkey, did a post on the major use of FHA financing from the head of FHA. There are worries that the system might be overtaxed, overused and could lead us again into financial disaster.
Another point of view from a loan officer, Janet Guilbault states that FHA loans are such a staple now (crack heads reference) across the nation, FHA better not being going anywhere soon! When it comes to Schaumburg Townhomes and our area - FHA has always been a valuable financing option just because of the low down payment to qualify. With the new lending guidelines, FHA is also much more lenient as far as credit scores, dings on your credit (which is just called life), and slightly higher qualifying ratios.
So here is what we have for financing types for Schaumburg Townhomes -
Cash - I guess it is still king. This really surprised me. If buyers are so cash strapped why are there so many cash transactions? Maybe buyers aren't so broke after all?
VA Loans - I thought that more buyers would have taken advantage of this great opportunity with the lowest amount down available.
Conventional Loans - what this shows us is that more buyers actually have a larger down payment and are choosing to go conventional side stepping mortgage insurance or not have to pay FHA mortgage insurance for the life of the loan. Again, tells us that maybe buyers aren't so broke after all?
If you are thinking of selling your Schaumburg Townhome or purchasing a townhome in or near Schaumburg, please give me a call so we can discuss financing and any other questions you might have.
FHA Approved Communities
FHA Loan Requirements
Mortgage Terms Glossary
8 Steps to Getting your Finances in Order
Buyer Closing Costs
