okREblog - It’s All REALative

I recently asked Kenneth Wohl, of SpiritBank Mortgage fame, to give me a basic rundown on what’s going on in the world of home mortgages right now, and how it relates to you, our readers, and other Edmond home buyers. 

I had heard quite a bit about some changes coming in the way of FHA requirements and limits, and it looks like some of these changes are going to open the door for many buyers who otherwise may have had some difficulties.

Here’s what Kenneth had to say:

With the volatility of the mortgage industry, conventional interest rates are creeping up! FHA (Federal Housing Administration) backed loans are a great alternative. These loans are federally insured and usually carry a fixed interest rate of .5% lower than conventional loans. With recent changes in the mortgage industry, FHA has increased loan limits around the country. Oklahoma areas have changed from $200,160 to $271,050 allowing Oklahomans located in the more affluent growing communities to afford the homes in slightly higher-priced subdivisions.
There are no income requirements, and underwriting guidelines allow for those with lower or no credit scores. There is a down payment requirement of 3% of which can be gifted by friends, family, and non-profit organizations.

So, as you can see, while things have tightened up in some areas, there are other avenues which seem to be opening up.  If you have questions related to this or any other real estate topics, feel free to email Kenneth or myself.