Bank Owned Properties Are Easy To Buy In The Fort Lauderdale Real Estate Market
June 18, 2008
In an effort to spur growth in the housing sector, the Bush administration has made it easier to obtain a home by allowing the seasoning period on FHA loan approvals to be waived.
Prior to this ruling, all FHA insured loans had to have a 90 day waiting period between the time the owner of a property could re-sell the property to another Buyer.
The 5 year old rule was set in place to deter the quick flipping of properties by unscrupulous investors who often inflated values on the re-sale of distressed properties.
For one year, the Federal Housing Administration will no longer impose a 90-day waiting period before foreclosed properties can be sold to receive government-backed loans.
Why did the government do this? Foreclosures are at an all time high. Banks are overloaded with a backlog of inventory of foreclosed vacant properties resulting from borrowers who were unable to afford their mortgages. In an effort to help make the financing of these homes more available for potential Buyers, the government and the banks had to find a way to address this concern.
“A glut of foreclosed and abandoned homes harms neighborhoods, frustrates homebuyers and delays a community’s recovery,” FHA commissioner Brian Montgomery said in a prepared statement. The new policy “will allow homebuyers to purchase these homes in much greater numbers and ease the excess supply of unsold homes,” Montgomery said.
While the FHA does not make home loans. They insure the loans that banks make to prospective Buyers. The Federal Housing
Administration has insured over 34 million home mortgages and 47,205 multifamily project mortgages since 1934. Currently, FHA has 4.8
million insured single-family mortgages and 13,000 insured multifamily projects in its portfolio.
What does this mean to you, a prospective home buyer? 1. The bank owned properties in the Fort Lauderdale real estate market are prime opportunities to buy a home at a great price and even buy a home with equity as the owners of these properties have no choice but to sell and are EXTREMELY motivated. Truly, their loss is your gain.2. You don’t have to have great credit. FHA loans still require qualification but the standards are much less stringent as per credit criteria:
- Credit history involves what you’ve borrowed in the past, and how well you’ve paid it back.
- Capacity to repay refers to your income and your ability to handle the monthly housing payments.
- Cash to close refers to money for the downpayment and closing costs
- Collateral refers to the home you’re buying.
A lender cannot reject your loan application based on a lack of credit history or your decision not to use credit. If you do not have an established credit history, or if you do not use traditional credit, the lender must develop a credit history from utility payment records, rental payments, automobile insurance payments or other direct reports from credit providers.
3. Cash requirements for an FHA loan are not at all unreasonable. The FHA requires that the homebuyer invest at least 3% of the sales price in cash for the down payment and closing costs. If the sales price is $100,000 for example, the homebuyer must invest at least $3,000. However, the homebuyer can use gifts from family, funds from local, state or government agencies, or other sources for the down payment.
Non-FHA-insured loans may not allow this. That is a HUGE bonus and assistance for getting into an FHA loan program with little or no money down. In the coming week we will feature some of these down payment assistance programs.
4. The FHA has raised the loan amounts in the Fort Lauderdale real estate market to allow just about anyone to successfully buy a home. As of the writing of this article, FHA loan limits in the fort Lauderdale area is $423,750.00 for a single family home. This is amazing!
The government will insure your loan with a bank up to $423,750.00 and you may not have to have a large down payment or any down payment at all and your credit does not have to be perfect! Even if you have had a prior bankruptcy or foreclosure in the past, you can qualify for an FHA insured loan. Don’t confuse FHA insured loans with the shady adjustable rate sub-prime loans that caused the big problem in the housing industry.
FHA insured loans are fixed rate loans and your payment will not change.So here’s what you have. A motivated Seller willing to help you buy a home. Motivated is an understatement. The Government rolling back rulles allowing homes to be sold without restrictions. The FHA raising loan limits and loosening qualifying criteria for home Buyers. Interest rates holding quite low. Home prices at extremely low prices, especially in the bank owned foreclosure arena. Looks like the perfect storm! If you are interested in buying a bank owned home in the Fort Lauderdale real estate market we have an easy way for you to search.
Check out these bank owned homes and if something meets your interest, please give me a call or fill out the contact form below and I will get back to you very quickly. I answer my phone!
Here some other posts you may find interesting...
Fort Lauderdale Real Estate
Fort Lauderdale Homes And Condos For Sale
If you are interested in learning more about buying a home or condo in Fort Lauderdale or anywhere in South Florida; or if you need any information about the Fort Lauderdale real estate market, please feel free to contact me and it would be my pleasure to assist you.You can contact me at the number shown below or please feel free to contact me by the form below and I, or one of my assistants, will be sure to get right back to you within a few hours, if not sooner.
If you are inquiring about a specific property shown on this site, please include the address of the property in the comment section of the contact form below.
Bank Owned Properties In Fort Lauderdale
Foreclosures In Fort Lauderdale
Homes Fort Lauderdale
cforms contact form by delicious:days
Robin Sing-Cunningham
robins@robinashley.com
Access USA Realty
Local Fort Lauderdale | South Florida : 954-709-7461
My Assistants:
Barry Johnson: bjohnson@robinashley.com
