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Non-Occupant Co-Borrowers; FHA Loan Limits; 5/1 ARMs Are Back

FHA is NOT your only option when you have a parent co-signing for a child buying a home. As long there is a sufficient down payment, we still offer conventional financing. Conventional financing is far better than FHA, when available, because the rates are lower and you avoid both Up Front and Monthly Mortgage Insurance.

Once again, FHA Loan Limits in “high cost” areas like Alameda and Contra Costa Counties are now up to $729,750 for a single family residence. The rates are slightly higher for the high balance FHA loans (5.75% at a cost of one point), but they still represent an excellent opportunity for purchasing a high-end home with very little down payment (only 3.5%).

For those buyers with a shorter-term horizon, 5/1 ARMs are back. Currently, we have 5/1 ARMs as low as 4.375% at a cost of one point.

Lastly, we are encouraging everyone to ask for closing cost concessions from the seller whenever an offer is made. Most of lour lenders allow concessions or credits of up to 6% of the sales price. These credits can be applied to both nonrecurring and recurring closing costs. The credits not only allow your cash-strapped clients to keep a substantial amount of cash in their pockets, they also allow cash-strapped clients to qualify for larger purchases.

Jay Voorhees
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 1197176, NMLS# 310167