Is a new Colorado Springs home on your list of unaccomplished goals? FHA loans are quickly being established as the preferred loan program for many buyers. Since 1934, the Federal Housing Administration, which is a part of the Department of Housing and Urban Development, has helped low to middle income families achieve their dream of home ownership fast and easy.
How does the FHA help you?

The FHA insures the loan, making it more likely that a lender will offer you a great deal.

What does the FHA have to offer?

There are a lot of benefits to the FHA loan, and it just might be the right plan for you. So, let’s take a look at a list of what the program offers:

• With decent credit, you can get a down payment as low as 3.5%. That’s way less than the conventional loan!
• There are no income limits.
• You could also use FHA funds to fix-up your home.
• Use gifted or borrowed money toward your down payment—you won’t be penalized.
• If you like energy and saving it, the costs to make energy upgrades on a home can be included in the FHA Energy-Efficient Mortgage program.
• The loan covers many types of housing including mobile homes and factory-made houses.

How to get started?

You’ll need a loan application. On that form, you’ll have to provide the following information:

• All addresses where you have lived in the past couple of years.
• Your employers’ names and addresses for the last two years, plus the amount of your monthly grossed salary
• W2 info for the past two years
• Income tax forms for the last two years

Biggest tip—be sure to gather all of the above-mentioned info before starting the loan application. It would be aggravating to have to stop in the middle of the process. Get it all done in one sitting!

A Couple of Cons

The FHA loan does have a couple of downsides. There is a set limit own how much you could receive, depending on the area you want to live in. Also, as of April 5, 2010, the upfront mortgage insurance payment was raised from 1.50 percent to 2.25 percent of the loan amount. That insurance payment is due at the time of settlement.

In Summation look at your options and see if the FHA is a right fit for you. If you have great to excellent credit, a conventional loan might be better for you. But if you are one of the many Americans with a dream to own a home, but not sure how to make it happen with your income and credit rating, an FHA loan plan might be just what you’re looking for. Talk with a mortgage lender today.

Article Courtesy of  Michael Blumreich of FHA Mortgage Center

The Colorado Springs Real Estate Connection would like to introduce another great article from our friends at Bring the Blog. This article talks about the possible signs of recovery in the housing market.

Using data compiled in December, Standard & Poors released its Case-Shiller Index Tuesday.  The report shows home prices down just 2.5% on an annual basis, a figure much lower than the 8.7% annual drop reported after Q3.

According to Case-Shiller representatives, the housing market is “in better shape than it was this time last year”, but some of the summer’s momentum has been lost. 15 of 20 tracked markets declined in value between November and December 2009.

Meanwhile, it’s interesting to note the 5 markets that didn’t decline — Detroit, Los Angeles, Las Vegas, Phoenix and San Diego.  Each of these metro regions were among the hardest hit nationwide when home prices first broke.  Now, they’re leading the pack in price recovery.

For some real estate investors, that’s a positive signal.  But we also have to consider the Case-Shiller Index’s flaws because they’re big ones.

As examples:

1. Case-Shiller data is reported on a 2-month lag
2. The Case-Shiller sample set includes just 20 U.S. cities
3. There’s no “national real estate market” — real estate is local

That said, the Case-Shiller Index is still important. As the most widely-used private sector housing index, Case-Shiller helps to identify broader housing trends and many people believe housing is a key element in the economic recovery.

If the markets that led the housing decline will lead the housing resurgence, December’s data shows that full recovery is right around the corner.

Got A Pocket Protector?
Are you a bean counter?  If the glove fits?  Completely analytical?  Or is Feng Shui more your style?  Go with the flow?  If it feels right, it’s a fit?

Storm Chasers?
Whatever your style, you bring it to your home buying experience – magnified a hundred times.  If you’re out there house hunting there’s probably an F5 life change whirling around just to make the whole experience a wee bit more interesting.

Up Sizing?  Down Sizing?
More space for a growing family – got hormones?  Downsizing – college – worried about the cost?  Empty nest without those little bumpkins running around? Getting married – two houses to deal with?  Wedding plans?  Mother in law?  Or divorced?  No tension there.  Well, it all gets wrapped into vortex.

Watch Out!
Then there’s the market.  What the heck is going on there?  Watch out!  Learning curve ahead!

Take A Breath
You’ll get through this.  It’s not the worst you’ve ever been through.  And sorry to be the bearer of bad news but it won’t be the last.  Buying a house doesn’t have to be stressful but whatever you’re going through is coming along for the ride.  Remember the cow?  So take a breath, do yoga, go out to your car and scream – whatever.  Tomorrow will be better.

• Other Posts by Vicki: A Few Words From Bella and   What’s HVCC Done For You?
• Check Out Her Writings on Agent Genius, too.