Mortgages are available!  Despite the doom & gloom in the media, loans are available with 3% down and not so perfect credit.  There is a lot more light in the lending industry than other financial sectors & declining home prices and interest rates make it an opportune time to buy.  Consider these points:

FHA Loans - More than 90% of new loans, now, are being made through the Federal Housing Administration(FHA) insurance program, plus Fannie Mae & Freddie Mac.  FHA is owned by the federal government & Fannie May & Freddie Mac are operating under federal conservatorship.  All 3 have unfettered access to global capital markets at rock-bottom costs, because their borrowings are fully guaranteed by the Treasury.  There is no shortage of money for home mortgages.  FHA also allows for a down payment to be gifted, a non-occupant co-borrow is allowed (ideal for having parents co-sign to qualify), no reserves are required and seller can credit up to 6% of closing costs.

3% Down - You can put 3% (3.5% after Jan. 1) down on an FHA-insured mortgage and 5% on certain Fannie Mae and Freddie Mac loan programs with private mortgage insurance.  FHA exist to help people with less-than perfect credit histories so their credit standards are generous.  Fannie Mae and Freddie Mac have raised their credit score requirements over the past year, however buyers and refinancers with scores in the upper 600s can still qualify for loans carrying reasonable rates & fees.

Low Mortgage Rates – Mortgage rates near historic lows.  As of 12/9/08, the rate for a 30-year fixed loan is 5.375%.  This is an incredible rate! 

Maximum Jumbo Loan Amounts – continue to be $729,750 through December.  In January, the high-cost maximum will be readjusted to $592,950 in Napa.

Home Prices – Heavily influenced by foreclosures and short sales, have rolled back to 2003 and 2004 levels or lower in many of the former boom markets.   As a result, buyers are coming off the sidelines entering into contracts.  The pending home sales index jumped by 7.4% based on purchase contracts signed in August, according to the National Association of Realtors. 

Now is the time to take advantage of the low housing prices and excellent interest rates.  First time homebuyer, investor, downsizing or moving up, let's talk and see what opportunity exists for you!