Out here in the Inland Empire prices are softening.  At the same time creative financing is disappearing.  With that we are seeing a rise in FHA and VA inquiries, and with good reason...these programs are GREAT!  Government financing carries excellent rates and terms.  In the past people didn't even bother with FHA or VA because creative financing was plentiful.  Banks were loaning money at unbelievable rates and terms and they were easy to qualify for with little documentation.  Now that those programs are going away, FHA and VA are coming back in a big way and you better make sure that you are aligned with a lender who can provide your clients with those products. 

FHA loan limits are currently set at $362,790 throughout the Inland Empire.  Congress is considering raising those limits, although as of now the limit remains where it's at.  The program requires full documentation but is available for the 1st time home buyer.  Down payment requirements vary from 0% to 3% depending on the specific FHA product.  Loans are 30 year fixed fully ammortized and will be given as all 1 loan unless there is no down payment then there is a very small 3% second, and not in all cases.  The sellers are allowed to pay for all closing costs.

VA loans had a loan limit of $417,000 which has recently been taken away with no specific limit placed.  CalVET has a loan limit of $521,000 and is a great program.  VA loans do not require a down payment.  You of course must be a "qualified" Veteran.  This product as well must be full documentation and meet traditional underwriting back end ratio guidelines however the debt to income ratios can be pushed higher with compensating factors like down payment, great credit, large cash reserves. 

Above I said make sure that you are aligned with a lender who has access to these products because not all lenders do.  You must be HUD approved to transact any FHA or VA home loans.  In the past 4 years a lot of brokerages and lenders failed to renew their HUD license because at the time no one was doing FHA or VA loans because of the other financing out there in the private marketplace.  Without that approval you are out of luck and getting approved again is going to be slow for a lot of these companies. 

If you have any questions about VA or FHA home loans or you are interested in purchasing a home and need to speak with a lender please call my direct line at 951-515-2120. 

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