FHA Myth #2 -- Myth #2--FHA is slow.
It is true that they can't be rushed that fast, but they are not slow. I can have a lender approval for you within a day of my mortgage broker taking the loan application. The file won't need a second signature, or to be passed around for different departments to review.
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Myth #3--FHA is more expensive.
The monthly MI payments are quite a bit smaller. Also, since there is less risk in the loans for the lender, these rates seem to be a bit lower.

There are some important things to understand when making an offer where you will use and FHA loan. First, the condition of the property is important. A termite report is required. Also, an appraiser may comment on repairs that he feels are health and safety issues. Examples are, torn or filthy carpet, holes in walls, broken appliances, missing light fixtures, broken windows, etc. The idea is that buyers with minimum down payments will not be facing expenses or dangers when they move in. Also, FHA offers a unique refinance opportunity to borrowers. If rates drop, you can get a new loan that DOES NOT require new credit, new appraisal, new income documentation, etc! You simply replace your existing loan with a better one!
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NO Myth! -- PERS and STERS:
Great programs for government employees

Loans for government employees can have some great advantages. These programs allow employees who are contributing into their retirement funds to obtain a home loan with only 3.0% down. There are three reasons these loans are even better than FHA loans. First, the loan is broken into two loans. The first is at 80% and avoids any MI premiums. Second, the junior lien requires no payments for five years. It still acrues interest at the same rate the first loan does, however, it is deferred until year 6. Finally, the borrower must have only 1.0% of their own money as down payment.
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Normally, we expect property to appreciate at the rate of about 6-8% per year. If you had purchased a home in 2001 for $120,000 (just before prices skyrocketed) in 2006 it would have appraised at about $400,000. Now, however it would appraise at about $190,000.

Assume a 7% per year increase from 2001 until 2008 (2009 is too young to tell) your home would have increased in equity to $192,683.80, right on target. If you assume 6% growth it would be lower and 8% higher, but you get the idea.

Now let's consider the market going down another 10%.If interest rates were to increase during that same period by only 1-2% you would have lost the 10% advantage on a 30 year loan.

Here's how it works:
Purchase today with a $300,000 30-year loan at 5.5%. Monthly payments would be about $1695/month for 30 years.

Purchase the same home in a year for 10% less with a $270,000, 30-year loan at 7.5%. Monthly payments would be about $1876 per month, a difference of $165/month.

Multiply that by the 360 monthly payments and you would have paid $59,400 more by waiting for the market to go down.

But wait! What if the interest rates stay the same or go down. Maybe they will, but we are already at the low ebb in the interest rates. Do you really want to buck the odds and take the risk?
Call me today or visit my web site and email me with your needs and desires, I'm here to help you educate yourself on real estate matters and learn what you need.
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• The NEW $8000 Tax Credit does NOT have to be repaid if the home buyer stays in the home for 3 years.
• Escrow must close between Jaunuary 1 and December 1, 2009.
• The buyer must be a First Time Homebuyer which is defined as, "someone who has not owned a home for the past 3 years."
• A Guarantee Home Loans Mortgage Expert is best equipped to pre-qualify the buyer to determine their eligibility.
• To apply for their Tax Credit, a buyer should consult with their qualified tax preparer.