STL Develops

     As 100% financing options are becoming a thing of the past in the conventional financing market, FHA is becoming a more prominent financing mechanism for people buying a home in the St. Louis Real Estate Market.  Some of the reasons people typically do not want to use HUD financing is they believe there are extra inspections, more paper work, they must invest 3% for a down payment, FHA loans are only for first time home buyers, and all borrowers must occupy the property.  These concerns are unfounded. First of all, HUD requires an appraisal not a special inspection, if the appraiser finds issues that concern the possible safety or habitablility of the property then they can ask for an inspection.  However, almost everyone buying a home should have a qualified ASHI inspector inspect the property. In addition to no special inspections, there is no additional paper work, it is simply different paper work.  Also, buyers do not need to spend their own money on the down payment. They can receive their down payment from other sources such as: gifts, grants, and seller funded down payment programs.  The FHA loan limit in St. Louis is $281, 250 so most home buyers can use FHA financing not just first time buyers.  All borrowers do not need to occupy the residence, only one.  So a buyer can in effect have a co-signer on the loan if for example parents want to help a child buy their first home.  Its a good time to learn about FHA, its projected that 48% of all home loans will be FHA financed in 2008 compare to 2% in 2007.