Huntsville AL Real Estate Tip: Debunking the Credit Crisis

By: Huntsville Real Estate Expert Mike Manosky On May 5, 2008

By now we’ve all heard buzz about the supposed “credit crisis,” with tales of all Huntsville AL real estate buyers being required to put 20% to purchase a home and then still being unable to find a lender to give them a loan. It seems the press just can’t get enough of all the “misery” in the Huntsville AL real estate industry. But is this really what is happening?

We are right in the middle of what might be considered the biggest disservice ever perpetrated on potential home buyers. The fact is that mortgage money is as available today as it was a year ago and loans are being made – right now – with little or no money down. Who are these lenders, anyway? They’re right down the street, you just need to know where to look.

Federal Housing Administration (FHA) loans are making a huge impact on the mortgage industry; recent estimates show that about one out of five mortgages is an FHA loan. Although FHA loans never “went away,” their re-emergence is a result of the collapse of the sub-prime market. Technically, FHA doesn’t require a minimum credit score; in reality, however, lenders typically will not approve an FHA loan with a credit score below 500. That is still a far cry from the notion that an 800 score is the only thing lenders care about.

Perhaps the best part of an FHA loan is that it requires only a 3% down payment. You read that correctly – 3%! Moreover, that 3% can come in the form of a gift or grant. FHA borrowers only need to have $500 in a transaction. On top of all this, FHA mortgage rates are as good or better than their conventional counterparts.

Extremely competitive rates, low or no down payment, and easier qualifying. No wonder FHA is moving up the charts!

Please call me at 256-508-0211 or visit if you would like more information about FHA loans, a referral to a reputable local lender, or help getting into your first Huntsville AL home. You may also begin searching Huntsville AL real estate here!

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