FHA Mortgages Will Soon Allow Fewer Seller Concessions at Essex Mortgage Bank

June 2, 2010 - PRLog -- Santa Rosa, CA -- One of the key attractions of FHA home mortgage financing ( http://www.fhasubmissions.com ) is going, going - but not quite gone. Sellers and buyers who move fast can still make the most of it. Sometime this summer, the Federal Housing Administration plans to slash maximum "seller concessions" from 6 percent of the home price to 3 percent. Seller concession rules allow buyers to look to the property seller to pay for a variety of services and taxes connected with the transaction - loan origination and local transfer fees, appraisals, inspections, closing and escrow costs among others - though not the down payment.

If you have very little cash available for a down payment and closing costs, or your credit scores are mediocre, then an FHA insured loan ( http://www.fhasubmissions.com ) may be your solution.

But if you hurry you may still be able to get an FHA loan with nothing out of your pocket at closing. The FHA program ( http://www.fhasubmissions.com ) requires 3% down. But that was covered with a third-party "pass through" or short-term loan for closing only offered by various non-profit organizations. This for-closing-purposes-only loan was paid by the sellers' proceeds from the sellers' profit on the sale, known as a seller concession.

That little loophole was closed after the sub-prime debacle. But now, after a howl of protests from the down payment assistance lenders, there is a court injunction reopening the loophole until there is further legal review. So it is still possible to avoid the even low down payment requirement of 3% at the time of this writing!

Help With Closing Costs:
There is another seller concession allowed for closing costs to the buyer, of which many first time home buyers are not aware. These closing costs cover expenses that include the appraisal, the title company or attorney's closing fees, and other items that the lender's or mortgage broker's Good Faith Estimate should show.

FHA does allow the seller to pay up to 6% of the loan amount for closing costs that would normally be required from the buyer. This is a generous concession. With FHA loans, ( http://www.fhasubmissions.com ) that 6% is usually more than enough.

CShould you have any further questions in regards to this or any of the FHA'S loan programs feel free to give us a call we a a FHA direct lender and are known in the industry as a specialist in these mortgages.we can be reached on our toll free line # 1-877-870-2676 and ask for branch manager Jeffrey Martino Young or online at http://WWW.FHASUBMISSIONS.COM

More information can be found online at http://www.FHASUBMISSIONS.COM

Press Contact:
Jeffrey Martino Young
Essex Mortgage Bank
1585 Terrace Way, Suite 158
Santa Rosa, CA 95404
1-877-870-2676
jyoung@essexmortgage.com
http://www.fhasubmissions.com