Annapolis Home Purchase Loans Low FHA Rates for Maryland New Home Financing
Columbia Home Buying with FHA Loans
Maryland home buyers take advantage of new opportunities in Annapolis with low rate FHA home purchase loans securing fixed payments. Annapolis is the capital of the State of Maryland, as well as the county seat of Anne Arundel County. It is part of the Baltimore-Washington Metropolitan Area. Annapolis is the home of the United States Naval Academy founded in 1845 and also home to St. John's College, founded in 1696 as King William's School and the third oldest institution of higher learning in the United States.
(Sources: Wikipedia and Annapolis City Website)
The year-to-date average median sale price for single-family homes in Annapolis is $393,635, a 5.9-percent drop from a year ago. Sales have dropped by 20 to 30 percent in most county neighborhoods. This is a buyer's market. And, with recent news of conventional mortgage rates holding steady and going up instead of dropping, FHA is the way to go for your Maryland home purchase.
Annapolis Home Buying with FHA Loans
Conventional lenders are raising their rates due to the increased risk to lenders as a result of the foreclosure crisis. Concerns about the health of Fannie Mae and Freddie Mac, the big buyers of mortgages, are also driving up rates. However, you still get low, fixed interest rates with FHA because the government sets FHA’s rates. Plus you can do a FHA streamline refinance if interest rates drop.
FHA's credit criterion is also more relaxed than those of conventional loans. The minimum credit score for Annapolis home financing is only 580. It's at least 660 for conventional loans if you're putting down 20% and at least 700 if you have less than 20% start-up equity. FHA Annapolis home purchase loans only require a 3% down payment. You can’t get a house with 97 percent loan to value under conventional underwriting. FHA home buying in Annapolis makes financial sense, especially for those with credit scores of less than 700.
Buying a Foreclosure Home in Annapolis
Like everywhere else, foreclosures are up in Annapolis. You can typically find foreclosures in the courthouse real estate auctions in your local newspapers. Foreclosures can sell for 10 to 50% less than the market value. Don’t overlook HUD homes. You may be able to find a real bargain.
