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Dundalk Home Purchase Loans Low FHA Rates for Maryland New Home Financing
Dundalk is an unincorporated community and a census-designated place in Dundalk County, Maryland. It is only 7 miles east of Maryland's largest city. The community is surrounded by Interstate I-695 (the Beltway), Interstate I-95, and Maryland State Highways 20 and 150. (Sources: Wikipedia and CityTownInfo.com)
The median price for a home in Dundalk is $235,000. FHA has temporarily raised its loan limit to $560,000, which is plenty for average-priced homes. These increased loan limits expires on December 31, 2008. And, as of October 1, 2008, FHA will no longer allow seller-funded down payment assistance. Now is the time to make your Maryland home purchase.
Dundalk Home Buying with FHA Loans
Dundalk home buying with FHA is the best way to go, especially if you have a score of less than 700. FHA Dundalk 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 Dundalk makes good financial sense. The minimum credit score for Dundalk home financing is only 580. It’s at least 660 for conventional loans.
As Treasury yields dropped earlier in the summer, conventional mortgage rates stayed steady or even rose. The reason for this is increased risk to lenders due to the foreclosure crisis. Keith T. Gumbinger, a vice president at financial publisher HSH Associates, sums it up like this: "Risk means higher rates." 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.
Buying a Foreclosure Home in Dundalk
It is possible to get a foreclosure for 10 to 50% lower than market value. You can typically find foreclosures in the courthouse real estate auctions in your local newspapers. In going through these listings, don’t overlook the HUD foreclosures. You can sometimes get a real bargain on a HUD home. You just need to be represented by a HUD certified realtor to buy a HUD home.
