FHA Mortgages in Montana
Though the country has been in an economic down turn for the past few years, all reports indicate that things are improving. While some relief from recent joblessness and economic trouble will be welcomed, the improvement could also indicate that the cost of housing may also be increasing slightly in the months and years to come which is bad news if you've been waiting to purchase a house with the hope that it will remain a buyers' market. Perhaps you're concerned because you have a few dings on your credit report or perhaps you haven't managed to save up a big chunk of cash for your down payment. Regardless of your reasons, investigating the Montana FHA loan program may cause you to realize that purchasing a home can be done more quickly and more easily than you think!
FHA Home Loan Benefits
Montana FHA loans are perfect for the first time homebuyer because they don't require the perfect credit or large down payment that other, more traditional, loan programs do. Additionally, you can still receive a loan through your local bank or lending institution. The FHA merely provides a guaranty to the bank of your choice to make the loan less risky for the bank and to provide some incentive to loan to buyers who might not otherwise qualify.
The Montana FHA loan program only requires buyers to have 3.5% down instead of the traditional 20%, and closing costs can be rolled into the loan which is great news if you just don't have the ability or time to save up a large amount of money.
FHA Loan Limits
Best of all, loans issued by the Montana FHA program have competitive interest rates (occasionally even better than some bank rates!) and flexible terms so that you can pick the best product for your situation. Just be aware that there are limits to the amount of money you can borrow under the program, and you'll need to check with your lender to establish what the limit is in your particular county.
The Montana FHA loan program sets a new maximum loan limit each year (for 2009, it's $271,050 for a single family dwelling) and then adjusts it for cost of living. While most areas in Montana adhere to the $271,050 baseline for single family homes, Helena has a limit of $341,250, and the Lake non-metro area's limit is $301,250.