Vermont FHA Mortgages
If you're a potential first time homebuyer, the housing market is in a great position right now. Since the economy is slower than average, housing prices are lower and sellers are more motivated than ever to make concessions. But navigating both the real estate market and home financing can be a daunting task and even though the government has cracked down on more speculative and risky loan products, buyers still have to beware, particularly if they might not qualify for traditional loan programs. Thankfully, for many first time homebuyers, a Vermont FHA loan can take a lot of the guesswork out of the hunt for home financing.
Benefits of the FHA Program
Vermont FHA loans are designed with the first time homebuyer in mind and because they're administered by a government run program, you can be sure that you're getting an ethical and safe loan. Advantages to obtaining a loan through the Vermont FHA loan program are many and include competitive interest rates, lower down payment (3.5% of the purchase price instead of the traditional 20%), and the ability to amortize your closing costs over the life of the loan, which can save most buyers as much as $8,000 in cash at closing.
Vermont FHA Loan Limits
If you think you'd like to explore the possibility of obtaining a Vermont FHA loan, be sure to check with your lender regarding the specifics of the program. In addition to qualifying for the loan (which involves ensuring that you meet a few very basic standards like having employment and an adequate credit history), you'll also need to make sure that whatever home you purchase, it adheres to the Vermont FHA loan limit for your area. In most places, the limit is $271,050 for a single family home, but it is adjusted for high cost of living areas to ensure that everyone who qualifies, regardless of location, can afford a starter home in the area of their choice. The baseline limit of $271,050 applies for the majority of Vermont, but Burlington has a limit of $318,750 and the Lebanon county area's limit is $281,750. Multi-family dwellings have different limits based on the number of units in the building, so it's particularly important to establish what your budget is before beginning your house shopping if you're considering this housing option.