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1. Do I need perfect credit to buy a home? Answer
2. Is there a such a thing as a loan with no down payment or closing costs? Answer
3. Is there a best way to negotiate an FHA contract? Answer
4. Do I need to use a Realtor on a purchase transaction? Answer

Q : Do I need perfect credit to buy a home?
A : FHA loans provide the individual with even slightly flawed credit with the opportunity to own a home. As a bonus, FHA allows a small downpayment of three and a half percent to achieve home ownership, and this program is available for property values over 271,050 dollars in selected communities.  It is also fair to say that the lending environment is dramatically more difficult than it was in prior years, and even one significant credit flaw can overturn an otherwise successful loan application.
 
Q : Is there a such a thing as a loan with no down payment or closing costs?
A : Not really. A VA loan is frequently cited as a loan for a veteran with no down payment and no closing costs, and this can only be achieved if the seller is willing to pay all of these costs, not to exceed six percent. Any other variations of this theme are based on a higher interest rate to allow credit back to the buyer to cover his costs. Our advice: you will always have more bargaining power and credibility in a purchase situation if you can provide a 10% down payment and cover most of your own closing costs.  In today's market, a client with less than perfect parameters should plan on putting down 10 percent or more for a down payment.
 
Q : Is there a best way to negotiate an FHA contract?
A : Absolutely. An FHA contract should always be written with the loan officer and Realtor working together on the language and wording of the contract. In this way, the most favorable situation can be constructed for the potential buyer.
 
Q : Do I need to use a Realtor on a purchase transaction?
A : Yes you do. It is false economy to negotiate your own contract and bypass your own agent when you go to an agent whose name is listed on a sign. The full commission is paid to that agent, and you are asking that agent to function as an agent for both the buyer and the seller, and there is no saving for you in the process. We highly recommend you have your own agent represent you in any transaction for which you are buying a home.