First time home buyer info

Several people have contacted me about how I was able to purchase my home with 3% down, as I mentioned in another thread.

In 2009 I purchased a house in New Orleans with 3% down, via a HUD FHA loan.

It is a program for first time buyers. 

There are a lot of rules, but it basically boils down to the Federal Gov't will help you get the loan but they want to make sure:

1. You yourself are able to put down the 3%

    They will ask for paystubs, bank statements, etc.  They don't want you to get the money from the seller.  It can be gifted from a family member (or a friend?) but then they have to submit the bank statements, etc.

2. The house you are buying is worth what you are paying.

  FHA will do an independent appraisal of the property

3. The house is move in ready, and you will not have to sink any money into making it livable

The rules are there so that if you default, the gov't can resell it and not take a bath.  It also wants to make sure you can afford what you are buying

Here is the website to get all of the answers:

http://www.hud.gov/buying/loans.cfm

Words of wisdom:

-Don't trust mortgage people who say they are "FHA experts and the house will pass"  Make sure you know all of the rules yourself before you spend money on inspectons.  (I can help via my experience)

-any FHA website that ends in .com is BS.  All the info is contained in the .gov websites