3% Down – 585 FICO
6.5% Interest Rate - Up to $729,000

Hot off the Press from my friend Kamila Harkavy at Pacific Mortgage Consultants

How’s that sound for a California home buyer? The $729K is the new conforming loan rate and will depend on the county. This is a better rate than people with 800 FICO’s were getting 7 months ago on conforming loans under $417K

That's a 30 year fixed loan for FHA!!!  For someone with a 585 FICO and only a 3% down payment, this is an incredible opportunity to take advantage of in this buyers' market.  These rates are in effect only through 2008 so people should not wait too long.

This same FHA loan is available for cash-out refis too.  People don't have to have any cash reserves in the bank and there's NO pre-payment penalty!!!

This same loan would have come with an interest rate much higher than this in the recent past.

Please note - this loan requires the borrower to fully document their income.

Many people with good credit will be taking advantage of this loan for refis and for purchases due to the high loan-value ratio which is very hard to find in today's mortgage market.  Few lenders will loan to that high a ratio and certainly not at a blended rate of a first and second mortgage of 6.5%!!.

Buyers may be able to find highly motivated sellers who will cover some or all of their closing costs at which point, all they need is a 3% down payment and qualifying income to become a homeowner!