Spring is coming, and the home buying market nation wide has lagged. Frisco and the surrounding cities on the other hand have seen a slow positive churn, and I believe that the churn will turn into a swirl this home buying season. There are a lot of families out there that had marginal credit and can’t get the subprime loan, or their current credit score limits them from getting ZERO DOWN PAYMENT HOME LOAN. Fannie Mae has it’s own version of “subprime” lending, but they call it “level approvals”. It was once possible to get a No Down Payment Home Loan with level I and level II and possibly even level III approvals. With the current situation lending is in, level approvals are demanding at least 5% down payment. The FHA loan requires a minimal downpayment in it’s original makeup, and many folks haven’t used FHA because of that simple reason. The strategy now should be focused on coupling the FHA loan and Down Payment Assistance and no closing cost assistance for families deserving of a loan with no significant money for closing to get into that home. Be sure that the lender you are working with has been in the business for a while and drop them some test questions about getting you free downpayment assistance so you don’t have to settle for a lesser loan and can take advantage of the super low rates that FHA provides. Lastly, ask you lender if they are even FHA approved…today many more are not approved than approved.