January 23, 2024
House hunters need to save cash when planning to buy a house in the new year. Some things have always been on the list but have, in more recent times, become more important to consider while in planning mode.
FHA Home Loan Down Payment Issues To Know
The down payment issue is non-negotiable for typical FHA loans, money down is required. However, you might be surprised by your options when saving for it.
You’ll need to save a MINIMUM 3.5% down payment, but in 2024, you may want to consider making a bigger down payment. It can help you save on interest rates over the loan term.
There are variables, including whether or not you choose to finance closing costs, and those are factors to consider and ask the lender about before you commit.
Higher interest rates mean a more costly loan over time. Putting more cash down can cut the interest debt on the loan, and many borrowers should consider applying for down payment assistance. Not all applicants qualify but the help is there in many cases for those who do.
The best strategy in 2024? It may be adding your own down payment funds on top of down payment assistance to cut down more of the loan before you make a single payment.
Home Inspections Are Necessary
The FHA and HUD have a part of their official sites that contain the phrase, “For your protection, get a home inspection,” and you may experience pressure to skip the inspection because there is so much competition for a new home in some markets. But you should NEVER skip the inspection. Not ever.
2024 might not bring a seller’s market, but the necessity of a home inspection is still a factor. Best advice? Never skip the home inspection. If you do you risk paying for unexpected repairs after closing day.
Title Searches May Be More Important This Year
“Title searching” a home may be more important in 2024. Why? Americans experienced much financial trouble during the pandemic. In 2024 there may be elevated risk of a debt or tax lien attached to a piece of real estate. There may be problems lurking that can only be discovered via a title search.
the LegalZoom website includes this aside from paying for a title search, which LegalZooom describes as being ”…Crucial before buying or selling real property, as they might unearth an issue that could hinder the transfer of the deed.”
LegalZoom adds that buyers may learn about “hidden debt attached to the property or a lien that might make their lender back out, while a seller might learn they don’t even have the legal right to sell.”
Try to save for this expense early. It also helps to plan for any expense related to clearing up a title issue.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
Browse by Date: