February 22, 2019
Is now the right time for a first-time home buyer to look at real estate listings and consider buying that first home? Is now a good time for those who have owned property before to examine their FHA mortgage loan options?
In both cases, the answer may be yes. Recent headlines and reports by companies like Zillow and CNBC indicate rising optimism in the housing market in the first quarter of 2019; inventory is increasing and mortgage loan applications have gone up recently, too.
Ask any real estate agent about the state of their market and you may learn that now is a good time to explore your home ownership options.
Why choose an FHA mortgage in a climate like this? The low down payment requirement is a good start-you only need 3.5% down with an FHA mortgage, though paying more up front will save long-term home owners more over the course of the loan.
And first-time home buyers should also know about their FHA refinance loan options; if you buy a home with an FHA mortgage, you are eligible to apply later for FHA Streamline Refinancing, an option offered ONLY for FHA mortgages, which is designed to get you into a lower monthly payment or lower interest rate.
FHA Streamline refinance loans also allow you to get out of an Adjustable Rate Mortgage and into a fixed rate as one of those tangible benefits of the loan.
FHA Streamline loans require some form of a real benefit to the borrower, and if you have an existing FHA mortgage and want a lower monthly payment, that option waits for you anytime you are ready once you have made six months of mortgage payments and your mortgage loan is at least six months old since closing.
First time home buyers can use down payment assistance from a local, FHA-compliant organization, or gift funds for down payments from friends, family, or employers.
Compare these perks to conventional mortgages and make the most informed choice you can-your first home awaits you!
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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