Are You Buying A Home For The First Time? Here Are Tips For Setting Up Your First FHA Loan
It’s done. You’ve decided you’re ready to make the plunge and become a homeowner.
You’ve done your research on dozens of homes in your neighborhoods of choice and compared different prices in an attempt to keep your budget and your dreams happy. You’ve talked to family members and friends about their past experiences. You’ve done everything you can to make sure you’re up-to-date on what it means to own a home…but what about your home loan? Conventional mortgage refinancing comes in many different shapes and sizes to accommodate all these unique homeowning stories and yours is waiting just around the corner.
Continue to expand your horizons by learning about the benefits of FHA loans and how they can help turn your dream into a reality.
Common Homeowner Concerns
Becoming a homeowner can be a daunting task. There’s a lot to keep in mind, from your day-to-day budget to all those projects you can’t wait to get started on. Turns out getting started is the hardest part. Data collected back in September of 2016 saw nearly 60% of homeowners in a survey wishing they understood the terms and details of their mortgage better. Another 65% of homeowners are delinquent in their mortgage payments and aren’t aware mortgage lenders can offer help to individuals in trouble. Where does this leave you?
The Growth Of Homeowning In America
More families and couples than ever are eager to own a home in the United States. By the time spring of 2017 rolled around nearly 10 million people said they either owned or lived in a household alongside a second home in the country. Not all are repeat buyers, either. According to studies provided by the 2016 National Association Of REALTORS Profile Of Home Buyers And Sellers, around 35% of home buyers were doing so for the first time. It’s never been a better time to dive headfirst in what it means to invest in an FHA loan.
Definition Of An FHA Loan
An investment loan takes on many forms. What works for one couple may not work for a large family and vice versa. Short for the Federal Homeowning Administration, your FHA loan has a few basic requirements to get you started. In order to qualify for an FHA loan for a mortgage with a low down payment of 3.5%, the borrower is required to have a credit score of 580 or higher. Those with credit scores floating in-between 500 and 579 need to make down payments of at least 10%. Those with credit scores below 500 are ineligible for FHA loans, but exceptions can be made for applicants with nontraditional credit history.
Precautions To Take With Home Loans
What are issues you should keep in mind as you apply for your FHA loan? As stated above, understanding the terms and conditions of your mortgage is essential if you want to avoid trouble in the future. Back in 2017 investors generally purchased a median-priced property of $155,000, if you’re curious about the more popular choices, and a 2017 NAR Investment And Vacation Home Buyers’ Survey found nearly 30% of investment buyers being very likely to buy another property within the next two years. A Home Buyer And Seller Generational Trends Report, however, also noted nearly 15% of buyers admitting saving for a downpayment was the most difficult step.
Applying For Your First Homeowning Loan
You’ve looked up the FHA loan in Redding and you’ve done your work to make sure your budget matches your goals. You’ve looked up the types of refinancing in Redding and are positive your credit score will help you qualify for an FHA loan. What next? Meeting with a real estate agent is a good idea, even if you’ve bought a house before, to get you caught up on all the ins and outs of being a modern homeowner. There are state taxes to learn about, down payments to discuss and even smart energy conservation tax credits you can glean from future renovation projects.
Being a homeowner is a tough job…but it’s absolutely worth it.
