First Time Home Buyer Mortgage Requirements And Guidelines
This Article Is About First Time Home Buyer Mortgage Requirements And Guidelines
With rates forecasted to increase 3 more times this year, now is a good time to consider moving forward with a new home purchase. Mortgage rates are at all-time lows. After the Federal Reserve Board lowered interest rates to zero percent, mortgage rates have hit historic lows and are predicted to go higher by the end of the year. Each percentage point increase in mortgage interest rates, a home purchase loan is equivalent to a substantial difference in the price the home will end up costing the buyer. Real Estate values have been increasing for the past several years. Some areas by double digits. Due to the rise in real estate prices both the United States Department of Urban Development (HUD), the parent of FHA, and Federal Housing Finance Agency (FHFA), the federal regulatory agency in charge of Conventional Loans has increased loan limits. HUD increased FHA Loan Limits to $356,362 on FHA Loans. The FHFA has increased Conforming Limits to $548,250. Both HUD and FHFA have increased loan limits beginning of 2021 due to rising home prices nationwide.
Rising Home Prices Nationwide
The market is hot and real estate prices are actually going up in many areas of the country as the number of homes for sale decreases. Taking advantage of this point in time can benefit the home buyer in two ways. The home is poised to increase in value as the market price of homes continues to rise. Secondly buying a home now while there are still more options to choose from before the selection becomes less and less.
There are some real deals to be had in some areas of the country. For instance, in the state of Virginia, there are vacation cabins and riverside homes on the market for less than $100,000.00. Although many housing markets have outpriced the middle class from purchasing a 2nd home researching popular yet off the beaten path town may lead you to find a diamond in the rough without the cost of a diamond.
Renting Versus Buying Home
Renters still renting who have been dreaming of owning a home, meet with a lender. Have them crunch some numbers for your finances and compare renting versus owning. Depending on how long you want to stay in one place it is likely better to invest in homeownership. The average cost of a 1 bedroom for rent in most major metropolitan cities is at least $1,200.00. The same monthly payment invested into a home would get the buyer into a 2 to 3 bedroom home with the added benefits of having an investment that can increase in value over time. The other plus side of homeownership is the tax deductions.
So if you have been sitting on the fence wondering when to jump into the housing market, there has never been a better time. Take advantage of interest rates while they remain low, get home while there are still great deals to be had, and capitalize on the market upswing in the housing market.
About The Author Of First Time Home Buyer Mortgage Requirements: Apryl Boyce
This BLOG On First Time Home Buyer Mortgage Requirements was written by Apryl Boyce of Gustan Cho Associates Mortgage News. Apryl Boyce is a contributing writer for Gustan Cho Associates Mortgage News. Apryl has over 10 years of experience in the mortgage industry. She was a commercial and residential mortgage consultant until the 2008 Real Estate And Mortgage Meltdown. She has since taken a break from the mortgage industry and is now in the process of getting her NMLS licenses in multiple states. Apryl Boyce is looking forward to joining Gustan Cho Associates in the coming months and becoming a full-time mortgage loan originator. In the meantime, Apryl enjoys writing real estate related and mortgage blogs for Gustan Cho Associates.