|
We have had a few discussions about his options as a first time buyer. The combination of Even though we have experienced a recent slowdown in the Valley's housing market, prices haven't dipped enough to make it easier for first-time home buyers to find houses they can afford. Federal Housing Administration (also know as FHA) is one of the biggest programs to help first-time buyers. So you ask, "How can an FHA help me buy a home?" Let me count the ways...
|
My oldest son, Cory is considering purchasing his first home as he is relocating back to 
being a Mom and a licensed REALTOR in Arizona I of course had to share my two-cents worth and have been encouraging him on the benefits of home ownership. Being a single guy in his late 20's with low overhead it seems more than practical for his situation. I have two grown sons that I have been talking a lot about getting into their own homes. I hope this little bit of information here will get them started on a good way to help them and perhaps spur them into researching further into their options available to them. 
Our current market is a great one for first-time and low- to moderate-income home buyers. With low mortgage rates and programs to aid inexperienced buyers are helping some. If you have fairly decent credit and stable employment it's very likely that being included as a homeowner is very possible for you. 
Because FHA insures your mortgage, lenders may be more willing to give you loan terms that make it easier for you to qualify. An FHA insured mortgage may be used to purchase or refinance a new or existing 1-4 family home, a condominium unit or a manufactured housing unit (provided the manufactured housing unit is on a permanent foundation).
FHA loans do not require a perfect credit score. FHA is more concerned about if you have paid your bills on time for the past 12 months and not having any open collections. In fact, even if you have had credit problems, such as a bankruptcy, it's easier for you to qualify for an FHA loan than a conventional loan.
FHAloans have a low 3% down-payment and that money can come from a family member, employer or charitable organization as a gift. Other loan programs don't allow this. A FHA loan in Maricopa County is $263,150. It varies by market because home prices vary by city. The median price of an existing house in the Valley is $263,500.
FHA loans have been known to have competitive interest rates because the Federal government is the one who insures the loans. FHA does not provide direct financing nor does it set the interest rates on the mortgages it insures. For the best interest rate and terms on a mortgage, you should compare mortgages from several different lenders. In order to initiate the loan application process, please contact an FHA approved lender
Aimee & Shailesh Ghimire - Phoenix Home Loan Experts
Karen George - National Wholesale Mortgage
FHA loans have been around for a while, in fact since 1934. Should you encounter hard times after buying your home, FHA has many options to help you keep you in your home and avoid foreclosure.
Chico Homes Real Estate - Chico, CA
Chico CA Realtor
Candace- I don't believe for a second that you are old enough to have a son in his late twenties!!
Oct 07, 2007 08:26 AM
MR Realty - Mesa, AZ
Sandi - I know it's hard for me to believe that my 'little guys' are on their own, where did the years go? I remember when they were both born like it was yesterday (pretty good for my onset of memory loss, LOL)... My son Kip, just turned 25, Sept. 20th and Cory will be 27yrs old on Dec. 14th. I am blessed! A little hint, baby having babies!! I could be a grandma of a 9 & 7 year old grandchild if my boys followed in my footsteps...but I am very happy with how they are playing out their lives!! Grandma can wait... :0(
Oct 07, 2007 08:35 AM
Oakville, ON
Excellent and informative post, Candace ! Your son is a very handsome young man and with you guiding the way he should be able to buy the perfect house for himself (and maybe a future family) in no time....
((-:
Jo
Oct 07, 2007 11:01 AM
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher
Candace, How nice that your son is moving close to you. I'm sure with your help he will find a wonderful home that he loves.
Oct 07, 2007 12:09 PM
nowhere - Eugene, OR
Great post Candace! I think we'll see a wave of FHA loans for people giving the conditions of the Mortgage arena. I love how visually friendly you make your posts!
Oct 07, 2007 01:04 PM
MR Realty - Mesa, AZ
Jo - Thank you for the compliments! I think he is handsome but I'm the Mom. I really hope he takes my two-cents worth and takes advantage of a great market here right now.
Carole - Yes, he is excited. He has only been gone for about 1.5 years and he is ready to be back in the desert. I am excited to have him closer!! However, I do like the east coast for visits (that is where my family is from ironically).
Rick - Thanks!! I am glad to see you stop by and share your input! Please feel free to offer any advice or tips, I rely a lot on lenders in this department, but I know FHA loans are coming back strong! Thank you for you readership, come back again soon!
Oct 07, 2007 02:23 PM
Prudential Patt, White Real Estate - Easton, PA
You are right FHA is one of the best ways for first time homebuyers. Especially in this market.
Oct 07, 2007 02:41 PM
Austin Texas Homes, LLC - Austin, TX
Broker - Austin Texas Real Estate (512-796-7653)
Candace - This is a nice post with good information. I would consider posting it to Localism as well, since it gives a good flavor for who you are and it contains some terrific tips for consumers.
Oct 07, 2007 03:14 PM
MR Realty - Mesa, AZ
Thanks Adele!! Thank you for stopping by!
Jason - I worte this post for Localism, I posted it there already! Thank you for your thoughts, as always!
Oct 07, 2007 04:11 PM
New Home Hunters of Fort Worth and Tarrant County - Fort Worth, TX
Fort Worth Real Estate
Hi Candace: Thanks for an informative post. Yes, with FHA insuring the loan, the qualifications are less strict because the risk is much lower due to the FHA insurance.
Oct 07, 2007 05:42 PM
REAL ESTATE AMERICA - Ernie Cabrera - Elk Grove, CA
Real Estate America
Good information Candace! I agree that FHA is back in style! It has never left but it is now back in the spot light.
Oct 07, 2007 06:06 PM
Phoenix Home Loan Expert (www.aimeeloans.com) - Phoenix, AZ
Candance,
I have to with Sandi on the son thing.
Thanks for the mention by the way.
Also, don't forget about the Fannie Mae MyCommunity program. It's a great program for first time home buyers and often times its a bit cheaper.
Oct 08, 2007 05:18 AM
MR Realty - Mesa, AZ
Oh yes Shailesh...I meant to mention that in here. By the way, I am going to email you today with another local agent that wants some information on FHA for one of her buyers that wants to put an offer one of our office listings. She didn't have a L.O that was up on what FHA could offer her client. Watch for an email. Thx for the extra tip!!
Oct 08, 2007 10:57 AM
Countywide Realty - Blanding, UT
Candi--- good post-- looking good well laid out and good information-- so ??? Cory is moving home ?? excellent-- that should make you a bit more happy. Good stuff !!!
Oct 08, 2007 02:06 PM
MR Realty - Mesa, AZ
Karen Anne - Exactly, thanks for your input!!
Ernie - Yes it is back in style. I think we are definitely going to see alot of FHA, I am hearing every third loan will be FHA. I think it's great!
Shailesh - Thank for the reminder on the "Fannie Mae My Community Loan" a great deal as well.
Roylen - I am pretty happy, him coming home is always a great thing.
Oct 09, 2007 03:05 AM
Rainmaker
146,688
146,688
Arizona Real Estate Associate Broker
Service Areas
Real Estate Resources
Candace Robinson Associate Broker;
Phoenix, Arizona
Comments(15)