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A Great Time For First Time Buyers - FHA Loans

1st time buyer My oldest son, Cory is considering purchasing his first home as he is relocating back to Gilbert, Arizona this next week. He has been living and working on the east coast with a gaming company as an artist after college. He is ready to get back to Arizona and "start settling down," he says! (Does that mean maybe a girlfriend, wife, daughter in-law and grandbabies!!??)

We have had a few discussions about his options as a first time buyer. The combination of Cory & Me 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. DREAM BIG!

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.

boys 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.

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...

Easier to Qualify:

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).

Less than Perfect Credit:

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.

Low Down Payment:

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 Housing Loans are great for families looking to purchase a home but haven't had time to put money away for the purchase. FHA Housing Loans are also set up to help recent college graduates obtain a mortgage for a home purchase. Many newlyweds take advantage of the lower payments and lowered starting costs to their first home purchase as well.

Costs Less:

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

Here are a few recommendations here in the Valley of the Sun:

Aimee & Shailesh Ghimire - Phoenix Home Loan Experts

Visit the Arizona Mortgage Guru blog for all your home financing options

FHA information from Shailesh & Aimee Click Here to Continue

Karen George - National Wholesale Mortgage

FHA information from Karen Click Here to Continue

Helps You Keep Your Home:

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.

Some homeowners, who went for adjustable rate mortgages during the past few years so they could afford metropolitan Phoenix's higher home prices, are feeling the squeeze now and many have or are in danger of losing their homes.

First-time buyers eager to get into a home of their own should take heed these tips:

Figuring out the benefits of buying your first home.

Buyers shouldn't try to buy more than they can afford. Be wise and know what you can and can't afford. Be realistic.
Carefully calculate the difference between the rent you are currently paying and your potential mortgage payments.
You should never put yourself in a situation where it makes your life painful or completely mortgage poor.

If you need assistance and help with buying your first home or possibly relocating to the Phoenix area, please feel free to contact me so that I can assist you along the way! I will be happy to show you the fantastic communities we have locally. I would be happy to set you up on an automatic property search with your very own personal web-page showing properties that fit your criteria. Call me today and let me help you make your dream come true!

Meet Candace Robinson Click Here

Candace Robinson is an Arizona Licensed REALTOR® with Home Smart Real Estate in Mesa, Arizona. Information is deemed reliable but not guaranteed. Information can change without notice. 1521 E. Elliot Rd. Ste 101 Gilbert, Arizona Search the entire MLS Copyright ©2007 CKR

1745 S. Alma School Rd. / Suite 115 / Mesa, Arizona / 85210
www.PhoenixHousingBlog.com CRobinson@HSmove.com

Posted by Gilbert Arizona Real Estate - Candace Robinson on 10/07/2007 02:56 PM

Comments (15)

life in gilbert, az mortgage lender, arizona real estate, life in phoenix, localism, helpusell gilbert, buying the best home

This post has been included in Arizona Information Maricopa County, AZ Information Phoenix, AZ Information

15 Comments on A Great Time For First Time Buyers - FHA Loans

OCT

2007

Candace- I don't believe for a second that you are old enough to have a son in his late twenties!!

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(

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....

((-:

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.

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!

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!

You are right FHA is one of the best ways for first time homebuyers. Especially in this market.

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.

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

2007

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.

Good information Candace! I agree that FHA is back in style! It has never left but it is now back in the spot light.

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.

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!!

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

2007

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.