Realtor.com did a survey on recent home buying activity and found that just under 40% of buyers in November 2009 purchased a home with a FHA mortgage loan. Realtor.com also found that 51% of buyers were buying for the 1st time.
FHA is critical to new home buyers, especially first time home buyers because the first time market is critical in helping to move the rising inventory of homes on the market. FHA is the only program remaining that still makes mortgage available to those with previous credit blemishes and lower incomes.
However, early in 2010, FHA could put a wrinkle in the process since guidelines may be changing – making it harder and more expensive to get an FHA loan.
The minimum down payment is expected to rise to 5% and the maximum seller contribution reduced to 6%. Other changes are anticipated that will either increase closing costs and/or increase the monthly payment.
These changes will eliminate many buyers from the market. Could you be left out?
If you know you want to buy a home but are bent on procrastinating, the cost of waiting may be very high.
Get in contact with me to get pre-qualified today and start looking for properties tomorrow. You can still close in time to get the home buyer credit if you’re eligible. Don’t forget to ask me about a special program allowing you to get money in your loan to improve your property. Unless you are buying a new home, you owe it to yourself to find out more.
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