With housing costs remaining relatively low, many who never thought they could be homeowners are beginning their property search. FHA home loans are making home ownerships possible for those with a modest or tainted credit background to own their own home. In addition to FHA home loans, we have down payment assistance programs, as well as a first time home buyers program, which has allowed many to see home ownership as a feasible possibility.
FHA home loans are primarily known for being more forgiving to those who have undergone financial turmoil in the past. Fha home loans use multiple factors to determine the eligibility of each individual. With FHA home loans so readily available, it is important that first time home buyers consider what their total monthly housing payment will be, while factoring in taxes and their homeowner’s insurance. Additionally, borrowers must price shop their interest rate and costs on potential FHA home loans. Not all FHA home loans offered through approved lenders are the same. Home loan lenders offer different options, and with a bit of effort, one may find a better rate somewhere else.
One alternate to FHA home loans exists for veterans. Va home loans are an option for veterans because they do not require a down payment, whereas FHA home loans do. These loans are backed privately through sources such as banks and mortgage companies. Borrowers are presented with more favorable loan terms because they have a portion of the loan guaranteed through the VA.
First time homebuyers must approach their property search with knowledge about FHA home loans as well as all other borrowing options. With California home sales in October 2012 rising over 25 percent from where they were that same month in the prior year, we are seeing no shortage of homeownership desire. This five year all time high speaks to the value of homeownership among Americans, making it vital that prospective buyers tour as many properties as possible. Once they have done this, they should narrow their search down to a few that they would like to visit again. Before taking advantage of the favorable interest rates and low down payment options that FHA home loans offer, the homebuyer must find a home in their property search that they will be content with for years down the road.