With so many loan options out there, it's easy for a first time buyer to be overwhelmed. Traditionally, the often-repeated phrase is to save 20% before buying your first home. But with loans such as the FHA loan offering as low as 3.5% down, is 20% still necessary? Even conventional loans like the 30-year fixed only ask for a minimum of 5%. So what's the benefit of saving the entire 20%?
The New York Times recently published an article on the difficult decisions facing home buyers in this housing market. It's true, mortgage rates are incredibly low right now, and housing prices have hit rock bottom in many areas, but how do you know if now is the time to buy? After all, while most experts would agree housing prices are very close to rock bottom (if not already there in some areas), could waiting a little longer get you a better deal on a house?
Not long ago, we also reported that couples are now putting off their wedding to buy a home first. For many people, the choice is either to buy a home now, or wait and save a long time for a home. In populated cities like New York or Los Angeles, real estate has always been scarce and expensive. Home buyers are relying on this opportunity to finally own a home in the city they work in.
FHA loans come with Mortgage Insurance Premiums that are built in over the course of the loan. When you close, there's also a one-time upfront Mortgage Insurance Premium due at closing. FHA is now increasing this upfront cost by 0.50% from 1.75% to 2.25%.
CNN Money recently published an article on America's most overvalued cities, which included a list of both over and under valued cities. While this may not mean much initially for those of us who don't live in them, it may actually still apply to you. If you already own your dream home, and don't plan on moving anytime soon, now may be a good time to start thinking about an investment property or vacation home.
Fannie Mae is now offering qualified buyers 3.5% off the final sales price to be used toward closing costs or their choice of appliances. The announcement came today in the form of a press release. This incentive applies to any HomePath purchase that closes before May 1, 2010. Not sure if the home you want is a HomePath property? Just check on HomePath.com, and if it's on the list - you would qualify for this offer.
While buying a home may often seem costlier than renting, this is often not true. What many people forget is the list of tax deductions you get as a homeowner. Beyond the money you save from a fixed mortgage that never adjusts with inflation - you also pay less in taxes.
For many first time home buyers shopping around, the goal is often to buy the most reasonably priced home - and still have it suit their needs. And for the first time, the housing market is complete with short sales, foreclosures, estate sales and the traditional home sales. The question is: what type of home is best, and how are they different?
So you realize the best time to buy a home is now, and you've looked around at different houses you'd like to buy, but the question is - where do you begin and how do you get a loan?
While this certainly isn’t the traditional way to display your love and commitment, couples are now choosing to wait on their engagement in order to buy a home first. New York Times Real Estate recently reported that couples ready to be married, but rent in some of the most expensive cities are now waiting on their vows to buy that home first.