The FHA loan has soared in popularity in the past few years.  The ability to generate a home loan approval with only 3.5% down is limited outside of FHA financing.  This is a massive shift not only due to the ability to get an FHA loan for a first time home buyer, but also because the FHA vs. Conventional comparisons continue to point to FHA with increasing frequency.

These things change from time to time, so we'll be running current FHA vs. Conventional comparisons regularly.

The biggest change that we're seeing is that the FHA rate is now sitting close to 5% and has been for some time.  Compare that to historical rates over 6%, we have a level of home affordability that we have not seen in years.  Rates are starting to slide higher, but we currently have almost 15% of extra purchasing power for the average first time buyer.

FHA will be increasing their UFMIP in April.  This is a one-time fee associated with the mortgage insurance for an FHA loan.  It is going up by .5% and we do expect these loans for first time home buyers to be more expensive as time goes on.

Nearly all first time home buyer loans are fixed rates these days and many states have down payment assistance programs that help get you into a home at today's lower home values, low rates, and avoid the future increases to FHA closing costs.

Some state by state examples:
Nevada: Unfortunately, the state of Nevada does not currently offer first time home buyer grants, but only provides reduced interest loans. There are, however,  local grant programs as well as Federal programs. Please visit Nevada First Time Home Buyer Grants for more information.

See all the state down payment assistance or first time home buyer programs.

 

 

 

 

 

 

 

 

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