Today, we have some great news from the lending world to share with you!
If you are looking to get into the real estate business, one of the things to keep an eye on is affordable financing for young home buyers. Recently, several things have come together that have made buying a home more affordable than ever!
Recently, the Federal Housing Administration has lowered insurance premiums from 1.35% to 0.85%. Back in the day, those premiums ran as high as 5%! In addition to incredibly low premiums, the minimum down payment on an FHA loan is only 3%!
It's crazy, but true: most renters aren't aware of how affordable it is to own property. If you're an agent who's just getting started, a great way to find prospective buyers would be to go to apartment complexes and knock on doors. Spreading the word about these programs, which are designed to make purchasing a home affordable, could be profitable.
A simple example is all it takes to see the savings. Right now, on a $200,000 30-year FHA loan, the insurance premium is only $83 a month. Over the life of a loan, that's a savings of over $20,000! It's affordable up front because the down payment is so low, and you have lower monthly payments. Combine these factors with unbelievably low interest rates, and home ownership starts to look a whole lot more affordable!
If you're on the fence about getting into real estate, you can't afford to wait much longer. This year is going to be a fantastic one for real estate, as millennials and other first-time buyers will be coming to the market in droves. If you want to take advantage of these fantastic market conditions to prospect, or need other help in your real estate career, don't hesitate to give us a call or shoot us a quick email. We would love to hear from you!
If you would like to learn more about recent changes in FHA fees, click this link: http://www.realtor.org/videos/the-voice-for-real-estate-15-fha-fees-tria-win?om_rid=AAG9Qb&om_mid=_BUwWTUB8$6dTnX&om_ntype=NARWeekly
If you would like to learn more about recent changes in FHA fees, click this link: http://www.realtor.org/videos/the-voice-for-real-estate-15-fha-fees-tria-win?om_rid=AAG9Qb&om_mid=_BUwWTUB8$6dTnX&om_ntype=NARWeekly
