Purchasing a Home With a FHA Mortgage Loan
Buying a home, more than anything else, is a long-term investment property. Whether it’s your personal home or vacation home, you are putting down a lot of money on a property that will follow you for years to decades. The value of your home will change with the both the trends of the market and to the condition for which you upkeep/renovate your home over time.
The average sale price of a U.S. home in March 2016 was $186,000. For anyone that doesn’t have that much money collected in their savings account, the purchasing of said home will require financial assistance. The primary means through which this is achieved is through the use of a conventional mortgage: in which a loaned is offered by a provider in the assistance of purchasing a home. Reports from 2016 show that 14% of all American buyers from that year financed 100% of their entire home purchase with the aid of a mortgage. For anyone that might be concerned with seeking out a mortgage plan, have no worry, as the process is quite normal for almost any home buyer.
For first time home buyers, particularly those within the lower income bracket, it is worth your time to look into FHA mortgage loans: Mortgage loans backed by the U.S. Federal Housing Administration (FHA). FHA mortgage loans are insured loans that are provided through federal assistance, in which lower income Americans, if approved, can receive said federal assistance to buy a home that otherwise would have been financially unattainable beforehand. As reported by the 2017 NAR Home BUyer and Seller Generational Trends Report, nearly a quarter of all home buyers purchased a home with the help of FHA mortgage loans.
While there are a number of FHA mortgage loans available, ranging form 15-year to 30-year loan terms, as well as different annual mortgage insurance premiums (MIP) of up to 1.05%, you might not know what is right for you. If you feel like you are lumped into feeling this way, don’t be concerned, as nearly 60% of all home buyers each year wish that they understood their mortgage and its agreements better.
If you are interested in which of the FHA mortgage loans is right for you, consider seeking the help of a mortgage broker. If you live within the Portland, OR, area, then it is worth your bet to consult the help of mortgage broker Stacy Schlesinger, a highly-rated mortgage broker in northwest Oregon. With the help of the right broker, you can effectively purchase the right home for you, all the while investing in your future.