If you live in the St. Louis MO area and are tired of renting, you may be wondering if now the right time to buy a home is. While there are many factors to consider, owning your own home may be easier than you think. Many renters think they do not have the financial ability to buy a home, but in many cases they are wrong.
Incentives like the FHA loan program are designed to make home buying easier and encourage more renters to become homeowners. Once you find an FHA consultant, you just may find that buying your first home will be easier than you anticipated.
The FHA loan program was designed by the Federal Housing Administration, an arm of the Federal government. This unique loan program offers a number of important benefits for first-time home buyers, especially those who believe they are not in a position to become homeowners.
Lower Credit Requirements
One of the biggest advantages of choosing an FHA loan over conventional financing is the fact that the FHA has less stringent lending requirements than many traditional banks. Over the past couple of years, banks and other mortgage lenders have been strengthening their lending requirements, putting home ownership outside the reach of more and more potential buyers.
Programs like the one administered by the FHA can fill in the gap and allow more people to buy their first homes. If you want to stop renting but worry your credit is not good enough, you owe it to yourself to check out what the FHA has to offer.
Reduced Down Payments
Another big advantage of the FHA loan program is its lower down payment requirements. Many traditional lenders require a 20% down payment even for first-time buyers, and that can be a big hurdle to overcome.
On a $200,000 home, a 20% down payment is $40,000. That is a lot of money to save, especially for buyers who are trying to fund their retirements and raise their children. By offering lower down payment requirements, the FHA can get more people into homes and provide the security of home ownership to a larger segment of the population.
If you have been putting off purchasing your first home, now be the time to act. Mortgage rates are still low, but many experts expect them to start going up soon. If you act now, you can still get in on some great deals, and special loan programs make buying a home easier than ever before.