How to Take Advantage Of the New FHA Loan Policy
In the market for a new home but unsure that you will qualify for one, you are not alone. There are many folks in the world today that fall under this exact category and it can be a frustrating feeling. Changes have recently taken affect to help folks like you be able to afford your very own home and stop renting once and for all! A new policy was put into place that will reduce annual insurance premiums being paid by those who have FHA loans and those who plan to get an FHA loan. Here is how you can take advantage of the new FHA loan policy.
The best place to start to see if you qualify for the new FHA policy is by talking to your lender. He or she will know how much home you will be able to afford. It is likely with this new policy that you may be able to get more house for your money than you could have in the past. For those of you who have wanted to own your own home but couldn't afford to purchase a home that you actually liked, now may be your chance to get into a home that you love! You can also look online to see if you may qualify for an FHA loan, before you talk to a lender.- Keep in mind that even though you can get more of a home with the new FHA policy that you need to be careful not to purchase more than you can afford. Take time to make a budget to find out how much home you can reasonably afford each month and you should be fine.
- Competition is going to get fierce with this new FHA policy once everyone hears about it so do not delay in talking with your lender and getting the ball rolling on your new home purchase. If the competition gets too fierce you may find that you are waiting a lot longer to close on an FHA loan than you once would have. In 2013 the closing period for an FHA loan was already up to 50 days. As I said, act quickly on this new policy!
- Home owners this new policy doesn't leave you out, you can take advantage of it by refinancing. Typically refinancing may seem daunting but with this new policy you may stand to gain enough savings to be worth it. If you want to reduce your monthly payment you may want to consider an FHA streamline loan because it is fast to close and you don't have to pay any money up front. Also the FHA streamline loan doesn't require an appraisal, hence the quicker closing time.
The new FHA policy is quite exciting! Do your part to take advantage of it today and don't delay!
Information courtesy of Huntsville Real Estate Expert Mike Manosky.