Now is the time for first-time buyers to take advantage of an FHA loan.
Are you planning on purchasing a home this year? If so, you’ll be excited to hear that FHA loans are one of the best options available, especially for first-time homebuyers. FHA loans require a minimum down payment of only 3.5 %, which means that you’ll only need to pay $3,500 for every $100,000 loan that you take out. Plus, FHA allows for an expanded debt-to-income ratio of up to 55%, providing a lot of flexibility for those who want to purchase a home.
In the past, the one drawback of FHA loans was private mortgage insurance (PMI), which could be as high as 0.85%. However, we have great news for you. As of March 20th, 2023, FHA has lowered PMI from 0.85% to 0.55%. This means that you can save a significant amount of money over the life of your loan.
“You could save up to $18,000.”
Let’s take a look at what this means in dollars and cents. If you had a $200,000 mortgage last year, the mortgage insurance on that would have been $142 per month, which is almost a car payment. However, as of March 20th, 2023, the same mortgage will only cost you $92 a month in mortgage insurance. That’s a savings of $50 a month, which adds up quickly.
Over the life of your loan, this can result in significant savings. In fact, you could save up to $18,000. What could you do with that kind of money? You could invest it, save it for a rainy day, or use it to make improvements to your home.
If you’re interested in purchasing a home and taking advantage of these savings, reach out to us by phone or email. We would love to be your lender and help you find the perfect home loan to meet your needs. With lower PMI rates and the flexibility of FHA loans, there’s never been a better time to become a homeowner.