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FHA with the ever wisdom of Congress with FHA Commissioner David H Stevens pushing for helping the First Time Homebuyers decided to SAVE the homebuyer money. WRONG! Let me tell you why if you are a homebuyer who will be getting an FHA loan, you need to buy a house NOW.
According to the recently passed Bill by Congress HR 5872 and HR 5981, FHA will be giving the homebuyer a break on one hand and socking it to the homebuyer with the other hand. If home buyers have not found a house, been accepted by the seller and ordered their appraisal by Oct. 4, 2010 homebuyers will be paying MORE on their monthly house payment than they would if they bought a house before October 4th.
It is IMPERATIVE that FHA homebuyers have a case number BEFORE Oct. 4, 2010 (this number is given when an appraisal is ordered)
WHY, you ask? Well, again the government in their great wisdom are decreasing what’s known as the MI but increasing the home buyers annual premium from .55 to 1.55. I know that sounds like gibberish to you so let’s put this in an easier way to understand.
Let’s say as a 1st Time home buyer you buy a house and need a loan today for $200,000. Perhaps, you pay 5% interest on that loan of $200,000. Your payment per month without taxes and insurance would be $1,192 per month.
Now, if you decide to buy a house as a First Time Home buyer and get an FHA loan but you put off looking and selecting a home, thinking prices will go down. This is what you can expect to pay on that same loan of $200,000 with 5% interest, if you miss the October 4th deadline that Congress passed….$1,344 per month.
I don’t think Congress or Commissioner David H Stevens actually looked out for the best interest of the FHA home buyer nor the recovery of our current real estate market.
What’s my advice? Call your REALTOR ® today:
- Get PreApproved by a Lender
- Find a house to buy
- Get Into Contract
- Order and Pay for that appraisal BEFORE Oct. 4, 2010
And save yourself over a $100 a month on your mortgage payment! I can think of lots of things I’d rather do with an extra $100 per month, can you?
Give me a call and let’s get moving and save you some money.
Articles and Video for First Time Homebuyers:
Why Home Buyers End Up With No House
Who Is A First Time Home Buyer
Home Buyers Want to Know: What is Contingency Period
Two Very Lucky Home Buyers in Roseville CA
What Every Sacramento Home Buyer Must Know
What Does A Realtor Do When I Want to See A House or Condo?
First Time Homebuyers Check- Off List – Part II – Write An Offer
First Time Homebuyer’s Check-off List – Part 1
