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Realtors and Federal Housing Administration Joins Forces to Promote Affordable Housing Loans

For decades, the biggest dream that many Americans hold dear is that of home ownership. Managing to finally own your own home provides you with a sense of pride, a place to seek refuge and relax, and much more. Your home is also a major investment and one that can reward you financially as well as personally. However, it's not always easy to find your home loan.

Affordable housing has always been something that is important in this nation, and it's especially important to first time home buyers who simply don't have the kind of resources that others might. Whether it's your first home or your third, knowing that there are options out there can help you relax and actually enjoy the process of choosing your home. And recently, real estate brokers and the Federal Housing Administration have joined forces to help promote more affordable housing for everyone.

It begins with the efforts of the US government, who continue to strive to make sure that first time home buyers are able to find affordable housing loans. A few of the things that help home buyers include:

  • A new reduction in the premium costs of mortgage insurance. This was one of the biggest causes of increasing interest rates and monthly payments associated with FHA loans, and a big reason why fewer people have been using them recently. But as of 2015, these costs have been halved by the government, making it much more affordable to take on a loan of this nature. Most estimates suggest a reduction in total mortgage costs of about $900 every year.
  • FHA financing is still among the best choices for first time home buyers since they have lower credit score requirements and lower down payment requirements. These down payments requirements – as low as 3.5% in some cases – mean that it's much more affordable to secure a loan. Home buyers don't' have to come up with a huge 10% down payment anymore.

On the side of realtors, their biggest effort comes with simply striving to present better, more competitive mortgage rates, and better housing selections. By placing the right, affordable homes in the reach of those who need them, realtors are working to make sure that first time home buyers are able to get exactly the home they need.

It's important to note that these steps aren't the same as those that led to the housing market crash of several years ago. Rather than try to lure home buyers into a loan that they can't afford, lenders, realtors, and the FHA are instead only making changes to help bring the costs of a loan down to a more reasonable level. As such, they're helping put home ownership within the reach of those who might not have been able to buy a home, not setting up the economy for another disaster.

Simply put, there are plenty of different options out there when you're looking for a home. It's more affordable than ever before, and you should take a look at all of your options to ensure that you find the one that is right for you.

 

First Time Home Financing.com does not offer mortgages or direct financing. FirstTimeHomeFinancing.com is a website that offers information about house financing and does not guarantee 1st time home mortgage programs directly or indirectly through representatives or agents. FirstTimeHomeFinancing.com provides a news and information service by offering editorial content related to the housing and mortgage industry. This website has no official relationship with the Federal Housing Administration or the Department of Housing and Urban Development.

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