| #ffffff;" /> | | | | It is not too late for prospective and current home |
| Last month, FHA mortgages became increasingly | | | | buyers to take advantage of the home buyer tax |
| popular, according to statistics released by the | | | | credit. First-time home buyers can use the tax credit |
| Department of Housing and Urban Development last | | | | along with an FHA mortgage to buy a home and |
| week in the FHA Outlook Report. In March, there was | | | | increase their savings! Purchasing with this type of |
| a 68% increase from the previous month in the | | | | financing has multiple benefits, including low rates, a low |
| number of FHA mortgage applications, with 246,406 | | | | down payment and lenient eligibility guidelines. The low |
| applicants applying for this type of financing. This | | | | down payment means first-time home buyers can |
| increase applied to both new homeowners purchasing | | | | have more money to spend on the various other |
| a home with an FHA mortgage (about two-thirds of | | | | expenses related to buying a new home. |
| the applicants) and current homeowners refinancing | | | | According to the statistics in the aforementioned FHA |
| their mortgages to get lower interest rates and/or | | | | Outlook Report, there were 43,600 refinances in |
| change their loan terms. | | | | March, and 28,596 of those were homeowners |
| Why the Sudden Increase in Applications? | | | | refinancing their current non-FHA mortgages into FHA |
| Many speculate that the recent jump in FHA mortgage | | | | mortgages. They no doubt realized the multiple |
| applications was due to the Home Buyer Tax Credit | | | | benefits of refinancing with this type of loan. These |
| for first-time home buyers and existing homeowners. | | | | benefits include securing a lower rate, which can lower |
| The tax credit, which ends this Friday, was a huge | | | | a homeowner's monthly mortgage payments, and |
| incentive for home buyers, and many rushed to buy | | | | other refinance options that allow a homeowner to |
| homes in March before the upcoming deadline. | | | | change the terms of the loan, receive cash or |
| First-time homebuyers who sign a purchase contract | | | | consolidate his or her debt. |
| for a home before April 30 and close before June 30 | | | | Even with the current economy, the HUD statistics |
| can receive up to an $8000 tax credit. Existing | | | | showed that the number of delinquent FHA mortgages |
| homeowners who buy a home can receive up to a | | | | declined slightly in March. This is good news because it |
| $6500 tax credit. | | | | shows that homeowners are finding ways to pay their |
| Another possible reason for the increase in applications | | | | mortgages. For those who are still struggling to pay |
| could be related to the recent increase of the upfront | | | | their mortgages, there are programs available that can |
| mortgage insurance premium required by the Federal | | | | help them get out of their financial rut, such as the |
| Housing Administration. The mortgage insurance | | | | FHA's foreclosure prevention methods. For |
| premium increased from 1.75% to 2.25% on April 5. In | | | | homeowners with other types of mortgages, |
| the last week of March, many prospective home | | | | refinancing to an FHA loan could reduce your monthly |
| buyers may have bought homes in order to beat the | | | | and long-term expenses. This type of financing is |
| increase so that they could avoid paying more upfront | | | | becoming a solution for more and more borrowers |
| costs. | | | | because of its multiple benefits and lenient |
| Receive Benefits by Financing with an FHA Mortgage | | | | requirements. |