Unless you are in the military, FHA offers the best home financing for first time homebuyers.  New home buyers like FHA home loans because they only need a 3.5% down-payment and low FHA rates ensure affordable monthly payments.   FHA mortgage rates have dropped to record levels in 2010 so first time home buyers may qualify for 30-year fixed rate mortgages with rates as low as 4.375%. 

Affordable FHA Home Financing with the Lowest Rates Ever!

Home sales prices have tumbled in many regions of the U.S. so utilizing an FHA home loan to purchase a foreclosure or short sale may prove to be a wise investment.  Congress is considering to raise the minimum down-payment on FHA first time home buyer loans from 3.5 to 5%, so time is of the essence.

FHA guidelines enable borrowers with less than perfect credit to still qualify for home financing if the applicant has notable compensating factors.  FHA requirements continue to demand verifiable income documentation like W2’s, tax returns and pay-stubs.  The Federal Housing Administration has never allowed stated income home loans and with the high defaults rates, it’s doubtful the administration ever will.  This can pose an obstacle for many self-employed borrowers, but FHA home mortgage loans are not for everyone.

Loan Advice for First Time Home Buyers

The $8000 first-time homebuyer tax credit is no longer available but with FHA home loan rates as low as 4.375% a person could become a homeowner on a $300,000 house for under $1,500 a month.  Home prices and FHA interest rates are sure to rise soon so home financing with an FHA mortgage make sense today!

Did you know that FHA loan programs enable a couple getting married to receive gift funds through bridal registry set up specifically for FHA home financing?  So that means instead of family and friends buying you plates and dishes that you do not want, they can invest in your home.  The Bridal Registry Account allows couples who are getting married to open a bridal registry savings account with a HUD approved FHA mortgage lending institution. Now wedding guests can deposit money as wedding gifts directly into the interest-bearing account that will be applied to the down-payment of your home. 

FHA home purchase loans only require 3% down-payments so if all goes well, you will be able buy your 1^st home by the time you get back from your honey moon.  FHA home loans provide many benefits, like low fixed mortgage rates and the ability to do a FHA streamline refinance any time the interest rates drop.