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Just moments after the Presidential change occurred today in Washington, D.C., the Department of Housing and Urban Development (HUD) suspended the recent action taken by the Obama administration to reduce FHA mortgage insurance premiums. The planned cut is no longer.
There's a lot of housing market news in the media today that centers on Fannie Mae and Freddie Mac, and the government's response to the housing crisis of the mid-2000's. In fact, AmeriFirst has already answered the question "Are Freddie Mac and Fannie Mae profitable?" In essence, yes they are.
FHA loans have many benefits for all home buyers. But they really seem to work well for first time home buyers in particular. A lot of first home buying stories center around the FHA process. While the FHA loan isn't tailored specifically for the first time buyer, it does seem to work out that way often. So, why is that?
FHA loans are one option for home buyers in today's market. In fact it's often a popular route for first time home buyers. One main reason for the desire to go FHA is the low down payment requirement. Home buyers need 3.5% of the purchase price as cash-on-hand for the down payment. This means if you're buying an $80,000 house you'll need less than $3,000 for the down payment.
Many first time home buyers seem to think they're either stuck with only one or two mortgage loan options, or they're looking for a specifically tailored loan for the first time buyer. However, the truth of the matter is as a first home buyer you have a lot of options. Depending on your financial situation, you may find yourself with any one of many options for financing that first house. One option often used by buyers like you are FHA loans. Let's take a look at what FHA loans are, and why so many first time home buyers seem to fall into the category of FHA. Download our Mortgage Loan Options Guide here, and learn more about what's available to purchase your first home.