If you haven't bought a house in the last 5-10 years, you may not realize the costs involved having an FHA mortgage. You may know that whenever a buyer puts less than 20% down, the lender requires an extra monthly insurance cost. FHA loans require another additional monthly mortgage insurance (PMI)- so you can obtain a loan with as little as 3.5% down, but you're monthly payments can be quite high. A few years ago they RAISED their MI from .55% to 1.35% which was HUGE burden for some buyers. Now they decreased to .85%! This decrease is making a FHA mortgage a smart option for home buyers again. Here is an article with more details:
There other new and updated mortgage options too! 3% down, PFHA, 20% down options for investors and much more!
If you're looking to buy this year, it's never too early to speak with a professional and learn about financing options that fit your needs. Contact me today and I can refer you to some amazing, educated and dependable lenders!