July 2013 Houston and National Housing Market Trends
This month’s feature video will discusses the difference between an FHA and a Conventional loan. The federal housing administration or the FHA provides a loan guarantee program in lieu of private mortgage insurance so qualified borrows can secure a mortgage loan with a low down payment. The FHA doesn't lend you the money, it guarantees the loan so that the lender doesn't take on a financial risk by extending you credit.
The USA Department of Housing and Urban Development's website can help you locate HUDS approved counselors in your area who can answer questions about FHA loans. The most popular FHA loan has a minimum down payment of 3% but allows 100% of the money needed at closing to be a gift from a relative, a nonprofit organization or government agency.
FHA loans are assumable, that means you can transfer your loans to the new owner if you sell your home. To assume the loan the buyer has to meet to credit standard for the loan, this feature can make it easier to sell your home. This provision isn't found in the conventional mortgage form. Under a conventional loan the sale of the subject property triggers a due on sale clause. The biggest disadvantage to FHA loans is the mortgage insurance premium, although conventional loans with less than a 20% down payment also require mortgage insurance coverage.
Consumers need to shop rates when looking for FHA mortgages just as they would a conventional loan because the rates are established by the lender not the government. FHA loan interest rates are typically higher than conventional or non-government guaranteed loan rates but shouldn't be significantly higher unless you have credit problems. The current state of our economy and the housing market in general have made FHA loans much more viable and popular.
There is a lot to know about owning a home. A realtor is always your best source of information for all your real estate needs.
If you have not reviewed my monthly Housing Trends Newsletter - you could be missing out. Everywhere I go, people are asking me about the housing market conditions - it's on everyone's mind. Staying abreast of local and national market conditions and factors that can affect the future sale or purchase of your home can make the decision process less daunting. I always tell my clients that in order to make the best decision they need to have all the information they can upfront. My Housing Trends Newsletter is just one of the tools in my arsenal to make sure you keep informed.
The June 2013 Local and National Housing Trends has just been released. This month's newsletter is packed full of local and national housing market statistics and news you need to know to stay current with today's changing housing market.
This month's housing trends issue features:
How to Negotiate the Best Real Estate Deal
Should You Buy a Used Home Instead of a New Home?
Home Owner Misperceptions About Flood Insurance
Tips for Staging Kitchens and Bathrooms When Selling
Moving Day Guide and Checklist
You can view the newsletter here.
If you wish to receive FREE Housing Trends eNewsletter e-mailed to you monthly, click here to Subscribe.
If you are considering selling your house or buying a home and need more information, I am never too busy to help, please contact me for more information.