2015 is going to be a great time to buy for first time buyers and those with low down payments. FHA recently announced some major changes that make their loans much more affordable again and a real option for first time buyers and those with lower down payments. And conventional loans have become available for those with 3% down for the first time ever. With incredibly low interest rates, one of the hottest markets in the country and now super affordable loans, there may never be a better time to buy in Denver.
Here are a couple updates that make buying so much affordable and more possible this year.
1) FHA just announced reduced mortgage insurance premiums for 2015. Most buyers I know opted to put 5% down last year to get a conventional loan over a 3.5% down FHA loan because the mortgage insurance premium for FHA was so expensive. According to Erin Bradley with Fairway Mortgage, with premiums going down by .5%...on a $235K loan amount, this means a difference of $100/mo! This is great for those borrowers who need to go FHA because of lower credit scores, past derogatory credit (BK, Foreclosures, etc) or if they're funds are coming as a gift. Read more here:Mortgagee Letter 2015-01
2)Fannie Mae 97% Loan to Value is officially here! And rates are great! Between this program and the many down payment assistance programs, there are more options than ever for borrowers with limited down payment funds. This means you can get a conventional loan with only 3% down, something I've never seen in 10 years in the business and it opens up homeownership to a whole new group of people.
If you have further questions about what these changes mean, feel free to contact Erin direct, click here, and let us know how we can help find that perfect home for you in 2015.
Socials