"There are Some Very Savvy First Time Home Buyers"

I was referred to Emily by her mom and dad. She immediately told me that she has been doing a lot of research regarding mortgages for first time home buyers. In the conversation I mentioned FHA and she immediately stopped me, telling me that loan was not for her, even though the down payment was attractive and she wanted to do her loan without any help from her parents.

She told me that the mortgage insurance premium was a rip off and mortgage insurance for the life of the loan was a rip off as well. How can you argue with her? How many other first time home buyers are doing this kind of homework and they are waiting before they buy?

Emily told me that once she has saved enough of a 5% down payment she will start her search. I actually took her through the preapproval process, we worked up the numbers of an estimated purchase price and she did have the 5% down and she could do the purchase now, as long as she could get a seller to pay closing costs.

She is most likely not alone, other first time home buyers are educating themselves and the fees and guidelines that mortgage insurance stays on for the life of the loan on FHA mortgages and this is holding them back from buying NOW. It is time for all these fees to get lowered so more buyers can purchase a home, rather than continuing to pay rent.

image courtesy of renjith krishnan/freedigitalphotos.net