As a First Time Home buyer, the FHA still offers the 3.5% down to buy a house. The economy still makes it very hard for people to save enough money to afford around $10,000.00 down payment.
The government in it's benevolence created a 1/2% down payment in a form of a second loan which will be added to the first loan. It's a will intended help for people that have a very tight budget. The credit requirement though is based on a FICO score of 640.
On the other hand, the 1% down is based on a grant so it's not a loan. The Fico score needed is only 620.
So, comparing a loan of $300,000.00.
Here's the breakdown.
FHA $300,000 x 3.5% = $10,500.00
FHA $300,000 x 1% = $3,000.00
FHA $300,000 x 1/2% = $1,500.00
Pretty good considering once you move in there's a lot of expenses involved. Need to buy a lot of appliances, furniture, maybe do some painting, change carpet, put up either blinds or curtains and the list goes on. As a Realtor my main focus is to put clients in a house. True, there's a lot more besides the down payment, my advise to my clients is to put priorities on whats neede and not what they want. As a first time home owner, the thinking should be long term. Don't be overwhelmed by your greatest investment. Bask on the completion of one of the goals of almost 90% of US population which is home ownership.
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