The use of FHA mortgages declined over the summer. This new trend suggests that FHA-insured mortgages are losing favor among home buyers and conventional mortgages are gaining market share.
A conventional mortgage conforms to FNMA and FreddieMac lending guidelines. Reasons for this reversal include amazingly low rates; increased acceptance of higher LTV mortgages by PMI companies; and a reluctance to accept the recent increase in FHA mortgage insurance premiums.
Real estate agents may complain about onerous lending requirements, but they report no shortage of mortgage money available for home buyers; even those with less than a 20% down payment and credit scores in the 660-680 range. With rates in the mid to upper 3.00% range, it’s almost free money!
Astute First Home Buyers know this is an unbelievable opportunity and are beginning to push the up prices of quality homes. NOW is the Time to Buy!
Call Me @ 860.945.9284 to review your mortgage options and take advantage of my FREE Pre-Approval service. Let me show you how to save $30-50 month on a $165,000 with a conventional mortgage vs. a FHA-insured loan. I’m here to help.