FHA Offers a New Incentive Program for First-Time HomebuyersPosted on 07/20/14
In most recent real estate news, there is a new pilot initiative that has recently been brought forth by the Federal Housing Administration.
In general, FHA insured loans were designed to help first-time buyers become homeowners with relative ease. A significant down payment and a less than perfect credit would no longer prevent shoppers from the “American Dream” of home ownership.
The FHA has now “sweetened” the deal for these real estate rookies. The new incentive program, Homeowner’s Armed with Knowledge (HAWK), aims to reduce the rate of upfront and annual mortgage premiums. In a nutshell, those who complete the approved Department of Housing and Urban Development counseling, can receive a 50 basis point reduction upfront and a 10 basis point in the annual premium.
How much does this equate to? Over $300 per year and nearly $10,000 annually in addition the knowledge gained regarding the home-buying process.
It sounds pretty hard to beat, but before you make a decision, consider contacting a professional real estate agent. Buying a home is one of the biggest investments of your life and you should be aware of all your options, finances included.
For a quick brush up on the ins and outs of purchasing a home, browse through our tips for buyers. When you have made a decision, call 850.837.1880.