LOOKING TO BUY YOUR FIRST HOME?

If you’re a first time homebuyer, you may be feeling very overwhelmed in this market. However, now is actually a great time for you. The interest rates are higher than they were 6 months ago, but the competitiveness of buying a home has definitely decreased. With rent continuing to rise, it now may make more sense for you to invest in a home.

There’s other good new! Recently, the FHA is recommending lenders consider using borrower’s positive rental payment history when applying for FHA-insured financing. The idea is that this would increase a buyer’s credit score when applying for a mortgage.

“If you’re regularly paying your rent on time, that’s a good indication you will also pay your mortgage on time,” states Julia Gordon, Federal Housing commissioner. “We hope that adding this positive factor to all of the characteristics currently considered in an FHA credit evaluation will increase access to affordable FHA-insured mortgages for first-time home buyers.”

A new pilot program launched by Fannie Mae, “Multifamily Positive Rent Payment Reporting,” launched recently as well.  It’s purpose is to help renters build up their credit histories.  Landlords and property owners who are eligible can report on-time rental payment data through this system.   Data will be reported to the three major credit bureaus.

There are other programs lenders are rolling out to help first time home buyers, so it makes sense to shop around and do your research. Investing in your first home could become reality for you sooner than you think!