FHA Loans
Are FHA Loans being phased out in the St George Real Estate market? Is the FHA trying to get out of the loan guarantee business? Some people believe this to be the case. This is because they are increasing the rates and fees they charge for guaranteeing home loans. There are still conventional loans, but many first time home buyers are unable to pay the additional amount down to get a conventional loan. This has opened the door for other options. Financing a home in the St George Real Estate market can be as tricky as buying a home. Take a little time and find a good lender.
LPMI
The LPMI or Lender Paid Mortgage Insurance Loans are increasing in popularity on Real Estate in St George. This allows them to offer a reduced monthly payment to the home buyer. It is wonderful to see that new home buyers will still have options to allow them to get into the housing market. As this graph indicates the LPMI will actually save the home buyer $200 per month over the FHA loan product. It will be a positive thing to have the private market take over for a government program. It seems like private companies may be able to move a little quicker than the government. The LPMI may be a great way to finance a real estate deal in St George.
FHA 203k
FHA has a program known as a 203k program that is available for use in the St George Real Estate market. This is FHA’s Property Rehabilitation Program. It is important to understand that FHA does not actually loan money. Their purpose is to guarantee a loan in the event that the loan is defaulted on. Basically they will end up with a house if it has an FHA guarantee and the home owner walks away. This opens the door for someone else to buy the house from the FHA, or other government agency. The 203k loan includes funds to repair the property. In some cases these houses are sold at a discounted price. With the shortage of inventory of houses it is more difficult to find great deals, than in the past. It may be helpful to consider using an FHA 203k when you purchase your next real estate in St George.