Saving a Buck: Best loan options for buying a home
Interest rates have been on the rise for a while now. They are slowly creeping up.
If you’re in the market to buy a home and take advantage while rates are still low, NewsChannel 4 looked into the best loan option for most consumers today.
There just might be a way to ‘Save a Buck’ with FHA loans.
You walk along any new neighborhood in the metro and there are realtor and builder signs up everywhere, but what’s it take to get into one of these homes?
NewsChannel 4 talked to lending experts about one of the best option.
Like many young couples, buying your first home is a rite of passage as adults. Sometimes that big step in life isn’t always easy.
With rising interest rates and huge down payments, many consumers need a little help and it often starts with the type of loan you choose.
Jeremy and Stephanie Pirtle went with an FHA loan and here’s why.
“[It was] just how easy it was to be approved for; the whole process and the down payment. The down payment was a lot lower than your standard loan. You don’t have to put the 20 percent down,” Jeremy Pirtle says.
Instead FHA loans only require 3.5 percent; a much more realistic and affordable option for many families.
Pirtle says, “That was just a lot easier for us to come up with the down payment.”
The Pirtles initially considered a Native American loan, but they say going with the FHA was less complicated.
Banking professionals say FHA loans are a very popular option right now because Fannie Mae is in the process of eliminating their three percent down payment and for most consumers FHA is the only hope of owning a home.
“What is seen in the industry is that a consumer who may have a lower credit score perhaps they’re a young buyer who hasn’t had time to build credit or someone who had a bankruptcy and their credit score was impacted by that tend to get a better rate on an FHA loan than they will on a conventional loan,” David Feisal, with Spirit Bank says.
So if you’re in the market to for a home loan, FHA may be the way to go.
It’s the best with down payment assistance and is the lowest down payment option available.
It’s also the best option if you have a lower credit score all the way down to a 580.
And finally, debt to income ratio is 45 percent of your income dedicated to your house payment as well as installment payments including your vehicle.
Factors financial experts say could be the keys to owning your own home.
And here in Oklahoma the most an FHA loan amount can be is around $270,000.