Loan Modification

Housing affordability increases thanks to low FHA mortgage rates

By Gina Pogol

As of early October, the average 30-year fixed rate was at 4.3 percent and the monthly mortgage payment for a median-priced home purchased with FHA-insured financing was $1,150 — down over 30% from 2006′s $1,658 in 2006.

In addition, the National Association of Realtors Housing Affordability Index reached a staggering 179 last month. That means that a family earning the median income has 180% of what is needed to purchase a median-priced home.

This means that for those nurturing dreams of home ownership, there will likely be no better time than right now to take your shot at it. Home prices and interest rates have combined to make the dream more affordable than it has ever been since data was first tracked in 1969 according to Beacon Economics.

FHA mortgage best way to get foot in the door

If you are intimidated by the home purchase and mortgage approval process, start by taking a first-time home buyer class or speaking to a housing counselor. HUD has a list of approved counselors on its Web site. These folks can tell you about other programs like down payment assistance as well.

You may be able to use an FHA mortgage to buy a fixer-upper or foreclosure home and make a very good investment. Home ownership is the most widely-used method of wealth-building for working class Americans.  Get started by taking the time to learn all you can and by purchasing an affordable home with an FHA mortgage.

Full post as published by FHA Mortgage Guide on November 20, 2010 (boomark / email).