Some Advise For the First Time Buyer

When you are purchasing a home you will need anywhere from 3½% to 20% down, the lowest down payment being a Government FHA Loan. So what are the limits on such a loan?  The limit on a FHA Forward is $271,050.00.

Going on the assumption that your FICO score is at least 620, you will be able to qualify for a FHA loan that only requires a 3.5% down payment, so on $$271,050.00 mortgage loan you need $9485 down. When calculating your projected monthly payment, be sure and include what is called private mortgage insurance (PMI) until the principal becomes 80%. Another monthly expense is your property taxes and insurance.

This loan might cover less of a house than you were counting on, but it will keep you safe from payments you cannot afford and start you off on a good foundation of home ownership.

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