There are many reasons that this is the time to buy. We certainly have a "sweet spot" of low mortgage rates and low home prices. But prices are creeping up, and on April 1, FHA mortgage fees go up as well. FHA mortgages are well over half the total. Here's a synopsis from the Oregon Association of Realtors:
- Raising the annual premium by 10 basis points (or $13/month on average)
- Eliminating the ability to cancel the Mortgage Insurance Premium (MIP) when the loan reaches 78% LTV (Loan to Value)
- Raising DTI (debt to income ratio) for borrowers with low credit scores. FHA will require borrowers with credit scores below 620 to have a maximum DTI of 43%
- Raising the down payment for loans above $625,500 to 5%
- Greater oversight on borrowers who are trying to obtain a new FHA loan 3 years following a foreclosure.
This is also all the more reason why you need to be working with a sharp lender. Ask me for a recommendation.