Factors That Affect Buying a Home in 2024
Some who made alternative living arrangements during the pandemic are considering new options, and plenty of people are graduating from college and ready to enter the job and housing markets.
2024 may be an excellent time to consider your options for home ownership. Headlines are beginning to talk about when, rather than if a housing recovery will happen, the Fed has decided not to raise interest rates in the short term, and inflation may well be starting to cool.
- Many factors, including lower rates, are ganging up to bring more positive change to the housing industry.
- You don’t have to be a first-time homebuyer to use an FHA mortgage to buy a home in 2024.
- Borrowers with FICO scores in the mid-600s typically qualify for FHA loans assuming their other financials are sound.
FHA loans are for any financially qualified borrower, even if you had financial trouble during the pandemic.
FHA mortgages can be used to buy a condo unit or manufactured home. FHA loans can also be used to build a home from the ground up on your own land. You don’t have to be in the market for a typical suburban house.
What should you consider when considering entering the housing market in 2024? For one, more people just like you may be thinking along the same lines.
That is one reason why getting pre-approved or prequalified for an FHA mortgage is a good idea. You can get ahead of the competition by having an FHA lender initially approve and then later formally approve your loan.
You should also consider saving more for a downpayment in 2024. This can help offset higher mortgage payments brought on by higher interest rates.
And that’s another angle to consider when shopping for a home. Add refinancing into your long-term home loan plans if you are not thrilled about current mortgage rates.
You can plan to refinance later when rates drop closer to six percent, but it pays to plan on this. Why? Your refinance loan may require a new credit check and appraisal, and you’ll want to have your finances well in order before you apply to refinance your FHA mortgage.
Annual Income Requirements for FHA Loans
Good Credit History Helps Get FHA Loans
Stay Informed About Your Mortgage Closing Costs
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