By Bill Erickson, Executive Vice President, NPI/GPI
National Property Inspections and Global Property Inspections franchise owners/inspectors are doing more first-time home buyer inspections than ever before. One explanation is the improving job market and economy. The other reason is demographics.
The National Association of Realtors (NAR) expects that 2015 will turn out to be a big year for millennials becoming first-time home buyers. Most buyers move into their first homes when they’re between the ages of 25 and 34. This fits the demographics of millennials, and their sheer numbers should drive demand for more home sales.
Also priming the first-time buyer market are easier terms for obtaining a mortgage, including a Federal Housing Administration (FHA) mortgage. The FHA — which is part of the U.S. Department of Housing and Urban Development (HUD) — insures the loan, so your lender can offer you a better deal. An FHA mortgage offers three advantages for first-time home buyers:
- Low down payments
- Low closing costs
- Easy credit qualification
For example, your down payment can be as low as 3.5 percent of the purchase price.
Ask your local bank or mortgage company for more information about FHA mortgages. You can download a free guide to FHA mortgages titled “FHA Home loans 101” at http://www.fha.com/.
Another tip for first-time home buyers: Make your home purchase contingent on a home inspection. This should be a clause in your real estate purchase agreement so that if you aren’t comfortable with the findings of the inspection or with what the seller is willing to repair, you can walk away from the deal with your earnest deposit refunded.