It’s still a great time to buy IF you can get a house. Of course inventory concerns in better markets are a dilemma, let’s look at some more positives of buying today with a FHA loan.
Guess what? FHA loans are assumable and why does that matter you ask? Well in 5-7 years, which is the typical amount of time for homeownership in one home, when you go to sell the home, you can sell with an assumable loan.
Well why does that makes sense? Well, if rates rise, as they are expected to do, and you are offering a 23 year fixed rate FHA loan that is assumable. Compare that to a new 30 year fixed mortgage at 5, 6, or 7%… The savings are massive to the new homebuyer…. and guess whose home those buyers may pick when looking to buy in an higher interest rate environment. So if you are in an FHA loan – here is another reason to feel great about getting that home.
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