According to the National Association of Realtors, housing affordability conditions for all buyers reached a milestone in the first quarter of 2012. NAR’s composite quarterly Housing Affordability Index* rose to a record high of 205.9 in first quarter, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. This is the first time the quarterly index broke the 200 mark; record keeping began in 1970.
“Conditions for first-time buyers who are able to get a mortgage have never been better,” NAR President Moe Veissi explained.
Home prices and interest rates are expected to rise as the year progresses – but housing affordability will remain favorable for median-income households looking to purchase a median-priced home.
First time homebuyers often take advantage of FHA mortgages loans that require as low as 3.5% down. Other eligible first time homebuyers choose to take advantage of the no down payment option available with VA mortgage loan programs.
Other loan programs available for first time homebuyers include USDA rural development loans or conventional mortgage loans. Contact a licensed mortgage loan professional to discuss which loan program best meets your financing needs.
*A composite index of 100 is defined as the point where a median-income family household has exactly enough income to qualify for the purchase of a median-priced existing single-family home, assuming a 20 percent down payment and 25 percent of gross income devoted to mortgage principal and interest payments.
Inlanta Mortgage offers Fannie Mae/Freddie Mac agency products, as well as a full suite of jumbo and portfolio programs. The company is fully delegated HUD-FHA including FHA 203K, VA, and USDA approved. Inlanta Mortgage also offers numerous state bond agency programs. Review Inlanta’s mortgage loan programs here.