Are you a first-time home buyer struggling to find the right home in your price range?

If you are looking to purchase your first home, but have found that the market is moving too quickly or you are finding it hard to save that 20% down payment, stay tuned because we have some good news for you.

Recently, reported that first-time home buyer sales have dropped from 30% in June to 28% in July. While first-time home buyer sales have dropped, overall we are seeing a continued rise in home sales.

Those looking to enter into the market for the first time often face an uphill battle from saving for the down payment to finding the right home in the right price range.

The good news is that this winter, there are some really good reasons why first-time home buyers should enter into the market.

  1. Loan Accessibility

Mortgage loans have never been so accessible to first time home buyers as they are this year.

  1. FHA Loans

One of the reasons why loans are so accessible this year is because of the FHA loans. FHA stands for Federal Housing Administration and is a mortgage loan that is insured by the federal government.

What makes FHA loans so helpful to first-time home buyers is that they only require a 3.5% down payment and are usually easy to qualify for.

This year, however, according to an article by, the mortgage insurance premium associated with this loan was lowered from 1.25% to .85%.

If you are unfamiliar with a mortgage insurance premium, it is an upfront fee and an annual fee that is collected monthly when you have less than 20% equity in your home.

This decrease, according to Adam McLain, a mortgage broker at Wintrust Mortgage, could save homeowners up to $100 a month.

For more information on FHA Loans, please see FHA Loans and Qualifications for First-Time Home Buyers.

  1. Fannie Mae and Freddie Mac Loans

In an article by The Wall Street Journal that was published last December, we learned that the mortgage finance companies, Fannie Mae and Freddie Mac, are offering new low down-payment mortgage programs. The article stated:

“The mortgage-finance companies and their regulator, the Federal Housing Finance Agency, said the companies would start to back mortgages with down payments of as little as 3%, and that the loans would be available to first-time home buyers, borrowers who haven’t owned a home for at least a few years and to those who have lower incomes.”

  1. Less Competitive Off Season

Summer, especially July, is one of the busiest times of the year for real estate. However, according to, the inventory in July is only around 25% higher than in December. also reports that the month of June see almost twice the amount of sales as January.

What this means is that this winter, there will be inventory available and it will be a less competitive market for the buyer.

  1. Mortgage Rates Are Still Low

One of the most common real estate predictions of 2015 was that mortgage rates will rise. It hasn’t happen yet.

Freddie Mac reported 30-year mortgage rates below 4% nationwide as reported in a recent article by Dan Green, a mortgage market expert, published by The Mortgage Report.

If you are not sure why mortgage rates matter, we would like to encourage you to check out Low Mortgage Interest Rate Stats You Want to Know. This article explains how much a 1% difference in your interest rate will make for your mortgage in the first month, in the first year, and beyond.

Take Away

If you are ready to start looking for a house, make sure you are prepared. Please see, 3 Things to Do Before You Start House Hunting and give our office a call. We would love the opportunity to help you find the house of your dreams.