You heard that right! The Department of Housing and Urban Development (HUD), and the Federal Housing Administration (FHA) have just made it easier for first-time homebuyers to qualify for purchasing a home. Here is the headline (link below):

“FEDERAL HOUSING ADMINISTRATION EXPANDS ACCESS TO HOMEOWNERSHIP FOR FIRST-TIME HOMEBUYERS WHO HAVE POSITIVE RENTAL HISTORY“

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_22_187

The FHA has now added a positive rental payment history indicator on its SCORECARD for FHA eligibility. Rental payment history can now be included as a determining factor when you are applying for a loan. If you are someone who consistently makes your rent payments on time each month this could be a game changer! The new expanded access states that if you have made on time rental payments for the last 12 months (prior to your application) it can now be used as additional positive support toward loan qualification.

FHA First Time Buyer home loans are an excellent first pathway to owning your own home. I bought my first home using an FHA loan. They are typically easier to qualify for (and now even easier with this new change). They also normally have lower rates than conventional loans, and only require a 3.5% down payment. This, coupled with our excellent pricing here at Compass Mortgage Planners (with our very low margins and low overhead), means that you could potentially get into a home faster than you first thought, with less money down than you first may have been lead to believe. This is because here at Compass we often have the ability to use lender credits toward your closing costs – thus reducing the overall amount you need to save in order to get into that home.