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It has been a long time since I was able to make this statement; if you are currently renting you can buy a new home and not have your monthly mortgage exceed what you are paying in monthly rent. Two factors are contributing to creating a very affordable housing market for first time home buyers, FHA interest rates are at historic lows and the median home prices in St. Louis, St. Charles and Jefferson County continue to go lower.

Every month I am doing an ever increasing number of first time home buyer mortgages, in the St. Louis area just under 65% of all homes purchased are first time home buyers utilizing FHA financing. The amazing item that I find in nearly all borrower cases is that the difference between the new house payment and what they were paying in rent is nearly the same, sometimes a bit lower. This includes a house payment for principal, interest, taxes and insurances, the whole enchilada!

There are a lot of reasons to buy a new home right now:

• There is a big inventory of homes
• Homes in First Time Home Buyer price range sell faster
• The $8,000 tax credit for First Time Home Buyers expires soon
• The Lowest Ever Interest Rates on a 30 year fixed rate mortgage
• It’s a BUYERS MARKET and sellers are negotiating

What is the first step to get yourself a new home, speak with a mortgage professional. Get pre-qualified and then pre-approved, please do not go home shopping until you are absolutely positive that a lender is willing to provide you the financing. Once you know you have financing go out an enjoy the experience of finding your next new home, it can be a lot of fun.

There has been a lot of news about lenders not willing to provide mortgages, this is not true. Yes, it is a bit more difficult to get a mortgage than it was just two years past but it is not impossible. In fact, I am approving more borrowers than I am otherwise.

Ask this question to yourself; ‘do I have decent credit scores or better’ if you answered yes to this question then you need to contact me to get started. You do need to be employed, have a moderate debt to income ration, and possibly a down payment. But, don’t be overly concerned about the down payment I have worked with many first time home buyers who did not have the necessary 3.5% down payment, required by FHA, today these same  people are happily living in thier first new home.

Give me a call as soon as possible, the first time home buyer tax credit will be gone before you know it, interest rates will not stay at historic lows for ever, and eventually home prices will start to improve. Buying today will in time become your greatest financial investment.