FHA HAWK Initiative for First-Time HomebuyersJuly 18, 2014
If you are looking to start your home search this fall, you may be in luck. The Federal Administration of Housing has a new pilot initiative that aims to betterÂ the deal for first-time buyers.Â
Loans issued by the FHA are already popular among a large group of today’s homebuyers. Not only do they require a smaller down payment, usually around 3.5 percent, but are attainable by those with a lower minimum credit score. Now, to make things even “sweeter”,Â they have added theÂ Homeowners Armed with Knowledge (HAWK).
In a nutshell, the HAWKÂ counseling program aims to reduce the rate of mortgage insurance premiums for first-time buyers. Buyers who complete a counseling class under the U.S. Department of Housing and Urban Development (HUD) can earn reductions in upfront mortgage premiums and annual premiums, in addition to reductions after two years with no delinquencies.
In English, that totals nearly $10,000 in savings over the lifetime of the loan. Not to mention the added knowledge of the home buying process that is gained throughout the course.Â
If you are looking to brush up on the ins and outs of buying a home for the first-time, contact a local RE/MAX Southern agent. With such a big investment, the key is to keep calm, prepared and aware.Â