This morning, I read this article on Yahoo! Finance: “Living a Six-Figure Lifestyle on a $30,000 salary” and know about website. It stands for U.S. Department of Housing and Urban Development. This website is so cool that I want to introduce it to everyone, especially first-home buyer.

1. It is a government website, so it is reliable

2. The “I want to buy a home” section has a numerous information which will guide you step-by-step when you want to buy a home (including condo, house, townhouse, etc.)

I have tried the “How much home you can afford”. It will open a website called Ginnie Mae but it is another .gov link, so you don’t have to worry about bias or untrusted source. It has the affordability calculator which allows you to put in your number (yearly income, monthly debt, etc.), then it will estimate your loan. What I find interesting is about other costs when buying a home besides closing cost and down payment. Look at these tables (one is FHA-insured loan, one is conventional loan) (number is just an estimate):

I do not know that you have to pay hazard insurance. I do not even know there is such fee. On a FHA-insured loans, look like your closing cost is lower (FHA stands for Federal Housing Administration, read more here). I heard FHA loans are only for whom want to buy a home to live, not to invest, and for low to moderate-income individuals, but not sure about this info. I need to find out more about restrictions on FHA loans.

When you are in Ginnie Mae, click on Homeownership Information Center. It has almost every info you need in simple language. Even the title: Homeownership 101 in this section already suggests it is as easy as meat and potato.

Good luck on your learning process and see you in next post.


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