The market is constantly changing. Currently in some of our markets we are starting to see a decline in values for several reasons; insurance prices, high interest rates, and increased inventory to name a few. With the changing market we are experience a significant increase in FHA appraisal requests from lenders.
1. Higher Interest Rates; Many buyers who would typically go conventional are opting for FHA loans because they offer lower down payments and more flexible credit requirements. As mortgage rates stay high, affordability is a big concern.
2. Stricter Conventional Loan Requirements; Conventional lenders have stricter credit score and debt-to-income (DTI) ratio requirements. More buyers are getting pushed toward FHA financing due to these factors.
3. First-Time Homebuyer Surge - FHA loans are especially popular among first-time buyers, who often do not have large down payments. The Omaha and Council Bluffs market tend to have a lot of "entry-level" buyers, which is also a factor in the upswing of FHA loans.
4. Market Shift Toward Lower-Priced Homes -Home prices in the area are stabilizing or slightly declining, more buyers qualify for FHA loan limits, making them a more attractive option.
5. Down Payment Assistance Programs - Many down payment assistance programs require FHA loans, those programs are beginning to gain popularity particularly in Iowa, Pottawattamie County, and Nebraska in rural counties like Cass, Dodge, Washington.
6. Investor Activity & Seller Concessions; Some sellers are more willing to accept FHA buyers due to increased competition or because FHA loans allow for higher seller concessions (up to 6% vs. 3% for conventional in many cases).
7. Some lenders are guiding more borrowers toward FHA financing due to incentives, underwriting flexibility, or specific borrower profiles. Please call us to discuss FHA Appraisal Requirement IA/NE 402-334-9224 or FL 727-773-6829