A Reddit post about a large pre-approval highlights the gap between what lenders approve and what buyers can actually manage each month.
The agency says the home loan benefit is lifelong, not one-time, and the remaining entitlement can support another purchase.
Zillow’s latest national averages show borrowing costs rising after the first Fed rate increase in three years, with 30-year loans back above 7%.
Borrowing costs jumped again this week, pushing monthly payments higher for both conventional and FHA buyers even as long-term savings remain below 2023 peaks.
Higher borrowing costs are adding pressure to a market already showing slower sales, longer marketing times and more selective buyers.
Local agents say buyers need to focus on monthly payments, not just list prices, as borrowing costs, taxes and insurance climb.
Freddie Mac says the average 30-year fixed loan reached 6.95% as affordability pressures deepen and sales slow.
Programs can shrink upfront costs, but the structure of the aid may affect refinancing, resale, lender choice, and even taxes.
Zillow’s latest figures show borrowing costs well above early spring levels, even as some buyers may still find better offers by shopping around.
Borrowing costs have moved back above 7 percent, and Bankrate says the gap between short and long terms remains wide for buyers and homeowners refinancing.