Dear Future Homeowner,

Homeownership is becoming a reality for more and more Americans. During 1998, the US homeownership rate reached 66.8%, the highest rate ever. Yet many Americans don't realize that homeownership is within their grasp.

A home is a financial asset and more: it's a place to live and raise children; it's a plan for the future; it's an investment in your community. That's why we at the U.S. Department of Housing and Urban Development want all Americans to have an opportunity to enjoy the benefits of owning a home. And we are especially proud of our work to help first-time homebuyers: thanks to our special programs, more than 76% of FHA-insured loans went to first-time homebuyers during 1997.

Knowledge is said to open doors. This is literally true when it comes to buying a home. To become a first-time homebuyer, you need to know where and how to begin the homebuying process. The following questions and answers have been carefully selected to give you a foundation of basic knowledge. In addition to helping you begin, this article will give you the tools necessary to navigate the entire process — from deciding whether you're ready to buy, all the way to that final proud step, getting the keys to your new home.

Reading this article is your first step. Now you can use this information to determine if you're ready to buy a home. If you are ready, contact a real estate agent, lender, or a housing counseling agency. They can help you decide your next step. HUD's FHA has helped more than 26 million people become homeowners since 1934. We want to help you open the door to your own home. After all, HUD and FHA are on your side.