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US Housing

It is the right time to buy.

After some harrowing years in the housing market, things are very fluid. It is perhaps the best time in the last 7 years to buy a home or refinance an existing loan. Don’t let it pass you by, here are some reasons why.

  • Foreclosures down – neighborhoods are able to make gains on their own merit in most areas, not hindered by a defaulted loan or multiple loans.
  • Interest rates in a great place – for now. Practically no one believes they will stay this low. In historical standards these rates are fantastic, and you may not see them in 2016.
  • Home values on the rise – and going to keep rising for a while in many areas. This means you can wake up and your home have paid you to live there by going up in value. Many areas this way currently.
  • Lenders loosening the standards due to the three items above, lenders are empowered. They see a reason to put money in housing without fear of default, and they know interest rates are rising.

 

FHA Mortgage Insurance

The FHA government body is entirely self funded by the mortgage insurance that is charged on each loan that it secures. It is an insurance policy for the banks, and lenders who actually take on the mortgage. FHA guidelines are simply a guideline. If the banks follow it, or stay above the FHA requirements, the mortgage insurance (MI) covers them if the borrower defaults.

Put simply it is a fee, but that does not mean it is bad for the borrower.  See the benefits below, even with the MI included, it is still a great direction to go with a home loan.

  • Lowest credit scores available for any loan today.
  • Lowest down payment – 3.5%.
  • Down payment can come from a variety of sources, not just the borrower.
  • Same interest rates as any other product, and just as cheap, if not cheaper.

If you don’t have the best credit, and don’t have a ton for down payment, it may be just fine to pay an extra fee to get into your next home, or refinance.

 

Bankers Confident Lending Getting Easier

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by : Staff

The slow but sure housing turnaround is really finding some momentum. The most exciting markets to be involved in are those that keep producing good news. To go along with rising values, and historically low interest rates, a new survey of mortgage bankers indicates that guidelines are going to relax and allow more people into the marketplace.

The banks have been riding waves of refinances for years, and most recently purchases, but it has still been somewhat difficult to get a loan. Due to pressure from the public, and Washington DC,  nearly two times as many mortgage bankers now say they see easier guidelines on lending coming soon compared with the same group surveyed last year. As the economy improves, there are concerns that interest rates will rise making it less attractive to jump into the housing market. That notion is going to help to relax guidelines, and allow more people into the market. Bad credit home loans will be easier to acquire.

Who benefits from this?

The first time home buyer, and the person who has not qualified in the past due to credit scores or other issues are the big winners here. Thousands of people who are right on the edge of qualifying, or even just off the edge will be able to buy homes. The two places where concessions will come is in down payment requirements and credit score minimums. With greater allowances in these areas coming, the floodgates will be opened for this group.

Find out where you stand today, get in now, or establish a plan for the coming wave.

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