Home mortgage rates continue to drop as 2013 nears an end.
Home buyers were in a bit of a struggle over the summer. Not only did interest rates take a 1 percent jump, but available housing inventory for sale was still pretty scarce. Prices rose due to such a high velocity demand from not only buyers who wanted a residence to live and/or raise a family, but investors were still snatching up properties as well.
With the considerable rebound in housing prices, it’s no wonder that buyers are back in the game. Knowing that the investment they make will begin to grow equity almost immediately whetted the whistle of those looking for homes, and sellers took complete advantage. Many home sellers experienced multiple simultaneous offers, putting them completely in the driver’s seat as far as price, terms and conditions against the buyer whose offer was finally accepted.
A slight shift in the real estate market that turns into a win-win for both buyers and sellers.
As interest rates rose over the summer, housing sales began to level off slightly, bringing about a slow rise (VERY slow!) in available houses for sale. While inventory is still low in Santa Clarita, it has raised a few hundred units from around 300 at the end of summer, to around 500 in October. Now, this is typical as the year winds down and the holidays near. Many sellers consider holding off listing their home until after the new year, although there are many who are serious enough about selling that they will continue to offer their homes to buyers straight through. Continue reading Another Reason To Buy a Home Now: FHA Loan Rates Dip Below 4%!
Federal Housing Authority changes wait time for bankruptcy filers and short sellers from two years to one.
As the real estate market recovers, many previous homeowners who were either forced to give up their homes due to foreclosure or short sale, and/or filed for bankruptcy as a result of the economic issues surrounding the “Great Recession.” In many cases, those issues were temporary and many who had previously been affected by the negative economic impact of a few years ago have since rebounded. However, the minimum wait time for any former homeowner who fell victim to the conditions described above has been at least 24 months to be approved for a loan backed by the Federal Housing Authority (FHA).
Recently the FHA sent a letter to mortgage lenders regarding changes they have made to help put former home owners back into the real estate market by announcing that, under certain conditions, they will back mortgages that will reduce the wait time from 24 months to one year. These conditions include:
- Buyer must prove that an economic hardship was suffered beyond their control, such as experiencing job loss or a negative financial impact that was a result of the conditions brought on by the recession. These hardships must be documented in writing.
- Buyer must also prove that they have since recovered economically and are able to qualify for a home loan. Lender may review credit scores and information that may qualify the buyer as a candidate for a mortgage. Also, the buyer must be able to show that they had excellent credit PRIOR to the events that created their negative economic situation.
- Qualifying factors for loan approval include buyer proving cash reserves, loan-to-value ratio at or below 90%, and debt-to-income ratios.
- Buyer must agree to HUD approved home buyer counseling. Continue reading New FHA Guidelines Aim To Give Recession Victims Another Chance At Home Ownership
Educating yourself about your loan options during the home buying process can save you money and frustration.
A recent Zillow survey showed some interesting statistics about what home buyers actually know (Or don’t know) about obtaining a home mortgage loan. Out of 1,000 current and prospective homeowners, it was discovered that:
- 34 percent don’t know what the term “APR” means
- 31 percent don’t believe it is possible to obtain a home mortgage loan with less than 5% as a down payment
- One in four believe that they must close escrow using the same lender who originally pre-approved them for their home loan
Let’s clarify these home mortgage myths, shall we?