Home Loans Market Update

Are you still renting because you don’t have 20% down payment or perfect credit? You might want to take another look! Historically low interest rates and relaxed lending rules could make you a home owner sooner than you think. Interest rates fell to their lowest since June 2013 last month and remain at historic lows today. Mortgage News Daily reports that an interest rate of 4.0% is currently the most prevalently quoted interest rate for 30 year fixed loans for ideal scenarios.

These unbelievably low rates, coupled with the recent relaxed rules for lending, make it a great time for home buyers to act. The Federal Reserve, the SEC and HUD have agreed to relax lending rules to help improve the housing market. The primary change is lenders may choose to reduce or eliminate the 20% required down payment if they verify the buyer’s ability to repay the loan and the buyer meets other requirements such as ensuring the amount of debt payment a buyer has does not exceed 43% of their income. The alternate requirements are in place to hopefully ensure that the reckless style of lending that lead to the recent downfall of the housing market won’t happen again since many lending institutions were previously not even verifying a buyer’s income.

As we celebrate Veterans Day this month, it should be noted that VA (Veteran Administration) loans continue to be a fantastic way for Veterans to buy homes with no down payment or premium mortgage insurance fees (PMI). VA loans are currently boasting wildly low interest rates BELOW 4%! The VA loan originated as part of Franklin Roosevelt’s G.I. Bill in 1944 and are still available to all former and active military service members. Since 1944, over 20 million veterans have benefited from VA loan programs. While you may be thinking this is the least we can do for our Veterans, you may be surprised to know that VA loans have the lowest foreclosure rate of all mortgage products available! The important thing to remember is mortgage lending rules and interest rates change on a daily basis.
If you or someone you know has been postponing home ownership because of the belief that obtaining a mortgage is out of reach, I encourage you to reach out to a mortgage lender to get a real qualification analysis. It shouldn’t cost anything but the time to make a phone call. If you don’t know a mortgage lender, we have a few of our trusted partners listed on our website.

Christine Klimek

Broker/Owner

http://atlantapeachrealty.com/

404-458-7574