Record Low Mortgage Rates Spike Home Sales
Home sales are strong. Just under 5 million homes have sold in the month of February of this real according to the National Association of Realtors which kick started a strong home buyer’ market for the new year. With the combination of home values still not recovered from the 2008 real estate market and credit collapse and mortgage rates still at an all time 2 year low, home sales are increasing every month with no sign of slowing down despite rumors and talks of rising mortgage rates in the later half of 2015. Also, HUD, VA, USDA, Fannie Mae, and Freddie Mac all have lowered mortgage lending guidelines with regards to credit, debt to income ratios, and waiting periods after bankruptcy and foreclosure to stimulate home buyers to become first time homeowners. Statitics show that the days that homes in the United States remain on the market has dropped to 62 days which is a 10% less days in the market than the beginning of 2014. This is the fastest days in the market a home remained on the market in the past six months.
Mortgage rates on 30 year fixed rate mortgages are at a two year low. How much can mortgage rates go down? If you are a seasoned home buyer or a first time home buyer, right now is a great time to think of buying a home. With lenient mortgage lending guidelines, low mortgage rates, home values on the rise, and the reduction of FHA annual mortgage insurance premium and the revitalization of Fannie Mae and Freddie Mac’s 3% down payment on a home purchase conventional loan program, the dream of homeownership has never seen so many postive factors than ever before. Home prices are increasing due to multiple offers on home in the market and the shortgage of home inventory in all parts of the country. According to the National Association of Realtors, 34% of the homes listed in February has sold in thirty days or less on the market. Typically, March and September are the best months for home sales. Another major factor of why home sales are spiking up and expected to do so the next few months is because mortgage rates has been the best since May 2013.
Low Down Payment
Minimum down payment for FHA home buyers is 3.5% down payment and minimum down payment for conventional loan home buyers is 3% down payment. VA Loans do not require a down payment and neither does USDA loans. No closing costs for home buyers if they get a sellers concession or a lenders credit. Down payments can be gifted by family members and/or relatives as long as the gift funds do not have to be paid back.
Home Loan With Bad Credit
Minimum credit scores to qualify for a 3.5% down payment FHA insured home loan is 3.5%. Home buyers with prior bankruptcy and/or foreclosure can qualify for a home loan with bad credit. There is a mandatory waiting period of 2 years after a bankruptcy discharge to qualify for a FHA home loan. There is a three year mandatory waiting period to qualify for a FHA loan after foreclosure, deed in lieu of foreclosure, or short sale.
Credit Score Requirements For Conventional Loans
Minimum credit scores to qualify for a conventional loan is 620 FICO. Minimum down payment to qualify for a conventional loan is 3% down payment for a first time home buyer or a seasoned home buyer who did not own a home for at least 3 years. Standard down payment requirements for a conventional home purchase loan is 5% down payment.
If you have had credit issues and need a home loan, please contact me at 262-716-8151 or email me at firstname.lastname@example.org. I can help you get approved for a mortgage loan.