Low Mortgage Rates Spike Home Sales And Refinances

Gustan Cho Associates
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Low Mortgage Rates Spike Home Sales And Refinances

This BLOG On Low Mortgage Rates Spike Home Sales And Refinances Was PUBLISHED On July 2nd, 2019

Low Mortgage Rates Spike Home Sales
Gustan Cho Associates

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
  • This 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 3 year low, home sales are increasing every month with no sign of slowing down
  • This holds true despite rumors and talks of that interest rates may be rising later this year into 2020
  • Also, HUD, VA, USDA, Fannie Mae, and Freddie Mac all have lowered mortgage 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
  • Statistics show that the days that homes in the United States remain on the market has dropped to 62 days which is 10% fewer days in the market than the beginning of 2019
  • This is the fastest days in the market a home remained on the market in the past six months

In this blog, we will discuss how Low Mortgage Rates Spike Home Sales And Refinances.

How Low Mortgage Rates Spike Home Sales

How Low Mortgage Rates Spike Home Sales

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 mortgage insurance premium, the home buying and mortgage market is hot
  • Add 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 positive factors than ever before
  • Home prices are increasing due to multiple offers on a home in the market and the shortage 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 have been the best since May 2019.

Low Down Payment Requirements And Low Mortgage Rates Spike Home Sales

Low Down Payment Requirements And Low Mortgage Rates Spike Home Sales

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
  • This only holds true as long as the gift funds do not have to be paid back

Home Loan With Bad Credit

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 bankruptcy discharge to qualify for an FHA home loan
  • There is a three-year mandatory waiting period to qualify for an FHA loan after a foreclosure, deed in lieu of foreclosure, or short sale
  • VA requires a two-year waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short sale
  • USDA requires a three-year waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, short-sale
  • The VA does not have a maximum loan limit cap on VA Loans
  • There is a four-year waiting period after bankruptcy, deed in lieu of foreclosure, a short sale on conventional loans
  • There is a seven-year waiting period to qualify for conventional loans after a foreclosure

Credit Score Requirements For Conventional Loans

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 text us for faster response. Or email us at gcho@loancabin.com. The Team at Gustan Cho Associates are direct lenders with no overlays on government and conventional loans and can help you get approved for a mortgage loan.

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