Archive for First Time Home Buyer Loans
Motivating First Time Homebuyers Beyond Low Mortgage Rates
Posted by: | CommentsFirst time homebuyers have not been rushing to become homeowners as they have years ago when home mortgage rates had dropped into the 4% range. The lack of home purchase loan activity has stumped many economists. Many mortgage insiders are astounded that 4% fixed rates are not enough of a motivation for first time home buyers. First time home buyer loan activity will rise when consumer confidence rises.
There are several factors that contribute to lack luster home loan activity in the summer of 2010. Yes the tax credit for first time homebuyers expired on April 30th. Sure that was a good incentive to drive first time homebuyers, but this is not the primary reason that home loan application volumes have been faltering the last few months. If Forrest Gump was hear, he might say, “It’ the loan guidelines stupid.” According to Ronnie Sullivan at the Mortgage Depot, “Mortgage lenders have tightened loan guidelines to the point where not that many consumers qualify anymore.” Sullivan continued, “borrowers need to be able to document their income and demonstrate that they have the ability to re-pay the mortgage loan.”
Notable Instances of Mortgage Lenders Tightening Guidelines
1. FHA increased down-payment requirements from 3% to 3.5%
2. FHA reduced the maximum loan-to-value on cash out refinancing from 95% to 85%
3. Most Mortgage Lenders Eliminated Stated Income Home Loans
4. Most Home Loan Lenders Eliminated Down-Payment Assistance Home Loans
5. Conventional Lenders No longer allow a 10 or 20% second mortgage to replace a down-payment & the need for mortgage insurance
Government Mortgage Help
Posted by: | CommentsGovernment home financing continues to play a major role in rehabilitating the mortgage industry. In the wake of a severe financial crisis, the Federal Reserve lowered government mortgage rates to record levels. The two most popular U.S. government mortgage programs over the last seventy years are the VA and FHA loans. VA mortgages are only available to military veterans who qualify with their VA loan eligibility. However, all Americans are eligible for FHA mortgage loans if they can demonstrate they have the ability to repay the loan. Government mortgage help is more available and accessible than most people realize.Nationwide brings a significant amount government mortgage loan experience to the table with home financing opportunities for consumers seeking fixed rate refinancing, debt consolidation, new home purchase and cash out refinance loans.
Take Advantage of Record Low Goverment Mortgage Rates
Take advantage of low FHA mortgage rates available for fixed mortgage refinance and new home purchase mortgages. FHA first time home buyer loans are a popular choice for new home financing. FHA has been insuring American mortgages since 1934.
The U.S. government guarantees veteran loans and VA mortgage rates have never been better! If you are a military veteran consider the 100% VA mortgage for refinancing or new home financing.Both FHA and VA streamline loans are available to borrowers seeking a rate and term refinancing who already have existing government mortgages in good standings.
Take advantage of the Nationwide Mortgage Lender’s government mortgage experience and lock your mortgage rate now before the interest rates rise.
First Time Home Buyer Loans
Posted by: | Comments2010 has been a good year for Americans to get a first time home buyer loan for several reasons. First the silver lining of the housing crisis is that new home buyers were suddenly in a position to purchase a home at a discounted price. For the most part, 1st time home loans have been more affordable in 2010 than it had been in the previous five years. The other good news for first time home buyer loans has been that home mortgage rates were at all time lows.
Several government home financing programs enabled borrowers to finance a home with hardly any money down. The FHA first time home buyer loans were available to borrowers who could come up with a 3.5% down-payment. The VA home loan requires no money down, but borrowers need a militray backgroud for VA loan eligibility. The other bright spot for new homebuyers was the $7,500 tax credit for first time home buyers. Most industy insiders anticipate that low rat home financing will continue in 2010, but many are forecasting higher interest rates and tighter home loan guidelines in 2011, so if you are considering buying a home there could not be a better time!
North Carolina Mortgage Rates Decline for FHA Loans
Posted by: | CommentsFHA mortgage rates continue to decline across the nation. Mortgage brokers reported North Carolina mortgage rates and Virginia mortgage rates dropped below 5% on thirty year fixed rate FHA loans. According to, Virginia mortgage broker, Trip Freeman, “FHA mortgage rates have helped millions of Americans become homeowners with their flexible loans and affordable interest rates,” Freeman continued, “If mortgage rates can remain below 5%, 2010 will be a banner year for the mortgage industry.
There are so many borrowers who still need to refinance into a fixed rate loan because their current interest rate had rest to an adjustable rate mortgage. ARM loans are risky so homeowners who find themselves with a variable rate loan will benefit from the mortgage refinance loans available from FHA, VA and conventional lenders. With low rates and flexible guidelines, FHA mortgage loans will continue to support borrowers across the nation.
Mortgage Refinancing Modifications and Obama Home Loans
Posted by: | CommentsFormer Ditech executive, Jeff Morris, says “When the average borrower with a jumbo mortgage can qualify to refinance at a competitive interest rate, I’ll know we have turned the corner.” Morris continued, it’s a mess out there…Many homeowner think that Obama is going to give them 2% fixed rate even if they are 120 days late on their mortgage.” FHA mortgage rates have been low, but not that many borrowers qualify because the credit crunch is still preventing mortgage refinancing and new home loans for many 1st time home buyers. Mortgage loan modification requests are piling up higher than refinance applications.
According to Lawrence Yun, chief economist of the Realtors’ group, the number of home foreclosures may rise to 2.5 million this year and that would be the highest since keeping records of home loan defaults. “The foreclosure wave we’ve been through is not over,” said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School in Philadelphia. “That’s why we don’t see a bottom in housing yet.”
According to Seattle-based real estate data service Zillow.com. About 20.4 million of the 93 million houses, condos and co- ops in the U.S. were worth less than their loans as of March 31st. After the Federal Reserve pledged to acquire as much as $1.25 trillion in mortgage-backed securities to free up money for mortgage loans, mortgage interest rates fell to a record low of 4.78 percent twice in April. Rates began climbing last month on investor concern federal spending will fuel inflation.�
Mortgage Financing with a FHA Home Loan
Posted by: | CommentsFHA home financing continues to be the most popular first time homebuyer loan, but now FHA has become the loan of choice for experienced borrowers buying new homes as well as homeowners seeking FHA home refinancing. Most new home buyers like the fact that FHA down-payment requires only 3.5% of the sales price.
FHA continues to approve seller concessions up to 6% of your home purchase price. First-time home buyers can get a tax credit up to $7500! “First-time home buyer loans” actually refer to any borrower who hasn’t owned a house in the last three years. Need a more affordable mortgage payment? FHA refinance loans may be the only opportunity for borrowers with bad credit scores to finance or refinance into a low rate mortgage loan. Ask a loan officer about FHA mortgage rates and FHA streamline loans if you currently have a FHA mortgage on your primary residence property and have not been late on that mortgage in the last 12 months. FHA offers responsible fixed rate mortgages with no pre-payment penalties and limited lender fees.
Last year, Congress increased 2008 FHA home loan limits to $729,750. This year, HUD called for 2009 FHA loan limits to be reduced to $625,000 in high cost areas nationally. Even though HUD reduced the loan limits slightly in 2009, most real estate evaluators believe that the revised mortgage limits will still help millions of homeowners refinance their home with record low interest rates below 5% on thirty year home mortgages. FHA mortgage loans ensure borrowers they have an affordable loan that is insured by the U.S. government.
Nationwide Mortgage -- Mortgage Loan News Reported by NBC News
NBC Nightly News discusses the effect of credit crisis on mortgage rates for FHA home loan and conventional mortgages that help borrowers finance a new home.
A Sr. HUD official recently defended the performance of the FHA at a congressional hearing looking into questions raised in a magazine article about mortgage originators. A November published Business Week article said that the Federal Housing Administration allowed the market for FHA-insured mortgages to be infiltrated by abusive mortgage brokers and loan originators from the subprime mortgage market. The deputy assistant secretary of HUD Phillip Murray said that these types of articles “misrepresent a well-respected federal program that has provided untold benefits to millions of Americans.” Murray criticized the shallow stories that parallel and compare FHA-insured mortgage practices to those seen in the subprime market. “FHA mortgages are not high-cost loans nor high-risk for homeowners,” he said.
Most people understand that FHA home loans have regained their popularity, with first time homebuyers and subprime borrowers, but most Americans do not realize that FHA is offering prime rate loans up to 97.75% of your home value or sales price with fixed rates below 5%. HUD still offers FHA loans with cash out refinancing to 95% but HUD now requires two URAR appraisals from FHA-approved appraisers. Take advantage solid government home financing loans that promote homeownership and responsible fixed rate refinancing. FHA guidelines could change at any time and this economy; waiting could cost you thousands of dollars.