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Archive for First Time Home Buyers

The home financing industry has been aided significantly by government loans like FHA. First time house buyers have relied on FHA financing for several decades because of minimal down-payment and credit standards. With interest rates ticking upward and home sales stagnant many mortgage professionals are beginning to wonder if the housing recovery is over. The fact is that most conventional and government finance sources on the secondary market have tightened their lending guidelines. Conforming lenders are seeking higher credit scores and more equity for people refinancing in most cases.  We see the trend steering towards a smaller pool of qualified borrowers.

Will the Purchase Market Heat Up Again in 2014?

Home buying is more aggressive with credit for first time house buyers that seek FHA mortgage products. Of course borrowers will have to pay the upfront costs as well as monthly mortgage insurance. But many new home buyers simply see the down-payment and mortgage insurance as a trade-off to become a homeowner while house prices are still relatively low. The idea is for these borrowers buying real estate insured by FHA to earn equity quick when the market surges so they can refinance into a home loan that does not require mortgage insurance. Will that happen soon? Nobody knows but it appears the Federal Reserve will keep the rates artificially low at least through 2016. Read FHA Home Loans Programs Safe

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Jan
04

5 Tips for Home Loan Financing

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If you are thinking of financing a new home, 2012 may be the year to pull the trigger. There are many home loan factors to consider when financing a house. Nationwide understands the obstacles that come with financing for first time home buyers and we offer the best home loans available in the marketplace today.  Here are five tips to maximize your home loan financing experience in the New Year.

1. Low Mortgage Rates Ensure Affordability

It’s no secret that home loan rates have been hovering at the lowest levels of all time.  Most economists have forecasted the trend for low interest rates to continue in 2012 mostly because the Federal Reserve has made a strong commitment to back mortgages aggressively until the housing market rebounds. Many loan companies believe that interest rates will remain at record lows to make home buying more attractive. The other driving factor for low mortgage rates has been a sluggish economy. Typically the interest rates stay low when the U.S.economy struggles.

2. Home Prices Have Fallen

In many areas across the country, house values have reverted back to 2002 and 2003 levels. This presents a significant opportunity for first time home buyers to get into a real estate investment at a bargain price. Most realtors have predicted that 2012 will continue to see some great home buying opportunities because foreclosures, short sales and timid buyers have driven the home prices to an extremely attractive levelin most regions of the United States.

Fox News recommended buying a home because of the opportunities that our economic uncertainty have dictated. The reality is that many potential home buyers have been waiting in the wings for the dust to settle with the housing crisis. According to the Mortgage Bankers Association, purchase loan applications declined to the lowest point in 15 years back in August. The lack of home loan applications signals the uncertainty of the housing market but that doesn’t mean that it’s not a great time to purchase a home. If you have the ability to make the proposed mortgage payment without it breaking the bank then it makes sense.  According to B of A loan analysts, Jeff Moran, “Many first time home buyers actually reduce their housing expenses because house prices and interest rates are so low.”

3. Tax Deductibility from Mortgage Interest

One of the driving factors for many Americans to become homeowners has been to reap the benefits of deducting the interest on your home loan payment each month. Most homeowners save thousaands of dollars a year by deducting the mortgage interest for their primary residence.

4. Buying a Home with a Small Down-Payment

Many first time home buyers are attracted to FHA home loans because they only require a 3.5% down-payment.  This allows new home buyers to save their money for important things like moving, buying furniture and saving for a “rainy day.”

5. Flexible Home Loan Guidelines for New Home Buyers

John Giangardella, loan officer at VIP Mortgage in Southern California, said, “FHA is a great asset for the path to home ownership in America.” According to a recent Freddie Mac survey, “FHA interest rates have fallen below 4% on fixed terms for 30-years. There are mortgage insurance premiums that are charged to the borrower but it usually pencils out to make sense.  Giangardella continued, “Low FHA rates and flexible guidelines also help new home buyers get there foot in door.” FHA allows low credit scores and that makes them one of the last bad credit mortgage options this year.”

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When you are buying your first home, there are a lot of things that you have to think about. First time home buyer loans are not hard to find. However, you have to know what you are dealing with so that you can find the best loan for your needs. FHA is popular with first time home buyers because it affords so many different benefits and it is more lenient than other lending programs. The interest rates that you get and the features of these loans make them very desirable. However, before you get any loan, you have to get things in order. Consider conventional, VA and FHA rates with lenders from Nationwide.

1st Time Home Buyers Will Benefit from the Lowest Mortgage Rates of Our Generation!

The first thing that you need to do is to get your credit report. That way, you know exactly where you stand and how you rate in terms of being a loan candidate. In most cases you will need to document your income with pay stubs, W2’s and 1099’s if applicable. If there are problems, you will need to fix errors on credit report documents before you proceed. You can do this online or by writing letters to each credit bureau, telling them which things are inaccurate and allowing them to review and make the changes. You should also being considering the financial aspect of this investment so that you can get the right home at the right price.

If you are a first time home buyer that has no savings or would rather not come up with a down-payment for their home purchase should know that no money loans are not as available as they were a few years ago. The VA home loan program, still extends 100% financing for military and veteran borrowers.  FHA requires a 3.5% down-payment and Fannie Mae and Freddie Mac typically require 10-20% down-payments for first time home buyers.

Mortgages for first time home buyers are available to qualified borrowers with government and traditional lending opportunities. It takes a little bit of effort but as long as you are willing to do the work, you can be on your way to home ownership in no time at all. Make sure that you keep these tips in mind and never do anything that could make the process more difficult or jeopardize your chances of success. As long as you remember these things, buying a home will be a much simpler process.Use a mortgage calculator to figure out how much of a home you can afford. That way, you aren’t wandering aimlessly or falling in love with homes that are completely out of your price range. Once your credit report is in good shape and you know what you can afford, you can take the next step. That step is to get pre-approved with an experienced lender. It doesn’t work well for you to shop for homes and then find a loan. It’s better to have something lined up beforehand so that you know exactly what you can look at and so that you’re ready to make an offer as soon as you find a home that you love.

 

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If you have decided that now is the time to make your first home purchase, you probably have a great deal on your mind.  Instead of trying to save for a very long time, you can benefit from first time home buyer loans to help your dream come true in an affordable way.  There are various kinds of loans that may interest you as a first time home buyer.  The top most popular options may vary depending on your qualifications and needs. Buying a home in today’s mortgage climate requires good credit scores and steady employment. FHA is a little more forgiving than Fannie Mae or Freddie Mac, but all three of these 1st time homebuyer loans requires the borrower to document their income.

Four Home Loan Options That May Interest You

  • Conventional Loans
  • Jumbo Loans
  • FHA Mortgage
  • VA mortgage

There are two types of conventional loans that may interest you as someone looking for a first time homebuyer loan product.  Fixed rate purchase loans last for 15, 20, 25, or 30 years.  The rate you pay is fixed for the duration of the loan.  Adjustable rate loans change the interest rate yearly depending on the weekly average yield on United States treasuries.  The rate you pay will adjust annually after an initial fixed period of 1, 3, 5, 7, or 10 years.

Then, there are jumbo mortgage loans for high cost regions.  Home loans that exceed $333,700 can be accommodated by these kinds of first time home buyer loans.  Because giving out a higher loan amount presents more risk for the lender, the interest rates for jumbo loans tend to run higher.  Fixed rate loans can be set for 15, 20, 25, or 30 years.

To get a FHA mortgage loan, or Federal Housing Commission mortgage, your situation must comply with limits based on housing types in the specific state and county they are located in.  You can get an FHA loan if you are looking to purchase a house or refinance your mortgage, providing you with great flexibility in obtaining you loan today and refinancing your home in the future.

A VA mortgage loan is available for armed services veterans.  If you qualify, you will be able to get you a zero down mortgage.  Whether you are currently in active duty, the reserves, or you are married to someone who is, you may qualify for a home purchase loan that is guaranteed by the VA.  There are both fixed rate and interest rate reduction refinance options, but the fixed rate option will be what you will need if you are seeking first time home buyer loans.  These and many other kinds of loans are available to help you get into the home of your dreams quickly at an affordable housing rate.

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First 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 homebuyer 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

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Jul
27

Government Mortgage Help

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Government 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.

  • FHA Home Loans with only a 3.5% Down-Payment
  • VA Loans with Zero Down-Payment on Home Purchases
  • Streamline Refinancing with FHA and VA
  • No Pre-Payment Penalties with FHA or VA Mortgages
  • No Cost Government Mortgage Help
Government Mortgage

Take advantage of the Nationwide Mortgage Lender’s government mortgage experience and lock your mortgage rate now before the interest rates rise.

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Interest rates on fixed rate 30-year home loans for refinance or purchase officially hit record lows today! On Thursday, Freddie Mac released their report that also indicated the 5-year adjustable-rate mortgage dropped to record lows this week according to the survey of conforming mortgage rates.   The 30-year fixed rate mortgage reported averages of 4.69% for the week ending June 24th.  This was lower than the low rates of 4.75% from the previous week and 5.42% a year ago. Fifteen-year fixed rate mortgage loans averaged 4.13%, down from 4.20% last week and 4.87% a year ago. The 10-year fixed rate mortgage has fallen to 3.75% and 3.875% on the “no cost mortgage refinance” option.

VA home loans are still available at record low rates as well.  If you already have a VA mortgage and want a lower rate talk to one of our VA lenders about qualifying for the VA streamline.

Freddie Mac Says Lowest Fixed 30 Year Mortgage Loans Since They Began Recording Rates in 1971

Conventional and FHA mortgage lenders reported averages of the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.84% this week, down from 3.89% last week and 4.99% a year ago.

One-year Treasury-indexed ARMs averaged 3.77%, down from 3.82% last week and 4.93% a year ago. While not a record, this is the lowest the ARM has been since the week ending May 6, 2004, when it averaged 3.76%.

To lock into these home mortgage rates, the 30-year fixed-rate mortgage and both ARMs required payment of an average 0.7 point and the 15-year fixed rate mortgage required an average 0.6 point. A point is 1% of the home loan amount, charged as prepaid interest.  According to Frank Nothaft of Freddie Mac “Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the home-buyer tax credit”. “Freddie Mac began collecting rates for 30-year fixed loans in April 1971, 15-year fixed home loans in September 1991 and 5-year ARMs in January 2005.”

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