During the real estate crash that caused home prices to drop and mortgage lenders to drastically tighten up their guidelines for offering new loans, the jumbo loan market was hit the hardest. People who wanted to buy a home and needed a loan higher than the $417,000 conventional standard were stuck with a minimum 20% down payment requirement and sometimes even higher. Furthermore, their loans were subject to more scrutiny than other types of loans. However, a few years of solid growth in the real estate market has led to a significant change in jumbo mortgages.
With the overall improvement of the real estate market from the past 24+ months, many home owners are now whispering about a topic that was considered dead. The topic has actually turned in to a question; do we have enough equity to move up to a bigger, better home? In most areas, the answer is a resounding yes.
The act of buying that first home can cause a lot of stress. There are quite a few things that a typical buyer simply does not understand about the whole process. The legal language used in real estate contracts, the difference between the appraisal and home inspection, and the whole financing part can be a bit overwhelming. Here are a few things to keep in mind for first time home buyers.
In a word, an FHA 203k is a solution. It is the solution to people who wish to buy a fixer-upper in a great area but don’t have the money to do the repairs. Homes that have been neglected or abandoned by the previous owner often need extensive repairs. FHA 203k loans allow buyers to purchase these homes and immediately make renovations.
A generation ago people would save money for years, sometimes as long as a decade, in order to have a down payment for a home. It was quite common for the husband to work and the wife to stay at home to raise the children and take care of the house. Many families only had one vehicle. However, times have changed. Dual income families with at least two cars are the norm. Much higher prices on everything from gasoline to homes has made it tougher to live comfortably. Thankfully, the USDA home loan program offers potential buyers a way to buy a home without a down payment.
Since the VA mortgage program offers such a great method for buying a home, it is important for qualifying veterans to understand the basic income rules. The program has experienced a very low rate of foreclosures throughout the history of the program due to their strict enforcement of the income guidelines. Get a handle on how the rules work and you will be better prepared for acquiring a home loan.