Market Recovery Double-Edged Sword
Most real estate and mortgage professionals realize that the housing recovery has been extremely good since the low in 2012. In November the Fannie Mae Home Purchase Sentiment Index indicated that consumers aren’t as optimistic about housing prospects for the future. Fannie Mae concludes that the decrease in the sentiment index was mainly due to two things; Expected decrease in supply and affordability. With current interest rates near an all-time low affordability is still high, but higher interest rates could derail consumer...Homebuyers Unsure of How to Improve Credit
A recent TransUnion survey indicated that the majority of potential homebuyers planning on purchasing a home within the next 12 to 18 months don’t know how to improve their credit. Even more surprising was the amount that didn’t even know what a credit score was made up of and that it directly impacted their mortgage loan interest rate. If you are interested in purchasing a property within the next year and don’t know anything about a credit score call us today for a free...Condo Financing Gaining Popularity
You may have heard that it is extremely difficult to get approved for a home loan to buy or refinance a condominium. That was the case for several years after the housing market crashed, but lenders finally have loosened the rules on condo financing. Borrowers seeking to get a condo loan these days will find more lenders to choose from and more condominiums that are eligible for financing. Mortgage giants Fannie Mae and Freddie Mac have eased some of the requirements on loans for condos, and a growing number of lenders offer loans that go outside the box of the condo rules in conventional financing, says industry experts. You’ll still need good credit and stable income to qualify for a condo loan — just as you would with a loan to buy a house. But you are less likely to face restrictions relating to the property itself. When approving a condo loan, the lender wants to make sure the building is financially stable. Because the financial stability of a condo project depends on the owners paying their bills, lenders tend to view condo loans as a riskier investment than a house. Lenders are more flexible when analyzing condominiums’ financial stability. Late in 2014, Fannie issued new guidelines to lenders allowing them to issue loans in developments where up to 15 percent of the owners were 60 days past due on monthly payments. The threshold had been 30 days. Another change made it easier to finance condos in new developments. Still, many condo buildings don’t meet Fannie and Freddie’s requirements; however, there are several options that have now become available...Vacation Home Sales Up in 2014
Vacation home sales jumped to a record 1.13 million last year which is the highest rate since 2003 This is a 57% increase from 2013 As vacation home purchases soared, investment purchases dropped for the fourth straight year Market share of investment sales dropped to 19% of the market from 20% in...Connect With Us
