Mortgage Lending is Full of Options

 

What’s new in the housing market? Well, for one thing there is a greater diversity of mortgage instruments now available. Let’s look at the way this has played out over the last few years.

After the recession, there was a lag in lending where mortgage bankers, previously too lenient, had now swung in the opposite direction and did not seem to want to lend to anyone. As the housing bubble has faded into the background and home values have rebounded, lenders have begun to have confidence in their collateral once again. And buyers are beginning to believe again that a house is more than a home – it’s a good investment now.

So loans are closing, both conventional and FHA, and interest rates are still attractively low. In addition, the Federal Housing Finance Agency has directed Fannie Mae and Freddie Mac to raise their targets for affordable housing so low-income borrowers have some options. The USDA is still making 0% down loans in communities with a population of less than 5,000. And, banks are beginning to announce that the “no-interest” mortgage is making a comeback, although it will be re-worked into a less toxic instrument. All of this results in borrower’s having more options than ever before.

And these changes are coming at a time when housing prices are still in an attractive range and sellers are still willing to sell.

So if you are a potential buyer who has held off trying to get pre-approved, now may be the time to gather your paystubs and bank balances and talk to your local mortgage loan originator. There are many loan programs available, lots of structuring options, and plenty of homes to look at. Now is the time!

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Thursday, 14 November 2019

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