As a young professional, I understand it’s challenging to know when it is the right time to buy a home. I have been in the mortgage lending industry for almost 10 years and despite what you may have read in the news recently about strict credit standards, and how hard it is to be approved for a mortgage, FHA financing for buyers with credit scores down to 640 is readily available.
There have been a lot of changes to the industry, but the changes have made the industry stronger. The loan products available today are stronger and safer than in past years. Your home should be a long-term investment and although there are risks I still believe your home is the best investment you can make.
The Realtor group NAR began their recordkeeping in 1970, but given the attractive prices of homes and record low interest rates, this could be the best time in U.S. history to acquire a home. Also, with 2012 being an election year, it is likely rates will rise after November, if not sooner.In March 2012, the National Association of Realtors reported that its Housing Affordability Index rose to a record high of 206.1, based on the relationship between median home price, median family income, and average mortgage rate. The higher the index, the greater the household purchasing power.
The environment for interest rates is excellent right now. It’s almost been the perfect storm between the Fed’s quantitative easing, the slow economy, and investors’ preference for buying bonds over equities; but all that can quickly change, and rates could rise sharply.
Rates on 30 year fixed conventional mortgages have been at 3.875% (3.982% APR) lately; and at 3.25% (3.317% APR) for 15 year loans. Rates on FHA mortgages have been even lower!
If you have been considering the purchase of a home or even refinancing your current loan, 2012 may be the last opportunity to take advantage of the all-time record low interest rates combined with favorable housing prices. FHA financing allows for down payments of just 3.5% and for our Veterans, 0% down payment financing is available through VA guaranteed loans.
If you are unsure of your credit scores or your mortgage qualifications, give me a call or send me an email today. Mortgage pre-approval is completely free of charge, and you’re under no obligation of any kind.
Mark Moulesong, NMLS ID # 197137, is a Senior Mortgage Loan Officer at Inlanta Mortgage Inc and can be reached at 708-705-4480 or by email at firstname.lastname@example.org.