If you’re on the market for a home, than there is some very good news that you should be aware of. The newly released MBA (Mortgage Bankers Association) index indicates that getting a home loan is becoming easier for potential buyers. Industry professionals know that after the housing crisis lenders tightened loan requirements to the point that it became quite difficult for many to be approved for a home mortgage loan but that appears to be changing.
Much of the change is due to less stringent government regulations. As an example, Fannie Mae is now accepting conventional loan applications with as little as a 3% down payment and Freddie Mac will be doing the same for mortgage applications closed on or before March 23. In addition, the FHA (Federal Housing Authority) has reduced its upfront mortgage insurance premiums making buying a home more affordable for thousands of would be home buyers that may not have qualified before.
These changes are not only limited to governmental agencies however; even private lenders such as Wells Fargo (the largest mortgage originator in the country) are slackening their requirements for home buyers. Changes in these requirements as well as lower interest rates are all part of the effort to make housing more affordable for buyers and to fuel the continued growth of the real estate market. These changes will be of tremendous help to buyers that may not have enough cash for a large down payment or considerably high credit scores but will still benefit buyers in a better financial situation.
The housing market has been slowly improving for some time now but with more lenient government regulations and private lenders competing more than ever for new business, buying a home is becoming possible for more people than ever before. If you are considering finally making your dream of homeownership a reality, now is the time to make a move!