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!
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