Back HomeGetting a Mortgage is Getting Easier
February 17th, 2015 by keithandkinsey
For several years through the real estate market downturn lenders were tightening up and putting more restrictions on mortgages. Recently things have changed and lenders have started to loosen mortgage qualification requirements. Four things currently making mortgages more affordable are:
- In December Fannie Mae and Freddie Mac announced that they would be offering a mortgage option with as little as a 3% down payment. This is reduced from their previous 5% down payment requirement.
- FHA, which offers a 3.5% down payment program, will reduce their mortgage insurance premiums from 1.35% to 0.85%
- Lending institutions are reducing overlays, which are added restrictions that often add requirements above and beyond the minimum standards for a loan program.
- Interest rates are near record lows hovering around 3.89% for a 30 year fixed rate mortgage. Although, rates are expected to increase throughout the year if we continue to see economic improvement.
There are of course minimum qualifications for each program and rate, and you’ll want to speak to a loan officer if you are considering your qualifications. However, this combination of things is going to make a great year for the first time home buyer, and will likely put more upward pressure on home prices.
