For Immediate Release:
The Year of the First Time Homebuyer!!
3 Reasons Why 2015 is the Year to Buy Your First House
After years of ever increasing home prices and stringent loan requirements, first-time homebuyers may now find some relief. New policies set down by Fannie Mae and Freddie Mac have boosted lender confidence and in turn earned builder confidence as production of new homes has skyrocketed in the last 8 months.
In an interview with Jason Walowitz, President of United Financial Counselors a consumer advocacy group and loan originator for 30 different lenders, he explains the 3 key reasons why 2015 is the year to buy.
1 – Lower Down Payments
Fannie Mae and Freddie Mac recently announced that they will begin offering mortgages that require only a 3% down payment, making it easier for first-time and low-income homebuyers to secure a loan. However, certain requirements must be met to qualify for a 3% down. As with FHA insured loans, buyers must purchase private mortgage insurance, maintain a credit score of at least 620, and provide proof of income.
2 – Lender Confidence
In the past, vagaries in the policies set by Fannie Mae and Freddie Mac made it hard for lenders to understand exactly when they would be required to repurchase defaulted loans. The U.S. subprime mortgage crisis was a nationwide banking emergency that coincided with the U.S. recession of December 2007 – June 2009, led to many major lenders to buy back loans that had defaulted or pay billions in civil penalties for packaging loans for borrowers that did not show they had the means to maintain the payments. By clarifying guidelines to buy back defaulted loans, Fannie Mae and Freddie Mac have provided some insurance for lenders. Now, Fannie and Freddie will back a wider range of loans should they default. With this boost in confidence, lenders are more likely to underwrite loans to first-time and low-income homebuyers.
3 – More Inventory, Cheaper Prices
According to CNN Money, homebuilders are increasing production to meet the demand for smaller, cheaper homes. With streamlined construction techniques, homes are being built and sold for low prices. The influx of new construction will drive down the cost of existing homes, providing more selection for all homebuyers to enter into the market of choice.
These new standards and a strengthening job-market create a particularly favorable environment for millennials who were previously shut out from home ownership. With interest rates at historical lows and rent prices at unprecedented highs, owning a home has never looked so wise.
Jason Walowitz, license #991649, of United Financial Counselors, specializes in brokering loans for first-time homebuyers. Jason will help you navigate these new guidelines and government programs aimed at providing down payment assistance and mortgage modification. Education is the key to understanding the wide variety of options available to first-time and low-income homebuyers. United Financial Counselors seeks to educate all homebuyers so that they can stop renting and start owning the home of their dreams.
For more information or to contact United Financial Counselors visit: www.UnitedCounselors.org
Offices Located in Broward & Miami-Dade Florida Counties and Bridgeport Connecticut.