December 30, 2008
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Great time for Home Loans, Refinancing
By Rosie Rourke
I hear it almost weekly from clients — “I thought you could not get a loan right now unless you had 20% down.”
Wrong! FHA is one of our most widely used loans right now, and they offer as little as 3.5% down (starting in 2009-was 3% in past) and even more enticing interest rate reduction programs for the first three years.
Conventional financing offers as low as 5% down programs. Veterans can use the 0% down loan program from VA. Yes, you need to have good credit and money to put down (unless VA). It was the years past of no-money-down loan programs and questionable credit that got us partly into this downturn housing market and influx of foreclosures.
Now is the best time to purchase a property. Interest rates are at an all-time low—interest rates as low as in the 4’s in the last couple of weeks! Refinancing is a terrific option as well if your interest rates are higher than 6%.
Sellers are prepared to negotiate, and in most cases, are willing to pay a buyer’s closing costs to purchase a home. Why rent when purchase prices of homes are so low and payments even lower with reduced interest rates?
The government is jump-starting the housing economy with bail-out money, reduced interest rates, and more available loan programs. These are the times to take advantage of awesome deals and amazing interest rates. What a perfect time to buy an investment property or even that vacation home.
Thinking about property values? Ponder statistics evaluating Fairwood Greens/Candlewood Ridge/Kensington/The Ridge neighborhoods gathered from the Multiple Listing System in the table to the right.
As you can see, we had a tremendous housing boom in 2006. Properties were selling for more than asking price in a heated market that drove Fairwood average home prices up from $353,000 to $390,000. Pricing went up a bit in 2007 and then corrected back down a touch toward the end of 2007 and 2008.
Rosie Rourke is a Fairwood-area Realtor.
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