2015 Is The Year Where You Can!

   If you have banished the thought of purchasing a home because of your not so perfect credit, or deflated savings, think again!  Get started this year in checking out your options in home buying, because they’re expanding.
     Mortgage options are burgeoning these days, helping many people who thought purchasing a home wasn’t a reality into a tangible dream come true.  Currently borrowers have the option of putting down as little 3.5%, with talk of lowering that requirement even further to 3% up front.  Lots of people have good, steady incomes, but don’t have the financial swagger of saving the whopping 20% cost of a home.  This mortgage option makes purchasing a home available to those want-to-be home owners who are sick of paying rent and want to invest in their future.  For this low down payment option, there is a required mortgage insurance premium and in 2015, even THAT has lowered significantly saving home buyers hundreds of dollars a year.  The average premium has dropped by .4% or 40 bps.
     A big reason why some of these lenders are feeling more at ease in helping buyers get the money they need to purchase their home, is because new policies enforced by FHFA.  They've made it easier to understand when Fannie Mae or Freddie Mac would require lenders to buy back a loan that has defaulted.  Knowing when and why defaulted loans would be required to be repurchased by the financial establishment helps them make better bets on their clients.  This buy back issue has been a primary problem in people not getting the loans they need.
     These new low down-payment loans help low-income purchasers and first-time purchasers into the housing market that have previously been absent.  So re-think your financial plan in the upcoming future and take advantage of these prime conditions and new flexible options in buying your next home.