Hello Everyone,
Even though the Federal Reserve cut rates the other day by .75 bps, not everyone is able to take advantage of that. It would benefit basically anyone who has a rate of 7.5% (fixed or adjustable) to go down to a rate of 5.75%. I'm specifically talking about programs that offer those rates with Stated Income guidelines. But a lot of people have had trouble getting appraisal values high enough to be able to refinance, whether it's to take out cash or just change the rate & term.
However, it is an amazing time to buy houses right now! Whether you are an investor or a first time home buyer, or someone looking to upgrade to a bigger house. Selling prices have been coming down to a more comfortable level, and the rates are phenomenal. Again, rates under 6% fixed for 30 years. A typical buyer, for example, with a 630 FICO score can get up to 100% financing at 5.875%. That is not having to show your W2's or paystubs either. The loan amount must be conforming, under $417,000, and have 2 months of mortgage payments in the bank. That's pretty much the only catch.
For those of you with better credit or want to put a bigger down payment or want to provide proof of income, that rates get even better than that! FHA loans are becoming popular again and are another great option for someone who has 3% down. Those who do decide to buy now are going to get good prices for homes and at good rates. Programs like the ones I mentioned above though, will not be around for too long. If you or anyone you know has trouble proving how much income is really earned, you will miss your chance to buy if you wait too long. The rates may keep going down or stay where they are for a while, but the programs will be different in the near future.
We are going back to the times where you will need 10% - 20% down to buy a house, or get FHA loans. Hopefully FHA loans will become more flexible so that more people can fit into their guidelines easier. The overall message here is that there still are programs out there than can help people find a home with as little down as possible and locking in a nice fixed rate. I hope this was helpful to anyone and feel free to contact me with any questions.
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