A big part of the Real Estate Market depends on lending rates and lending terms. Accessible Lending helps continue an active Real Estate market.
Interest rates on a 30 year fixed loans are around 4% with little money down, seems reasonable. Some of the requirements for these low interest rate loans have been an obstacle for some borrowers. We have seen buyers who just retired from a job with 30 years of service been denied a loan because the lender wants to see the 1st retirement check before approving the loan. It is not uncommon for a Government worker to have 3 to 6 months of sick and vacation time that must be used before they receive there 1st retirement check. Some of the lending rules that are in place to help protect the integrity of the lending industry have been counter productive.
I am starting to get solicitations for No Doc, Stated loans. The loan programs require 20% to 30% down but a credit score as low as 650 with NO personal income verification. These are private portfolio loans with a higher interest rate around 8.5%.
While 8.5% might seem a little high, the Stated loan program has to start someplace. These No Doc, Stated loan programs for real estate might be trying to make the're way back into the real estate market. I am sure some people have strong opinions about the Stated loan programs and Stated loans are not for everyone.
We will have to see how the real estate lending market begins to evolve with better lending terms, rates and accessible loan programs.
http://www.843realtor.com/Carolina-Forest-Real-Estate.html
http://www.843realtor.com/Market-Commons-Homes-For-Sale.html
http://www.843realtor.com/Prince-Creek-Murrells-Inlet-Real-Estate.html
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