As everyone knows the market has been moving at an unprecedented pace. The big news of the week is the Bush administration has announced to use 250 billion of the 750 billion bailout bill recently passed by Congress. The money will be used to purchase stock in 9 of America's largest financial institutions. This has added much needed confidence. The market rallied Oct 13th with gains of 936 point on the Dow moving up 11%. Is this the end? There are still some major hurdles to overcome but things have finally begun to turn in the right direction.
How does this affect the rates and mortgages? This plan should stabilize the banks with relief from the bad mortgages and free up money to lend on new mortgages. Although it seems harder to obtain a mortgage these days, it is still a great time to buy. Rates are still below the yearly moving average. Prices are low. Down payments are still minimal. FHA and VA mortgages have yet to get hit with any major changes.
The United Stated Department of Ag (USDA) has introduced a loan product that still offers 100% financing with all closing cost rolled into the loan. This loan mirrors the FHA with down payment assistance. Although it is focused on Rural areas it works in more areas than it leads onto. This product is a great alternative to getting into a home with no money down. There are no fico requirements and loan size restrictions with the USDA loan. Every borrower is reviewed on a case by case basis.
Bottom line...before you postpone your next move based on news that the media is delivering, check with us to see how we may help you clear some of the current hurdles!
Information provided courtesy of Tony Ferrari with PrimeLending, A PlainsCapital Company. For more information contact Tony at 972-728-0131 or Linnea Lavell with RE/MAX First Realty at 214-280-5900.
Comments(0)