Interest rates are low and prices in Baton Rouge area have not increased over las year or two and in some cases have decreased. That along with the $8,000 tax credit for first time homebuyers is a winning combination for a new home buyer. On the other hand loan guidelines have really tightened up so someone who may had had some credit issues really has to be serious when we try to counsel them and get them back on track. With FHA now a 620 credit score is a must in most cases with down payment min being 3% down. RD is still a great solution in our area allowing 0 down payment and no monthly mi. There are income guidelines and area guidelines but if the person meets those, this is my favorite way to go. Now with GUS an automated underwriting system, things just got easier.Conventional loans are not as popular these days because of hits to pricing such as under 720 credit score, I have been through many cycles in the real estate industry during my 30 years and this time period reminds me of about 20 years ago before loans became so plentiful to any one breathing. There are no more loans(that I know of anyway) that will allow 100% fiancing other than RD and VA. While, this hurts our profession with sales, in the long run the loans that are being made are to low risk customers unless an unforeseen event such as losing ones job takes place. For any questions that you may have please feel free to call me at Nationwide Home Lending 248-4000 or cell 225-939-3409
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