Don't get discouraged by changes in the "market" - be it financing or home sales. Change isn't a bad thing, it just means that we have to buckle down, work harder for the buyer and expand thinking to get things done. I guess the key is to get educated NOT discouraged! Spread the word - interest rates are down, incentives are up and loan options are available for almost everyone!
In 2006 many new home buyers sought out 100% financing and 1% down payment loan programs. As we reach the end of 2007 many loan programs have changed and rumor has it that 100% loan programs are a thing of the past. Many people believe that we are going back to the basics and buyers will need 20% down to secure a loan for a new home. This isn't always the case. In fact, putting 20% down on a home is the exception to the rule NOT the norm. Personally speaking, the majority of my home buyers are not putting down 20% and are able to secure a loan and close on a home.
I am not a loan officer, but I am a Certified Financial Specialist. Home Buying prospects of all credit levels may be able to secure a 1% down, FHA loan if they act fast, qualify, provide all the required docs and close by 02/2008! FHA has price limitations, so this is ideal for a first or second time buyer! FHA loans are a great option for Buyers with a low credit score and a viable option for people with less than 5% to invest in a home!
Currently, I am selling for Ryland Homes at Westland Farm in Mt Holly, NC . This area of Gaston County is right off the new portion of I 485. Ryland Homes welcomes all Buyers to this community. We made certain that a few of our homes fell in to FHA pricing guidelines - opening doors for people who have 5% or less to invest in a new home. Buyers who need to use FHA financing will have nice, spacious and affordable homes from which to chose. On the other end of the spectrum, we have estate level homes that may require a little more of an initial investment. I think we have something for everyone.
Helping people secure a loan to buy (a Ryland Home in Charlotte) is what I do! With the aid of Ryland Mortgage Company, I am kept current on loan options and together we have worked on creative solutions to qualify our Buyers. I have been able to help Buyers Agents get their Clients qualified for more than they expected (or could qualify for by other lenders) and I have revealed ways to get 100% financing that Agents, Customers, Clients and Prospects may have overlooked. I can think of a few ways to help someone secure 100% financing: Gifts, 401k, personal loans, etc. Every situation is different, so it (literally) may pay to speak to different Sellers and Lenders about available options.
Congress has granted us another gift with lower rates! I hope it encourages Prospects to put their fears aside and investigate why it might be the perfect time to buy a home!