The availability of mortgage credit is not at the same level that it was during the boom in housing (2005), and that’s good news.However, the constant headlines which talk about“tight credit”are causing some potential home buyers to doubt their ability to purchase. We want to rectify the misconception of what is required for a down payment in order to purchase a home in today’s market.
Freddie Macrecently discussedthe confusion many first-time homebuyers have about the down payment they need in order to buy:
“Did you know that the average down payment among first–time homebuyers is 6% and it's 13–14% for repeat buyers…It's possible to put down even less.
Many potential homebuyers think that only the FHA helps make mortgage loans with low down payments. Not true.
Freddie Mac's Home Possible mortgage products let qualified homebuyers put down as little as 3%.”
Brenda Garcia Lemus ofJohn Burns Real Estate Consultingreportsthat this is also the case with newly constructed homes:
“Our home-builder clients sell hundreds of homes every weekend to buyers with 5% down payments and below average credit scores. Yet, many middle-income households with average credit and access to a 5% down payment assume they cannot become homeowners because of the ‘tight credit’ headlines.”
Before you ‘disqualify’ yourself, let's get together to find out if you qualify to buy today.
Author:Ron Harmon | Designated Broker Phone: 206-250-9100 Dated: November 9th 2016 Views: 73 About Ron: As a dedicated real estate broker I have helped over 500 families purchase or sell their home and I ...
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Welcome to HBM2 Real Estate! Whether you are relocating into or out of the Puget Sound area, or are already enjoying life in the Pacific Northwest, we are here to help you with all of your real estate needs. As professional real estate brokers, buyers and sellers benefit from our use of cutting edge technology, attention to detail, knowledge and experience. We are known for our customer service and truly listening to the unique needs of each client. Then we expertly guide our clients through their entire real estate transaction. Our priority at HBM2 is to make sure that your purchase or sale is efficient, pleasant and smooth. We are here to make good things happen for other people. From previewing listings to save you time and target your search, to helping sellers price and market their properties effectively, to negotiating the best contract terms, we look forward to exceeding your expectations!
Some Highlights: Interest rates are still below historic numbers. 88
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