I'm sure you've heard before but there really hasn't ever been a better time to buy. The low interest rates and the high inventory of homes on the market make it a true buyer's market. I've heard some rumblings out there from my real estate partners, and clients calling in with questions, that there is concern that money isn't available to loan for home loans. This sentiment couldn't be further from the truth. At United Lending LLC our business is continuing to grow on a monthly basis with this month turning into one of my personal best months. And, no, your credit doesn't have to be perfect nor do you have to have a down payment that is higher than your yearly salary to get into a home. I've listed a few points to help illustrate why it really is a great time to buy and why it is possible for the majority of potential borrowers.
8 Reasons that Money is Still Available to Use for Home Purchases
1. Since March of this year new home loans have been of much greater quality, meaning more stable loans held in lenders portfolios
2. Auctions of 2 year, 5 year and 10 year notes have gone very well (given the economy)
3. The stock market has taken a great hit which means that many investors pour their money into bonds and mortgage-backed securities which are perceived as a much safer investment. More money in bonds means more money needs to flow out into the general market to be lent to potential home buyers. (that yeilds an investors return)
4. The $700 billion bailout bill will take many bad loans off the books of many financial institutions/banks which will free up more money to be lent out to home buyers
5. Economists know that the nation must do everything it can to improve the national housing market because historically the economy in general will not improve until the housing marker improves first
6. FHA and VA lending limits are increasing
7. More loan products for a wider variety of price ranges for borrowers who can prove their incomes are available. This includes 103% loans for first time home buyers as well as programs for investors looking to expand their porfolios to seasoned home owners simply looking to downsize or upgrade to the home of their dreams.
7. The $7500 tax credit is still available for first time home buyers through July 2009
8. Veterans using the TX Vet program can possibly qualify for a loan with a rate as low as 4.75%
In summary, the money that is being pumped into our economy needs to be given out in the form of home loans, auto loans, business loans and Credit card purchases to make sense for investors and financial institutions which means that they are trying to make the funds as appealing as possible to borrowers which results in greater interest rates and programs for you than we have seen in a very very long time.
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