Freddie Mac and Fannie Mae are now again offering 3% down Mortgage Loans.
This is possibly a good sign that our housing market is stabilizing and home owners are once again starting to see some appreciation on their investment.
The 3 percent was offered in the past, but when it became too risky for Freddie Mac and Fannie Mae to back these loans, they were no longer available and you needed a min. of 5 percent to get a Conventional loan.
I will add at this time that it is always better to be able to put down as much as possible because on the whole, the more you put down, the better your interest rate will be.
With most first time home buyers and their inability to save for a large down payment, the lower the required down will allow more young, first time home buyers, to be able to become home owners.
Yes they have always had the option...
The once small town of Burleson Texas, now is ranking forth out of 100 Cities and Towns surveyed throughout Texas, it was chosen as one of the Best Places for Young Families to live and raise a family. The cities and Towns chosen had populations of over 25,000 residents. The criteria for the honor include public school excellence, home affordability and growth and prosperity. " Lower home values and housing costs in Burleson make this the most affordable city in the Top 10". It is hard to find a home in Burleson lasting on the market for more then a week. If it is priced right, it is gone.
All over the DFW area buyers are encountering this problem and are ending up in multiple offer situations. If you are a serious buyer in todays market be ready to buy when you start looking and be ready to offer asking price or better if you want the home. It is a Sellers Market and will continue to be for sometime to come.
As Your Trusted Realtor...
I get asked this question more than any others:
"Is it the right time to buy or sell a home?"
The answer is YES. Prices and interest rates are at an all time low. These two factors are going to change in the near future. Today, we got indication from the FED that interest rates will go up when unemployment get below 6.5%. The economy is in recovery and unemployment is going down. It is just a matter of time before interest rates begin to climb. This means that buying a home will be more expensive. As a home seller, this means that a buyer will need to have more reserves or have a higher salary to afford your home. As a home buyer, this means that the you will be able to afford a less expensive home in the future as opposed to now.
I also see a serious change in regards to inventory. By inventory, I mean homes on the market for sale to the retail buyer. Well priced homes in desirable areas are spending less time on the market and the best homes are getting multiple offers...