The two most important factors in home financing options are the down payment and the mortgage rate. Current rates can not go any lower which is why your purchase power is at it’s peak NOW. Take a look at the history of the last 52 weeks of 30 year fixed rate mortgages verses the last 52 years. Rates right now are hovering around 4.5% up about 1% from six months ago. Over the last 52 years, rates have been as high as 7% only 5 years ago. Now is the best time to buy.
Take The First Step
The first step is to find a good fit for your home financing options and then search for property. In other words, “find the money and then find the home” otherwise, you’re just spinning your wheels. A pre-approval letter for a mortgage from a lender is required to make an offer on a home for sale. If paying cash, a letter from your savings institution stating your funds are liquid and ready to go will be needed.
No Money Down USDA
Have you heard you can’t buy a home without a down payment? It’s not true. The United States Department Of Agriculture guarantees loans and the program does not require a down payment. It is limited to less densely populated areas and most of New Hampshire qualifies for USDA funding.
3.5% Down Payments
The Federal Housing Administration guarantees loans with a minimum of 3.5% deposit for folks in certain income brackets with certain limits on purchase price and varies depending on the county in New Hampshire. Call for information on your county.
Sometimes buyers will find a less than perfect home where the sellers are unwilling or unable to make repairs or updates before selling the home. This is a common situation in distressed sales, estate sales, and foreclosures. Our Federal Housing Administration puts forth a program called the FHA 203k Rehab Loan whereby a buyer may get money added to the purchase price for repairs, updates, and additions . The minimum down payment remains 3.5% and is calculated on the purchase price plus the cost of updates, repairs, etc. The beauty of this program is being able to make repairs and updates at a fraction of the cost in out of pocket expense. For example, if $10,000 in repairs or updates is necessary, the out of pocket expense is only $350.
Choose A Recommended Lender
I highly recommend these top three lenders I work with because they have demonstrated to my clients and myself that the customer comes first. They will help you choose the right product for your budget and can even help with improving your credit score faster than if you tried to do it yourself. When you are ready to take advantage of this incredible market, be sure to let them know I referred you so we can all be on the same page.
Click here for => Amy Morrill of Regency Mortgage
Click here for => Sean Starkey of Northpoint Mortgage
Click here for => Jim Collins of Blue Water Mortgage
On the hunt or a new home? Click here to search => New Hampshire Homes For Sale
New Hampshire Government Assistance?
New Hampshire Housing Finance Authority is a self-supporting public benefit corporation. Although established by statute as a public instrument, the Authority is not a state agency and receives no operating funds from the state government. The Authority administers a broad range of programs designed to assist low- and moderate-income persons and families with obtaining decent, safe, and affordable housing.
Department of Veteran Affairs
VA loans are guaranteed by the government similar to FHA loans but only veterans are elligible. Qualifications and down payments could be lower than FHA requirements. If you are a veteran, it is worth asking your lender to go through the Dept. of VA for your loan.
Conventional mortgages are mortgages that do not involve any government assistance or guarantees. Most banks and credit unions will provide conventional loans which usually will require a larger down payment. These loans are geared to situations where buyers or the property do not qualify for the government assisted programs.
Owners may choose to finance the purchase of their property and can be an option for buyers who don’t want to use a bank and owners who are willing to take payments instead of a lump sum. Owners are still afforded the same safeties that regular lenders have with respect to non-payment of the mortgage. The terms of the financing should be in writing to make sure both parties to the contract know what their responsibilities and duties include. The terms can be anything the parties agree to in writing.
Lease Options or “Rent To Own”
Rent to own programs are as individual as the parties involved and like owner financing, the agreement needs to be in writing. Typically, the arrangement involves a non-refundable deposit which is credited towards the purchase price and a lease term usually less than two years. The tenant or buyer then occupies the house and performs all the duties of an owner such as paying the taxes, utilities, and maintaining the property just as if they already own it. During the lease term a small portion of the rent is credited toward the purchase. This is a great way for folks whose credit scores are a little shy of being able to qualify for a mortgage. The lease term gives them time to work on fixing their credit scores so at the end of the term, they can qualify for a mortgage and close the deal.
Imagine, a senior living in a new home with no monthly payments. If you are 62 years young or more, you may be eligible for a reverse mortgage.
Seniors Purchase Homes No Monthly Payments
Seniors can purchase a first home, a new home, or a second home with a reverse mortgage. Seniors can get into a new home without ever making a monthly payment.
Seniors’ primary care giver is the equity in the home they own or the one they will own. Seniors can get money for living expenses or down payments on new homes with the equity in their current home. If they have a sizable down payment, they can get into a new home and have no monthly payments.