Home shoppers are finding there’s good reason to breathe a sigh of relief this summer, according to a recent article. Higher inventories, fewer bidding wars and slowing home prices as welcoming signs for buyers this year. So are low borrowing costs.
Applicants Need to Hurry, Though – Program Ends May 30th
Do you know a disabled military veteran looking to buy a home in this area? The state of Maryland last week announced the creation of a new – and temporary – initiative designed to help such buyers purchase a home using bargain interest rates.
Even better, the new mortgage assistance program can be used in conjunction with other state programs that offer down payment and closing cost assistance to veterans.
Interest rates for the Maryland Homefront Disabled Veterans Mortgage Program are as low as 3 percent. Up to $5,000 in down payment and closing cost assistance also is available to qualified applicants.
Interested homebuyers have to hurry, though. According to information distributed by the Maryland Department of Housing and Community Development, the program is set to expire in two months – May 30, 2014.
The program is open to honorably discharged disabled veterans. By program definition, a disabled veteran is a veteran with a 30 percent or greater disability.
Eligible veterans also must qualify for a Maryland Mortgage Program loan, based on such criteria as credit score, income limitations, etc. Before buying their home, eligible veterans must take approved homebuyer education courses and use an approved mortgage lender.
Loans under the program typically are limited to first-time homebuyers. However, this requirement can be waived under certain circumstances.
Qualification for a Veterans Administration loan is not required.
Under the program, the property purchased must be located in the state of Maryland.
Jerry Kline is a Realtor with the Odenton, Md., office of Keller Williams Flagship Realty (1216 Annapolis Rd., Odenton.) For more information on the local real estate market, contact him at (443) 924-7418, or visit his blog (www.JerryKlineRealtor.wordpress.com) or website (www.JerryKline.kwrealty.com).
According to new figures published by the National Association of Realtors, first-time homebuyers accounted for 26 percent of purchases in January, down from 30 percent a year earlier. It’s the lowest market share for first-time buyers that NAR has recorded since it began measuring it in 2008.
Ironically, this national trend is the complete opposite of my own experience — six of my last seven buyer-clients were first-time homebuyers.
Wondering whether you qualify to purchase a new home? A government agency reports that the average credit score on FHA-backed loans fell to 680 in 2013, and the average debt-to-income ratio of borrowers rose to 40.3 percent — both indicators that credit requirements may be easing.
In comparison, the agency reported in January 2013 that the average credit score was 701 and the debt-to-income ratio was 38 percent.
If you’d like more information on whether you qualify for an FHA or other type of mortgage to buy a home, contact me today ((443) 924-7418). I’ll be happy to put you in touch with an excellent group of mortgage professionals.
While mortgage rates are still at historical lows, 30-year fixed-rate mortgages have risen nearly a full percentage point since May. As interest rates have risen, demand for new homes has fallen.
While mortgage application fraud has dropped 5.6 percent year-over-year, the industry is seeing a rise in income-based fraud, according to CoreLogic findings.
“These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated,” says Frank Nothaft, Freddie Mac’s chief economist.