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What
programs are hot in this market?
FHA Loans are fast becoming a popular
mortgage product considering the rates and terms
that are available to new and current homeowners.
First-Time buyers often find that a FHA approval is
easier to come by than your traditional Fannie Mae
or Freddie Mac approval when they are attempting to
borrow over 95% of the home's purchase price.
Lot Loans have been
very popular among our clients over the past 4-5
years. It is very easy for borrowers to obtain
financing for up to 90% of the lot's purchase price
and terms up to 30 years. Traditional banks
normally limit loans to value at 80-85% and 15 year
terms. Our investors offer terms up to 30
years which reduces the monthly obligation.
Home Equity Loans
are very popular right now due to the Prime Lending
rate being 5.250%. 90% of the home equity
loans out there are priced according to the Prime
Lending Rate. Rates are available from 4.75%
and the process for approval is simple and fast.
Equity loans can be fixed term or revolving accounts
with more flexible terms. These loans are
often used for debt consolidation, home improvements
and other personal goods. With rates as low as they
are right now, it is common for homeowners to tap
into their home's equity to take advantage of the
possible tax advantages over most consumer loans.
Fannie Mae and Freddie Mac
mortgages are still the most popular mortgage loans
in the marketplace today. They make up almost
80% of the nation's volume each year and will
continue to be the leading funding vehicle for home
purchase for years to come. There have been
numerous changes to lending guidelines over the past
year which has changed the amount one can borrow.
Credit scores are also playing a more important role
in the approval process. Mortgage insurance
companies have also been instrumental in these
credit score requirements due to losses incurred
over the past year.
Investment Property
loans are probably the area that has changed the
most over the past 12 months due to all of the
speculation on real estate and the meltdown that
came along with it. Delinquencies and
foreclosures have increased to record highs across
the country. The positive of this is that
Discount-Lenders and its network of mortgage
investors continues to have the most competitive
programs available in today's market. |