Not only are prices at low levels we could not even imagine two years ago, but this month I want to focus on a critical part of the homebuying process in any market: financing. We have been hearing that rates are at historic levels, but did you know what those levels are? How about 4.5% on a 30-year fixed loan for buyers with 20% down and good credit? Yes, that’s 4 ½%!!! Adjustable rate mortgages at 3 5/8%? 15-year loans at 3 7/8%? Yep!
There are two special loan products that I do want to mention briefly. One is the Neighborhood Stabilization Program. This is a federal fund of $2.3 million available to assist homebuyers purchase bank owned (yes, only bank owned) homes. NSP provides a 0% second mortgage for up to 20% of the purchase price to qualifying borrowers in Deschutes, Crook and Jefferson counties.
The second program is HomePath. This is for FannieMae and FreddieMac owned homes only, meaning they are bank owned, and the bank is Fannie or Freddie, quasi-governmental entities. In this program, you put down as little as 3% for owner occupied or 10% for investors, there is no mortgage insurance (MI adds to your monthly payment), no appraisal is required and the seller can contribute to your closing costs. The rates are slightly higher, but if you have less money for a downpayment, this could be the perfect program for you. And Fannie and Freddie homes are great deals.
Please call me or email me if you want to find one of these great houses and/or want more information about either one of these loans. I have excellent mortgage brokers on my team who can quickly and completely prequalify you for that perfect loan. Yes, banks are indeed lending!