Post housing crisis, mortgage underwriting is thorough, overbearing and at times non-nonsensical. Some say it borders on harassment. Gone are the days of “liar loans” and no doc loans and good riddance. However, while underwriters continue to scour every inch of your financial past, lenders are again offering 100% financing and other programs where a […]
Recently I had a home under contract and the buyers were all set to use a 30 year fixed rate FHA loan until I suggested they look at an adjustable rate FHA mortgage. So which is better – fixed or adjustable? Of course, the answer depends on your personal situation. Before we get into comparing […]
You have decided it is time to buy a home of your own. You are confident that your personal situation is such that you are able to keep the home for at least 5 years so the next question is affordability. That is a complicated question particularly in today’s tighter lending environment. Let me give […]
I believe that everyone should own a home of their own and that everyone can own a home of their own with proper planning. The question is when. Is it this year or some point down the road? This post will help answer that question.
One decision factor that does not come into play is the condition of the current market. Really, it doesn’t matter. When your personal situation lines up in favor of buying, it is time to make the move. Homes are not stocks – short term investments that may be traded weeks or months after a purchase. The hold time for a home needs to be years. During that time the market may go up and the market may go down. It is confidence in the long term market one needs to consider, not a guess as to what will happen in the next year or two. So the first question one needs to answer is…..
A few years back, there were several 100% or no money down financing programs available. Many were quite dangerous, had adjustable rates or negative amortization and were a major contributor to the housing crisis. The 3 programs I will examine in this article are all 30 year fixed rate programs and much safer. One is from a local bank, one from the Virginia Housing Development Authority (VHDA) and one is from a credit union.