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Monday, September 16, 2013

5 Ways Getting A Loan And Buying A House is Becoming Easier

5 Ways Getting A Loan And Buying A House is Becoming Easier


1. Some lenders are easing payment and credit score requirements.
Now you can easily buy a house with 5%, 3.5% and 3% down, so having a very modest sown payment and lower than stellar credit score won't hold you back.

2. Piggyback loans are coming back. That's right, those loans with two mortgages at the same time. We also call hem the 80/20 loans so a borrower could avoid paying the private mortgage insurance. These piggyback loans can help you avoid higher interest rates on jumbo mortgages.

3. Stated income loans are back.  These don't require tax returns to prove income, although they are a bit tougher than before. These loans are so important to the self-employed and small business owners.

4. Interest-only loans are coming back as well. They are in limited supply, but they are making a comeback.

5. Rising rates and a stabilized market. Rising rates may create more competition between the lenders. And the market sees price increases in many areas, and some others where prices have stabilized and lesser competition as inventory is also stable. A great scenario... for now. it won't stay this way, so now is the time to buy.

Are you ready? Feel free to call me.

Richard Bazinet - Realty ONE Group - Phoenix Scottsdale Real Estate

5 Ways Getting A Loan And Buying A House is Becoming Easier