By ERIN FLYNN JAY
If you are looking for a home and don’t have 20% to put down, you are not alone.
According to the National Association of Realtors, the typical down payment for first-time buyers is 8%. For repeat buyers, it’s 19%.
And for 38% of first-time buyers, saving for a down payment was the most difficult step in the process.
Sean Moss, EVP of product and operations at Down Payment Resource, says there is no one right answer to the question of how much money to put down when purchasing a home. It’s dependent on the buyer’s financial situation, as well as the loan type they plan to use.
“It’s a common misconception that 20% down is the…
The Federal Housing Administration introduced a new offering to help struggling homeowners avoid foreclosure.
The offering, called the Payment Supplement, is a loss mitigation home retention option available to borrowers with FHA-insured single-family mortgages.
Payment Supplement gives mortgage servicers a tool to reduce the borrower’s monthly payment by up to 25% without modifying the rate by using funds from a Partial Claim, enabling the borrower to access up to 30% of the outstanding balance of their mortgage.
The claim amount is placed in a junior lien and paid back when the homeowner sells or refinances, or when the mortgage otherwise terminates.
“HUD uses every tool in our toolkit to ensure we can help struggling borrowers avoid foreclosure,” said HUD Secretary…
FHA borrowers with loanDepot can now put zero down upfront with its new “accessZERO” program.
The program offers up to 5% of a home’s purchase price in down payment assistance structured as a 10-year fully amortized repayable second mortgage. It is geared towards buyers who are struggling with saving for a down payment as home prices soar.
Down payments by percentage have fallen in 2023 after inflating during the pandemic buying boom when buyers used them to outbid their competition. This is partly because FHA and VA loans, which allow borrowers to pay less upfront, have gained traction as homebuying gets more expensive.
As inflation runs rampant and home prices remain high, many Americans have struggled to save for a…
In a move geared toward improving and streamlining credit access to qualified borrowers, the FHA is getting rid of the Mortgage Credit Reject screen.
Up until now, the FHA required lenders to flag information about denied applications due to a provision in its Single Family Housing Policy Handbook. That information was flagged for a six-month period, to be reviewed by one of the agency’s Homeownership Centers when applicants tried for an FHA-insured loan from other lenders.
Borrowers may have been denied a loan again because of this initial rejection, even if they qualified otherwise. FHA officials have concluded that the process “does not improve risk management and is often why other lenders will reject an applicant even when that applicant…
Mortgage applications went up last week, benefitting from VA and FHA activity.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – increased by 0.9%, improving slightly after the week prior’s 4.4% decline. This week’s data includes an adjustment for the July 4th holiday.
Adjusted purchase applications rose by 2%, though the unadjusted index was down 19% from the week before and 26% lower YOY.
The bump in purchase activity is attributed to an increase in FHA and VA loan activity.
Both loan types offer major perks like low down payments and minimum closing costs to those who qualify, making them more attractive than conventional loans in the current…
Both purchase applications and refis saw increases as rates fell for a fifth consecutive week.
The Mortgage Bankers Association’s weekly survey shows the adjusted Market Composite Index – a measure of mortgage loan application volume – rose by 7.4%.
Adjusted purchase applications increased by 3%, while the unadjusted index was up 4% from the week before and was 37% lower YOY.
Refinances saw a big upswing, rising 18% from the week prior. But they remain 75% lower than the same time last year, comprising only 33.9% of total applications.
In the past decade, refis averaged 58% of total activity.
“Both purchase and refinance applications increased last week and have shown gains in three of the past four weeks because of…
Carrington Mortgage Services, a private non-bank lender, is adding assumable mortgages to its list of services.
Assumable mortgages allow buyers to assume responsibility for a seller’s loan terms. This includes the current balance, interest rate, remaining term, and any other terms of the mortgage.
“Carrington is committed to ensuring borrowers have every possible opportunity to obtain a loan on the home they want,” said Greg Austin, EVP, Mortgage Lending for CMS.
“Assumable mortgages are another loan option that Carrington is educating home sellers and buyers about in this very complex real estate market.”
Buyers who have the opportunity to assume a mortgage with a low interest rate could see significant savings over the life of the loan.
Carrington is alerting…
