01/06/2024
Future homeowners! 🏡
I'm on a mission to understand the unique challenges you’re all currently facing in the market.
What's currently holding you back from home ownership?
I’ve always lived by the notion that the best time to buy a home is when you can afford it. Not just looking at what interest rates or house prices are doing. A lot of people rush in who aren’t ready due to pressure from peers and social media. Most agents don’t talk about this and I get it everyone wants the sell. But I am here to provide real value to buyers and sellers and want to make sure my clients are well taken care of and individually understood. But that also doesn’t mean that interest rates and the housing prices aren’t important!
Let's break down some barriers: Did you know that over since 1971 the average interest rate has been just under 8%. So right now that means that interest rates are still below average historically. As of today, the current interest rates in Tennessee are 7.18% for a 30-year fixed mortgage and 6.53% for a 15-year fixed mortgage. And the majority of analysts expect rates to continue downward over the year. Especially being an election year. This could mean significant savings for you over the life of your mortgage. Also if you’re having a hard time finding the right home don’t rule out building! In 2023 new builds were roughly 30% of single family purchases. New builds are offering fresh, and modern options.
Now, when it comes to financing, gonna throw a lot at you here. It’s not just about conventional, and FHA loans. While those are great options for some people, for others it doesn’t cover their needs.
Here’s some other options not talked about much.
1. **USDA Loans:** Ideal for rural homebuyers, USDA loans offer zero down payment options, low-interest rates, and government-backed financing.
2. **Jumbo Loans:** If you're looking at higher-priced homes, jumbo loans provide financing beyond the limits of conventional loans.
3. **Assumable Mortgages:** In certain cases, you might be able to take over the seller's existing mortgage, potentially with more favorable terms than current market rates.
4. **Native American Direct Loan (NADL):** Specifically for eligible Native American veterans, NADL offers competitive interest rates and does not require a down payment.
5. **HomeReady and Home Possible Loans:** These programs are designed to assist low to moderate-income borrowers with down payment assistance and flexible eligibility criteria.
6. **Interest-Only Mortgages:** While not suitable for everyone, interest-only mortgages allow you to pay only the interest for a specified period before starting principal payments.
And for those interested in new builds there are other options! Which is needed considering the rising cost of materials.
1. **Construction-to-Permanent Loan:** This combines financing for the construction of a new home and a traditional mortgage into one loan, streamlining the process.
2. **Renovation Loans:** If you're eyeing a fixer-upper among new builds, renovation loans, like the FHA 203(k) or Fannie Mae Homestyle, can fund both the purchase and the renovation costs in one mortgage.
3. **Energy-Efficient Mortgage (EEM):** This loan allows you to finance energy-efficient upgrades for your new home. It could be beneficial for those looking to build or buy a home with sustainable features.
4. **Portfolio Loans:** Offered by smaller banks or credit unions, these loans are not sold on the secondary market, allowing for more flexibility in terms and eligibility criteria.
5. **Home Equity Sharing Programs:** Some companies offer programs where investors provide a portion of the down payment in exchange for a share of the home's appreciation.
Before committing to any loan, it's crucial to thoroughly understand the terms, potential risks, and benefits. Consulting with a mortgage professional can help you choose the financing option and I can connect with one if you don’t have one already!
I’m here to help all my friends and family on your home buying and selling journey. I'll always guide you with facts and tailored solutions. Let me help you make the process a breeze and contact me! My DM is always open and my phone number is 423-292-6798 (Text before calling) 🌟🏠
