Posts Tagged ‘More’
Trend of Boomerang Home Buyers Using FHA Loans Continues to Rise as More Potential Borrowers Become FHA-Eligible
Las Vegas, NV (PRWEB) May 13, 2013
Best Rate Home Loans, a national professional network of approved mortgage lenders and loan providers who specialize in FHA loans and other low down payment options, reports that FHA borrowers who were forced into short sales and foreclosures on homes during the worst of the recession are now coming back strong into the housing market, with FHA loans providing them the opportunity to pay much less on down payments, and more importantly, start making payments on new homes in four years less than most conventional lenders would allow.
CBS News recently reported that about 2.2 million homes were sold nationwide through short sale since the recession began in September of 2008. On top of this number are the 5 million foreclosures that the nation saw during the recession. While short sales and foreclosures can often take a negative toll on a borrowers credit, a national trend has developed in recent months, as the housing market has come booming back, in which borrowers who previously had to give up a home due to a short sale or foreclosure are re-emerging once again as homeowners. And much of this has to do with the increasing number of FHA-eligible borrowers.
CLICK HERE to check FHA loan eligibility.
The reason for this trend, and the rising amount of FHA loan-eligible borrowers that has gone up from less than 300,000 in 2011 to over 800,000 today, boils down to two things: time and economic recovery. When new homeowners were being laid off from their jobs in 2008 and 2009, many held out hope that they could still make costly monthly mortgage payments for an additional year or two longer than they were actually earning any income. So it wasnt until around 2010 and 2011 that many of the 5 million homes that went into foreclosure during the recession were lost to these homeowners.
Where boomerang buying and FHA purchasing come into the equation is in the amount of time since many of these homes were foreclosed upon: three years. Thats the minimum duration that the FHA has allotted for responsible borrowers to become eligible again for an FHA loan. And as past mortgagees who have been renting for the last three years and saving up moneymaybe after finding that job they were searching for as the economy begins to reboundbegin to see the housing market gain momentum, many of them are using the historically low FHA mortgage rates, as well as down payment rates as low as 3.5 percent, to give homeownership a second shot.
Another large reason why FHA loans are becoming increasingly popular for boomerang buyers is because conventional lenders often will not lend to borrowers for a minimum of seven years after a short sale or foreclosure. And for the conventional lenders who are offering loans in a shorter period of time, they often ask for a down payment of as much as 20 percent. With these stark differences in mind, its crystal clear why boomerang buyers are hopping on the FHA loan bus.
Many folks saw their homeowner dreams turned into nightmares as the recession hit and unemployment rates spiked and home values declined, says Brian Maier, Broker/Owner of Raintree Mortgage, a Las Vegas FHA Mortgage Lender. The trend of boomerang buyers is living proof of the determination of Americans to achieve their homeownership dreams, and those dreams are becoming a reality thanks to the amazing incentives being offered by the FHA.
About FHA loans:
Over 34 million homes have been insured by the FHA since it was created in 1934.
While conventional mortgages typically have difficult underwriting laws, FHA-insured loans appeal to a wider base of homebuyers by incentivizing them with laxer credit standards, lower down payment requirements and more varied income calculations.
FHA loan benefits:
Down payments as low as 3.5 percent
Credit guidelines that appeal to most borrowers
Streamlined refinancing capability
All-in-one home renewal loans
Click Here to check your FHA Loan Eligibility.
Best Rate Home Loans is a national professional network of approved mortgage lenders and loan providers who specialize in FHA loans and other low down payment or streamlined refinance options. Call 888-269-5585 for further information on the Boomerang Home Buyer Program.
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How can education be so much more expensive nowadays when the students are barely learning anything?
Question by Jonny: How can education be so much more expensive nowadays when the students are barely learning anything?
Education costs have been skyrocketing while college students seem to be getting dumber and dumber. Where is all the money going?
Answer by eri
Actually, the economy is in a slump and we’re letting dumber and dumber students into college as a result. If they can’t read or write well by age 20, there’s not much college can do for them – they shouldn’t be there at all. But plenty of for-profit schools are happy to hand out degrees if they can pay for them and minimally pass the classes somehow, dragging the whole system down.
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Question by ramarro smith shadow: What is the Common Sense of increasing unemployment insurance three times more than what it is now?
The unemployment insurance is going to cost Employers Three Times more than what it is now because of high unemployment claims, which will cause employers to be forced to FIRE employees (thus no unemployment claim allowed). This seems totally stupid and will only cause more people to be unemployed, without any help. That should increase the crime rate of course and give more job openings on the police forces.
Answer by dusty_titus
You are mistaken – employers and employees both PAY into that fund. With your kind of logic, pay raises should be stopped immediately, as this costs the employers more money, and they’ll have to fire more people, in order to pay the ones that are keeping.
The way employers are able to pay any costs and expenses in their business – is to raise their prices. Therefore, everyone who uses/buys their services & products will be paying for Unemployment (extra expense to write off profit) – no matter how much or how long the benefits last.
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Does helping small business help create more consumer spending will it then help big business since consumers?
Question by : Does helping small business help create more consumer spending will it then help big business since consumers?
Does helping small business help create more consumer spending will it then help big business since consumers who work at small businesses spend money at large businesses will that help that does anyone have any links saying this thank you ?
Answer by RJC
* Every free economic transaction creates wealth. Me buying a candy bar from you makes us both richer, since we both have things we value more. “Wealth” and “value” are not the same as money, or even necessarily the same as purchasing power.
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