The economy has started to settle from the impact of the housing crisis a decade ago, and the impact of the coronavirus more recently. This has led to mortgages becoming more readily available with flexible terms.
The increased in companies and loan variations has led to more houses being bought, for both first time buyers, buyers in general and investors.
Different Loan Policies And Options
There are many loan options available for mortgages. There are USDA loans available for rural development, allowing people in small towns and rural communities to get access to loans that they otherwise wouldn’t be able to.
These loans don’t require any down payment, and offer low fixed rates with few requirements. FHA loans are more popular in 2021. These loans offer more flexibility, with 1 in 5 home buyers using them.
They can require as low as 3.5% for down payments, on condos, single family homes and up to 1–4-unit properties. They also accept lower credit scores compared to other loan programs, even allowing a month without a mortgage payment.
There are also traditional conventional loans and purchases. Conventional loans offer terms for debt-to-income ratios up to 50%, for primary, secondary or investment properties.
Purchase loans offer a quick turnaround, usually with same day pre-approvals, with a wide variety of down payment options and closing costs.
Mortgage Competition
Every few years, most cities and all states will see a new loan/mortgage company start new, or introduce new measures to get ahead of competitors.
Due to the increased competition, we’ve seen lenders get innovative with their loans, offering lower fixed rates, and higher amounts that can be borrowed.
Many have started branching across states to showcase their work. One mortgage company, the Home Loan Expert, are one such brand. They can offer lower mortgage rates, in several different loan options, to help suit your needs.
The Changes To The Housing Market
The housing market has become much more affordable within the last few years. This is due to factors such as the COVID-19 pandemic. Early last year
Unprecedented shutdowns within society threatened to break multiple links in the mortgage chain. However, this led to some homes being forced to sell cheaply, which caused more demand for housing.
There has also been changes with the potential ways in which you can make payments. As an example, some realtors have started accepting cryptocurrency as down payments or collateral.
Premiums for loans have been driven down recently, FHA mortgage insurance premiums have gone down by 0.5, from 1.35 to 0.85, saving an average of $900 annually.
These lowered premiums have helped more than 800,000 homeowners save on monthly mortgage costs and enable up to 250,000 new homebuyers purchase a home.
The economic state of the housing industry has started recovering from the economic crash over a decade ago. Indeed, some of the lowest rates in the history of the mortgage industry has been over the last two years.
