Results are in from the Fannie Mae November 2019 National Housing Survey, and Americans' sentiment about homebuying is making a comeback.
Previously, the Home Purchase Sentiment index found that overall confidence in the market had taken a hit. After the index reached a high of 93.8 in August, this number had been on a downward trend for two months after that. However, this changed in November, when positive responses climbed by 11 percentage points. Some possible contributing factors are the increased number of survey respondents who reported an optimistic outlook on housing prices, and those whose income increased compared to the year prior.
A positive outlook, combined with market conditions leaning in favor of home buyers, is paving the way for a strong upcoming year for those who may have been waiting for the right time to buy. If you're one of those people, there are a couple of programs created just for first-time homebuyers that you may want to consider.
Federal Housing Administration (FHA) loans can help first-time buyers who may not qualify for a conventional loan. This type of loan offers flexible income requirements, reasonable credit expectations and low minimum down payments that often appeal to new home buyers. Because the loans are insured against default by the FHA, they pose little risk and minimal capital requirements to lenders, which allow for the more flexible approval requirements. FHA loans are available for single family and multifamily homes.
Veterans Administration (VA) loans are designed to help Veterans and their families secure housing and are available to military personnel who have served either 181 days during peacetime, 90 days during war, or to the spouse of servicemen killed or missing in action during their time in service. This type of loan is available in all 50 states, requires no down payment and allows the lender to offer lower interest rates compared to conventional loans. VA Loans are insured by the VA when homeowners default on their loans. Additionally, if Veterans are in a position where they may end up defaulting, assistance may be available to help them stay current on their payments and get back on track.
At Premier Mortgage Resources (PMR), we know that every financial situation is unique. Our team would love to talk to you about loan programs that may be right for yours. Contact a PMR loan officer in your area today.