No down payment? These programs can help!
Owning a home is a pretty major goal for lots of Americans, but the thought of buying a piece of property — whether it’s a condo in the sky, a suburban house or a fixer-upper in the countryside — can be intimidating, especially if you’re a first-timer. You’re probably worried about saving up for a down payment and closing costs, finding an interest rate that won’t break the bank and making sure you have enough cash for a few new pieces of furniture after you move in. But the great news is that there are programs to help first-time buyers — or even those buying a second home — overcome these challenges and make their dream of owning a new place a reality! Down payment and closing cost assistance Saving up for both a down payment and estimated closing costs can be a real challenge — and it’s one of the biggest obstacles to becoming a homeowner. These upfront costs can add up quickly and put owning a home somewhat out of reach for Americans who might otherwise be able to afford their monthly mortgage payments. But what if the obstacle you’re facing is the type of loan you’re considering? If you’re struggling to come up with the cash you need to buy a home, don’t give up hope: the following loans might put home ownership right within your reach! FHA LOANS The Federal Housing Administration (FHA) loan program is a government initiative that helps low- and moderate-income Americans buy homes. With an FHA loan, qualified borrowers only need a down payment of 3.5%, which is much less than the 20% most people think they need to save to even consider buying a home. You can even get help from your family or other sources with gift funds to cover the entire down payment and closing costs. Other great benefits of FHA loans are that they’re more flexible with a buyer’s credit score, and the seller can pitch in up to 6% of the home’s purchase price to help pay for closing and prepaid costs. Need a down payment boost for that FHA loan? Movement has just launched a new program called Movement Boost, a down payment assistance program designed to help approved buyers cover their down payment for an FHA loan. This program is great for people struggling to afford all the costs of buying and moving into a new home. Movement Boost is available nationwide (with the exception of NY) and provides the full 3.5% payment required to secure an FHA loan.If you meet the criteria for the 5% Movement Boost, you’ll receive full coverage for your 3.5% down payment, with the remaining 1.5% allocated towards closing costs. Keep in mind, you will be responsible for any remaining closing costs past what the 1.5% covers. The amount will be provided through a repayable second lien that will amortize in 10 years, at an interest rate set at 2% above the rate of the first lien. Brand new this year, Movement Boost is perfect for first-time buyers who don’t have enough savings, but it’s also open to repeat buyers. USDA LOANS Backed by the United States Department of Agriculture, the USDA loan is another option for potential borrowers. It’s designed for low-to-moderate-income individuals who want to purchase a home in a designated “rural” area — and you’d be surprised at how many suburban areas and small towns are included! One of the benefits of the USDA loan is that it offers eligible applicants the opportunity to buy a home without a down payment. It also allows for the seller to contribute to your closing costs. VA LOANS A VA Loan is a mortgage guaranteed by the U.S. Department of Veterans Affairs (VA) that’s popular among eligible veterans, service members and their surviving spouses who want to purchase a home. One significant benefit of a VA loan is that it usually requires no down payment, enabling eligible borrowers to buy with little or no upfront payment. Making a down payment of at least 5% may lower your funding fee, which goes to the VA to help support the program. VA loans also don’t require mortgage insurance, which is usually required for mortgages when there’s less than 20% put down. And they usually have lower closing costs and more flexible credit and income requirements. Plus, no lender fees for borrowers getting a VA loan through Movement Mortgage. CONVENTIONAL LOANS The most popular way to finance a home is with a conventional loan, and it has great benefits for eligible borrowers. Unlike FHA and other government-backed loans, conventional loans can be used on almost any type of property with fewer property restrictions. Conventional loans have a variety of down payment options available, and borrowers who make higher down payments can enjoy even more advantages, like, if you can put down 20% or more, you may be able to eliminate the need for Private Mortgage Insurance (PMI). If you’re short on funds for a down payment, we offer a variety of conventional low down payment options to help you get started, including: Fannie Mae HomeReady The HomeReady program, provided by Fannie Mae, is an affordable housing initiative that offers fixed-rate mortgages to creditworthy individuals with low-to-moderate incomes. If you’re qualified, you can secure up to 97% financing, making it easier to purchase a home with as little as a 3% down payment. Another unique feature of the Fannie Mae HomeReady program is that it considers non-traditional sources of income for qualifying purposes, including income from family members. Freddie Mac Home Possible Similar to Fannie Mae’s HomeReady program, Freddie Mac offers the Home Possible and Home Possible Advantage home loan programs. With Home Possible, homebuyers can finance up to 97% of the home’s value, so again, just a 3% downpayment. And co-borrowers can help qualify for the loan. Home Possible is designed for people with modest incomes and those purchasing or refinancing properties in specified areas. Thumbs up for a lower down payment! Getting your down payment in order is an important step toward buying your dream home! To make the process stress-free, it’s essential to get your finances in tip-top shape well before you start shopping. So, if you’re in the market for a new home but have questions about home financing, please reach out to Taylor Jones with Movement Mortgage to discuss how much down payment you’ll need or what potential closing costs might be.
2022 U.S. Property Taxes Rose Twice as Fast as 2021
siraanamwong / Getty Images APRIL 7, 2023 2022 U.S. Property Taxes Rose Twice as Fast as 2021 Southern state homeowners generally pay less, though. N.J. homeowners, for example, pay double the average amount Fla. homeowners pay ($4,100). NEW YORK – Property taxes increased twice as fast last year than in 2021 in the U.S., with many areas in the South and West increasing by more than the national average. Even after the gains, though, single-family-home property taxes remain much lower in the Sun Belt than in the Northeast, according to a report released by real estate data firm Attom on Thursday. On average, people in Florida paid less than $4,100 a year on property taxes in 2022 – not even half the bill for a typical New Jersey resident. In that state’s Essex and Bergen counties, the charge per homeowner exceeded $13,000 – more than $1,000 a month. Property taxes continued their never-ending climb last year, with wide disparities continuing from one area of the country to another, connected to varying costs, services, and tax bases,” Rob Barber, chief executive officer at Attom, said in the report. Although states in the South have traditionally been lower-cost, property taxes have surged in recent years. Many people flocked there – a trend accelerated by the pandemic – creating more need to improve infrastructure and services. But property taxes remain comparatively low, even in some of the most expensive parts of the region. In Palm Beach County, Florida, for instance, taxes jumped almost $2,000 in 3 years and averaged $7,525 for single-family homes last year, according to Attom. Nationwide, the average tax on single-family homes increased 3% in 2022, to $3,901, after rising 1.8% the previous year. The effective tax rate is the average annual property tax expressed as a percentage of the average estimated market value of homes in each geographic area. Among metropolitan areas with a population of at least 200,000 in 2022, 19 of the 20 cities with the highest effective tax rates were in the Northeast and Midwest. © Copyright 2023 The Daily Mail, all rights reserved
Mortgage rates fall, but low inventory haunts would be homebuyers
The 30-year fixed-rate mortgage (FRM) averaged 6.28% as of April 6, down from 6.32% recorded last week. One year ago, the 30-year FRM averaged 4.72%. Meanwhile, the 15-year fixed-rate mortgage averaged 5.64%, up from last week when it averaged 5.56%. At the same time in 2022, the 15-year FRM averaged 3.91%. Homes on Hollywood Beach and Channel Islands Harbor May 15, 2018 Channel Islands, Oxnard, Calif. | Getty Images "Mortgage rates continue to trend down entering the traditional spring homebuying season," said Sam Khater, Freddie Mac’s Chief Economist. "Unfortunately, those in the market to buy are facing a number of challenges, not the least of which is the low inventory of homes for sale, especially for aspiring first-time homebuyers." A cooling job market marked by tech layoffs, including those at Amazon and Apple, as well as Disney, along with fewer job openings has convinced the market the Federal Reserve will be able to pause rates soon. Jobless claims came in higher than expected Thursday, reinforcing the idea within the market that the Fed will relax with rate hikes before unemployment gets too bad. In an aerial view, homes sit on lots in a neighborhood on January 26, 2023 in Boca Raton, Florida. South Florida is currently one of the hottest real estate markets in America. (Joe Raedle/Getty Images / Getty Images) Among other factors, lenders rely on the current interest rates and also on the expected interest rate over the mortgage's lifetime when choosing what mortgage rates to offer. As the expected future interest rate falls it takes pressure off mortgage rates, allowing lenders to offer lower rates while still making a profit. 'Mansion Global' host Katrina Campins tells homebuyers it's not the right time to buy in the current market.
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