Why 2018 is the perfect year ever to get a low down payment mortgage

First-time buyers must take action now before conditions change. This year might just be the best of all time for first-time home-buyers to make use of a low down payment mortgage to leap from renting to owning.

Either simply because they don’t have knowledge of low down payments or don’t understand them, a huge number of prospective buyers are struggling to save enough money for a 20% down payment, that will take an average of 10 years, even longer in expensive markets like San Francisco, Austin and San Diego.

Why 2018 is the perfect year ever to get a low down payment mortgage

Shortening the time period to help save for a down payment is a single reason to jump into the market now, Listed below are four others.

Prices are still rising

Leading economists expect prices to keep on rising in 2018 at a rate far beyond average, Fannie Mae forecasts a growth of 5.6% this year, and Freddie Mac has prices up 5.7% before they flatten out next year as supplies improve.

The faster new buyers close on homes, the more their home values will rise with the tail end of the recovery, as well as the faster new owners will build equity. You will find there is still room for price growth; only one out of three homes has reached its pre-recession peak.

So are mortgage rates

Mortgage rates are gradually rising, however they are still historically low.
The Federal Reserve is anticipated to continue to increase rates this current year and possibly next. The longer first-time buyers wait, the larger their mortgage will be.

Rents are too

Rents continue to rising, though not as quickly (Zillow forecasts a 1.6% increase this current year). Slower rent hikes will provide renters just a little breathing room to save for down payments.

More choices than any other time

Although FHA’s 3.5% down loans tend to be the most preferred selection for first-time buyers, there are more options this year than in the past.

Fannie Mae, Freddie Mac and many commercial lenders, including Bank of America and Navy Federal Credit Union offer low down payment mortgages, some as little as 1% down.

State and local government housing finance agencies offer 2,507 programs, the most significant ever.

Equity from rising home values and savings from not needing to pay rising mortgage interest and rising rents will cancel out the higher monthly payments as a result of low down payment, but first-time buyers must take action now before conditions change.

Ready to find your new home? Nick,Cindy & Nicholas Davis with RE/MAX Premier Group are here to assist you. We are always a just a click here away. You can always reach us at 813-300-7116.

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