Mortgage Information

U.S.News and World Report gave some interesting mortgage information and predictions which I summarize for you here:
“More than 3 years into a painful housing crash, the real estate market has sent recent -albeit tentative signs of stabilization. Home sales have increased, inventory levels are down and price declines have become less precipitous.”
Lending standards have tightened in the last few years and some people predict further tightening ahead. “Generally to get the best rate around, you need a 20% down payment, says Guy Cecala, the publisher of Inside Mortgage Finance, an industry newsletter. That doesn’t mean that you can’t get a mortgage if you have less of a down payment… it just means that you may not get the best interest rates.”
Lenders are also looking for higher credit scores than previously. Currently, most lenders prefer to see a score of 730 or higher.
For those with lower credit scores and less down payment FHA loans offer a great alternative. Currently, a borrower needs a credit score of 690 or better and a minimum down payment of 3.5% to purchase a home and get an FHA loan.
Keep in mind that the mortgage industry is constantly changing. Rates and requirements can change at any time so it is important to consult with a reputable mortgage person and get the facts as they relate to your situation.