Buy Now Before It’s Too Late or Too Expensive

Karen Rhodes — Tue, 12 Apr 2011 17:55:40 +0000

I know everyone is always saying it’s a great time to buy regardless of the market. And that’s true to an extent. But if you have been on the fence or you’ve been thinking about it now truly is the time to do it. One of my favorite blogs has given 4 financial reasons to buy now and they hit it on the mark.

Interest rates are increasing

Rates have gone up almost 3/4 of a point in the last 6 months and are expected to continue to rise.

The 30 year mortgage may disappear

Several experts believe if Fannie Mae and Freddie Mac’s roles are eliminated, or even limited, it may bet the end of the 30 year mortgage.

Qualified mortgage requirements could be more stringent

Proposed changes include:

1. Elimination of certain mortgage types

2. Minimum of 20% down payment

3. Minimum 690 FICO score

4. Lowering of ratio of income to both the mortgage payment and the overall debt to 28% and 36%

Rents are expected to increase

Supply and demand. The demand is increasing while the supply is decreasing.

There is a lot of inventory on the market right now. Jump in before it’s too late or the cost is just too high.

Tighter Loan Requirements from FHA

Karen Rhodes — Thu, 21 Jan 2010 21:30:20 +0000

FHA has now announced more tightening of underwriting guidelines.

Up front mortgage insurance premium increased to 2.25
10% down payment for buyers with a FICO of less than 580.
Seller concessions reduced from 6% to 3%

No specific date on when these changes go into effect, just sometime in the spring. Stay tuned!

Chattanooga Real Estate Blog » FICO

Buy Now Before It’s Too Late or Too Expensive

Tighter Loan Requirements from FHA