by Robert Hyder
Homeownership is typically the most significant piece to the puzzle for those hoping to realize the American dream. For first-time homebuyers, the existing credit crunch and the housing crisis in America have combined to formulate the perfect storm that may never again be duplicated in our lifetime.
To begin, many homes have been put on the market because the current homeowners simply cannot afford their monthly mortgage payments. Unfortunately, many Americans blindly jumped into homeownership and are finding themselves in some very hot water. Homeowners who fell victim to the attractive adjustable-rate mortgages from just a few years ago unwittingly purchased homes well above their means and are now paying the price – quite literally – as the rates are readjusting. As a result, the foreclosure rate is drastically up while asking prices are considerably down.
Next, the nightmare of foreclosure for so many has turned the dream of homeownership into reality for so many others, particularly first-time homebuyers. Three major factors have morphed together to create the perfect storm of opportunity for first-time homebuyers:
• Historically Low Mortgage Rates
• Credit Quickly Becoming More Readily Available
For existing homeowners who have not fallen behind on their monthly mortgage payment, but have been unable to refinance and take advantage of the historically low mortgage rates due to property values declining, also have reason to celebrate. Fannie Mae’s DU Refi Plusâ„¢ and Freddie Mac’s Relief Refinanceâ„ Mortgage are the newest automated underwriting systems designed to reignite the housing industry by potentially allowing approximately 9 million homeowners to refinance. Some highlights of these programs include:
• Loan-to-Value up to 105%
• Unlimited CLTV/HCLTV (DU Refi Plus™) and TLTV/HTLTV (Relief Refinance℠Mortgage)
• Appraisal Requirements Reduced or Waived
• Private Mortgage Insurance (PMI) Not Required if Not on Existing Mortgage
• No Minimum Credit Score Requirement for DU Refi Plus™
*Note: The definition of a first-time homebuyer is someone who has not owned an interest in a primary residence in the previous three years.
Loading ...
» Housing Crisis Creates Perfect Storm for First-Time Homebuyers … | Refinance Mortgage Rates Online
April 20, 2009 @ 2:54 pm
[...] story here robhyder Ontario Mortgage Information: Ontario Mortgage Rates are Low – Now [...]
fix my credit
August 11, 2009 @ 7:30 pm
Take a look at the loans and the credit card debts showing on your credit report. Close those accounts that you won’ t need in the future because too many open accounts will hurt your credit scores. Transfer the credit card balance having a high interest rates too.
fix your credit
August 14, 2009 @ 5:59 pm
fix your credit…
“In my opinion one of the biggest problems with our credit crunch and high foreclosure rate is bank reliance on FICO scores. FICO scores do a good job of reporting an individuals past history of repayment of debt. The biggest problem is the scores do…