Today I’m joined by Steve Schauer with New American Funding to talk a bit about lending to follow up on last week’s talk about interest rates.
Interest rates for 30-year and 15-year loans are both below about 4%, depending on the FICO score and some other things. The turmoil in international markets is also holding interest rates down, and the Federal Reserve has said they will stay low for a bit. How long they’ll stay low is uncertain, however, but Steve said he thinks they’ll stick around for the next six months, and probably go up next year. Interest rates are low, but they will go back up soon.
When it comes to waiting periods for getting a new loan after short sales or foreclosures, there are three basic loans. There is the VA loan with a two-year waiting period, FHA loans with a three-year waiting period, and conventional loans with a seven-year waiting period. There are some stipulations with a conventional loan that can push that waiting period down to four years, though.
In Nevada, we also have something called the “Home is Possible” program, which is one of the best down payment assistance programs available because it has a high-income cap. Steve said he has buyers who have moved into a house with zero money down thanks to this program.
With down payments, we also want to debunk the old myth that a 20% down payment is required to buy a home. With VA loans, you don’t need to put anything down, and FHA loans require only 3.5% down. For a conventional loan, the minimum down payment is 5%.
If you’re seeking a home loan, you should avoid things that affect credit, like major purchases, job changes, and cash deposits. From application to close, try to keep everything status quo.
If you have questions about mortgages for Steve, you can reach him at (702) 476-9000
For any real estate questions, feel free to give me a call or send me an email soon. I hope to hear from you soon!