Lenders have started to accept lower credit scores and reduce down payments. This is a clear sign of mortgage lenders being in ease and more confident in the housing market.
Topping the list, we have TD Bank. Which on last Friday began accepting down payments as low as 3% through an initiative called “right step” this program was designed to aid first-time homebuyers and low-and-moderate income buyers. “Right Step” by TD Bank does not require insurance and down payment can come from family, the state, or nonprofit groups.
Furthermore, the mortgage industry is transforming and going through some changes. More in depth lenders are recognizing that refinancing old mortgages is nearly tapped out. Now lenders are exploring new ways to generate profits, such as expanding their credit box.
Industry leaders are: community banks, credit unions, and other lenders. Moreover, over the past year more than one in six loans made outside of the Federal Housing Administration, also known as FHA included down payments of less than 10%.
Smaller lenders are also trying to appeal to first-time buyers, and are now offering less strict terms and lower down payments. While larger lenders are aggressively presenting attractive terms for first-time buyers and reducing down payments for jumbo loans as well. For instance Ever Bank began accepting down payments of 10.1% for Jumbo borrowers down from 20% the previous year, and wells Fargo reduced to 15% from 20% its minimum down payment for Jumbos last year. Lastly Bank Of America also adjusted and made some changes for mortgages of up to $ 1 million.
Credit is finally loosening! First-time buyers now have greater possibilities to make their dreams come true and have a place that they can call home.
For assistance in the purchasing process call Abner 305-222-7513. We are the Real Experts when it come to Real Estate.