Myth: The market is so bad I can't refinance or sell my home because of the market value.
Busted: The market has been steadily improving for the last year or so.
Home values are on the rise and the improvement in the housing market is giving many homeowners the opportunity to sell or refinance. In fact, home prices have risen by 9.3% in the last year and have seen the biggest gains since May of 2006. Home prices are expected to continue to improve through the end of 2013.
For those who are still "underwater,"or owe more than their home is worth, there are still options out there.
If you are selling your home and have negative equity, one option is to consider a short sale.
A short sale is when the bank agrees to take less than the amount owed when the home is sold.
Short sale transactions tend to take a little bit longer because the bank has to approve the sales price prior to closing.
We work with some great Real Estate Agents that can help walk you through a short sale transaction.
For underwater homeowners that are looking to refinance, there are still some good options out there.
If you currently have a FHA loan, you can pursue a FHA streamline refinance.
There is no appraisal required, so even if you are underwater, you still have the opportunity to refinance and get a lower rate. For borrowers with conforming loans that were closed prior to May 31 2009, there is a program call HARP (the home affordable refinance program).This program requires an appraisal in most cases, but the loan-to-value ratios can exceed 100%. So even if you have negative equity, you may still be able to qualify. Feel free to contact one of our loan officers to see if you qualify for the FHA Streamline Refinance, or the HARP program.
Our mortgage consultants can analyze your current situation and provide solutions to meet your needs.
Myth: Only first-time home buyers can purchase with zero money down.
Busted: Many current homeowners would like to take advantage of the current interest rates and move up in homes however they don't feel that they can because they do not have equity in their current home for another down payment. With these programs an individual could qualify for a zero down option with a very low 30 year fixed interest rate.
There are a couple of ways you can purchase with zero money down, even if you have previously owned a home:
-Utah Housing: Home Again Program
This program allows families to purchase a home with zero money down even if they have owned a home previously.
This would also help that family that just sold their home but didn't gain any equity out of sell. They could possibly purchase with no money down. Of course credit and income would determine if they qualify for this type of loan. But it just shows you that there are many options for mortgage financing regardless of your current situation.
-VA: You need to have VA benefits
-USDA/Rural housing: Specific areas in Utah that qualify for this program
Myth: You have to wait seven years before you can purchase or refinance after a Bankruptcy, foreclosure or short-sale.
Busted: With FHA you can get financing two years after a bankruptcy, or three years after a short sale or foreclosure.
This is very important subject.
Because of the economy many homeowners ended up doing a short sale, foreclosure or Bankruptcy in 2009 and 2010.
They should be ready to purchase now or in the very near future however many think they have to wait even longer.
Every situation is different so please contact one of our loan officers to help you determine when it is the right time to purchase again.
With interest rates incredibly low, now is the time to buy or re-finance your mortgage.
You can get a feel for what your monthly payment would be by using the mortgage calculator at axiomfinancial.com
. Or just give us a call.
We have 19 locations throughout Utah and we offer competitive rates and unmatched, personal service.
This is a big decision in families' lives and we take a one-on-one approach to each loan we process.
We want to make sure we answer every question and that a family is making the right decision.
Find out more at www.axiomfinancial.com