Embedded Files
"Contradictory signals abound in the housing market. Demand has tumbled, but supply remains low. Prices have fallen but are well above their pre-pandemic levels. Interest rates are sky-high compared with a year ago, but below where they stood in decades past".
"Contradictory signals abound in the housing market. Demand has tumbled, but supply remains low. Prices have fallen but are well above their pre-pandemic levels. Interest rates are sky-high compared with a year ago, but below where they stood in decades past".
+1.5%
How much Fannie Mae predicts U.S. home prices will rise in 2023.
Source: The Wall Street Journal
Rates & Economy
Rates & Economy
"Over the past five recessions, mortgage rates have fallen an average of 1.8 percentage points from the peak seen during the recession to the trough. And in many cases, they continued to fall after the fact as it takes some time to turn things around even when the recession is technically over". - Fortune
"History suggest that when rates rise, there is an initial bump in home prices as many move quickly to buy a home before rates increase further. But after that period, home prices slow. Freddie Mac analysis shows tat a 1% increase in mortgage rates result in home price appreciation that is 4 percentage points lower. For instance, a 1% increase in mortgage rates would change home price growth from 11% to 7%". - Freddie Mac
Loan Programs
Loan Programs
Conventional Loan Programs
Conventional loan programs are some of the most popular loan programs available in the market, and their underwriting guidelines are directed by Fannie Mae and Freddie Mac. Typical down payments range from 3% down to 20% or more. When making a down payment of less than 20%, some form of mortgage insurance is usually needed, whether it is borrower-paid or lender-paid. In some scenarios, buyers can choose to have a 2nd mortgage rather than have mortgage insurance. Typically a buyer will only make a down payment of 10% or 15% and rather than have only 1 loan with mortgage insurance, there will be 2 loans in lieu of mortgage insurance (“80/10/10”). There are some additional underwriting requirements when utilizing a 2nd mortgage, and therefore this kind of loan structure may not always be the best fit for all buyers.
Non-Conforming Loan Programs (aka “Jumbo”)
Non-conforming loan products are typically used when you have larger loan amounts that exceed conventional loan limits. Non-conforming loans still have excellent rates – in fact at this time lower than conventional loans – but are usually more restrictive with respect to underwriting requirements, such as a lower debt to income ratio as well as requiring more post-closing reserves remaining in the bank. Typical down payments on Jumbo loans start at 10% and increase to 20% or more.
FHA Loans
FHA loans are an excellent choice for certain borrowers because they offer a minimum down payment of 3.5% and some more flexible underwriting and credit guidelines. FHA financing is ideal for borrowers who are buying their first home and have limited down payment, or previous credit challenges.
VA Loans
VA loans offer a wonderful benefit to eligible military veterans, offering flexible underwriting guidelines with NO MONTHLY MORTGAGE INSURANCE. Many veterans who use their VA benefit often will purchase with 0% to 5% down payment.
Down Payment Assistance Programs/ First Time Buyer Programs
While there are a variety of 1st-time buyer and down payment assistance programs available, programs approval often depends on what city and zip code the subject property is located. Also, there are often times income limitations and restrictions. Lenders will work with all 1st-time buyers to see if these programs are a good fit for a buyer’s unique situation.
Buyer's Purchasing Power
Buyer's Purchasing Power
Understand the impact of mortgage interest rates on your purchasing power. See how monthly mortgage payments (principal and interest) rise and fall based on changing mortgage rates. Lower rates result in lower monthly payments, and higher rates lead to higher monthly payments.
FHFA Mortgage Translations Clearinghouse
FHFA Mortgage Translations Clearinghouse
Your Step-by-Step Mortgage Guide: From Application to Closing
Your Step-by-Step Mortgage Guide: From Application to Closing
A guide for borrowers to learn about the important steps in the mortgage and homebuying process.
Preferred Service Vendor List
Preferred Service Vendor List
Keller Williams Real Estate Services has deep ties in the Crescenta valley area and the Los Angeles community. We have worked with many vendors and service providers in this area. As a service to our clients and a thank you to our friends for a job well done, we provide you our list of preferred vendors and service providers. For an updated list of vendors we are using and where we have received great client feedback, please contact us.
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