We can probably all agree that 2020 was a rough year in a lot of ways. One silver lining in the clouds however, was the strengthening housing market. Homeowners saw their equity levels climb and buyers were motivated to secure their piece of the American Dream, despite political tensions and a sweeping pandemic that tragically changed the way of life for millions.
Fortunately, things are beginning to look up. With vaccines now available and life starting to feel a little more “normal,” 2021 could be a much better year for all of us. If you’re thinking of making 2021 the year you buy a home, we congratulate you! And we’d like to offer you some insight as you begin your path to homeownership..
Buyers Have Fewer Homes to Choose From
This year’s real estate season seems to be getting a head start. Usually spring is the busiest time of year for buying and selling real estate; however, this year the housing market has sped off right out of the gate. High demand from buyers and limited inventory means it’s kind of slim pickings out there.
What does this mean for buyers? Well, for starters, it means they may have to sacrifice some of their wants, according to investing and real estate guru Dave Ramsey. It also means mortgage borrowers will need to get the ball rolling ASAP. Get preapproved ahead of time, well before you actually start looking at properties. Homes are selling fast right now, so once you find a home you love, you need to be ready to make a serious offer and be able to show proof that you’ve got your loan in the works.
Rates are Very Low
Mortgage rates are at 50-year lows, according to Todd Teta, chief product officer at ATTOM Data Solutions. However, he warns that prices will likely continue to rise as high demand and low supply persist in the first half of 2021.
Affordable Financing Options
Although home prices are moving upward, there are still affordable loan options available to qualified borrowers. New buyers and those who may not have a lot of cash for a down payment can take advantage of low and no money down loans, as well as non-traditional mortgage options that offer flexibility on documentation. With more and more people working in the gig economy these days, and so many people having to transition from their careers due to COVID, there is an even greater need for flexible financing opportunities.
A few popular low and zero money down loan solutions include the 3.5% down FHA loan, which is not a new loan by any means, but may be finding a new level of popularity in 2021. The FHA loan may be ideal for first time home buyers, but repeat buyers can also qualify.
Other options include the zero money down USDA loan, the zero down VA loan, low money down options through Fannie Mae and Freddie Mac, and Down Payment Assistance assistance from Luxury Mortgage.
Connect With Us to Learn More
If you’re interested in learning more about any of the programs described above, please don’t hesitate to reach out to our team of home loan professionals.
Call us today: (888) 379-0303
Four Landmark Sq. Suite 300
Stamford, CT 06901