Its the “dog” days of August and the real estate market is as hot as the temps here in Ohio this week. Rates are at all time lows, inventory is low and there are a lot of buyers looking. If you can’t find what you want, then consider building. Dollar Bank offers a construction loan with as little a 5% down & construction times of 6-12 months. If you’d like to look for a contractor here in Lorain, Erie or Huron counties, check out the website of the North Coast Building Industry Association at http://www.ncbia.com- you can find contractors and remodelers information as well as other helpful information about building a home on this site. You can also call me and I can walk you thru the building process if this is your first time- I built my home in 2006. If you need to find a realtor to work with, I can refer you to a few that I’ve worked with. I suggest buyers interview realtors the way they would their doctor or attorney and pick one they are comfortable with & can build a rapport with & feel will negotiate on their behalf once they find them their dream home. You can also check out local realtors on the Lorain County Association of Realtors website-www.locar.org.
If you’re not thinking about building, then conventional loans are a great way to go with as little as 5% down for the purchase of a single family owner occupied property for those with credit scores 680 and above. For buyers with lower credit scores consider an FHA loan which only requires 3.5% of the sale price as a down payment on a single family owner occupied purchase.
There are still 0 down loan options available, the most widely known is the VA loan for active military and discharged/retired veterans. 0 down payment and 0 monthly mortgage insurance and rates that are around 3.125% with 0 points and 0 origination fee (for those with credit scores above 680- rates change daily)- this is a great opportunity for military to purchase a single family owner occupied property.
Jumbo loans are still available. Jumbo loans is a term to describe a mortgage loan in the amount over the current conforming loan limit. The current conforming loan limit is $417000 for a single family home, therefore a Jumbo loan is a mortgage loan over $417000. You’ll need to put down at least 20% down on these types of loan and have higher credit scores. Fixed rates and adjustable rates are available for these types of loans on single family owner occupied properties.
If you’re looking for that 2nd home/vacation home, loans are available for purchases of these properties as well utilizing fixed and adjustable rates with as little as 10% down payment for loans up to $417000.
Buyers are also looking at investment properties (1-4 units) to purchase- yes, Dollar Bank offers them- down payment, rates, terms, etcetera will vary by buyer and the number of properties already owned and financed- call for details.
The best advice I can give anyone, whether your buying your first home or going to be selling and buying another home, these days is to get prequalified by a reputable lender before heading out looking at homes or talking to a builder or realtor or listing your current home for sale. Getting prequalified lets you know what you can afford before you find your “dream” home that you can’t afford to purchase. Most prequalifications are good for 60-90 days.
If you’d like to work with a reputable local lender with 18+ years experience that will guide you thru the buying or building process, give me a call-I’ll show you the way home.
Equal Housing lender. Not all borrowers will qualify.