Many Long Island NY Homebuyers Can Get Help

Many Long Island NY homebuyers could get down payment assistance without winning a jackpot or the lottery

A study to make Long Island NY homebuyers realize they could qualify for a free down payment without hitting the jackpot and winning the lottery found that 87 percent of all U.S. homes qualify for down payment help.

Long Island NY Homebuyers Need to Investigate Options

Many Long Island NY homebuyers, especially Millennials, have not fully investigated their home financing options because they are pessimistic about qualifying for a mortgage. The Homeownership Program Index highlights the wide range and availability of down payment programs available to today's Long Island NY homebuyers. 91 percent of the 2,290 programs in the registry have funds available to lend to eligible homebuyers. Income limits vary depending on the market and programs extend beyond just first-time Long Island NY homebuyers. It's important for buyers to research down payment programs as part of their loan shopping process.

Historically low homeownership rates across nearly every age demographic have led to a public policy push to lower the barrier to homeownership through down payments as low as 3 percent, but the fact is, the barrier to homeownership is often much lower than even that 3 percent for borrowers who take advantage of one of the myriad down payment help programs available across the country.

RealtyTrac looked at 2,290 down payment programs from Down Payment Resource's Homeownership Program Index and found that out of more than 78 million U.S. single family homes and condos in 1,792 counties with sufficient home value data, more than 68 million (87 percent) would qualify for a down payment program available in the county where they are located based on the maximum price requirements for those programs and the estimated value of the properties.

Long Island NY Homebuyers May Be Missing the Boat

You could be REALLY missing the boat if you don't at least look into one of the free down payment plans available across the country.

We have seen a dramatic increase in financing options available and loosening of credit scores with conventional 3 percent down payments readily available for qualified Long Island NY homebuyers. This is great news for the millennials and Long Island NY homebuyers re-entering the market.

Get more information about how first time Long Island NY homebuyers, whether Millennials or not, can get started in the home buying process in our section on Long Island NY Home Buyer Tips to your right under Long Island NY Real Estate Categories.

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Long Island NY Mortgage Mistakes: Will Lenders Ever Learn?

Since the mortgage crisis when loans became almost impossible to obtain, Long Island NY mortgage lenders have begun to loosen standards again. This begs to ask the question, will lenders ever learn their lesson from loose lending practices?

Recently, the Federal Housing Administration (FHA) announced changes they hope will encourage banks to give more home loans to worthy but weaker borrowers.

Long Island NY mortgage requirements tightened during the mortgage crisis are now showing signs of being loosened again

The government has extracted billions of dollars in penalties from lenders that made mistakes on loans to borrowers who later defaulted. The errors ranged from small mistakes to ones that affected the riskiness of the Long Island NY mortgage they chose to underwrite in the first place.

Some banks, believing the penalties are too harsh relative to the errors made, have pulled back from originating a Long Island NY mortgage backed by the FHA and argue that the broad "certification" they must make when originating a Long Island NY mortgage should be limited to significant errors.

Will FHA Changes Help Those Trying to Get a Long Island NY Mortgage?

The FHA’s attempt to change the provision shows the tightrope policy makers and regulators are trying to walk. While they want to hold lenders accountable for crisis-era mistakes and retain recourse should the Long Island NY mortgage go bad, they also want the banks to extend loans to some consumers who have been largely shut out of the Long Island NY mortgage market since the crisis.

Lenders typically have pulled back on FHA lending by having more stringent requirements than what the FHA would allow. For example, even though the FHA will guarantee loans to borrowers with credit scores of as little as 580, on a scale of 300 to 850, a bank might not give a Long Island NY mortgage to borrowers with a score below 640.

Meanwhile, Long Island NY mortgage rates remain near a two-year low, even though rates inched up slightly in the past few days. Freddie Mac says the average rate on a 30-year fixed rate mortgage is now around 3.69 percent, that's up just a fraction from 3.59 percent a week ago. A year ago, 30-year rates averaged 4.28 percent.

We'll continue to monitor the FHA decisions and how they may affect (negatively or positively) getting a Long Island NY mortgage as we continue moving through the housing recovery in 2015.

In the meantime, you can get more information about news that may affect the Long Island NY mortgage market in our section on Long Island NY Mortgage Info to your right under Long Island NY Real Estate Categories.

Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Long Island NY Gas Prices Affecting Mortgage Rates?

We're betting you thought lower Long Island NY gas prices could only mean positive things for the economy, right?

If you're in the market for a home mortgage, Long Island NY gas prices could be having an effect on the rate you can get.

Long Island NY gas prices can actually have an effect on the mortgage rate you can get when buying a home

How Long Island NY Gas Prices Affect Mortgage Rates

Believe it or not, oil investments and Long Island NY gas prices (along with lots of other things) have an indirect effect on mortgage rates.

One of the strongest predictors of mortgage rates is the yield on a 10-year Treasury note. Basically if the yield is low, so are mortgage rates. The buying of bonds can represent relative safety for oil investors, and what oil prices mean for the world's economy.

Oil prices, as well as Long Island NY gas prices, continues to fall in large part because there is less demand. Less demand comes via weakening economies across the globe. The lower oil prices may also disproportionately affect countries like Russia, which are already suffering from instability. All of this leads to a flight to quality, and the safe haven is almost always the U.S. Bond Market.

With Long Island NY gas prices dropping and no one quite sure when or where they'll stop, U.S. bonds give investors a certain comfort that the oil market isn't currently providing. (Treasury bonds will always be paid off to prevent the government from losing the confidence of its investors and creditors at home and abroad.)

The problem for these investors is that everyone has the same idea. If everyone starts buying bonds, it drives down yields because the government doesn't have to offer such a high rate of return to get people to buy. This, in turn, drives down mortgage rates.

Some economists believe the benefit to the housing market is largely indirect in the form of more consumer spending, leading to job and income growth and ultimately making it easier for people to buy homes.

It should be noted that the 10-year Treasury note only affects the base mortgage rate. A number of factors go into the actual interest rate a homebuyer can get, including their credit score, the number of points paid on the mortgage and the down payment amount.

We'll keep you informed on Long Island NY gas prices and how the price you pay at the pump could affect your mortgage rate. In the meantime, you can get more information about factors that control Long Island NY mortgage rates in our section on Long Island NY Mortgage Info to your right under Long Island NY Real Estate Categories.

Remember, we post tips daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Are Long Island NY Mortgages Really Becoming Easier to Get?

Saving up to buy a Long Island NY home might not be as much of a challenge as it used to be, now that the Federal Housing Finance Agency (FHFA) will allow some first-time homebuyers to make down payments of as little as 3 percent on Long Island NY mortgages.

Why Down Payments on Long Island NY Mortgages Are Going Lower

Are Long Island NY Mortgages Really Becoming Easier to Get?

The goal is to make homeownership more accessible than it has been in a tight post-recession mortgage market. These low-down-payment loans apply to 30-year, fixed-rate Long Island NY mortgages guaranteed by Fannie Mae and Freddie Mac. The agency regulates Fannie and Freddie, which guarantee the majority of U.S. mortgages.

If you want to buy a Long Island NY home but don't have enough cash on hand for a down payment and closing costs, you might be able to qualify for an affordable home loan. Keep in mind lenders will require you to pay private mortgage insurance (PMI) if you pay less than 20 percent upfront, a cost homebuyers often overlook when determining how much they can pay.

One of the first things you'll want to look at before applying for any of the various types of Long Island NY mortgages is your credit score.

Credit Scores When Applying for Long Island NY Mortgages

There are a lot of different credit scores out there, and this has naturally led many consumers to ask: Which credt scores should I pay attention to, and what's my real credit score? People gravitate to the well-known FICO score, (FICO) by all accounts is the market leader in credit scores (meaning more banks use FICO scores than other scores). In fact, many refer to non-FICO scores as "FAKO" scores, but is that really an accurate assessment?

Most lenders have a baseline credit score by which they largely make their decision to approve or deny applicants for Long Island NY mortgages. The maximum credit score is 850 (though a score of 850 is rare, indeed. Only about 10% of applicants have a score over 800). Any score in the 700s or above is excellent and will get you a loan with the lowest interest rate. When you get into the 600s it starts getting dicey. A score of 680, for example, is still considered good, but when you get below 660, some lenders start saying, "No."

Most people don't realize they have more than one credit score, and just because you pay for your "Fico Score" doesn't necessarily mean you're seeing the same score a lender may be pulling and using to determine whether you qualify for any of the Long Island NY mortgages they may offer.

Your credit standing not only affects the mortgage rate you may qualify for, it also impacts how much you must pay in PMI. You can also get rid of PMI after you've built a certain amount of equity in your home, among other requirements, but it's on you to go through the process of removing PMI from your loan.

With the new directive from the FHFA, buying your first Long Island NY home may be more attainable, but the decision requires just as much careful thought as it would if you needed to put down 20 percent of the home's value to get a mortgage. Consider the overall impact on your life of buying a home, and make sure your credit is in good shape before applying for any of the many Long Island NY mortgages available from most area lenders.

Get more information about becoming a Long Island NY homebuyer and news affecting mortgage rates and qualifications in our section on Long Island NY Mortgage Info to your right under Long Island NY Real Estate Categories.

We post daily to Twitter, and also on our Facebook Page. We'd love you to check us out there too.

Lower Down Payment Options for Long Island NY Homebuyers

Mortgage giants Fannie Mae and Freddie Mac announced recently that first-time Long Island NY homebuyers may be seeing a game changer with lower 3 percent down payment requirements. This is designed to expand credit for qualified home shoppers who may have been sidelined the last few years because of higher down-payment requirements.

A recent examination of what's holding back Long Island NY homebuyers argues that the down payment is the biggest challenge for first timers.

Long Island NY Homebuyers to see 3 percent down payment options from Fannie Mae and Freddie Mac

These loans will meet Fannie Mae's usual eligibility requirements, including underwriting, income documentation and risk management standards. These loans will require private mortgage insurance or other risk sharing, as is required on purchase loans acquired by the company with greater than 80% LTV.

Any Long Island NY homebuyers can take advantage of Fannie's loans as long as at least one co-borrower is a first-time buyer.

New Option Not Just for Long Island NY Homebuyers

Eligible homeowners who wish to refinance their Fannie Mae-owned mortgage but do not qualify under the Home Affordable Refinance Program can refinance their loan up to the 97% LTV level under a limited cash-out option.

Fannie Mae says it has implemented prudent risk management practices to ensure that loans the company acquires are appropriately underwritten, including mortgages with lower down payments. These include essentially eliminating risk-layering on purchase money loans, requiring income documentation to avoid "low-doc" or "no-doc" lending, and requiring income verification.

Fannie Mae has also worked to provide lenders with greater clarity on what circumstances would result in a loan repurchase request. Some lenders have said that uncertainty around these requests has led to them curtailing mortgage availability. This new clarity is intended to help lenders make mortgages to more creditworthy borrowers.

Similarly, Freddie Mac announced its Home Possible Advantage program, an affordable conforming, conventional mortgage with a 3% down payment to help more first-time Long Island NY homebuyers jump into the market.

Get more information about becoming a Long Island NY homebuyer and news affecting mortgage rates and qualifications in our section on Long Island NY Mortgage Info to your right under Long Island NY Real Estate Categories.

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