According to a recent article in USA Today, rents are rising more quickly than home sale prices for the first time in at least five years. While this news might come as no surprise to renters in the area who have already experienced climbing rents, it might surprise them to find out that a very real alternative is homeownership. Svenja Gudell, Zillow’s head of economic research, says, “For those renters that can scrape together even a modest down payment, qualify for a loan and find an affordable home to buy, home ownership will look increasingly attractive.” Luckily, there are more programs now than ever that offer the possibility of a low down payment and more lenient guidelines on credit scores.
In the past year Fannie Mae and Freddie Mac have added 3% down-payment programs, giving first-time buyers even more programs to choose from that allow for less than 20% down. Couple these with FHA and PHFA options and first-time homebuyers now have several loan programs for which to qualify. Philadelphia Mortgage Advisors’ processing and underwriting staff has an excellent knowledge of these numerous mortgage programs and is the trusted local expert among first-time homebuyers. PMA is a preferred Pennsylvania Housing Finance Agency (PHFA) first-time homebuyer lender, and has an in-house underwriting staff for all Conventional and Government (FHA, VA, PHFA) loan programs.
The historically low interest rates that we continue to see are another incentive for renters to become homebuyers. One expert from HSH.com, a mortgage information provider, says that he expects mortgage rates to peak this year at about 4.75% for a 30-year fixed rate mortgage. With high rents, more affordable loan programs, and historically low rates, now is the time to become a first-time homebuyer.
If you’re ready for the transition from renter to homeowner, feel confident that you can trust Jason DeLisi and Jessica DeLisi to find the right mortgage solution for you. Jason DeLisi (Senior Mortgage Advisor & Sales Operations Manager) has been recognized by Philadelphia Magazine as a Five Star Mortgage Professional with 14 years of experience in the industry. He has built an extensive network of local realtors and builders and works closely with each to find the perfect mortgage solution for every client. Jessica DeLisi (Mortgage Advisor) brings with her an invaluable background in mortgage operations, allowing her to apply her extensive understanding of the mortgage process to each of her clients’ unique situations. As a young professional licensed in PA, NJ and DE, Jessica has established herself as a reliable source for first-time homebuyers. Please contact either Jason http://jdelisi.phillyadvisors.com or Jessica http://jessdelisi.phillyadvisors.com to discuss any and all residential mortgage needs.
Sources:
http://www.usatoday.com/story/money/2015/05/17/national-rents-rising/27372141/
http://money.cnn.com/2014/12/28/real_estate/housing-2015/