Zero-Down Home Loan Program

A new effort is underway to raise the low rate of home ownership among under served groups of home buyers. The Neighborhood Assistance Corp. of America is hosting several events across the country, helping borrowers with low credit scores to apply for 15- or 30-year mortgages with cheaper interest rates.

NACA CEO Bruce Marks told CNBC. “There have been zero foreclosures among the loans that we’ve originated in the past six years.”

Borrowers are required to go through an education session about the program, as well as counseling for budget planning to make sure they can afford a mortgage payment. They also must still submit all necessary documents, such as income statements amd phone bills. The program serves only those who are buying a primary residence, not an investment property.

Home Loan Demand Dips As ‘Interest Rates Rise’

A sharp rise in mortgage rates dampened mortgage application volume last week, the Mortgage Bankers Association reports. Total mortgage application volume for both refinancings and home purchases fell 3.5 percent on a seasonally adjusted basis for the week ending May 8. Still, volume is 14 percent higher than a year earlier.

Broken out, applications for refinancings attributed to most of the drop in loan demand last week. Refinancing applications fell 6 percent week-over-week and have fallen 16 percent in the past four weeks alone, MBA reports. Applications for home purchases, which are viewed as a leading indicator of future home sales, mostly held steady last week, down just 0.2 percent from the previous week. Applications for home purchases are 12 percent higher than a year earlier.

MBA reports that the 30-year fixed-rate mortgage rose to 4 percent last week; it had averaged 3.93 percent the week prior.

Source: “Weekly Mortgage Applications Fall 3.5% as Rates Rise,” CNBC (May 13, 2015)

Mortgage Applications Take Surprising Turn

Loan demand was on the rise last week, posting a strong rebound that was driven mostly by applications to purchase a home, the Mortgage Bankers Association reports in its seasonally adjusted weekly mortgage market survey, reflecting the week ending Nov. 14. The increase in demand came despite interest rates mostly staying flat for the week.

Total application volume, reflecting applications for home purchases and refinances, climbed nearly 5 percent. Refinance applications rose 1 percent week-to-week, while applications for home purchases, viewed as a gauge of future buying activity, surged 12 percent. It was the highest level for purchase applications since July, the MBA reports.

“The MBA and other data are showing strength in the market for new homes, likely reflecting the boost from continued job growth in recent months,” says Michael Fratantoni, the MBA’s chief economist.

Meanwhile, the 30-year fixed-rate mortgage declined slightly last week to 4.18 percent from 4.19 percent the week prior, the MBA reports.

Source: “Weekly Mortgage Applications Jump Unexpectedly,” CNBC (Nov. 19, 2014)

Many Veterans are “Shut Out of Housing Market”

Many returning veterans are landing in jobs where they don’t make a high enough salary to cover the costs of purchasing a median-priced home or even the average rent on a one-bedroom apartment, according to a report released by the Center for Housing Policy. The report analyzed five common occupations for returning veterans and the housing costs in more than 200 metro areas.

Young veterans have one of the highest unemployment rates in the country, despite government training programs and assistance available for aid, the report states.

“Despite record affordability, a lot of occupations you find veterans working in don’t pay enough to afford a home,” says Jeffrey Lubell, with the Center for Housing Policy’s.

Due to low-paying jobs, the report warns that vets face struggles in qualifying for a mortgage with tightened lending standards and also struggle to save for a down payment to purchase a home. Please provide comments about this in your region. 

More information at source: “Many Working Veterans Still Can’t Afford Housing, Report Says,” CNNMoney (July 12, 2012)

“Gen Y” is Ready to Buy!

Forty-seven percent of Generation Yers say they plan to purchase a home within five years or less, according to a new study by Western Union. That tops the general population, 29 percent of which say they plan to buy a home in the next five years or less.

Ten percent of Generation Y members surveyed are even more eager to jump into the housing market, saying they plan to buy a home in the next 12 months, according to Western Union’s Payment Money Mindset Index survey.

But unlike other generations, Gen Y may have some debt to work through first. The surveyed showed that the generation has higher student-loan debt and more bills compared to any other age group. About one in four graduating students who have student loan debt say they will move home after graduation to curb costs.

The survey also found that Gen Y tends to be bigger spenders when compared to other age groups. The survey found that they outspend other age groups in leisure activities, such as on hobbies, video games, electronics, sporting events, and recreation.

Source: “Western Union: Gen Y Gives Home Sellers Some Hope,” HousingWire (5/23/12)