20 Year Interest Rate Chart
Take a look at where we’ve been and where we are now in terms of financing a mortgage. Coupled with the lowest real estate prices we’ve seen in 15 years there isn’t a better time to buy. FHA financing still offers the lowest down payment option at 3.5% down and in most cases buyers are asking sellers to take care of their closing costs. Median sales price for Reno is $155,000 and $148,000 for Sparks. At those price points, monthly payment runs right around $778.00 with taxes and insurance on top.
Lower Credit Score Requirements
It’s possible now to get approved for an FHA loan if your credit score is between 600 and 619. Most mainstream lenders have had the credit score limit of 620 for at least a couple years now. This is great news! Rates are still extremely low and combined with pricing there really isn’t a better time to buy. Of course, there are stipulations to obtaining a mortgage with the lower credit score. You’d have to inquire with a reputable mortgage lender to get all the details. Let me know if you have questions, I can direct you to a qualified, trustworthy, professional for help.
Credit Report Basics
I just read an article stating that “americans are clueless about their credit”. Because I recently took the time to understand my credit report, I thought I’d share with you what I learned. A “FICO” score stands for Fair Isaac Corporation who developed software to determine the “score” using a complex mathematical formula. FICO score is a number between 300 and 850 produced by the “BIG 3″ credit bureaus… Equifax, Experian, Trans Union. So how is your FICO score determined?
Payment History – 35%
Outstanding Debt – 30%
Length of Credit History – 15%
New Credit – 10%
Types of Credit Used – 10%
Very often when a client of mine talks with a lender they are surprised to find errors on their credit report. It’s a good idea to take the time to check and monitor your credit report because of this. Remember to watch out for companies that claim to clean up your credit for an upfront fee. According to the Fair Trade Commission, no one can remove accurate negative information from your credit report – it’s illegal. The only website to use to check your credit report is www.annualcreditreport.com.
Credit Score of 500 OK with Wells Fargo
Wells Fargo, as of January 15, has lowered their minimum credit score requirement to 500 for FHA loans. This is great news! More borrowers mean more buyers to get our market back on track. Borrowers with credit scores of 500 – 579 can obtain financing with 10% down. Unlike traditional FHA loans, these funds are not allowed to be gifted or otherwise assisted. Those who have scores between 580 and 599 have the same down payment assistance rules but are approved with only 5% down.
Myths About Real Estate Appraisals
Appraisals have been the topic of much discussion as of late so I thought I’d post this article I ran across. Myself and many of my fellow realtors have been rather mystified by the results of an appraisal or two in the last couple of years. Many people believe appraisals are performed to protect the buyer from paying too much for the property, in actuality it’s all about protecting the lender and the lenders investment. After all, the bank does not want to own over inflated real estate…