There are many options for a mortgage for purchasing Clay real estate. One option that is making a comeback these days is putting $0 down. Some people may remember how these types of loans were a big problem before the recession when lenders were very loose with their approvals and lending amounts. In the days before the recession, $0 down loans made up 12.7 percent of loans across the country. Lending practices tightened up during the housing crisis and now they are showing signs of letting up again. Home values are continuing to rise and the economy is strong, which makes lending standards a little less stringent.
Research Your Mortgage Options When Purchasing a Clay Home
This means that it is easier to get into a home. However buyers must understand that these types of loans come with a high interest rate, which means a high monthly mortgage payment. Today, $0 down loans are making up about 3.5 percent of loans across the country and do work really well for some people who are wanting to purchase Clay real estate. Some people can see that paying high rents are not worth it when they can get into a house for the same amount. If they can make the monthly payment but do not have very much money saved up for a down payment, this could be a great option.
Experts are agreeing that the $0 down programs are much safer today than they were in the early 2000’s. The most popular forms of these loans are for people who served in the military through the Veterans Affairs and those looking for rural homes through the U.S. Department of Agriculture. Buyers must beware that if a home’s value drops, they may end up owing more than the Clay home is worth. This could turn into foreclosure if something like a job loss or major home repair comes up. Buying a home is never something to be taken lightly. Educate yourself on the types of mortgages available to you and make the best decision for your circumstances.
Feel free to get in touch if you want to discuss different types of mortgages that might work for you.