You may have heard that we are entering into a Seller’s Market – meaning that Buyers no longer have the advantage in many neighborhoods they want to buy a home in. If you believe the TV commentators, gone are the days of offering 15% below asking price for a home in Raleigh, and actually getting a HUGE steal.
Many buyers in NC are getting a double “wammy”this summer as they go to look for homes. Not only are home prices going up, but mortgage interest rates have gone through the roof at the exact same time. In the last few weeks mortgage rates increased by about 1.5%. Every 1% increase in mortgage rates reduces borrowers buying power by over 10%.
For example lets say you were pre-approved for $400,000 when 30 year fixed rates where 3.5% . Now mortgage interest rates suddenly go to about 4.5% and your “buying power” was just reduced to $360,000. Today, for a Conventional Loan – we are higher than 4.5% – and it appears we could be at 5% by the end of the month.
As rates go up, the purchase power will diminish – the debt to income ratios will be higher, as we factor in higher mortgage payments. That can make or break a deal if it now exceeds the limit set by that program. As I’m writing this – I’m thinking NC Home buyers actually got a TRIPLE “Wammy” because right about the time rates went up, and Sellers started expecting more for their houses – Underwriting guidelines got tighter. Oh My!
NC First Time Home Buyer Program Offers Below Market Rates
Even if you qualify for a little less because rates have gone up, talk to us about our other program options! We offer the NCHFA Program, and you might qualify you for a below market mortgage interest rate with this program – we also have Tax Credits that we can use in conjunction
Many of the folks we are talking to are First Time Home Buyers – if you are a First time home buyer, you might be eligible for a special program offered through the NC Affordable Housing NCHFA Agency. Here are the top requirements to qualify for the program:
- you are buying a new or existing stick built home (no manufactured housing)
- you are a first-time or move-up buyer that has not owned a primary residence in 36 months or more
- you buy a home in North Carolina and occupy it within 60 days of closing
- your annual income does not exceed $85,000, meaning if you have another person on the loan, the combined income can not exceed $85000
- you are applying for a FHA, USDA or VA loan through a Participating Lender and meet the sales price limits of the loan type
- you are a legal resident of the United States, and
- your credit score is 640 or higher.
For more information about Qualifying for a mortgage in NC, or for more information on NC First Time Home Buyer Program Offers Below Market Rates, Call Steve and Eleanor Thorne, 919 649 5058 – we have the best mortgage interest rates, and we will take the time to help you come up with a game plan so that you can buy your next house!