Mortgage News
A wide variety of available mortgage products help enable people to become and remain homeowners by ensuring there is almost always a loan that will meet their unique set of circumstances. Historically, the Federal Housing Administration (FHA) has played a significant role in increasing homeownership by offering loans that require only a low downpayment.
That continues today, with nearly one in five U.S. buyers using an FHA loan to finance a home purchase. In addition to the fact that borrowers can make a downpayment as small as 3.5%, FHA is one of only a few programs to allow the entire downpayment to come from a gift.
FHA loans range from 30- and 15-year fixed rate mortgages to adjustable-rate mortgages (ARMs) and refinance options. In addition, FHA-approved lenders are asked to review a borrower’s complete credit history, not just their credit score and specific events. This means some borrowers with a recent foreclosure, short sale, deed-in-lieu or bankruptcy may be eligible for FHA financing.
Industry Trends
WFS Jumbo rate – 5/5 ARM: 3.125%
Refi Index – (+0.3%)
Purchase Index – (-7.0%)
NAHB Builder Confidence – 60 (even)
Existing Home Sales – 5,460,000 (+14.7%)
New Home Sales – 544,000 (+10.8%)
Pending Home Sales – 106.8 (+0.1%)
Housing Starts – 1,149,000 (-2.5%)
Building Permits – 1,232,000 (-3.9%)
Featured Product
Pentagon Federal Credit Union has added 5/1, 7/1 and 10/1 adjustable-rate mortgages to its arsenal of existing products. These loans are available for primary residences and second homes.
