.png)
Specialty Loan Programs
Speciality Loan Programs are unique mortgage products that are designed to meet specific needs of borrowers or situations that aren't covered by conventional loan options. These programs offer benefits tailored to particular types of borrowers and may provide more flexible terms, lower down payment requirements and/or other benefits that make homeownership more accessible or affordable for specific groups of people.
Speciality Loan Program Offerings:
Home Ready® Program
Fannie Mae’s alternative to an FHA loan.
Allows for down payments as low as 3% of the purchase price.
Offers lower MI coverage requirements compared to standard conventional loans, which can result in lower monthly payments.
Home Possible AdvantageSM
Allows for a down payment as low as 3% of the purchase price, making it easier for borrowers who have limited savings to buy a home.
Flexible income qualification guidelines.
Offers lower MI coverage requirements compared to standard conventional loans, which can result in lower monthly payments.
These minimum requirements apply to some of our loan options. There are many other alternatives and requirements available as well.
August Mortgage Rates
In August 2024, mortgage rates experienced a notable decline compared to previous months. According to Bankrate, on August 30th, we ended the month with an average of 6.38% for a 30-year fixed, 5.76% for a 15-year fixed rate, and 6.09% for a 5/1 adjustable mortgage rate. With the heavily anticipated Fed cuts in September, there is still room for mortgage rates to fall even more.
One thing to remember is individual rates will vary. Rates also depend on your credit score, loan amount and more. Make sure to stay on top of mortgage rates so you can get the best deal for your dream home!
What Does This Mean For You?
As Homebuyers:
Increased Affordability: The drop in mortgage rates over the past few months means that homebuyers now have more purchasing power (Nerd Wallet).
Improved Loan Qualification: Lower rates may help more buyers qualify for loans. Since mortgage rates affect monthly payments, lower rates reduce the DTI ratio, making it easier for more buyers to meet lender requirements.
Hesitancy to Buy: You might expect lower mortgage rates to stimulate home sales, but potential home buyers "remain reluctant to make the jump," said Mark Palim.
As Homesellers:
Increase in Buyer Interest: Sellers might see an increase in interest as lower mortgage rates make home purchases more attractive. Buyers who were previously priced out of the market may now reconsider purchasing, potentially leading to more offers.
Market Timing: Sellers who have been waiting for more favorable conditions may find that the current rates create a more balanced market. However, they should also be aware that rates are expected to potentially decline further, which could influence whether they choose to sell now or wait until after the Fed’s meeting mid September.
Overall, the mortgage rates in August create a mixed but optimistic outlook for both buyers and sellers. Buyers benefit from improved affordability, while sellers might see increased interest in buyers but must remain mindful of ongoing affordability challenges.
Resource Roundup: Your One Stop Shop