Spring has arrived and with it, there are three glimmers of hope that the sluggish housing recovery may finally be preparing to reach some form of conclusion.
What are these three signs? Real estate expert John Adams has the answers:
- Credit Scoring and medical debts.
- Banks are easing loan qualification guidelines, making it more likely buyers will be approved.
- Banks are reducing credit score requirements and lessening hurdles for FHA, VA and USDA home loan programs.
- This is important because FHA loans offer a low 3.5 percent down payment.
- FHA recently lowered its mortgage insurance premiums (often called PMI) for all 30s
- Private equity firms are entering the market offering long term mortgages to affluent investors who want to buy real estate for rental purposes. And unlike Fannie Mae and Freddie Mac, both of which set arbitrary limits on the number of loans an investor may have, these private equity firms carry no such restrictions.