Listing Courtesy of SEA BOVA ASSOCIATES INC.
Rehoboth Beach home buying activity may be going great guns, but for some would-be buyers, credit score woes are still a stubborn obstacle. That’s why we have been keeping an eye on the new pilot project that was announced late last year. This was the one called the "Wealth Building Home Loan." It’s an experiment aimed at opening up home ownership options, particularly for first time home buyers. Bank of America and Citibank were first to sign up for the program, said to “take a fresh approach to affordable mortgage lending.” It sounds like a pretty good idea!
How It Works
The Wealth Building Home Loan is a mortgage that runs for 15 years at a fixed interest rate. Because the term is so short, equity builds rapidly. The payments are more manageable than any reality-grounded Rehoboth Beach mortgage watcher would think because discount points can be used to buy the interest rate down to…well, “zero”! Since no down payment is generally required, home buyers can apply their available cash to purchasing those points. Since that sounds almost too good to be true, we’ve been keeping an eye open for progress reports.
Extra Help for Buyers with Modest Income
Qualifying for the mortgages would emphasize home buyer income rather than credit score. This would be a real godsend to the many people still rebuilding their credit after the economic downturn. Furthermore, interest would be set at three-fourths of a percent lower than the 30-year FHA rate—which makes sense, since shorter terms mean lower lender risk—with additional points to be offered at special bargain prices.
A Game-Changing Approach
The loan program is piloted through The Neighborhood Assistance Corporation of America, which secured underwriting from BofA and Citibank. It’s intended to be "a game changer,” because equity ownership takes place rapidly. Already in the first three years of a WBHL, 77% of the monthly payments pay off the principal, rather than the 68% that goes to interest under a standard 30-year mortgage. The effect is to accumulate a significant ownership stake almost from the word ‘go’—and more ownership equates to better loan performance.
When last checked, the program was in “pilot project” status (still in the initial shakedown phase) while the innovators who came up with the idea figure out how to make the loans widely available. So far, so good, apparently—we’ll keep an eye on developments to see if the program is greenlighted by the two underwriters.
In the meantime, Rehoboth Beach mortgage-seekers have a wide variety of currently available options for taking advantage of the great buys viewable on this morning’s Rehoboth Beach listings. Give me a call for a no-obligation discussion of how you can take advantage of today’s opportunities! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.
When a new buyer first approaches their initial Rehoboth Beach home buying effort, chances are they have only a general idea of what the process involves. Although they are successful people who have arrived at a juncture in their lives and careers where it’s now possible to buy a home of their own, most of the details—and even the terminology—is specific to this single kind of transaction. More than in most other purchases, there are a number of junctures where negotiations determine the outcome.
It’s pretty common to assume that their Rehoboth Beach home buying venture can be wrapped up with a single offer—one that will either be accepted or not. But along the way, from the home loan provider to the title insurer to the seller, other bargaining points frequently appear.
A first Rehoboth Beach home buying venture is sure to run more smoothly if these basics don’t come as a bolt from the blue. Most of these five fundamental bargaining point basics might be guessed at, but anticipating them all will put any first-time buyer in a much better prepared position:
With all these (and there can be more) bargaining points to deal with, a first-time buyer might feel intimidated. That’s where being able to rely on the experience of a veteran Rehoboth Beach real estate agent is such an advantage. It’s not just that you won’t be surprised by steps in the process—you will have access to the approaches and tactics that have led to success in the post. It’s another good reason why a strategic first call will be to my office! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.