PHOENIX (AZFamille) — Buying a home these days seems more difficult than ever, with sky-high real estate prices and interest rates around 7%.
Gregg and Gloriela Dubner want to move from New Jersey to Phoenix to be close to their son, Daren, and their parents, Dave and Judi. But finding affordable housing in the Phoenix metro area hasn’t been easy.
“When we look at the monthly rates, the monthly cost of what we’re going to pay each month, I mean, I’m not a spring chicken, the prices are scary,” Gregg Dubner said.
One of the nation’s largest lenders, United Wholesale Mortgage, just launched a new program to help people across the country who can’t afford to buy a home because they can’t afford the down payment. of funds.
This is called a “no down payment mortgage.”
Alex Elezaj, UWM’s chief strategy officer, said the “no down payment mortgage” is a down payment loan that helps buyers purchase a home. They receive money for a deposit, which they must eventually pay back.
“The biggest barrier to homeownership is the down payment,” Elezaj said. “They’re renting an apartment now and can afford to pay, but they can’t come up with the $5,000 to $10,000 to put down for a house. With this program, we’re essentially giving 3%, up to $15,000, to help with consumers’ down payment.
According to Elezaj, the money given to the home buyer for the down payment will be set aside as an interest-free second mortgage that will be repaid when the home is sold, refinanced or paid off.
The program has attracted thousands of buyers since its launch two weeks ago.
It’s also raising concerns among real estate experts, who fear these loans could backfire on buyers if the housing market heads south and they end up underwater, owing more on their home than it’s worth.
Ken Bouthillier, a mortgage advisor at Cross Country Mortgage in Scottsdale, doesn’t think the “no down payment mortgage” is something buyers should be afraid of.
Bouthillier insists that anyone concerned that this type of loan could lead to another housing crisis like in 2008 needs to remember that qualifying for a loan is very different than it was 16 years ago.
“A lot of the problem was programs that weren’t verifying income or assets, and we had a massive stockpile nationally when things went wrong,” Bouthillier said. “Now all the guidelines around income and work history are so strict compared to what they were before that zero down, on the face of it, is really not a problem.
For more details on the No Down Mortgage program and to see if you qualify, visit mortgagematchup.com/
See a spelling or grammar error in our story? Please click here to report it.
Do you have a photo or video of a news report? Send it’s ours here with a brief description.
Copyright 2024 KTVK/KPHO. All rights reserved.
News Source : www.azfamily.com
Gn bussni
