Outstanding home-buying benefits offered to veterans
No one has better home-buying advantages than veterans of U.S. military services. When combined with historically low-rate benefits of current mortgages, today's veterans can take advantage of major cost savings.
Simplified qualification requirements are designed for current and past members of our military services.
Among those special benefits is the opportunity to purchase a home with no down payment. The VA Home Mortgage is one of the only home loans available today with no down payment required.
In many cases, veterans can save a significant amount of money with exceptionally low interest rates. And no private mortgage insurance is needed. Also, VA loans can often be expedited with minimal time required to qualify the veteran.
The VA Loan Program provides homeownership opportunities for millions who wouldn't otherwise qualify for conventional financing. The current benefits are especially helpful for first-time buyers.
Much of the above information is from an article carried in Realty Times.
Q. Are homes becoming less affordable in some markets?
A. As prices continue to rise, it's inevitable that homes will become less affordable for many families.
"RealtyTrac, a source for housing data, released its Q2 2016 Home Affordability Index, which shows that 18 percent of U.S. county housing markets were less affordable than their historically normal levels in Q2 2016, up from 5 percent of markets in the previous quarter but down from 20 percent of markets exceeding historically normal home affordability levels a year ago.
"The report analyzed median home prices derived from publicly recorded sales deed data collected by RealtyTrac and average wage data from the U.S. Bureau of Labor Statistics in 417 U.S. counties with a combined population of nearly 210 million.
"The affordability index was based on the percentage of average wages needed to make monthly house payments on a median-priced home with a 30-year fixed rate and a 3 percent down payment - including property taxes and insurance."
Q. Are home sales showing good progress?
A. Definitely. Here is a recent report that documents its progress:
"The REAL Trends Housing Market Report for May 2016 shows that housing sales increased a robust 11.9 percent from the same month a year ago. The year-over-year gain was slightly higher than April 2016 results and nearly back to the record increases recorded in January and February.
"The Northeast once again led the way with a huge 19.5 percent increase over May a year ago.
"The May Housing Market Report shows that an acceleration in year-over-year growth in housing sales is not a one-time occurrence. April and May 2016 were two of the strongest months so far this year," said Steve Murray, editor of the REAL Trends Housing Market Report.
"In fact, except for the March results, the first five months of 2016 have all been among the strongest year-over-year results in the past five years. Additionally, price increases continue to soften as the year progresses" said Murray.
Q. How did the recent downturn of the stock market affect mortgage rates?
A. Here's a report from the National Association of Realtors:
"Ever since Britain's surprising vote to leave the European Union, U.S. homebuyers and homeowners have been reaping an expected benefit - mortgage rates that are quickly dropping. Mortgage rates are now at the lowest average in more than three years, and economists expect them to head even lower.
"This could give U.S. real estate a boost. On June 27, the 30-year fixed-rate mortgage averaged 3.46 percent, near the lowest average since late 2012, it was reported."
Q. What's the latest mortgage rate?
A. On June 30, Freddie Mac released the results of its Primary Mortgage Market Survey, showing average fixed mortgage rates dropping to new 2016 lows in the wake of the Brexit vote. At 3.48 percent, the 30-year fixed-rate mortgage is only 17 basis points from its November 2012 record low of 3.31 percent.
The 30-year fixed-rate mortgage averaged 3.48 percent with an average 0.5 point for the week ending June 30, down from the previous week when it averaged 3.56 percent. A year ago at this time, the 30-year FRM averaged 4.08 percent.
• Email Jim Woodard at storyjim@aol.com.
© 2016, Creators Syndicate