Pat Kuether, president of Sibcy Cline Mortgage Services, was interviewed by the Business Courier for the November 13, 2015 issue. The question-and-answer article addressed the current, brisk real estate market and new mortgage regulations. The reporter also learned about Pat’s personal interests that include attending Bengals’ games and travel.
Pat has been with Sibcy Cline Mortgage Services for 32 years and has been involved in the finance profession for 38 years.
With interest rates hovering around historic lows, the main barrier to entry into the homeownership market is the cost of making a down payment. While saving for a down payment is still important, there are many sources of assistance that otherwise qualified homebuyers often do not consider. Knowing about these sources may help some buyers to enter the market earlier than they expected or purchase a home that they wouldn’t otherwise be able to afford.
Government Programs & Grants
Many prospective homeowners know that government programs exist, but either do not know about specific programs or grants that apply to them or assume that they are too affluent to qualify. In reality, applicants making as much as 140 percent of the median area income may qualify for government assistance. Additionally, there are specific programs that buyers may qualify for regardless of income.
Buyers who are new to the market or who have not owned a home in the previous three years often qualify for down payment assistance as a result of programs that are designed to encourage homeownership. Military veterans, service members on active duty, reserve personnel and their widows or widowers qualify for VA loans, which come with favorable terms including the possibility of a low down payment. Police, first responders and teachers may also qualify for government assistance through their work.
Interest-Free Loans
Another option may be to take out an interest-free loan to cover the down payment. These loans may come in the form of a secondary mortgage that only requires repayment after the original is paid off or the house is sold or some other, similar structure. Because homeowners who take out these loans will have no initial equity in their homes, this option is generally best for buyers who plan to own the property for many years.
There are a number of potential sources of interest-free loans, but a good place to start is your local government. Many cities offer interest-free loans to help area residents defray the cost of purchasing their first home.
Independent Options
If you have good credit, but you don’t have access to government programs, grants or interest-free loans, you may qualify for a down payment loan through a traditional lender. These loans are for well-qualified borrowers who do not have the money to make a down payment but who still represent attractive customers. Generally, these loans will have interest rates, meaning that they are not as attractive as other options. However, if these options aren’t available, traditional lenders may be happy to fill the gap.
Generous family members or foundations may also help buyers to clear the down payment hurdle. Many FHA programs allow up to 2 percent of a down payment to come from external funds. Properties that have been previously foreclosed upon by Fannie Mae may allow the entire down payment to be funded by a gift, grant or loan.
Making that first down payment is a major step in most Americans’ lives. It may be difficult, but most homeowners would agree that it is well worth it.
Need help with your mortgage? Contact Sibcy Cline Mortgage Services!
Did you know all-cash sales make up a large part of home sales? For the first quarter 2014 43% of home sales were all-cash nationally. (Prior to the housing crisis, all-cash sales made up 25% of sales.)
February 2014 All-Cash Home Sales By State
Why All Cash?
The demand for homes is high and the supply is low. Cash is a way to be competitive when making an offer on a home.
Cash Deals are Not Just Investors
Institutional investors purchased many distressed properties in the last few years with all-cash deals, but these type of purchases have slowed to just 5.6% of all US residential sales for the first quarter of 2014 (as compared to 7% one year ago.)
Want to read more about all-cash sales? Go here.
Don’t Have Cash for Your Home Purchase?
Do not worry – this blogger would not have the cash, either!
If you are looking to purchase a home and will need a mortgage, getting pre-approved will work in your favor when making an offer on a home. Contact Sibcy Cline Mortgage Services to become pre-approved.
Waiting on mortgage rates? Some people are now waiting for rates to go back down before taking action to buy a home.
Although no one knows the future of what rates will be, experts are forecasting rates to go even higher. And with higher rates, the cost of buying a home also rises.
See current mortgage rates here.
Now is a great time to buy a home with your Sibcy Cline Agent.
Graphic courtesy of The KCM Blog.
Sibcy Cline Mortgage Services was ranked by the Business Courier among the Top 25 “Largest Tri-State Residential Mortgage Lenders” in the November 11, 2011 issue. Ranked at #13, the Courier reported $162.6 million in loans closed (from September 1, 2011 – August 31, 2011) with 1,079 loans.
Sibcy Cline Mortgage Services was incorporated in 1983 and offers a variety of loan programs to meet the needs of home buyers as well as the refinancing of mortgage loans.
The company offers competitive interest rates and quality service for a smooth loan process. They offer automated laptop pre-approval systems along with in-house underwriting, processing and closing departments.
Sibcy Cline Mortgage Services represents many national and local lenders:
Sibcy Cline Mortgage Services
Long-term mortgage rates have fallen the last several months, prompting home buyers and existing home owners to take advantage of these attractive rates. Across the nation there has been a spike of mortgage applications for home purchases and refinances.
Sibcy Cline Mortgage Services has seen an increase in applications for the past several months as well. Says Pat Kuether, President of Sibcy Cline Mortgage Services, “Mortgage rates have continued to decline over the past two months making homes more affordable to stimulate buyers. Conventional financing represented about 60% of all loan applications, while FHA represented about 40% of all our loan applications.”
Sibcy Cline Blog 