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As housing prices rise, home buyers can benefit by taking advantage of HLIB's varied offerings

Posted on Thursday, June 20, 2013 at 9:57:39 AM

A recent report released by Fannie Mae shows that more than half of Americans expect home prices to continue to rise throughout the coming 12 months. And, as housing conditions continue to improve nationwide, consumers may be feeling more confident in their abilities to afford a property.

With heightened sale activity, typically comes an uptick in applications for residential lending. However, there are many different financing options consumers will have to choose from.

"Low down payment and renovation loans benefit first time home buyers most," said Patrick Deady, vice president of Home Loan Investment Bank's residential mortgage division. "The greatest barrier to homeownership has always been the ability of the buyer to obtain the funds for down payment.  First time homebuyer programs that minimize down payments help the most." 

Deady said some of the most popular mortgage products are also the ones which afford borrowers financial flexibility and federal programs that offer individuals the opportunity to make low down payments.

"The most common example of low down payment programs are FHA and VA," Deady added. "FHA allows for a 3.5 percent down payment where all of the funds can come as a gift from a family member. VA allows for a zero down payment option for qualifying veterans. There are also state housing agency programs in individual states that are focused on making home ownership attainable to greater percentage of the community. Many state agencies sponsor no or little money down programs."

As the spring home buying season wraps up, he said he is expecting to see just as much activity this summer, with the possible origination of many loans used for enhancing properties.

"By far the most popular home improvement product at HLIB is the FHA Streamline 203k program," Deady continued. "The program allows for up to $35,000 in renovation and improvements and is the perfect solution for the home that requires some attention due to deferred maintenance as well as some updating."