Since 2007, the national housing market has slowly made a recovery.
Today, it is fair to say that the market has recovered. For the first time in more than a decade, there are huge advantages to purchasing a home both with respect to equity and market value vs. mortgage rates.
However, some mortgage brokers in the Kansas City area have been slow to adopt policies and rates to reflect the growing confidence of lenders on the national level. Mortgage brokers in Kansas City need to adapt to the market to provide potential home buyers with the advantages of buying in today’s market.
Federal Guaranteed-Loan Programs Available for Kansas City Lenders
There are a large number of federal programs Kansas City mortgage lenders can take advantage of and, thereby, pass savings on to borrowers. Three examples of federally funded financing programs for home buyers Kansas City lenders can pursue are the Federal Housing Authority’s Home Buyer Lending Program, the USDA’s Single-Family Housing Loan Program, and the Department of Veterans’ Affairs Home Loan Program.
The Federal Housing Authority (FHA) has a variety of programs. And, the most appealing component of most of the programs is that homebuyers can put down as little as 3.5 percent of the principal of the mortgage to secure the loan.
The USDA’s programs are making it possible for lenders to loan money to homebuyers while having 90 percent of the loan amount guaranteed by the federal government. That means if a home buyer pays off a mere 10 percent of the mortgage, it is impossible for a lending institution to take a loss.
Similarly, the Department of Veterans’ Affairs will also guarantee a portion of the loan lending institutions provide for homebuyers who are ex-military.
National Mortgage Rates Steadily Falling
While some mortgage brokers in Kansas City have been slow to adjust their rates to meet the national average, in the rest of the Union, mortgage rates are more enticing than they have been since the housing crisis of 2007.
A good indicator or the strength of the economy is the interest rates of treasury bonds. Since late 2018, the yields on Treasury bonds have been, “soaring.”
Likewise, an indication of just how buyer-friendly the housing market is, the national average for mortgage rates is almost equal treasury bond yields.
Right now is the time to buy a home in Kansas City. Unfortunately, not all of the local lenders in Kansas City have recognized the opportunity.