After the housing bubble burst and many banks nearly went into bankruptcy the mortgage requirements were very strict and it was very hard especially for first-time homebuyers to qualify for a loan. At that time the borrowers had a lot of hoops to jump through and could hardly get a loan.
The first situation was as bad as the second one. However, both sides – borrower and lender – have learned their lesson. The borrower knows that he/she has to show a solid financial status before a lender is willing to lend him/her the necessary money.
On the lender side the mortgage requirements are less restrictive and for first-time homebuyers the 3% down payment in a real estate purchase is back again. With such a high mortgage amount the borrower has to pay insurance premium for the loan amount that exceeds 80% of the purchase price. During the housing crisis this insurance premium was 1.35% and is now down to 0.85% and that is a huge advantage for first-time homebuyers.
These new financing options will certainly attract new buyers who had to struggle in the past with the higher down payment and qualification requirements.
To get more details how to get a loan you can contact us at email@example.com