Word on the street is that home mortgages are hard to get and that banks aren’t lending. Certainly lending criteria has gotten more strict, but banks are lending.
In Sparks/Spanish Springs since January 1, 2009 here is how buyers purchased their homes:
- Cash 17.04%
- Conventional Loans 34.92%
- FHA 41.99%
- VA 5.19%
- Miscellaneous .41%
- Owner Financing .41
As you can see the majority of buyers are using FHA financing as this type of loan only requires 3.5% down payment. Many buyers are also still using conventional financing if they have larger amounts of down payment funds and want to avoid private mortgage insurance.
The number of cash buyers in the market is on the rise, up from 10.3% to 17.04% over the same time last year. This could indicate that there are investors getting back into the market because of the lower market prices.
VA financing is really the only 100% financing that is still available to eligible buyers at this time.
And as you can see it is very rare that owners are financing the sale of a property.
If you have questions about whether or not you qualify for a mortgage you can contact me and I can refer you to several local lenders who would be happy to help.