Mortgages keep getting easier to get
Mortgage credit has become more available since 2012 according to the Mortgage Bankers Association (MBA). The MBA’s Mortgage Credit Availability index went up 0.5 percent in April 2015 to 122.0 points.
The Mortgage Availability Index is benchmarked to how available mortgages were in March 2012, so scores above 100 mean that mortgages are more available than they were at that time, and a positive change of score in April 2015 means that mortgages are more available than in the preceding month.
The biggest expansion in mortgage availability was due to the expansion of government insured mortgage programs — especially the FHA’s 203K program. The FHA 203K lets qualified borrowers add the cost of any voluntary or necessary renovations to a home to their mortgage balance at the time of purchase with only one mortgage and one loan closing. A first-time homebuyer could use the program to purchase an existing home that may have been outside their reach before.
Potential homebuyers will find conforming no point 30-year fixed mortgage rates average 3.875 percent. Meanwhile, 15-year rates are closer to 3.125 percent. Contact ARAMCO if you have any questions about the FHA 203K program.
For more information on a home purchase, refinance, or a reverse mortgage, visit our website at Aramco.Biz or call me at (877) 700-0942. This is Mehran Aram with today's ARAMCO Report.