Welcome to Mortgages with Melinda! Today, we're unraveling the complexities of Fannie Mae, Freddie Mac, conventional loans, and FHA loans. Confused about these terms? You're not alone.

Let's start with conventional loans. Think of them like hamburgers — whether it's Burger King, McDonald's, or Wendy's, they're all burgers. Similarly, Fannie Mae and Freddie Mac are both types of conventional loans overseen by the Federal Housing Finance Agency, not the government directly, but with government-guided guidelines.

Now, MLS listings often mention conventional financing, meaning they accept Fannie Mae or Freddie Mac loans. The slight differences lie in how they handle specifics like student loans or condos, details your loan officer can help navigate.

Moving on to FHA loans—they're not just for first-time buyers. FHA stands for Federal Housing Administration, backed by HUD. Unlike conventional loans, FHA loans are insured by the government, offering lower rates and more flexibility, but with specific eligibility criteria tied to government obligations.

Understanding these distinctions helps you choose the right path—whether FHA for lower rates or conventional for different qualifying factors. Stay tuned as we delve deeper into mortgage insights to empower your decisions as a homeowner or future buyer.

Keep up with the latest Florida real estate market news by joining us weekly!

NMLS #1054357 | FL License: #MBR1395

Welcome everyone to this week's Mortgages with Melinda! Today, we're delving into a detailed analysis of how interest rates impact the housing market. As we enter the summer of 2024, interest rates have slightly declined, and there's anticipation they may continue to drop further as indicators of controlled inflation emerge, potentially prompting the Federal Reserve to lower rates

The expectation of lower rates has already spurred a decrease from previous highs in the fall and spring. So, what does this mean for the housing market? Many prospective buyers have been waiting on the sidelines for rates to improve before entering the market. When these buyers return in anticipation of lower rates, combined with the current shortage of housing inventory, we anticipate significant demand surges.

As a result, home values in Florida could rise another 5% to 10% due to this pent-up demand. However, increased demand also means heightened competition among buyers. Negotiating power, such as asking for seller-paid closing costs or favorable terms, may diminish as more buyers compete for limited inventory.

If you're considering buying a home, now may be an opportune time to act. Even with recent modest rate decreases, the market is already seeing increased activity. Once rates potentially drop into the low fives or even lower, activity could intensify further.

Remember, while interest rates are temporary, locking in a home at a price you're comfortable with now can provide long-term benefits. You can always refinance if rates continue to decrease in the future. Don't miss the opportunity to negotiate favorable terms or incentives like seller-paid closing costs while they're still available.

Whether rates go down further or stabilize, securing a home now ensures you're making a sound investment in today's market conditions.

Keep up with the latest Florida real estate market news by joining us weekly!

NMLS #1054357 | FL License: #MBR1395

Welcome to this week's Mortgages with Melinda!

This week, we're diving into strategies for buying a house with minimal out-of-pocket expenses. There's a common misconception that you need a hefty 20% down payment to qualify, whether you're a first-time buyer or seasoned homeowner.

Did you know you can secure an FHA loan with a low down payment, regardless of whether you currently own a home? We're here at The Truth About Lending to guide you through various options that can minimize your upfront costs.

For first-time buyers, there are numerous programs offering grants or zero-interest loans for down payment assistance, and some programs allow a low down payment. Even if you're not a first-time buyer, FHA loans require only 3.5% down, while conventional loans can be secured with as little as 5%. Freddie Mac loans, a type of conventional loan, also offer options that are low down payments.

It's crucial to speak with one of our loan officers who can walk you through every step, discussing all your options. Sellers can also contribute significantly to closing costs—up to 3% or 6% of the sales price—depending on your down payment and chosen program. This negotiation can drastically reduce your upfront expenses.

For example, if you're eyeing a $400,000 property, offering slightly above market value and negotiating for the seller to cover $10,000 in closing costs can effectively lower your cash-to-close amount.

Additionally, we offer various lender credits to further reduce closing costs, though in Florida, high insurance premiums can contribute significantly to these expenses.

Keep up with the latest Florida real estate market news by joining us weekly!

NMLS #1054357 | FL License: #MBR1395