First-Time Home Buyers are finding it easer to obtain a mortgage now.
"It's easier than one year or five years ago," said VP of Capital Partners Mortgage, an affiliate of the Keyes Company, when referring to how much easier it is to obtain mortgages. Rates have now changed, before they usually required a 20% down payment, but now could be as low as 3% down.
"Some loans only had a fixed rate for two years, it was predatory; people were set up to fail." said Garcia. Both mortgage companies, Fannie Mae and Freddie Mac offer loans starting with a low 3%, but are limited to $424,100 maximum. However, what is different is that federally backed loans have began to ease up on some of the requirements, acknowledging that many first-time buyers may have high student loan debt.
While loans and mortgages may help, the other issue that is the amount of housing that is able to be afforded by these first-time buyers. Roughly, there is only 16% of homes in South Florida that are under $180,000. Having mortgages that are easier to be eligible for, has allowed for first-time buyers to really get into the market.
Charlie Weiss, a mortgage broker in Boca Raton stated that nearly 5 years ago, it was almost impossible to get a mortgage with less than 35% down. "Now many companies are getting into the private mortgage business." said Weiss. Believing that this will make it easier for buyers to secure the necessary loan coverage.