The Federal Reserve decided to gradually increase interest rates at the recent December meeting. Increased interest rates cause concerns to consumers with challenged credit who are fearful they will be shut out of the housing market. We are reminding our clients with challenged credit that there is still plenty of opportunity to purchase a home for their families.
Although with interest rates gradually increasing to a range of 0.25% to 0.50%, interest rates are still at historic lows. Even with the recent increase, interest rates are still at the lowest point since the late 1950’s. This means that homes are still very affordable and will remain that way for the near term.
Lower interest rates increase a consumer’s purchasing power. Low interest rates allows consumer to afford a larger purchase price while maintaining an affordable monthly mortgage payment. Many of our bankruptcy and divorce clients are looking for a “fresh start.” For many, this is an opportunity to start a new chapter in their lives by purchasing a new home.
Many opportunities remain available to help consumers with challenged credit purchase a house. Many of our clients are not aware of the State and Federal programs that are designed to assist with home purchases. There are programs that offer federally insured loans through agencies like the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and the United States Department of Agriculture (USDA). Each federal agency offers low interest rates with modest down payment requirements (sometimes even none through the USDA) for people that have less than perfect credit.
There are many agencies here in Texas and the Houston area that offer down payment assistance as well. Many of our credit challenged clients are not aware of these programs. We tell our clients all the time, even if you think you do not have enough money saved up for a down payment, you might be surprised at the help available. Down payment assistance can be substantial! It literally can be the difference between renting an apartment or buying a home for your family.
The Southeast Texas Housing Finance Corp (www.sethfc.com) offers 3% to 5% down payment assistance and access to mortgage credits that reduce income taxes. Lower income consumers may be eligible for down payment assistance up to $23,800.00 through the Harris County Down Payment Assistance Program (www.hrc.hctx.net/dap.htm). There are other towns in Harris County and the surrounding area that offer further incentives to purchase a home in their communities. Plus, new home builders may offer incentives to consumers looking to purchase a new home from those companies.
Even with rising interest rates, it is historically still a good time to purchase a home. Many federal agencies will insure home loans for consumers with less than perfect credit. A consumer qualifying for a generous down payment assistance program offered by various state and local agencies can still turn the dream of home ownership into reality.
The law firm of Busby & Associates goes extra lengths to try and help our clients and our potential clients. This is why we offer information about Buying a House with Bad Credit. We are trying to help people. How many law firms can say that? If you have debt and need help; we are here for you.