by Ron Kendle
If you’d like to get a mortgage to buy a house in Dublin, Westerville, New Albany, or anywhere across Columbus, Ohio the federal government may soon make it easier for you to do so, even if you have a damaged credit score or not quite enough money to afford the traditional down payment.
In late October 2014, the head of the federal agency that oversees mortgage behemoths Fannie Mae and Freddie Mac stated that he planned to soon introduce initiatives designed to force mortgage companies in Ohio and across the country to offer home loans to a wider number of people.
Read More About This in the Chicago Tribune
All of us on the Kendle Team love this idea and are dedicated to working with our clients to help you understand what options you have for mortgages and the best properties available for you to buy a house in Licking, Franklin, Delaware, and Union counties. Contact us for advice.
The bottom line is that the recession of 2008 forced many Ohio mortgage companies to enforce stricter guidelines on who they would provide a home loan in Columbus to. This new effort is designed to loosen those standards.
Here are some of the changes that may come into effect:
Down Payments
Saving enough money to buy a house in Westerville or Dublin can be difficult, especially for first time home buyers. While most banks and mortgage companies currently require at least a 5% downpayment, the new plan may force them to reduce that number to as little as 3% for a home mortgage in Columbus, Ohio. It’s possible that this lower rate may be limited to first time home buyers
If you’re a first time home buyer, our specialists on the Kendle Team can help you understand your options and how to best prepare to buy a house. Contact us for a no-obligation chat.
Credit Scores
People with moderate to low-incomes and slightly damaged credit may soon have a better chance of securing home loans in Columbus, Ohio. After the Great Recession, banks and mortgage companies drastically increased the necessary credit score to get a loan for a house. Today, the typical credit score necessary for a mortgage in Central Ohio averages around 745 compared to about 710 in the early 2000’s. It’s thought that the new proposals make make the minimum credit score necessary for a home loan to once again hover around 700 or 710.
Interest Rates
The head of the federal agency that oversees Fannie Mae and Freddie Mac is new to the job and he is the one who is proposing these changes. Essentially, his overall goal is to make it easier for more Ohioans and all Americans to get a loan for a house. Lower interest rates are always an important part of making that possible and while the head of the agency hasn’t specifically outlined plans to make interest rates on a home mortgage in Columbus lower, it’s likely that any initiative will do just that.
Overall, this entire proposal is great news for anyone hoping or planning to buy a house in Central Ohio.
If you’ve been unsure as to whether you may be able to qualify for a home loan to buy a house from Westerville to New Albany to Dublin, check in with us on the Kendle Team and let’s get you ready for just such a possibility!
If you’d like more information on the Westerville, Dublin, or New Albany housing market or simply advice on buying or selling a house here, please feel free to contact me – Ron Kendle – at 614-325-6295 or Ron@KendleTeam.com.
Ron Kendle & The Kendle Team are part of the ReMax Consultant Group.