Anyone who has been looking for a new home during COVID, knows that the real estate market across the nation is still super red hot as we head into the typical busy summer months. If you have been following my blogs, you know that I work hard and follow the local market trend, in order to help my clients to right decision.

Here is a historical graph of the average fixed interest rates, that perhaps is the main vehicle that drive the average price for homes up, and therefore the decline in housing supply. When the market crashed in 2008-2010, there were many alternative loan programs available, including: option ARMs, 80/10/10, etc. Are we heading down the same path?

In recent months, I am seeing more "alternative doc" loan program being introduce. Is this the same precursors we saw in 2008??? You really have to fully understand all the current loan programs to see that there is a major difference between what we see today vs the option ARMs and some of the alternative loans offered over 10yrs ago! There are really no lenders that would offers buyers to purchase homes with little or no down payment, except for the few Government-back loans.

Most buyer/borrower would need to have enough of a down payment 20%, good income, good credit score to qualify for the lowest interest rates available! But that does not mean that other buyers that may be business owners, independent contractors cannot take advantage of the 40-yrs low interest rates.

Contact me, I will be more than happy to provide you with information to empower you!!! When the market is competitive, you have to prepare even more to the best buyer that it would be hard for sellers to refuse!

Got to know your options to make informed decision...

NICK PHAM
Real Estate & Mortgage Broker Since 2001
DRE: 01365281 | NMLS: 242768
408.425.5304 | WWW.NICKPHAM.COM