Hilton Head Real Estate Loans and The Buyer’s Advantage
Today, some buyers are concerned about getting a loan and that concern may be appropriate. There’s no question that the rules of lending have changed. The jazzy lending products that formerly assisted marginally qualified buyers are no longer available. Still, buyers with credit scores of 680 or better shouldn’t have any trouble getting an attractive loan and Hilton Head lenders are ready to compete for your loan business. If you are a qualified buyer, you will have great opportunities and a competitive advantage in the marketplace. Some reasons why are:
- Interest rates are very good today.
- You will get the best rates and terms that the banks have to offer.
- Tighter lending means fewer qualified buyers to bid against you for the real estate you want.
- Today’s market has some low prices and eager sellers ready to take an offer.
- Inventories are high and your selection is excellent.
Buyers with lower credit scores should not despair. You can still qualify for most mortgages - but not at the leveraged and easy terms that we saw a few years ago. Qualifying may mean having to put more money down and provide greater documenation. It should be worth it because of the advantages of being a buyer in today’s market.
Sperry Kaler is a local lenderof with Ameris Bank. Here are his comments about what buyers can expect today:
“In general, the state of the mortgage market for ‘non-exotic’ traditional types of loans is good. Funds for residential real estate purchases are still readily available from your local bank (such as Ameris Bank). Interest rates are at historically low levels and almost a three-year low coming off the lowest low that occurred in the summer of 2003 during the refinance boom100% financing is still available but not without documentation, especially for second homes or investment properties. If you are self-employed, full documentation (verifiable income and assets) and even stated income loans are available.
The down payment that is required is determined by type of loan and the type of occupancy. Conventional loans are $417,000 or less and jumbo loans are more than $417,000. The three types of occupancy are primary residences, second homes and investment properties, each with increasingly more down payment required.
The following examples are illustrative of today’s market. They assume credit scores above 680-700 and full documentation:
Primary Residence Purchase – 5% down
Second Home Purchase - 5% down
Investment Property Purchase- 10% down
Factors that could raise down payment requirements by 5-20% could be loans that are stated rather than verified, income and asset loans, ARMs, interest-only loans and loans for condos rather than single family residences. Check with your mortgage professional for details".
If you would like to discuss loan products and prequalify at no obligation withAmeris Bank, contact Sperry Kaler at sperry.kaler@amerisbank.com or call him at 843-301-1325.
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Richard Kadesch, Owner and Broker-in-Charge The Gated Community Specialist ® Go Gated Realty ® Hilton Head Island, South Carolina Rich@rkrealty.com www.GoGated.com 1-800-333-5025 Read Some of My Clients’ Success Stories |
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