Why Housing Demand is Soaring
NAR recently reported that home sales in July soared by 25% across the country while the supply of homes for sale was the fewest on record and NAR has been keeping track for five decades. Why are sales jumping? Dr. Yun said, "The buyers are coming in because of the low interest rates-that's the #1 reason." A secondary factor driving demand is the abundance of people working from home who need more space to work and more space for their kids to attend school.
I believe millions of people will continue to work from home as employees like working from home as it eliminates their time-consuming stressful commute and employers like it as it saves them money on office rent. My next question is can I get a strong enough heater to work outside on my patio this fall?
FHA issued new rules for us as mortgage lenders last week on the impact of a forbearance on their credit worthiness to get a new FHA loan. We also have to consider the borrower's payment history on a home equity loan or line of credit. Thus, if they had a Heloc that was not in forbearance and they missed payments we will probably not be able to approve their loan.
- A borrower can get a new FHA loan right away if they were in forbearance and still made their mortgage payments on time and their forbearance plan is terminated.
- For purchase loans and no cash out refinances the borrower must have completed the forbearance plan and made 3 consecutive payments.
- For cash out refinances the borrower must have completed forbearance made 12 consecutive payments.
- On streamline refinances FHA requires either 3 or 6 months of consecutive payments.