30 12, 2021

What’s in Store for the Home Market in 2022?

2022-06-01T13:51:14+00:00December 30th, 2021|Buying a home|

Thanks in part to record-low interest rates, 2021 was a challenging year for would-be homebuyers. Lenders providing cheap money for home purchases naturally led to a real estate gold rush, creating a cutthroat seller’s market. With little available inventory, average home prices increased dramatically, and many buyers were simply priced out.

Will these unprecedented trends continue into 2022? Thing could be turning around for prospective homebuyers. Let’s examine some key market factors to track in the new year.

Rising Mortgage Rates

It might come as some relief to know that interest rates— the largest contributing factor to skyrocketing demand and bloated home prices—are expected to increase in 2022. Though this means new borrowers can expect to pay more over the life of their loan, a rate increase could be just the thing to cool the current white-hot housing market and decrease the competition for inventory.

Current forecasts see interest rates ranging from about 3.5% to as high as 4.25% by the end of 2022.

Price Stability

Despite rising interest rates, home values are not expected to decrease in 2022. In fact, overall home values are expected to increase by as much as 5% in the coming year. Potential homebuyers should act quickly in securing a mortgage, or face higher payments compounded by higher interest and increased home value in the future.

More Homes Available

Signs of a cooling market could lead to an increase in available home inventory as holdout sellers seek to move property before the end of the boom. As with any market, less scarcity will likely translate to improved outcomes for buyers.

A Return to a Buyer’s Market?

Thanks to the conditions outlined above, 2022 has the potential to be a much better year for homebuyers. Lenders are hopeful that market conditions will stabilize following the unprecedented boom of recent […]

16 12, 2021

Special Mortgage Rates for Teachers

2021-12-16T13:59:11+00:00December 16th, 2021|Loan Products|

Teachers are responsible for shaping the future through the education and encouragement they provide to our young people. All of us can probably remember a time when a teacher made an impact in our lives. For everything they do, educators deserve our unending thanks—not to mention a special rate on their home loan!

Teachers are among the public servants who can qualify for reduced mortgage rates and other perks through the Ohio Housing Finance Agency’s (OHFA) Ohio Heroes program. To qualify for a discounted rate through this program, potential borrowers must meet the following criteria:

  • Must meet income and purchase price limits.
  • Must meet debt to income ratios for your loan type.
  • Must meet credit score requirements.
    • Conventional, USDA, VA and FHA 203(k) Loans: 640 credit score or higher
    • FHA Loans (Non-203[k]): 660 credit score or higher
  • Must work in one of the following careers:
    • Veterans, active-duty military members or members of reserve components (including surviving spouses)
    • Police officers, firefighters, volunteer firefighters, EMTs and paramedics
    • Physicians, nurse practitioners, nurses (RN and LPN) and STNAs
    • Teachers (pre-K through grade 12), administrators and counselors

Homebuyers who choose an Ohio Heroes loan can also qualify for down payment assistance through the program. This assistance is forgiven after seven years of homeownership. Should the purchaser sell or refinance the home within seven years, the full amount of the assistance must be repaid.

Of lenders in the state who take part in this program, First Ohio ranks number two for mortgages issued! If you’re an educator and would like to know more about securing a loan through this program, please contact the mortgage experts at First Ohio Home Finance.