The housing market and the VA loan rates offered through NHL lending are on the rise!
New home sales jumped in late fall and early winter of last year, and purchase contracts on existing homes also went up over the summer; including VA loans. In addition to this, forecasts from advisors show that home buying will continue to keep rising throughout 2015 and well into 2016. House values also continue to increase and our improving economy indicates that we are moving away from an investor-driven market to one where individual households are buying home properties to live in with their families.
Most advisors and investors were the first people to notice the decrease in housing prices. When investors saw the decreasing costs, they started purchasing residences in order to make money by renting these homes out. Once they were done with their rental unit, they knew that they could sell the home and earn a profit. However, these days are behind us and ordinary households are back in the market now. This is great news for prospective homeowners since having fewer investor purchasers to compete against when close a deal will make it easier for them to buy a home for a residence. As a matter of fact, investors are behind just twelve percent of all home purchases, which is the lowest level of investor involvement that has been seen in residential real estate in the last five or so years.
With this said, now is the time to talk to a lender at NHL lending to see if you can qualify for a home loan. With the current VA loan rates in Jacksonville being at an all time low, now it the best time to purchase your own home.
How will the VA loan rates affect you?
Recently, the VA loan rates remained below where they were twelve months ago. However, the Federal Reserve has recently discontinued the monthly practice of buying bonds to keep interest rates low. The federal demand for these securities has reduced the yield bonds that are needed to pay investors. As a result of this, the VA loan rates have stayed near record lows. However, an improving U.S. economy is causing the federal government to begin retracing its steps in an effort to boost growth.
In fact, economic expansion is becoming hearty enough so that it can support long-term benefits without any type of assistance from the Federal Reserve. This healthy growth in the economy is encouraging companies to hire more people which in turn are encouraging consumers to spend. Amazingly enough, according to a news source, the output during the second and third quarters of 2015 were the best six months in over a decade that the U.S. economy has seen. Better yet, year-end holiday spending was up tremendously in December due to the fact that consumer confidence measures have just hit their highest level in seven years.
The outlook for 2016 is even better. The economy is moving in the right direction and jobs and wages are improving and growing. For this reason, companies and households are ready to spend their hard earned money in order to give themselves a brighter future. For businesses, this currently economy means that by investing in buildings and equipment, it will let them grow and produce more efficiently. On the other hand, consumers are finding that the increased take-home pay that they are receiving and the attractive borrowing rates make it easier to purchase a home that will improve their daily life and living situation, especially when it comes to getting a VA home loan through NHL lending.
Are there fees associated with VA loans through NHL lending in Jacksonville?
Usually, all Veterans that are using the VA Home Loan Guaranty benefit must pay a funding fee. This will reduce the loan’s cost to taxpayers considering that a VA loan requires no down payment and has no monthly mortgage insurance that must be paid. The funding fee will be a percentage of the loan amount which varies based on the type of loan and your military category, if you are a first-time or subsequent loan user, and whether you make a down payment. Keep in mind that you will have the option to finance the VA funding fee or pay it in cash. However, with either option that you choose, the funding fee must be paid at closing time. There are certain times that you will not have to pay the funding fee which include:
• Being a Veteran receiving VA compensation for a service-connected disability
• Being a Veteran who would be entitled to receive compensation for a service-connected disability if you did not receive retirement or active duty pay
• Being a surviving spouse of a Veteran who died in service or from a service-connected disability
If you are still unsure of whether or not you could qualify for a VA home loan in Jacksonville, you can call and schedule an appointment with our one of our lenders today!