We recognize that there is a lot of conflicting information and uncertainty about the economy these days. So we want to help you sort out what is fact and what is fiction as it pertains to our market in the Brevard, North Carolina area.
In talking to several lending institutions, the overriding theme is this. Despite what you hear on the news, lending is alive and well here in Transylvania County. In fact, two of the sources we spoke to have had a very healthy summer.
What has changed? Lending has returned to the way it was before sub prime loans. No one is lending money based on stated income. But, if you have a job, income that can be verified, a good credit score, and cash to put down, more than likely, you'll qualify for a loan at a good rate. Of course, this is exactly opposite of what you hear on the national news…which is why we thought you'd like to know.
Here's what local experts tell us:
United Community Bank
"At United, it's back to basics when it comes to mortgage lending. It's really going back to the way it was before so many institutions started doing sub-prime lending. We look at the 4 C's – Character, Credit, Cash Flow, and Collateral. In terms of a credit score, if you are in the 700 range, you're in good shape. Below 650 and it gets a little tougher. Our cost of doing business is up, but rates are still good and we have had a strong September in lending.
Consumers need 20% down for stick built homes; 25% down for investment property; 25% for residential lots; and 35% down for raw acreage."
For more information, you can contact United Community Bank representatives at 1-800-551-0116.
Dianne Whitmire, Mortgage Lender
Mary Lynn Manley, City President
WR Starkey Mortgage
"We are still financing homes. Yes, the products have changed and some are no longer available but a client can still buy a home. For now, FHA requires only 3% down with a middle credit score of 580 on stick built homes and 620 on manufactured housing. Conventional loans still only require a minimum of 5% down with a middle credit score of 620.
Investment properties are the major change because mortgage insurance companies aren't writing insurance on these properties, but with 20% down even the investors can get a loan.
Since the market as gone to a risk based process, the actual interest rate is going to be determined by each applicant's credit score, loan to value (ltv) and debt ratios."
For more information, contact Larry McCarter, Loan Officer at 864-363-4779
"Conventional, fixed rate loans are absolutely available for people with verifiable income, a regular job, and a credit score in the mid to high 600 range. In August we had a recording breaking month. We wrote the most loans we've ever written in Brevard.
The biggest difference is in the stated income, 100% financing products. Those are no longer available, but instead we offer a government backed USDA loan that offers 100% financing with a funding fee."
At Asheville Savings, the interest rate for a 30 year fixed rate loan is 5.87%. You'll need 20% down if you're purchasing a home which is what it has always been if you didn't want to pay PMI (Private Mortgage Insurance).
For more information contact Debbie Walker, Mortgage Loan Originator at 800-222-3230 Extension 7083.
Despite the doom and gloom on the nightly news, the fact remains that when it concerns real estate in the Brevard, North Carolina area there are plenty of opportunities waiting for the right buyers. In fact, the median selling price of a home in Transylvania County is now only $254,000 and homes are selling faster than they were several months ago.
This may or may not be the right time for you to buy a new home, a vacation home, or an investment property. Only you know the answer to that. But if you or someone you know would like more information on buying real estate in Transylvania County contact us at 828-551-6290, or 828-551-6291. Or, you can visit our website at www.brevardncproperty.com
Proudly serving buyers and sellers in Asheville, Hendersonville, Etowah, Brevard, Cashiers, and all the wonderful mountain communities in between.
For more information about buying or selling homes or land in the Brevard, NC area, contact the Clay Team today at BrevardNCProperty.com!
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