The Texas housing market continues to challenge sellers as inventory reaches its highest level in 14 years, according to new research from the Texas Real Estate Research Center.
High interest rates and economic uncertainty are keeping many buyers away, but some buyers are finding opportunities to lock in mortgage rates as low as 2.5%.
Several real estate agents say more people are exploring assumable mortgages. That’s when a buyer takes on the seller’s existing loan balance and the lower rate.
Homes for sale with low rates can be found through Roam. The company’s online description shows it helps manage the assumption process for a fee. It also allows you to search for homes in your desired area.
Dallas realtor Ben Wilson explained how he helped one Plano family buy a home with an assumable loan.
“So my buyer was able to secure a 2.8% loan just this year,” Wilson said. “Given that FHA loans are 6.5% right now, they save about $1,200 in their mortgage payment every month.”
Wilson says that it is a huge amount of savings.
Only government-backed loans are assumable, such as FHA, VA or USDA loans. Buyers still have to qualify and cover the gap between the loan balance and the sales price. Wilson’s clients had cash, but realtor Terry Hendricks said specialized lending is another option.
He said buyers are still just coming to the table with their loan payment and closing costs
“I have a list of about 400 homes here in the Dallas market that’s actively on the market right now with a government-backed loan,” Hendricks said.
FINDING ASSUMABLE MORTGAGES
If you want to find homes with assumable mortgages, you can ask your real estate agent to help you research. Some seller’s agents will advertise homes for sale by putting the assumable loan and rate in the listing. You can also search the website withroam.com.
You can put in your ZIP Code or city, and it will show you homes that are on the market, the assumable loan rates, and the difference in the mortgage amounts with the assumable rate versus the current rate. If you have questions about the process, experts recommend you discuss your unique situation with a real estate agent, mortgage lender, or another trusted advisor.
If you want help finding one, the Texas State Affordable Housing Corporation (TSACH) produced a list of free resources available in the Texas Financial Toolbox.
You can find financial education, credit counseling, and other homebuyer education programs to help you get on the right track.
Texas Financial Toolbox– A comprehensive online resource offering: homebuyer education, foreclosure prevention assistance, credit counseling, and more.
Texas State Affordable Housing Corporation (TSAHC) state-level nonprofit providing affordable homeownership solutions, including down-payment assistance, mortgage programs, and overseeing the Texas Financial Toolbox platform.
Great Job Brittney Johnson & the Team @ NBC 5 Dallas-Fort Worth Source link for sharing this story.
