Housing Markets Trends in 2022 That Could Affect Home Buyers

<p>With the end of 2021 approaching, home buyers are now looking ahead to next year. And many of them share the same kinds of questions regarding the housing market.</p> <p>What will the market be like in 2022? Will it be easier to buy a home next year, compared to 2021? In short, what should home buyers expect from the real estate market in 2022?</p> <h2>5 Housing Market Trends We Could See in 2022</h2> <p>While no one can predict future housing conditions with certainty, we <em>can</em> make a few educated guesses based on current trends and conditions. With that in mind, here are five housing market trends for 2022 that might affect home buyers.</p> <h3>1. Tight inventory conditions expected to continue.</h3> <p>Low supply within the housing market was one of the biggest stories of 2021. The short version is there aren’t enough homes on the market to satisfy the demand from buyers. And experts believe this trend will continue in 2022, to <em>some</em> degree.</p> <p>But there <em>might</em> be a bit of good news on the horizon, from a home buyer’s perspective. Some analysts expect to see a gradual increase in the number of homes for sale during 2022.</p> <p>For instance, a recent housing market forecast from Realtor.com predicted a slight uptick in overall inventory levels. To quote their December 1st report:</p> <p>“Realtor.com forecasts 2022 home sales (+6.6% year-over-year) will hit their highest level in 16 years as buyers remain active and for-sale inventory begins to recover from recent steep declines.”</p> <p>This is arguably one of the most important housing market trends for 2022, from a home buyer’s perspective. But don’t be discouraged. If we learned anything from 2021, it’s that buyers can still succeed despite the ongoing inventory crunch.</p> <h3>2. Home prices will likely keep climbing.</h3> <p>In many U.S. cities, home prices rose at an unprecedented pace during 2021. Some housing markets experienced annual growth of more than 30%. As a result of this trend, house values across much of the country have reached all-time record highs.</p> <p>This is another housing market trend that will carry into 2022. While price growth is expected to slow down a bit over the coming months, home values nationwide will probably keep rising to <em>some</em> degree.</p> <p>This could create a sense of urgency among buyers — and rightfully so. If prices continue to climb as expected, it could make a strong case for buying a home sooner rather than later. Buyers who postpone their purchases until later in 2022 might end up paying more.</p> <p>But again, real estate conditions can vary from one city or metro area to the next. So you’ll want to conduct local research to see what’s happening in <em>your</em> housing market.</p> <h3>3. More competition from millennials?</h3> <p>According to the Realtor.com forecast cited earlier, the 2022 housing market could bring a surge of buying activity from millennials. (These are people born between 1981 and 1996.)</p> <p>Realtor.com’s researchers stated that a large number of these folks are entering prime home-buying age. So they could contribute to a rise in home sales in 2022, while increasing housing market competition in general.</p> <h3>4. Higher loan limits have been announced.</h3> <p>Here’s some good news for home buyers planning to buy a house in 2022. As we explained in a previous article, borrowers will enjoy higher mortgage loan limits next year compared to 2021.</p> <p>Federal housing officials have increased the loan limits for conventional conforming loans, as well as FHA-insured mortgages. They made these changes in response to significant home-price growth that occurred during 2021.</p> <p>Basically, this means borrowers have a higher range of financing to work with in 2022, without having to use the more restrictive “jumbo” loan products.</p> <h3>5. Favorable mortgage rates continue, but…</h3> <p>Mortgage rates are another important housing market trend to watch in 2022.</p> <p>The average rate for a 30-year fixed mortgage loan hovered below 3.2% for all of 2021. And while rates are expected to creep upward in 2022, they’ll probably remain favorable. That’s good news for borrowers.</p> <p>A forecast published by Freddie Mac earlier this year suggested that 30-year mortgage rates could average around 3.5% during 2022. That would be a slight increase from where we are in December of 2021, but still low by historical standards.</p> <p>So there you have them, five housing market trends for 2022 that could affect home buyers!</p> <p><em>Disclaimer: This article includes forecasts issued by third parties not associated with our company. Such predictions are the equivalent of an educated guess and should be viewed as...
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How Intercontinental Capital Group can help you prepare to qualify for a home loan

<p>Purchasing a home is a huge financial commitment. Before getting wrapped up in the excitement and stress of house-hunting, it’s important to measure your expectations for what you can afford and your home loan options. Beginning with this crucial step can make the entire process more efficient – getting you settled into your ideal new property quicker.</p> <p>Whether you are actively looking for a new residence or know moving is going to be part of your future, it’s always important to understand how your actions can affect your prospects at securing a loan. Our lenders at InterContinental Capital Group have shared three things they evaluate in a mortgage application so you can be prepared to put your best foot forward.</p> <h2>A thorough assessment of the “3 C’s”</h2> <p><a href="https://intercontinentalcapital.com/dustin-dimisa/">Dustin DiMisa</a>, CEO of InterContinental Capital Group, founded his company on the belief that home financing should be a straightforward and individualized process. Today, ICG pairs every applicant with a licensed mortgage specialist from their state. Clients will be educated on their local housing market and walked through their own 3 C’s to understand how likely their loan request is to be accepted.</p> <h3>1. Credit Score</h3> <p>Your credit score is the first item that lenders will assess to determine your eligibility for a loan. As Credit Karma explains, your backer will generally seek out your middle score from the <a href="https://www.investopedia.com/mortgage/mortgage-guide/how-to-choose-best-mortgage/">three major credit bureaus</a>. They are ultimately looking to see if you have a long track record of using credit responsibly.</p> <p>A higher credit score usually means a better chance for approval at lower rates, so it’s crucial for prospective homeowners to continuously monitor their number. If you want to improve your credit score before applying for a loan, Credit Karma suggests fixing any delinquent accounts, making every payment on time and trying to use less than 30% of your available credit. Additionally, avoid opening any new accounts if you are looking to put in a request soon.</p> <p>With many accessible – and free – options for checking your credit score, you can be actively improving your chances to receive a home loan. If you need more guidance on how your spending habits may be affecting these odds, a qualified lender from ICG can walk you through the fine details and help make an improvement plan.</p> <h3>2. Capacity</h3> <p>Lenders want to be assured that you have the financial means to honor your monthly loan payments. Just because you can take out a massive loan doesn’t mean you shoud, as NerdWallet emphasizes, both you and your lender should be focused on <a href="https://www.nerdwallet.com/article/mortgages/how-much-can-i-borrow-calculator">how much you can afford</a> rather than how much you can borrow.</p> <p>There are many factors that a creditor will evaluate to determine your capacity to make monthly payments, including your:</p> <p>Debt-to-income ratio Loan-to-value ratio Annual income Interest rate</p> <p>As the hopeful homeowner, you should also be realistic about the other “what-if” scenarios that could impact your ability to pay your monthly fees. For instance, moving into a new space can result in extra money being spent on needed renovations, general maintenance and new furniture. These expenses can add up quickly within a short period of time, possibly leaving you strapped for cash when your payment is due.</p> <p>Carefully plan out all scenarios to better understand your capacity, and utilize some online tools like those offered by NerdWallet to get a better understanding of your financial position. Before applying for a loan, try to pay off some of your existing debt and rearrange your budget to include some of the what-ifs and a down payment.</p> <h3>3. Collateral Value</h3> <p>Understandably, your home is usually used as collateral for a mortgage. This means if you stop making your monthly payments, the lender can take possession of your home and possibly sell it to repay the loan. Financer’s take the value of the collateral into consideration when assessing a loan request.</p> <p>If you are asking for a million dollar loan and your home is worth only a fraction of that, your application is going to be rejected. Lenders want to be confident that in the worst case scenario if a client is unable to make payments, they can sell the asset to recoup their loan amount.</p> <p>Being realistic about your collateral value is important to understand how much you are likely to receive from a lender. This can also mean reaquirement of thorough inspections of your new home to make sure there will be no costly surprises that could lower its value.</p> <p>At ICG, home loans can be provided without taking collateral beyond the property that needs financing, which is ideal for protecting your other personal assets.</p> <h3>Adding technology to the mix</h3> <p>These three easy steps provided by ICG streamline the home loan process while giving potential homeowner’s insight into what it takes to qualify for a mortgage. If you have a good credit score, can make your monthly loan payments on time and have strong collateral value, the loan acquiring process is easy.</p> <p>Furthermore, ICG has utilized a wide array of digital tools and technological advances to help their clients. Allowing you to take control of your finances and understand the entire process, the Electronic Loan center allows you to monitor the process of your application and receive and sign electronic disclosures. Moving these processes online makes the loan processing journey seamless and transparent.</p> <p>Comprehending what lenders are looking in your application can help you take steps to better your chances at qualifying for a home loan. Being prepared with the 3 C’s can move your application along swiftly, as can knowing what kind of loan you want or need.</p> <p>If you would like to know more about the <a href="https://intercontinentalcapital.com/loan-options/">loan options</a> offered by ICG, or more help understanding if you qualify for a home loan, <a href="https://intercontinentalcapital.com/find-a-loan-officer/">contact us</a> today.</p> <p><strong>Sources:</strong></p> <p><a href="https://www.creditkarma.com/home-loans/mortgage-rates/educational">https://www.creditkarma.com/home-loans/mortgage-rates/educational</a> <a href="https://www.nerdwallet.com/blog/mortgages/how-much-can-i-borrow-calculator">https://www.nerdwallet.com/blog/mortgages/how-much-can-i-borrow-calculator</a> <a href="https://intercontinentalcapital.com/dustin-dimisa/">https://intercontinentalcapital.com/dustin-dimisa/</a><a href="https://intercontinentalcapital.com/loan-options">https://intercontinentalcapital.com/loan-options</a> <a...
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What the higher maximum mortgage amounts in 2022 could mean for you

<h2>Maximum Mortgage Loan Amounts Increased for 2022</h2> <p>Home buyers and mortgage shoppers in the U.S. received some good news at the end of November. In 2022, the maximum mortgage amounts for both conventional and FHA loans will go up considerably.</p> <p>This means borrowers have a higher range of financing, without having to use a &quot;jumbo&quot; mortgage loan.</p> <p>Conforming loan limits (for conventional mortgages) will range from $647,200 to $970,800 in 2022, depending on the county. FHA loan limits will range from $420,680 to $970,80. That's a substantial increase over the 2021 maximum mortgage amounts.</p> <h3>Higher Maximum Mortgage Amounts for 2022</h3> <p>At the end of November, federal housing officials announced they were increasing the loan limits for conventional and FHA-insured mortgage loans. They made this change to keep up with steadily rising home prices across the U.S.</p> <p>This brings good news for borrowers. By increasing the maximum mortgage loan amounts for 2022, officials have also made it easier for home buyers to find and purchase a property.</p> <p>Loan limits tend to confuse borrowers, and for several reasons. Different mortgage programs have different maximum size limits, and there's also the &quot;jumbo&quot; category to consider. It's a complicated topic.</p> <p>So let's take it one step at a time:</p> <h3>Conforming Loan Limits Increased for 2022</h3> <p>&quot;Conventional&quot; mortgage loans do not receive government insurance or guarantees. This separates them from the government-backed loan programs, like FHA and VA.</p> <p>In terms of their size, conventional loans can either be conforming or jumbo:</p> <p>• <strong>Conforming:</strong> These loans fall within the size limits used by the mortgage buyers Fannie Mae and Freddie Mac, and can therefore be sold to those organizations.</p> <p>• <strong>Jumbo:</strong> These loans exceed the conforming loan limit and therefore cannot be sold to Fannie and Freddie. Due to their size, jumbo mortgages tend to require larger down payments, higher income levels, etc.</p> <p>The increases mentioned above relate to conforming loans, in particular. Housing officials have increased the 2022 maximum mortgage amount for conforming loans. This means home buyers can &quot;go bigger&quot; with their financing without crossing into the stricter jumbo category.</p> <p>In 2022, the conforming loan limits will range from $647,200 to $970,800. These limits vary by county because they're based on home values. Most U.S. counties fall within the &quot;baseline&quot; range of $647,200. The $970,800 maximum mortgage amount for 2022 applies to pricier real estate markets, like San Francisco and New York City.</p> <h3>FHA Loan Limits Also Went Up</h3> <p>The conforming limits mentioned apply to conventional mortgage loans, which are not insured by the government. There's a separate set of limits for FHA-insured home loans, and they've also been increased for 2022.</p> <p>According to the Department of Housing and Urban Development, the 2022 maximum mortgage amount for FHA loans will range from $420,680 to $970,800. Again, these limits vary based on the county where the property is located.</p> <p>You can find the maximum FHA mortgage amount for your county by visiting the HUD.gov website. If you have any questions about applying for a loan, feel free to contact our staff.</p> <h3>A Response to Rising Home Prices</h3> <p>Home prices nationwide rose significantly in 2021. That's why housing officials increased the maximum mortgage amounts for 2022.</p> <p>The median home value in the U.S. rose by around 18% during 2021, well above historical norms. Cities with red-hot housing markets recorded unprecedented gains of 30% or more.</p> <p>This is something home buyers should be aware of, going into 2022. On one hand, buyers could encounter higher prices over the coming months. But they'll also have more financing &quot;room,&quot; thanks to the recent increase in maximum mortgage amounts for 2022.</p> <h3>Borrowing More With a Jumbo Mortgage</h3> <p>It's possible to borrow more than the limits mentioned above. Well-qualified borrowers with sufficient income can use a jumbo loan to purchase a more expensive home.</p> <p>You'll recall from earlier that a &quot;jumbo&quot; mortgage product is one that exceeds the conforming loan limit for a particular county.</p> <p>In much of the U.S., jumbo loans are rare because there aren't that many homes that exceed the maximum conforming mortgage amount. But in more expensive real estate markets, borrowers frequently use jumbo loans to finance their purchases.</p> <p><strong>Please <a href="https://intercontinentalcapital.com/find-a-loan-officer/" title="Find an ICG loan officer">contact our team</a> if you have mortgage-related questions, or if you'd like to <a href="https://intercontinentalcapital.com/apply" title="Start a loan application with ICG today!">apply for a loan</a>. We're here to...
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Navigating FHA Loans in 2021

<p>First-time home buyers, people with lower credit scores, and those with lower incomes may be eligible for a mortgage loan from the Federal Housing Administration (FHA). This is a government agency that offers loans with lower down payments and will accept borrowers that traditional mortgage lenders and banks may not.</p> <p>We're covering common questions about FHA loans.</p> <h3>What is the FHA?</h3> <p>The Federal Housing Administration is a division of the US Department of Housing and Urban Development. It was established during the Great Depression to reduce the number of foreclosures on homes, and to make purchasing a home easier for many Americans. One of the changes the FHA made was to insure mortgages for up to 80% of the house's value, and therefore establishing the 20% down payment that many buyers need.</p> <p>The FHA is responsive to the changing economic climate. The agency will often make changes to important qualification metrics such as down payment amounts and home value limits. Their mission is to make it easier for people to buy houses.</p> <h3>What is an FHA Loan?</h3> <p>The FHA insures loans given by credit unions, mortgage brokers, and mortgage lenders, which protects these lenders in case of default. By doing so, the mortgage lenders can offer loans to people who may not have a 20% down payment or who have poor credit. Borrowers who typically have a credit score of 580 or above and 3.5% of the house's down payment available may qualify for an FHA loan.</p> <h3>Which banks offer FHA loans?</h3> <p>Only FHA-approved lenders can offer FHA-insured loans, so not every mortgage lender in your neighborhood may be able to offer these mortgages.</p> <h3>What kind of house can an FHA loan cover?</h3> <p>You can use the FHA loan to purchase or refinance a single-family home. Borrowers may also use FHA loans to buy multi-family homes with up to four units, condos, and some kinds of manufactured homes. Your lender can tell you which types of manufactured homes they will cover. There are also FHA loans for the renovation of an existing home or for building a new house.</p> <h3>What Makes FHA Loans Different from Conventional Loans?</h3> <p>The biggest difference between an FHA-insured mortgage and one from a traditional lender is the accessibility. It's easier for people to qualify for FHA loans, including those with credit challenges or who don't have the savings for a 20% down payment.</p> <p>FHA loans may also have lower interest rates than a buyer would qualify for with a conventional loan, which makes the monthly payments lower, too. There are several kinds of FHA loans to accommodate different situations. The most common is the standard purchase loan. Other loan types include Title 1 Loans, which are the loans used to purchase manufactured houses, and FHA 203(k) loans for home renovations.</p> <h3>Are There Limits to FHA Loans?</h3> <p>Every housing market is different, and therefore the loan limits for FHA loans vary by county. Current limits can be as high as $822,375 (for housing markets with higher average home prices) to as low as $356,362, for markets with lower average home values. The Housing and Urban Development website has the FHA limits for each county, so you can check your desired location online.</p> <h3>Do I Qualify for an FHA Loan?</h3> <p>The FHA has a certain set of standards that potential borrowers must meet to qualify. It’s important to note that the lending bank may have other requirements, too, which borrowers must also meet. These can vary between lenders and every situation is unique.</p> <p>The minimum credit score for an FHA loan is 500. For borrowers with scores between 500 and 579, the amount needed for the down payment will generally be higher. Lenders may require a higher credit score for approval, or a higher down payment than the FHA minimum. A credit score of at least 580-620 is what most lenders currently require.</p> <p>If you have a credit score under 620, you may wish to take the time to fix it before applying for a home loan, as this can affect your interest rates. You may also wish to look for lenders that specialize in FHA loans, as their terms may be closer to the FHA minimum.</p> <p>Borrowers with a credit score of 580 or higher may only need a 3.5% down payment. For borrowers with scores between 500 and 579, the down payment requirement is typically 10%, so you can see that it may be worth the extra time to boost your credit score.</p> <p>Your area may have state-funded down payment assistance programs for first-time homebuyers, including low-interest or no-interest loans and grants. Lenders also look at your debt-to-income ratio, which means looking at what you owe versus how much money you make. The FHA requires a DTI of less than 50. This includes all your outstanding debt, including student loans, plus loans that are in deferment (ones you aren't actively playing on).</p> <h3>What are the property Requirements for an FHA Loan?</h3> <p>In addition to borrower requirements, the FHA also has requirements for the desired property. The agency has a separate appraisal, different from the conventional pre-purchase home inspection. The FHA appraisal process is designed to ensure that the property is a good investment and meets certain safety and livability standards. Properties that are intended to be &quot;fixer-uppers&quot; may have two separate appraisals, one for the &quot;as-is&quot; state of the property and one that estimates the value of the property after certain improvements are made.</p> <h3>Do FHA Loans Have Mortgage Insurance?</h3> <p>All FHA loans have mortgage insurance. Once you're approved you make one payment upfront, and then the monthly payments are combined with the loan payments thereafter. Borrowers who have a 10% down payment or more will pay the mortgage insurance for 11 years, while those who had less than 10% down pay mortgage insurance for the life of the loan.</p> <h3>How Do I Apply for an FHA Loan?</h3> <p>In addition to completing the application, potential borrowers must also present: • Proof of U.S. citizenship or legal permanent residency • Valid Social Security number • Bank statements for at least the last 30 days, including proof of deposits made during those times, such as paycheck stubs • Credit reports • Tax returns Individual lenders may have additional documentation requirements, including cases where part of the down payment is a gift.</p> <h2>Takeaway</h2> <p>If you're in the market for a home, an FHA loan may be right for you. They're easier to obtain, so even people who think purchasing a home isn't in their reach may discover they're eligible. <a href="https://intercontinentalcapital.com/find-a-loan-officer" title="Find an ICG loan officer">Contact our experienced professionals today</a> to learn...
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Intercontinental Capital Group Expands Multi-Channel Messaging with Botsplash Partnership

<p><strong>FOR IMMEDIATE RELEASE / Contact</strong> <strong>press@botsplash.com</strong> <strong>(704) 445-3362</strong></p> <p><strong>January 25, 2021</strong> - Intercontinental Capital Group (ICG), a privately held mortgage lender based in Melville, New York, will expand their digital communication through a partnership with Charlotte-based omnichannel messaging provider Botsplash. The messaging service spans across SMS, website chat, Google’s Business Messages, and Facebook Messenger.</p> <p>Botsplash will assist ICG with their digital communication expansion as the lender continues to grow, most recently to Charlotte, NC. ICG announced at the end of 2020 that they will add 500 jobs over the next five years in Charlotte.</p> <p>“Part of our strategy is to communicate with borrowers on their terms.”, said Intercontinental Capital Group CMO Laura Ashley Brooks. “As more and more borrowers are preferring chat and text for researching loan options and following their loan progress, Botsplash provides us the platform to seamlessly provide those options.”</p> <p>This partnership will allow ICG’s loan officers to connect seamlessly with borrowers across communication channels via chat, text messaging, Facebook Messenger, or Google’s Business Messages. Botsplash’s innovative digital messaging platform simplifies communication for both the loan officer and borrowers on the channel of the borrower’s choice. This allows ICG to communicate with customers when and where they want to be reached.</p> <p>“Bringing ICG on board and working with their hands-on ops team was phenomenal.“ said Aru Anavekar, Botsplash CEO. The unified conversation history and audit capability of the Botsplash platform makes multi-agent engagement and support less overwhelming and very simple.</p> <p>Aru added “ICG processes are very optimized and efficient to provide a great experience for borrowers while ensuring the loan officers have the best tech tools readily available to assist. Loan officers, processors, and several others can come together as a team to help a borrower get the loan they need. The Botsplash team is very happy to be a part of this journey to increase convenience.”</p> <h3>About Intercontinental Capital Group</h3> <p>Founded in 2005, Intercontinental Capital Group (ICG) is a fast-growing consumer-direct residential lender. The company provides conventional, FHA and VA mortgage programs through its wholly owned subsidiaries, <a href="https://ownithomeloans.com/" title="Own It Home Loans Homepage">Own It Home Loans</a>, <a href="https://veteranscommunity.com/" title="Veterans Community Home Loans Homepage">Veterans Community Home Loans</a>, eReverse, <a href="https://fellowshiphomeloans.com/" title="Fellowship Home Loans homepage">Fellowship Home Loans</a>, and <a href="https://www.provenmortgage.com/" title="Proven Mortgage homepage">Proven Mortgage</a>. Licensed to do business in 46 states and the District of Columbia, the company also operates retail branches nationwide in addition to consumer call centers. For more information visit <a href="https://intercontinentalcapital.com/" title="InterContinental Capital Group Homepage">www.intercontinentalcapital.com</a>.</p> <h3>About Botsplash</h3> <p>Botsplash is an innovative, digital messaging software with the ability to connect agents and customers across any digital platform. In order to keep a customer’s business, businesses must be able to connect with customers in a meaningful way using websites, text, and social media. Botsplash helps businesses adopt digital strategy with the right balance of live chat and automation. For more information, please visit <a href="https://www.botsplash.com/" title="botsplash.com...
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Finding the best mortgage loan with Intercontinental Capital Group

<p>Whether you're a first-time homebuyer or just settling into your retirement oasis, purchasing a new home is exciting, but sometimes unnecessarily stressful. Finding, applying and ultimately receiving a mortgage loan has been a notoriously complicated and intimidating process. That's why <a href="https://intercontinentalcapital.com/dustin-dimisa/" title="Learn about Dustin DiMisa, CEO of InterContinental Capital Group">Dustin DiMisa</a>, CEO of InterContinental Capital Group, has made it his mission to streamline the home loan process while taking the time to understand each client's unique needs and circumstances.</p> <p>There is no one perfect mortgage for everyone, but <a href="https://intercontinentalcapital.com/find-a-loan-officer" title="Find an ICG loan officer">the experts at ICG</a> are here to help you evaluate all the options to <a href="https://intercontinentalcapital.com/loan-options/" title="Loan Options with ICG, icghome.com">find the right fit for your needs</a>.</p> <h3>Are you crunched for time?</h3> <p>Have you found a home you love and want to move in immediately, or are pressed to find a property quickly? No matter the circumstances, finding a mortgage that is free of roadblocks to help speed up the process should be your top priority. <a href="https://ownithomeloans.com/" title="Own It Home Loans Homepage">Own It Home Loans</a> can close mortgages in as little as 14 days by eliminating typical closing delays.</p> <p>With a wide array of services, there are options available for everyone depending on their region and financial or personal situation.</p> <h3>Something for everyone</h3> <p>Some borrowers, NerdWallet explains, can qualify for <a href="https://www.nerdwallet.com/article/mortgages/get-the-best-mortgage-rates" title="How to get the best mortgage rate, nerdwallet.com">mortgages that allow for smaller down payments</a>. The following options are all available through ICG and its affiliates:</p> <p>USDA Loans - The Department of Agriculture might guarantee a low- or no-down-payment mortgage if you plan to live in a rural area. It can sometimes cover closing costs as well. FHA Loans - When the Federal Housing Administration insures a mortgage, you can make a down payment as low as 3.5%. You will pay for mortgage insurance for the life of the loan, but they are more forgiving of low credit scores. ICG is licensed by the U.S. Department of Housing and Urban Development as a Title II Mortgagee to be able to offer government-insured Federal Housing Administration Home Loans for our clients.</p> <p>VA Loans - If you are a prior or current Reserve/National Guard member of the Armed Services or certain other type of government employee, you may qualify for a VA Home Loan through <a href="https://veteranscommunity.com/" title="Veterans Community Home Loans Homepage">Veterans Community Home Loans</a>. Dustin DiMisa created Veterans Choice to offer less expensive financing options to veteran homebuyers. You don't have to be a first-timer to benefit from this program, which requires no down payment and 100% financing if the sales price does not exceed the appraised value.</p> <p>Find out if you're <a href="https://veteranscommunity.com/" title="Veterans Community Home Loans Homepage">eligible for a VA Loan</a> with Veterans Community Home Loans and let our knowledgeable staff navigate you through your options.</p> <p>Conventional Loans - Commonly accessible to first-time or low- to moderate-income borrowers, conventional loans can allow for down payments as low as 3%. ICG is licensed to offer Conventional Financing for our clients. ICG also provides other standard loan options as well as refinancing and reverse mortgages. Before making a final decision on a home loan, Investopedia recommends checking your credit report and making <a href="https://www.investopedia.com/mortgage/mortgage-guide/how-to-choose-best-mortgage/" title="How to choose the best mortgage for you, investopedia.com">credit, capacity and collateral</a> - when evaluating your application.</p> <h3>The ICG loan process</h3> <p>InterContinental Capital Group offers a wide array of loans for first-time and mature homebuyers. We can provide home loans without taking collateral beyond the property that needs financing. Part of streamlining the home loan process is being transparent about eligibility requirements. As long as you are a U.S. citizen or permanent resident over 21 years of age and have a steady source of income, you can be considered eligible for a home loan with ICG.</p> <p>After applying for a loan, ICG pairs you with a mortgage specialist licensed in your state to assist you with all local regulations and policies. Our pioneering approach utilizes digital tools and technological advantages to further help streamline the process and keep you informed with updates along the way.</p> <p>If you want to learn more about <a href="https://intercontinentalcapital.com/" title="InterContinental Capital Group Homepage">InterContinental Capital Group</a>, <a href="https://ownithomeloans.com/" title="Own It Home Loans Homepage">Own It Home Loans</a> or <a href="https://veteranscommunity.com/" title="Veterans Community Home Loans Homepage">Veterans Community Home Loans</a>, don't hesitate to reach out to one of the <a href="https://intercontinentalcapital.com/find-a-loan-officer/" title="Find an ICG loan officer">helpful representatives</a> at ICG today. With licensed mortgage experts in nearly every state and a diverse selection of loan options, we can assist you in finding the right home loan for your current and future...
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Tips from Intercontinental Capital Group: What high interest rates mean for the housing market

<p>Buyers and sellers want to know the state of the housing market before making a decision that will heavily impact their lives - especially concerning finances. With all of the reports and numbers available, it can be overwhelming to try to discern which information could impact your choice.</p> <p>If there's one thing to fixate on to help determine the condition of the housing market, it's interest rates. Understanding what these rates mean to the market and their impact can help you make an informed decision for your future.</p> <h3>Federal funds influence interest rates</h3> <p>When interest rates fluctuate, the cause is from higher up than you think. To begin to grasp how this is true, Opendoor states it's important to understand that federal law requires banks to keep a minimum amount of cash on hand, called a reserve requirement. If banks cannot meet this demand, they will need to borrow from other banks.</p> <p>Now, this has nothing to do with housing - yet. If a bank needs a quick loan, an interest is added called the <a href="https://www.opendoor.com/w/blog/impact-of-interest-rates-on-home-ownership" title="The impact of interest rates on home ownership, opendoor.com">federal funds rate</a>. The Federal Reserve sets this rate, which can set off a chain of events in the real estate market and the national economy.</p> <p>Banks use the federal funds rate as a benchmark for setting the interest rates they charge their customers. If the federal funds rate is lowered by the Fed, banks can access money more cheaply and in turn lower their interest rates to clients. When borrowing is cheaper or more expensive, it can drastically change home-buying habits and business growth.</p> <p>The fact that interest rates can be so easily manipulated by the Fed has not gone unnoticed. The government has tried to lower interest rates to encourage consumer spending and economic growth, though sometimes that alone isn't enough to accomplish their goal.</p> <h3>High interest rates deter buyers</h3> <p>The housing market is particularly impacted by high interest rates, though it can be difficult to predict exactly how it will react. One thing is for certain, when rates go up, borrowing becomes more expensive and consumers are less inclined to do so.</p> <p>Similarly, there's less incentive to refinance and homeowners may be holding out on purchasing a new property until rates lower. In general, consumers are <a href="https://www.investopedia.com/articles/stocks/09/how-interest-rates-affect-markets.asp" title="How interest rates affect the US markets, investopedia.com">less likely to make large purchases</a> because they have less disposable income, according to Investopedia.</p> <p>Houses can sit on the market for a long time when high interest rates are present. Buyers will be hesitant to make a purchase as their money is essentially worth less than it would be if interest rates were lower. As a result, this does nothing to motivate sellers, who understand they may need to lower the price of their home in order to compensate and attract buyers during this time, but clearly prefer not to. While high interest rates are not always a complete no-go for purchasing or selling a home, consumers typically try to wait out the high-interest-rate market if possible.</p> <h3>The current situation</h3> <p>Since the start of the year, interest rates have actually been decreasing. This has been a steady trend, as the IRS reported that interest rates would once again <a href="https://www.irs.gov/newsroom/interest-rates-decrease-for-the-third-quarter-of-2019" title="Interest rates decrease for the third quarter of 2019, irs.gov">decrease in Q3</a>, starting July 1, 2019, as follows:</p> <p>5% for overpayments 5% for underpayments 7% for large corporate underpayments In turn, mortgage rates have begun to lower and have created an increased homebuyer demand. As Freddie Mac further explains, there are other factors that have also contributed to this demand. Even though the economy is slowing overall, a <a href="http://www.freddiemac.com/pmms/" title="freddiemac.com">50-year low in unemployment</a> and stunted interest rates set by the Fed have created this environment. Consumers are borrowing, and most of them are entry-level buyers and first-time homebuyers.</p> <p>With low interest rates one would think the housing market would be booming - but that's not the case. Having had time to properly evaluate the effects of this change over the summer, CNN reported that <a href="https://www.cnn.com/2019/08/09/economy/mortgages-home-buyers/index.html" title="Rates are low, and mortgages are cheap. So why aren't Americans buying more homes? cnn.com">existing home sales decreased</a> 1.7% from May to June of this year, and 2.2% from a year prior.</p> <p>It's suggested this is because the price of homes has increased to a point where even lower mortgage rates cannot make them affordable for many Americans. Even if potential homeowners are making more, the cost of living and housing has grown at a faster rate than their paycheck. More affordable housing needs to become available for the benefits of low interest rates to drastically impact the housing market.</p> <h3>Looking ahead</h3> <p>Moving into Q4, many experts are predicting the trend of decreasing interest rates to continue. While it's impossible to know what they will be, My Mortgage Insider compiled predictions from three leading economists that were all within a range of <a href="https://mymortgageinsider.com/current-mortgage-interest-rates-today/" title="Current mortgage interest rates, mymortgageinsider.com">3.7-3.9%</a>.</p> <p>The response to Q3's interest rate decrease was also promising. In the week ending August 2, mortgage applications were up <a href="https://www.cnn.com/2019/08/09/economy/mortgages-home-buyers/index.html" title="Rates are low, and mortgages are cheap. So why aren’t Americans buying more homes? cnn.com">5.3% from the week prior</a>, no doubt a response orchestrated by the Fed due to the poor sales numbers from the months prior.</p> <p>Interest rates have a massive impact on how buyers and sellers interact with the housing market, but are are not the only factors to be considered. As you can see, low rates do not guarantee a flourishing market. Individuals may still be unable to afford a new home, or remain in their current residence due to comfort or necessity.</p> <p>Similarly, high interest rates do not create a stagnant market. They may slow the market by deterring some buyers and borrowers, but there will always be a need for housing. Understanding what your money is worth and how to price your home for sale during periods of high interest rates is crucial.</p> <p>If you want to learn more about current interest rates and how it could affect your loan application process, don't hesitate to <a href="https://intercontinentalcapital.com/find-a-loan-officer/" title="Find an ICG loan officer">contact one of the helpful lenders at InterContinental Capital Group today</a>. With licensed mortgage experts in nearly every state, we can assist you in complying with state and local regulations and policies while streamlining your loan...
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