This week, we had the pleasure of speaking with Cara Erickson, a Sr. Mortgage Banker with Atlantic Bay Mortgage Group. Cara began as a mortgage banker assistant, later transitioning to a junior mortgage banker. Since then, her passion for helping millennials, military families, and first-time homebuyers into their dream homes has only intensified.
Cara is a member of Hampton Roads REALTORS® Association and has assisted over 500 families throughout the span of her ten year career. When she’s not working diligently to help her clients achieve their homeownership goals, you can find her traveling, baking, watching sports, or going to the beach with her family.
Now, let’s dive into the world of financing!
What’s new in the world of financing?
For conventional loans, there’s something really neat called Family Opportunity. Say you have an elderly parent on a fixed income who wants to move into a 55 & Older Community. This loan option is great if you, as their child, wish to purchase the property and finance it in your name as the primary residence for your parent because they can’t qualify on their own. By using this loan option, you won’t incur the expense associated with purchasing an investment property. You’re able to get a lower down payment (as little as 5%), a better interest rate, and all the benefits of purchasing a home as a primary residence. This loan option is also really great for families that have a disabled adult child.
What kind of grants are available right now?
The top lenders recognized by Virginia Housing for first time home buyers offer down payment assistance in the form of a second loan for FHA/conventional loans. They also offer grants! These are typically 2% of the home’s sales price. For FHA/conventional loans, the grant can be applied to the down payment. For VA loans, the grant can be applied towards closing costs. Keep in mind, there are income restrictions for grants...but if you qualify, they can be extremely helpful. They can be particularly helpful for military buyers, who don’t have to pay a down payment but might be strapped for cash in other ways. Using a grant is a great way for them to hold onto some of their savings while also strengthening their offer (they won’t have to ask the seller for as much closing cost assistance).
What’s going on with interest rates?
It’s tricky to make blanket statements about interest rates because there are so many nuances that go into them. However, one thing that’s certain is that even though interest rates are starting to rise, they’re still at historic lows. But as inflation increases, there’s a risk that they’ll continue to rise...and they probably will. If anyone is on the fence about buying or refinancing, it’s time to consider taking that leap of faith because it’s very likely that interest rates aren’t going to drop again.
Work with Cara!
If you’re interested in speaking to Cara about buying a home in Hampton Roads, you can reach her at 757-348-2262 or email@example.com. She’s licensed in both Virginia and North Carolina! You can also read more about her here.