Veterans and active duty military members can now use their VA mortgage benefits to pay broker fees. (iStock )
Buying a home is more complicated and expensive than it’s been in years. Interest rates and home prices are high, and inventory is only slowly beginning to increase. To help eligible veterans and active-duty military fight these barriers, The VA is adjusting some rules.
Temporarily, VA loan holders can use their VA guaranteed mortgage benefit to cover real estate buyer broker fees. Previously, this benefit did not allow them to cover these expenses. This adjustment to the new rules will begin on August 10, 2024.
“We always want to put veterans and their families in the best position to purchase the home they want, and that’s what these changes are aimed at,” said Assistant Secretary of Human Services Joshua Jacobs.
“Veterans who use VA mortgage benefits are able to pay reasonable and customary amounts for certain costs, including commissions and other broker-related fees, allowing them to remain competitive in a rapidly changing housing market,” Jacobs said.
recently, Settlement of a class action lawsuit involving the National Association of Realtors. This new adjustment by the VA is also intended to protect veterans from being adversely affected by the settlement.
The main issue raised in the lawsuit was the “tying” practice of NAR members setting the fees homebuyers must pay. The practice was found to stifle competition and drive up unnecessary fees. The agreement NAR reached is still awaiting approval.
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Most homeowners would rather renovate their home than buy another one: survey
Each state will enact its own home buying and homeowner assistance programs.
Many states have launched or revised home buying assistance programs to help residents get the financial assistance they need to buy a home.
Arizona is A few months ago, it was announced that a new mortgage assistance program was coming: Governor Katie Hobbs announced a program that would provide some Arizona buyers with up to $30,000 in cash for down payments and closing costs.
Homebuyers in Maricopa and Pima counties who earn less than 80% of the Area Median Income (AMI) are eligible to receive the full $30,000, while those earning between 81% and 120% of AMI are eligible to receive up to $20,000.
Prospective buyers will be required to take an eight-hour homebuyer education class and speak with an advisor before being approved for financing.
Pennsylvania also reinstated its mortgage relief program. For current homeowners in the state. The program initially provided $350 million in federal funding to help homeowners dealing with late payments on their mortgages, utilities and property taxes.
The state was forced to suspend the program due to a backlog of applications and several internal issues, but it reopened in March with about $46 million left in the fund for new applicants.
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Americans typically spend about 24% of their income on mortgage payments.
Home prices are still rising, but not as much as last year
Home prices are still trending up, but the rate of increase is slowing. U.S. home prices rose 0.3% in May from the previous month. Redfin reportedThis is the smallest increase since January 2023.
Prices are still at record highs, but not as high as last year, and the increased availability of listings is helping to even out the competition and giving buyers more options.
Mortgage rates are in the same situation as home prices. They are still high, especially compared to the lowest levels seen during the pandemic, but they are gradually declining. As of the week of June 20th, Interest rate is 7% or lessreturning to the levels seen at the beginning of the year.
“As mortgage rates fall, both buyers and sellers will return to the market. Depending on who returns more strongly, price growth will either accelerate or decline,” explained Chen Chao, head of economic research at Redfin. “If sellers return faster, prices will stabilize, but if buyers return faster, prices will rise.”
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New construction remains popular, as most Americans believe now is a bad time to buy an existing home.
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