The bright side of this historic housing fall is that it provides a great opportunity for potential military homeowners.
Lehi, UT (PRWEB) July 14, 2011
Since 2006, the U.S. housing market has continued to struggle finally hitting rock bottom with historic lows that have surpassed the housing fall seen during the Great Depression, according to CNBC.
The U.S. economy has entered deeper into the housing recession and according to CNBC, has forced house prices down about 33 percent.
Many Americans find themselves stuck with two mortgage payments and are unable to sell their properties forcing housing prices way down and consequently forcing sellers to sacrifice thousands of dollars of home equity.
Owner of LowVARates.com, Eric Kandell, understands that the housing market has taken a huge hit, but also creates a buyers paradise market.
“The housing market has been slammed the past five years and there are a lot of people struggling to make mortgage payments,” Kandell said. “However, since the prices are down it makes it a great buyers’ market and those that are financially stable are looking at amazing deals on very nice houses.”
During the Great Depression the housing market prices dropped about 31 percent. According to Case-Shiller data, the 31 percent housing fall occurred in the late 1920s and culminated in the early 1930s , The current 33 percent fall tops the Great Depression period and continues to effect millions of current and potential homeowners.
Many experts have claimed that the recession is over and the economy has turned around, but with housing statistics still reaching record depths it seems difficult to proclaim the recession is nearing an end.
The housing crash starting in 2006 and has only occurred during a five year stretch, while the Great Depression crash happened over an approximate ten year period.
“It’s amazing how fast the housing crash happened,” Kandell said. “We are pretty much talking about a two to three year period when housing prices dropped at a rate we have never seen before.”
According to Case-Shiller, which provides the most closely followed housing industry data, prices dropped 1.9 percent in the first quarter, a move that the firm interpreted as a clear double dip in prices.
The foreclosure problem is unlikely to get any better with 4.5 million households either three payments late or in foreclosure proceedings. The historical average is 1 million, according to Dales' research.
However, the huge drop in home pricing provides great potential for those looking for a new home. With the economy suffering it’s a great time for potential buyers find their dream home at an extremely affordable price. With low interest rates and thousands of houses on the market, potential home owners are able to have plenty of great deals and options to choose from.
“It’s really amazing how many good deals are available on the housing market,” Kandell said. “For veterans and military families now is the time to purchase a home at a really affordable price.”
For LowVARates.com and its partners, the current interest rates for a 30 year VA home loan remain historically low around 4.5 percent. Many homeowners are finding new homes for a lower price than they are currently paying in rent.
More than four in every five mortgages now require a down payment of approximately 20 percent, and credit history standards have tightened. For veterans the opportunity for 100% financing is available with a VA home loan making it the only loan on the market to offer no down payment. Many VA lenders have also recently loosened their credit requirements making it much easier to refinance with credit less then 620.
“The bright side of this historic housing fall is that it provides a great opportunity for potential military homeowners,” Kandell said. “The VA home loan is by far the best loan in the industry right now and veterans definitely need to use their VA military benefits whether they are purchasing or refinancing.”
For the past 20 years LowVARates.com has been dedicated to serving veteran homeowners. We specialize in providing VA loans to qualified veterans for mortgage purchases and refinances. These loans provide lower interest rates and monthly payments than other traditional loans.
VA loans are currently the only program left that allows no-money-down loans providing a secure mortgage option guaranteed by the Federal Government. Our professional staff and loan officers will assist you to lock in low interest rates and take advantage of the unique opportunity provided through VA loans.
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