Bank Statement Loans: Loan Program Information and Benefits

Mortgage Mom Radio airs weekly focusing on topics that will educate our listeners around mortgage lending. This week we continue the Homebuyer Workshop series by covering the details of the Bank Statement loan program and more! In this Issue "There is nothing I would not do for those who are really my friends. I have no notion of loving people by halves, it is not my nature." - Jane Austen As home prices continue to rise, those with their heart set on homeownership might seek non-traditional ways of climbing the property ladder. In this issue, we'll cover these ideas as well as the following: What to Watch - After weeks of lower bond prices and higher yields, the cure for higher rates may be higher rates, as the uptick in yield could be luring in buyers. Rent-to-Own Properties on the Rise - The popularity of rent-to-own properties has increased recently, but it remains a risky option for many homebuyers looking to purchase their home. Ways to Hang Plants Outdoors - You don't need a green thumb to hang plants outside as long as you have a few household items. Q&A: What Type of Market Is It? - How do you know if it's a buyer's or seller's market? Knowing which one it is can help you determine if you should buy, sell, or hold on to your property. What to Watch Where Are Rates Headed? After weeks of lower bond prices and higher yields, the cure for higher rates may be higher rates as the uptick in yield could be luring in buyers. Reports now read that Japan may become a net buyer of U.S. Treasury securities after being a net seller for quite some time. One of the continued tailwinds for relatively low rates here in the U.S. is the ridiculously low rates around the globe. Also on the radar in the weeks and months ahead could be the continued rise in the U.S. stock markets. The possibility of the bullish sentiment for stocks may be fueled by new stimulus on the way as states continue to reopen fully and if rates stabilize. The U.S. economy could be on track for a breakout year. The Atlanta Fed is forecasting a whopping 8.3% gain in Q1 2021 Gross Domestic Product! So what does this mean for mortgage rates? If we continue to see some stabilization in yields, we may see some modest improvement in rates. At the same time, we should expect a continued rise in rates as the economy improves. The Federal Reserve has said as much in the past few weeks. Sam Khater, Freddie Mac's Chief Economist, said, "While purchase activity remains high, it has cooled off over the last few weeks and is currently on par with early March 2020, prior to the pandemic. However, the rise in mortgage rates over the next couple of months is likely to be more muted in comparison to the last few weeks, and we expect a strong spring sales season." Bottom line: Home borrowing costs remain historically low, and now is a good time to get off the fence and jump into home ownership. Source: Mortgage Market Guide Housing News Rent-to-Own Properties on the Rise The demand for these types of properties has increased recently. While opting for a rent-to-own property looks good on paper, since you don't need to plunk down a huge down payment, it comes with its own risks. One major risk is that unlike the typical buying or rental process, the rent-to-own doesn't have a standard contract as the terms are completely negotiable. This is known as the lease option, and both sides must agree to certain terms. With a rent-to-own home, you agree to rent a home for a specific time with the understanding that you gain ownership of the home. The timeframe can last from several months to several years. Another downside is that you will probably pay higher prices than if you were to rent. But if you think about it, a portion of your monthly payment is going toward the down payment on the home. You can use the accrued money to purchase the home at the end of your agreement. The money is typically non-refundable,