homebuyers

Softening lumber prices offer hope for homebuyers, renovation project builders

Analysts say recent softening of record high prices for lumber could translate into a little relief for homebuyers and do-it-yourselfers while continuing to spur high profits for producing companies.

RBC analyst Paul Quinn says a US$14 drop to US$941per thousand board feet in the North American framing lumber composite price on Friday represents the first weekly decline noted by industry watcher Random Lengths since April 10. In the same week last year, the price was US$367.

He says declines could be expected to continue in coming weeks, but pointed out the November lumber futures contract increased US$28 over the same week to US$607 per thousand board feet.

Kevin Mason, managing director of ERA Forest Products Research, says prices are levelling off after hitting record levels this summer because price-conscious buyers are delaying projects and the peak summer construction season is drawing to a close.

However, he said the change in prices will simply drop lumber producers from “astonishingly profitable” to “remarkably profitable” levels, adding he expects robust financial results for the remainder of this year and likely through 2021.

Random Lengths reported that oriented strand board, a panel product commonly used to sheath new houses, was unchanged on the week at US$690 per thousand square feet, up from US$218 a year ago.

Homebuilders say forest product increases this year have added as much as $10,000 to the cost of building a typical single-family house in Canada.

This report by The Canadian Press was first published Sept. 28, 2020.

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11 programs that help first-time homebuyers get a mortgage

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  • To qualify for a conventional mortgage, you typically need a 620 credit score, 36% debt-to-income ratio, and 10% down payment.
  • But there are programs that help first-time homebuyers get mortgages even if they don’t meet conventional loan standards.
  • You may be eligible for a government-backed mortgage, a conventional loan backed by Fannie Mae and Freddie Mac, or a program specific to your state.
  • You can also get a special loan if your home requires significant repairs after moving in.
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Buying your home may feel like an insurmountable challenge, because you have to meet multiple requirements to qualify. Conventional mortgages typically mandate at least a 620 credit score and 36% debt-to-income ratio. Many lenders also ask for at least 10% toward a down payment.

These requirements can be tricky for first-time homebuyers to meet, especially if you’re young. Thankfully, there are plenty of programs designed to help out first-time homebuyers.

You do have to meet some conditions to qualify for such programs. But when it comes to your finances, these loans and grants have more lenient requirements for getting a mortgage than conventional loans.

Here are 11 programs for first-time homebuyers:

Unlike conventional loans, government-backed mortgages are guaranteed by federal agencies. If you default on your payments, then the agency pays the lender on your behalf. This guarantee allows lenders to offer you a mortgage even if you don’t meet the usual conditions for a conventional loan.

FHA loan

With a Federal Housing Administration loan, you only have to put 3.5% down. 

Lenders

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