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Types of loans offered

Compliant, Jumbo, Alliant Advantage Mortgage, HELOC

Types of loans offered

Compliant, Jumbo, Alliant Advantage Mortgage, HELOC


  • Offers a 0% mortgage with no PMI for “well-qualified” first-time homebuyers; others have a 5% down payment option, no PMI
  • See personalized rates without registering
  • The Home Rewards program offers cash back at closing
  • Easy online application

The inconvenients

  • No government backed mortgages
  • Must be a member of Alliant Credit Union
  • No other credit data

More information

  • Mortgage lender online only
  • The Alliant Advantage Mortgage program allows borrowers to secure a mortgage with as little as 0% or 5% down without paying PMI
  • Fixed rate mortgages are not available in Maryland
  • Minimum credit score and down payment shown are for conforming mortgages

Overall Lender Rating

Advantages and disadvantages

Mortgage Interest Rates and Fees Alliant Credit Union

The Alliant website allows you to easily customize rates to suit your situation by scrolling down on its mortgage main page and clicking on “Get your personalized rates”. You’ll need to provide basic information about how much you plan to borrow, the location of the home you’re buying or refinancing, and your credit score range.

Alliant Credit Union charges origination fees on its mortgages, and the exact amount you pay will depend on the type of mortgage you get. Fixed rate mortgages come with an origination fee of $1,795, while the fee for variable rate mortgages is only $995. According to the Alliant site, setup fees can go up to $1,930.

Mortgages Alliant Credit Union vs. Connexus Credit Union

*Alternative forms of credit are only permitted on ARMs for borrowers with a limited credit history.

Alliant and Connexus are both

credit unions

with similar offerings, but there are a few key differences between these lenders that may make one a better choice than the other, depending on your needs.

Alliant Credit Union’s most attractive mortgage offering is its Alliant Advantage Mortgage program, which allows first-time homebuyers to buy a home with no down payment and no private mortgage insurance (PMI). Repeat buyers can also get a PMI-free mortgage with a 5% down payment.

In contrast, the lowest down payment you can make on a Connexus Credit Union mortgage is 3%, and you will have to pay PMI on down payments below 20%. Alliant borrowers who do not qualify for the Alliant Advantage Mortgage program can also obtain a mortgage with 3% down payment with PMI.

Connexus may be a better option for borrowers with limited credit history. Although this lender does not accept alternative credit data for those with no credit or bad credit, it may consider alternative data from those with thin credit records. However, he can only do this for his adjustable rate mortgages.

Alliant Credit Union vs. Ally Mortgages

Ally is a fully online bank that offers conforming and jumbo mortgages that require as little as 3% down payment. For buyers who want to deposit less than that, or those looking to avoid PMI on down payments of less than 20%, Alliant’s Alliant Advantage Mortgage will likely be the best option, provided your credit is strong enough to do so. be eligible.

When it comes to fees, Ally is the clear winner, with no loan fees. However, there are a handful of states in which Ally does not do mortgages, while Alliant offers mortgages in all 50 states, with one small exception: it does not do fixed rate mortgages in the Maryland. (ARMs are available in all states.)

How Alliant Credit Union Mortgages Work

Alliant’s mortgage application is completed online and over the phone. Borrowers can get a mortgage from Alliant in all 50 states, but can’t get a fixed rate mortgage in Maryland. Alliant Advantage mortgages are not available in Florida or Nevada.

Alliant Credit Union offers conforming and jumbo mortgages for purchase and refinance transactions. It also offers a low down payment option for what it considers “qualified homebuyers” called the Alliant Advantage Mortgage program. These mortgages allow first-time home buyers to purchase a home for up to $500,000 with 0% down payment and no PMI. Repeat buyers can buy a home for up to $650,000 with 5% down (or refinance with just 5% equity) and no PMI.

For its traditional mortgage offerings, borrowers can potentially deposit as little as 3% with PMI.

Alliant charges setup fees ranging from $995 to $1,930. Borrowers generally need a credit score of at least 640 to obtain a mortgage from this lender. Since Alliant is a credit union, you will need to become a member before your mortgage closes. However, you do not need to be a member to apply for a mortgage.

To become a member of Alliant Credit Union, you must meet one of the following criteria:

  • Be an employee of one of the companies or organizations with which Alliant is partnered
  • Be a domestic partner or immediate family member of a current member
  • Live or work in one of the eligible communities near the credit union’s Chicago headquarters
  • Be a member of Foster Care to Success (Alliant will pay your $5 membership fee)

If you have any questions, you can email or call Alliant Customer Service between 8:00 a.m. and 6:00 p.m. CT Monday through Friday and 8:00 a.m. and 2:00 p.m. CT Saturday.

Is Alliant Credit Union Trustworthy?

Alliant Credit Union has an A+ from the Better Business Bureau. A company’s BBB rating is based on its honesty in advertising, the transparency of its business practices, and the effectiveness of its response to customer complaints. Alliant also has strong customer reviews on its Zillow lender profile and has no recent public scandals.

Alliant Credit Union Mortgage FAQs

What credit rating is needed for Alliant Credit Union mortgages?

Alliant Credit Union generally requires mortgage borrowers to have a credit score of at least 640.

Are credit unions safe for mortgages?

Yes, as long as you work with a reputable organization, credit unions are as safe as other mortgage options.

Is Alliant legit?

Yes, Alliant Credit Union is a legitimate credit union that has been around since 1935. According to its site, Alliant has over 600,000 members. Alliant deposit accounts, including savings accounts and

check accounts

are federally insured by the National Credit Union Administration.

First-time homebuyers: Down payment assistance programs available to eligible individuals https://lescouleursdeluce.com/first-time-homebuyers-down-payment-assistance-programs-available-to-eligible-individuals/ Sat, 12 Mar 2022 14:15:12 +0000 https://lescouleursdeluce.com/first-time-homebuyers-down-payment-assistance-programs-available-to-eligible-individuals/

By Johanna Gomez, Lisa Hamilton and Jenny Rodriguez

UF-IFAS Osceola County Extension Services

Down Payment Assistance (DPA) programs help first-time home buyers with loans or grants that reduce the amount they need to save for a down payment. There are more than a thousand of these programs across the country, many of which are run by local governments.

DPA programs may vary by location. If you’re considering buying a home and are looking for these types of assistance, you need to learn more about what’s available in your area, the requirements, and if it’s the right choice for you and your family.

Types of ODA: In general, most PAD programs will be interest-free, can be given as a grant or loan, and the buyer will have to follow the guidelines and requirements. For example, this type of assistance can be:

A grant or donation that never has to be repaid if you qualify under program guidelines, or

A second mortgage. In this category, you can have a combination of a loan that must be repaid alongside your first mortgage or a deferred repayment loan that you will only have to repay if you sell, move, or refinance to cash in the equity. of your property. Another type is a loan in the form of a second mortgage often for five, 10 or 15 years which is canceled over the years and only has to be repaid if you sell, move, rent or refinance your house before the duration of years established by the DPA program. are met.

Important facts to know: To qualify, most DPA programs will require you to be a “first-time home buyer,” meaning that to be considered you must be free of title for at least three years, and also:

  • Must be able to qualify for a mortgage through a lender;
  • Must qualify based on household income, household size, location of home, cost of home, financial status;
  • Must meet the minimum FICO (credit) requirement for the program;
  • Must have, for most DPA programs, at least some equity in your bank account;
  • To apply, most programs will require you to attend a course for homebuyers from a counseling agency approved by the U.S. Department of Housing and Urban Development (HUD), where you will receive a certificate of completion indicating that you have taken at least one eight-hour course. (For courses at the University of Florida/IFAS Extension, visit Upcoming courses visit us here University of Florida / IFAS Extension Osceola County)

Who is eligible? What types of loans are acceptable for down payment assistance?

Every down payment assistance program is different. Some will have income caps and may require the home to be located in certain areas within a certain price range. Qualifying will depend on where you live and what programs are available in your state, county, or city. To be rewarded, most DPAs will seek if:

  • Buyers have low to moderate incomes;
  • The home is located within the DPA program guidelines and within the allowable price range;
  • The home will be used as a primary residence and not as an investment (rental homes, second homes, or vacation homes do not qualify for DPA programs);
  • PAD is used with an approved mortgage program
  • You work with an approved mortgage lender who can run the loan program.

Almost all DPA programs require you to borrow from approved lenders. Most common loan programs such as FHA loans, VA loans, USDA loans and also conventional loans are authorized by DPA programs. A private mortgage referring to a direct purchase financed by a private source in most cases will not qualify for these government programs. Check your local DPA program websites for details.

Costs covered by down payment assistance: Since “down payment” explicitly refers to the initial amount you contribute to your home loan, some DPA programs will allow their funds to be used for your closing costs as well as a down payment. Others may not allow funds to be used for other purposes. When applying for assistance, contact your local DPA programs to see if closing cost subsidies are included.

And, if you live in Osceola County, there’s good news: The Osceola County State Housing Initiative (SHIP) Partnership Program is accepting applications:

To apply for the Osceola County SHIP program, visit SHIP Program Apply Here

Program requirements

  • Applicants must complete an 8-hour homebuyer course;
  • Obtain a pre-approval letter from a participating lender. See our list of preferred lenders here.
  • Not having owned or seized a house in the last 3 years;
  • Must contribute at least $1,000 of own funds toward purchase;
  • Must adhere to all program guidelines
  • $280,000 maximum purchase price of a single family home, townhouse or condominium in Osceola County.

Assistance levels are based on the maximum purchase price of the family’s income level. The family is required to attend post-purchase counseling within 6 months of the date of purchase. For revenue guidelines, visit: Osceola County SHIP Down Payment Assistance Program Flyer

Resources for Finding Down Payment Assistance Programs in Florida

The Florida Housing Finance Corporation (FHFC) has three DPA programs:

  • Three percent HFA Preferred Grant – if eligible, they offer 3 percent of the purchase price of the home as a non-refundable grant
  • Florida Assist – offers up to $7,500 interest-free second mortgage. You don’t have to make any payments on this, as they’re usually only due when you sell or refinance the home.
  • Hardest Hit Fund DPA – Only available to residents of certain counties. She lends up to $15,000 interest-free for five years. Every year 20% of the loan is forgiven, you pay nothing, provided you stay in the house that long.

For more information, visit the FHFC website Florida Housing Finance Corporation

For other DPA resources and programs, visit:

Florida Housing State Housing Initiatives Partnership Program

Homebuyer Loan Programs Wizard

Down Payment Assistance for Osceola County SHIP Homebuyers

Orange County Housing Finance Authority

Remember: When buying a home, there are many steps in the process, as well as many costs involved, and down payment assistance programs can help. Consider that all programs have guidelines to follow and requirements to meet. Plan short-term and long-term goals when deciding to buy a home and whether support is an important factor in making that decision.

Johanna Gómez, UF/IFAS Family and Consumer Sciences, Faculty Extension Officer Osceola County in collaboration with Lisa Hamilton, UF/IFAS Family and Consumer Sciences, Faculty Extension Faculty Volusia County and Jenny Rodríguez, UF/IFAS Family and Consumer Sciences, Orange County Faculty Extension Officer. If you are interested in more of our programs, please contact us at UF/IFAS Extension Osceola County at 321-697-3000. For more information on our programs and events, visit http://sfyl.ifas.ufl.edu/osceola/ or find your local county UF/IFAS extension office at http://sfyl.ifas.ufl.edu/find-your-local-office/.

NC City may offer down payment assistance to its employees https://lescouleursdeluce.com/nc-city-may-offer-down-payment-assistance-to-its-employees/ Tue, 08 Mar 2022 14:15:10 +0000 https://lescouleursdeluce.com/nc-city-may-offer-down-payment-assistance-to-its-employees/

FAYETTEVILLE — Down payment assistance for first-time home buyers may soon be coming to City of Fayetteville employees.

City Council voted unanimously on Monday for officials to consider expanding its existing Good Neighbor Homebuyer Loan Program to include all eligible city employees.

When the program started in 2019, the $20,000 down payment assistance was only available to police officers.

The council also asked officials to increase that amount of assistance to $30,000 to account for rising home prices.

In January, according to the latest data available, the typical selling price of an existing single-family home in Fayetteville was $189,450, according to Swamp Pine Estate Agents.

This is an increase of more than 11% compared to January 2021.

Some zip codes in Fayetteville, such as 28314, 28306 and 28304, has seen increases approaching 20%. ZIP codes 28305 and 28312 — both of which saw an increase of around 30% — have median sales prices for existing single-family homes at $243,000 and $304,504, respectively.

“There has been a serious appreciation of housing costs, the mayor said Mitch Colvin said at Monday’s city council meeting, arguing for increased aid.

“The houses are competitive…instead of being one offer or two offers, it’s 10 offers. In order to really put them in the game, they need to put an increased down payment with the way the prices have gone up.

The program is funded by $400,000 from the city’s general fund and a $50,000 donation from the First Horizon Bank.

director of economic and community development of Fayetteville, Chris Cauleysaid in an interview before the reunion that the program encourages positive aspects of the community in two main ways.

“It’s about those community-oriented policing services that are so important to reach out to,” Cauley said.

“And then it’s also about relief – reversing the trend from renting to home ownership. This is one of the challenges of neighborhoods in difficulty. Someone’s grandmother dies, and the grandchildren are in another state, and so they rent the house until they can’t rent it anymore. This is how many neighborhoods decline over time.

“It’s really in the interest of the city and the community as a whole to help promote positive homeownership and homeownership from a generational wealth perspective, from a community safety perspective. and simply preserving the property tax values ​​in those neighborhoods, keeping those neighborhoods intact.

If the city council approves a submitted plan to expand the program in the coming weeks, eligible city employees can apply for the aid as early as April, Cauley said.

Who is eligible?

If the program is expanded, municipal employees can apply for assistance if they meet certain criteria.

Employees must have worked for the city for at least one year and be rated “meets expectations” in their most recent evaluation.

They must also be a first-time home buyer, which the city considers anyone who purchases the property, will live in the home as their primary residence, and have had no ownership, sole or joint, in any residential property in the during the previous three years. on the date of purchase.

There are also income limits.

Employees and their families must have an annual family income equal to or less than 140% of the region’s median income.

In Fayetteville, it’s $58,000 for a single person, and it’s $65,700, $73,400 and $81,100, respectively, for households of two, three and four people.

Eligible city workers could only buy a home under the program in certain neighborhoods.

As it currently exists, the program is limited to residences in the central Campbellton area and the Murchinson Road corridor.

City Council also voted for officials to consider expanding this to four more neighborhoods – Massey Hill Community, Bonnie Doone, 71st District Community and Deep Creek.

“They all revolve around low-income census areas, areas that in some programs we call hard to develop,” Cauley said.

“If we’re really looking to try to create homeownership and tip the scales in our redevelopment areas, from tenants to homeowners, then this is a really good program to do that.”

How the program works

The down payment assistance will take the form of a loan repayable over five years.

This means that the amount owed, in the event that the municipal employee decides to sell, will decrease by 20% each year over a period of five years.

At the end of the five years, the loan, which is granted at zero percent, will be considered fully repaid.

Since this is an Internal Revenue Service repayable loan, employees will also have to pay taxes on the aid since it would be considered part of their annual compensation.

This taxable income will be spread over the five-year period of the loan.

Homebuyer Education Class

Another part of the program expansion is the addition of a homebuyer education class.

Since the program began in late 2019, Cauley said about half a dozen police officers have inquired about the program, but none have purchased homes through it.

Cauley said the main reason based on the feedback was that agents didn’t feel ready to buy a home.

A homebuyer education class, Cauley said, could solve that problem.

“People just aren’t ready to become first-time homeowners and have been renters basically their entire lives,” he said.

“Their parents could have been renters all their lives, and buying a house is serious business. And it’s also complicated. We wanted to put together an education class for first-time home buyers as part of that. »

Cauley said the city would find a certified housing counselor who would teach potential homeowners how to navigate the process of buying a home, from finding a lender and finding a real estate agent to finding a home. in their price range.

The class would also teach them how to handle the new responsibilities that come with owning a home.

member of the board Antonio Joneswho is also a real estate agent, supports this addition to the program.

“There are a lot of things that go into buying a home, from renting to buying,” Jones said. “The courses would definitely be beneficial as it prepares them for things they may not have originally thought of or had to deal with on the rental side.”

Why not others in the city?

At Monday’s meeting, council member Shakeyla Ingram inquired about adding other professions outside of the city’s payroll to the schedule, particularly teachers and firefighters.

Cauley said in response that significant changes would have to be made to expand the program in this way.

“The legality of that is very different from funding our own employees,” Cauley said. “It essentially becomes the basis of their compensation.”

He also said there are barriers to funding assistance for people who are not low-income.

“We’re very limited in what we can do outside of this moderate housing income,” Cauley said.

“That’s not to say we couldn’t, but it really should be a separate branch of the board for us to work on something like this.”

How to use your RRSP to maximize your down payment https://lescouleursdeluce.com/how-to-use-your-rrsp-to-maximize-your-down-payment/ Mon, 07 Mar 2022 21:04:04 +0000 https://lescouleursdeluce.com/how-to-use-your-rrsp-to-maximize-your-down-payment/

Saving up a down payment for a house can be a daunting task. These days, it can take years to save enough money to afford a home, depending on a variety of personal and economic factors. However, the Canadian government has created a Home Buyers’ Plan program, which allows first-time home buyers to withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) to increase their downpayment. If you buy with someone who also qualifies for the program, it gives you up to $70,000 to spend on your home purchase.

Essentially, by using your RRSP, you are borrowing money from yourself to buy your home. Below, we’ll explain both how much down payment you need and how you can leverage your RRSP to help pay for it.

How much down payment do you need?

When buying a house and applying for a mortgage, you must have a down payment. A down payment is a lump sum of money that the borrower (in this case, the home buyer) gives the lender in cash to secure the mortgage for the property.

Many factors determine the amount of money you need to invest when buying a home. For example, if you are self-employed or have a bad credit history, the lender might ask you for a larger down payment because you are considered a riskier borrower.

Typically, a down payment will come from the buyer’s savings, as it’s better to use your capital for the down payment than to take on more debt (which can incur a high interest rate) to cover the down payment. down payment – what would take debt to pay more debt.

The money you put on your home will go towards the purchase price of the home, and the mortgage will cover the rest of the cost, which you will pay off over a set period of time, at a specified interest rate.

The minimum down payment required depends on the price of the house you are buying. However, it is generally ideal to pay at least 20% of the purchase price. If you are contributing less than 20% of the price of the house, you will need to purchase mortgage loan insurance, which protects the lender in the event of default on your mortgage.

Because down payments are percentage based, the higher the price of the home, the more money you will need to put down. Therefore, as the real estate market continues to simmer and prices rise, buyers will be required to put down more money. This is where the Home Buyers’ Plan can help first-time buyers.

What is the Home Buyers’ Plan?

the Home Buyers’ Plan (HBP) is a federal government program that gives first-time home buyers the option of withdrawing funds from their RRSP, under an agreement that they will repay the funds over a 15-year period.

The HBP allows first-time home buyers to withdraw funds from multiple RRSPs as long as your name is listed as the owner on the account. To be eligible for the HPB, you must meet specific criteria:

  • Be a first-time buyer
  • Have a written agreement to buy or build a qualifying home
  • Be a resident of Canada at the time your RRSP funds are withdrawn and until the home is purchased or built
  • Must intend to live in the home as their primary residence within one year of purchase or completion of construction

After withdrawing the funds from your RRSP, you will eventually have to repay them. The repayment period begins the second year after the funds are withdrawn and you have up to 15 years to repay the original amount. Each year, you will have to repay a specified minimum amount during this period. You can also choose to repay a higher amount, if you wish.

Before withdrawing funds from your RRSP, be sure to establish a budget for repaying the funds. If you don’t return the funds directly to your RRSP, your taxable income for that year will be increased by a corresponding amount.

Remember to consult with a trusted financial expert before making any decisions about financing your down payment to ensure you make the decision that is best for your financial situation.


You now need a down payment of over $400,000 for a home in Toronto https://lescouleursdeluce.com/you-now-need-a-down-payment-of-over-400000-for-a-home-in-toronto/ Mon, 07 Mar 2022 20:19:09 +0000 https://lescouleursdeluce.com/you-now-need-a-down-payment-of-over-400000-for-a-home-in-toronto/

A minimum down payment of $359,441 will now be required to purchase a single-family home in the Greater Toronto Area (GTA). And if you’re looking to reside in Toronto proper, that number jumps to $414,798.

Last week the Toronto Regional Real Estate Board (TRREB) has released its latest figures for the GTA.

And, frankly, they’re so dismal for potential first-time home buyers in the increasingly inaccessible region that it’s understandable that they stop paying attention to them all together.

For those in the dark (perhaps blissfully), the GTA has had another month of double-digit price increases. The average home price in the area has officially soared to a hard-to-swallow $1,334,544, a 27.7% year-over-year increase and 7.3% increase. month to month.


The average price of a single-family detached home in the GTA soared 31% to $1,797,203 overall, and officially hit the $2 million mark in the notoriously expensive city of Toronto, at $2,073 $989 (up 23%). Meanwhile, the average price for a semi-detached home in the GTA is now $1,358,415 (up 29.6%) and $1,499,489 in Toronto (up 14%).

The average total price for a townhouse in the GTA is now $1,121,641 (up 30.5%) and $1,131,809 in Toronto (up 22.8%). Finally, the average total price of a condo in the GTA reached $799,966 (up 24.6%) and $822,090 in Toronto (up 21.5%).

So how much will you need on the down payment front? We’ve broken it down for you (as far as the down payment goes, we can’t help you there):

Detached house in the Greater Toronto Area:

With 20% deposit: $359,441
With 25% deposit: $449,301
With 30% deposit: $539,161
With 35% deposit: $629,021

Detached house in Toronto:

With 20% deposit: $414,798
With 25% deposit: $518,497
With 30% deposit: $622,197
With 35% deposit: $725,896

Semi-detached house in the Greater Toronto Area:

With 20% deposit: $271,683
With 25% deposit: $339,604
With 30% deposit: $407,525
With 35% deposit: $475,445

Semi-detached house in Toronto:

With 20% deposit: $299,898
With 25% deposit: $374,872
With 30% deposit: $449,847
With 35% deposit: $524,821

Townhouse in the Greater Toronto Area:

With 20% deposit: $224,328
With 25% deposit: $280,410
With 30% deposit: $336,492
With 35% deposit: $392,574

Townhouse in Toronto:

With 20% deposit: $226,362
With 25% deposit: $282,952
With 30% deposit: $339,543
With 35% deposit: $396,133

Condo in GTA:

With 6.87% decrease: $54,997
With 10% deposit: $79,997
With 15% deposit: $119,995
With 20% deposit: $159,993

Condos in Toronto:

With 6.87% decrease: $57,209
With 10% deposit: $82,209
With 15% deposit: $123,314
With 20% deposit: $164,418

With these numbers, it’s no surprise that more and more people are turning to the parents’ bank to pay the deposit tabs. Let’s not forget that the pre-pandemic rental market — which was headed toward Manhattan — made it difficult for this down payment fund to grow significantly.

“We have seen a slight balance in the market so far this year, with sales falling more than new listings. However, with inventory remaining exceptionally low, it will take some time for the pace of price growth to slow” , says Jason Mercer, chief analyst at TRREB, “Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs force some households to temporarily put their home purchase on hold as they reposition themselves in the market.”

So, the reality is that prices aren’t going to drop anytime soon.

With no signs of a bubble bursting in the future, the answer lies in increasing supply. While no one seems to agree on the best way to do this, the silver lining with the release of these stats is that all options are on the table to increase housing options – and quickly.

Chinese developer stocks jump on banks’ deposit moves https://lescouleursdeluce.com/chinese-developer-stocks-jump-on-banks-deposit-moves/ Fri, 18 Feb 2022 02:52:29 +0000 https://lescouleursdeluce.com/chinese-developer-stocks-jump-on-banks-deposit-moves/

The increases came after banks in Heze, a city in eastern Shandong province, eased mortgage requirements for some home purchases.

Shares of Chinese developers rose on Friday after Finance Minister Liu Kun pledged increased fiscal support for the economy and an easing of down payment requirements for home purchases in several Chinese cities aimed at reviving the economy. demand.

The Hang Seng Mainland Properties Index, which tracks property developers, rose 4.6% on Friday – its strongest daily performance since November.

News of easing conditions for first-time buyers came in contrast to negative sentiment in the United States and Europe over tensions between Russia and Ukraine, which caused a sell-off on most Asian markets.

State-owned Poly Developments and Holdings climbed 5.4%. And in Hong Kong, the property index ended up 2.9%, led by a 5.3% rise in beleaguered neighborhoods. sunac China Assets.

Other indebted developers also won, like Shimao Holdings Groupwhich increased by nearly 3%.

The increases came after local media said banks in an eastern Chinese city – Heze in Shandong province – cut mortgage down payments in a bid to stimulate demand.

The Heze branches of the four largest public banks have all reduced the down payment rate from 30% to 20% for first-time buyers, the trade publication Caixin reported.

Caixin said Heze, formerly known as Caozhou, is the first Chinese city to take major easing measures targeting home buyers.

Hong Kong’s Hang Seng index fell 1% and most other Asia-Pacific markets fell on Friday, after heavy losses in the United States after the White House said Russia was on the verge to invade Ukraine.

AMC gets bond approval

In related news, East China Asset Management announced on Friday that it had received approval to issue up to 10 billion yuan ($1.58 billion) of bonds in the interbank bond market to address risks in the real estate sector.

China Orient is one of China’s four major asset management companies (AMC), or “bad banks”, originally created to get rid of non-performing loans from major state-owned banks.

Chinese financial regulators met with its major bad loan companies last month to explore how these AMCs can participate in developer asset sales.

The real estate sector has been battered by restrictions imposed last year on lenders and mortgage applicants in a bid to deleverage some of the huge debt held by builders such as China Evergrande.

  • George Russell and Jim Pollard

This report was updated with additional information on February 18, 2022.


Chinese courts freeze Evergrande assets over missed payments

Chinese developer Sunac and services unit dive into stake sale

Shares of Chinese developer Shimao jump after further asset sales

george russell

George Russell is a Hong Kong-based freelance writer and editor who has lived in Asia since 1996. His work has appeared in the Financial Times, Wall Street Journal, Bloomberg, New York Post, Variety, Forbes, and South China Morning Post. . .

First-time home buyers using stimulus checks for down payment https://lescouleursdeluce.com/first-time-home-buyers-using-stimulus-checks-for-down-payment/ Fri, 04 Feb 2022 19:02:57 +0000 https://lescouleursdeluce.com/first-time-home-buyers-using-stimulus-checks-for-down-payment/

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Government stimulus checks are helping people achieve the dream of buying their first home.

A recent report from Redfin found that nearly one in four first-time home buyers use government stimulus money to help put down a down payment.

The data comes from a December survey of 1,500 US residents. Of the 215 respondents who said they planned to buy their first home in the next year, 24% said they had saved stimulus money to help build up a down payment.

The most popular down payment source was also the most traditional: 52% of respondents said they saved money directly from their salary.

Others said they were able to save extra money during the pandemic (24%), or their down payment came at least in part from a second job (22%) or an inheritance (17%). Some even said they were boosted by the cryptocurrency markets: 12% of respondents said proceeds from the sale of cryptocurrency investments contributed to their down payments.

Stimulus checks helped boost Americans’ savings

In a statement accompanying the survey, Redfin chief economist Daryl Fairweather said that despite the economic upheaval of the early days of the pandemic, “many Americans, especially those in a position to buy a home , are now in a better financial position. than before.” That’s partly because “stimulus payments have provided many Americans with not only much-needed relief, but also extra cash in their pockets,” she added.

Since the start of the coronavirus pandemic, the federal government has approved three separate rounds of stimulus payments of up to $1,200, $600 and $1,400. Additional aid funds have also been sent to parents in the form of advance payments of a significantly expanded child tax credit.

Experts widely credit this emergency money with helping to keep many American families afloat during the worst of the economic crisis. One to study from the University of Michigan found that financial instability – measured by the share of adults with children in US Census data who said it had been very difficult to pay for household expenses during the week last – fell 43% between December 2020 and April 2021.

While most Americans spent the first round of payments on essentials like food and rent, according to a To analyse by the Peter G. Peterson Foundation, households were more likely to save portions of subsequent rounds.

Of course, some pundits have argued that all that federal stimulus money has also contributed to inflation, which has soared 7% year-over-year and helped drive up the prices of everything from gas groceries – not to mention the rent and the house. prices.