As a Real Estate agent, I am asked this question all time, more so for the past 4 years.
I was in our monthly business meeting this morning and our guest speaker had a great answer to this question, geared towards the buyer.
When you find a home, that is your "must have" house, in the "must have" area, with the right schools, amenities, parks, etc…in the price you are approved for and the terms you are looking for, then you have found your bottom of the market.
WOW...that really struck me and I wanted to share that with you. It just makes sense.
Very soon, I will be releasing my new buyer guarantee. I have developed a system to give you the highest and best chance of finding and purchasing your home utilizing foreclosed and short sale properties. I've worked on this system for the past 6 months with my buyers and they are finding it very helpful and successful.
Be sure to keep an eye out for my email announcement about this program very soon!
Tuesday, December 8, 2009
FHA Update - Sweeping Changes
Sweeping Changes... Here is an update from my November 10th Post!
Sweeping Changes, ......that is the way regulators describe the upcoming modification to the existing FHA program.
It turns out FHA is writing so many mortgages the risk factor to maintain them has increased.
FHA has announced that changes are coming very soon, but the information we have so far is very general. We expect those changes to eventually take effect since every time HUD announces new guideline proposals most of them come true!.
So.. What is coming...?
1- Changes to the down payment. HUD proposes the minimum down payment to be raised from the current 3.5% to 5%.
2.- MIP Upfront Mortgage Insurance. This is currently 1.75% and can be financed with the loan. The new proposal mentions that the amount will be raised and part of it may be required to be brought to the table by the borrower, perhaps 1%.
3.- Seller concession to be reduced to 3% from the current 6%. This will force buyers to bring even more additional money to the table.
4.-Tougher Credit and DTI guidelines making it harder to get people qualified with lower incomes, higher debt and blemished credit.
What does that mean for our average buyer? Let's see an example:
A couple in escrow that is buying a $187,000 home with an FHA loan.
They are putting 3.5% down and the seller is paying for 5% of the closing costs. All the MIP is financed, so the borrower is bringing to close $6,545 since the 5% covers the entire closing costs.
Under new rules, the borrower potentially will need 1.5% more down,, 2% more in closing costs and 1% in upfront MIP.. That means the borrower will need to bring $14,950 to close making it tougher for them to buy a home.
Again,, these proposed changes are still in the works and nothing is set in stone. We do see the trend of HUD towards making it more difficult especially for first time buyers and middle income families.
Sweeping Changes, ......that is the way regulators describe the upcoming modification to the existing FHA program.
It turns out FHA is writing so many mortgages the risk factor to maintain them has increased.
FHA has announced that changes are coming very soon, but the information we have so far is very general. We expect those changes to eventually take effect since every time HUD announces new guideline proposals most of them come true!.
So.. What is coming...?
1- Changes to the down payment. HUD proposes the minimum down payment to be raised from the current 3.5% to 5%.
2.- MIP Upfront Mortgage Insurance. This is currently 1.75% and can be financed with the loan. The new proposal mentions that the amount will be raised and part of it may be required to be brought to the table by the borrower, perhaps 1%.
3.- Seller concession to be reduced to 3% from the current 6%. This will force buyers to bring even more additional money to the table.
4.-Tougher Credit and DTI guidelines making it harder to get people qualified with lower incomes, higher debt and blemished credit.
What does that mean for our average buyer? Let's see an example:
A couple in escrow that is buying a $187,000 home with an FHA loan.
They are putting 3.5% down and the seller is paying for 5% of the closing costs. All the MIP is financed, so the borrower is bringing to close $6,545 since the 5% covers the entire closing costs.
Under new rules, the borrower potentially will need 1.5% more down,, 2% more in closing costs and 1% in upfront MIP.. That means the borrower will need to bring $14,950 to close making it tougher for them to buy a home.
Again,, these proposed changes are still in the works and nothing is set in stone. We do see the trend of HUD towards making it more difficult especially for first time buyers and middle income families.
Tuesday, November 10, 2009
Search Foreclosed by City
Visit www.DesertForeclosureFinders.com and see all forecosed homes for sale by city!
We are currently at 5.1 months of inventory for the Palm Springs, which puts us in a sellers market.
Properties are getting muliptle offers. If you are looking to buy or sell, call or email me today!
Have a Great week
We are currently at 5.1 months of inventory for the Palm Springs, which puts us in a sellers market.
Properties are getting muliptle offers. If you are looking to buy or sell, call or email me today!
Have a Great week
Think Waiting will save you money?
Even if prices fall another $10,000 to $20,000 over the next 12 months, if interest rates raise just 1 point, the money you saved on the cost of the home, will be negated by the amount of interest you pay on the loan.
Do not gamble with the most importance purchase of your life, call me today and we will work together to determine if the time is right for you to buy now!
Do not gamble with the most importance purchase of your life, call me today and we will work together to determine if the time is right for you to buy now!
Should I Buy or Should I wait?
If you are currently approved or looking to be approved to purchase a home through the FHA program at 3.5% down have a credit score below 700 and don’t have 10-20% for down payment plus closing costs, now may be the time to buy.
FHA could change guidelines early next year, changes that can affect your affordability, such as raising the 3.5% to 5% down and raising the minimum credit score. While we don’t have a crystal ball to know what will happen in the future, we do know what you can do now.
Call to email today so we can work together to find out if now is the time for you!
FHA could change guidelines early next year, changes that can affect your affordability, such as raising the 3.5% to 5% down and raising the minimum credit score. While we don’t have a crystal ball to know what will happen in the future, we do know what you can do now.
Call to email today so we can work together to find out if now is the time for you!
$8,000 homebuyers tax credit - Who qualifies?
I've been getting a lot of calls and emails about how the $8,000 tax credit works now for current homeowners!
Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. Has provided the following scenarios illustrating how the tax credit rules for existing homebuyers will apply:
• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.
• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.
• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.
• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.
For More Information, visit: http://www.federalhousingtaxcredit.com
Gibran Nicholas, chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. Has provided the following scenarios illustrating how the tax credit rules for existing homebuyers will apply:
• Harry owned a home in 2001 and 2002 but sold it to relocate for a job. He would qualify for the $8,000 first-time-buyer credit because he has not owned a home in the past three years.
• Sue purchased a home in 2004 and has lived there since. If she decides to buy a new home, she would qualify for the $6,500 tax credit because she has lived in the same residence for five consecutive years in the past eight.
• Jane purchased her home in 2002, lived there for five consecutive years before she rented it out in 2007. She would qualify because she was an owner/occupier for at least five consecutive years in the past eight.
• Mark purchased a home in 2006 and lived there for the past three years. He would not qualify because he is neither a first-time homebuyer nor someone who lived in the same primary residence for five consecutive years out of the past eight.
For More Information, visit: http://www.federalhousingtaxcredit.com
Wednesday, November 4, 2009
$8,000 Tax credit extended and EXPANDED!
The Senate today voted unanimously Wednesday night to extend the $8,000 tax credit for home buyers beyond its scheduled November 30, 2009 expiration date.
The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer.
The Senate vote was 98 to 0
Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.
Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.
The bill was passed as an amendment to legislation extending unemployment benefits. The House is expected to vote on the bill before the end of the week.
The credit would be available until April 30, 2010. Under the new legislation the credit will also now apply to home buyers who are buying their second or subsequent home. The credit currently applies only to first time home buyer.
The Senate vote was 98 to 0
Under a compromise reached late last week, the tax credit for veteran homeowners will apply only to those who have lived in their current residence for at least five years. The credit for these buyers will be capped at $6,500 while first time buyers will continue to receive $8,000.
Income levels will be extended from the current limits of $75,000 for a single purchaser and $150,000 for couples to $125,000 and $225,000 respectively. Above those limits there are diminishing credits available.
The bill was passed as an amendment to legislation extending unemployment benefits. The House is expected to vote on the bill before the end of the week.
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