Posts Tagged ‘home’
Wednesday, November 25th, 2009
Besides saving yourself money, using an FHA endorsed loan to purchase a home may be the most patriotic thing you can do. Hear me out. In the late 1990s, the government correctly sought to increase homeownership. Naively, the government did not look to the FHA to take charge in this call to action. Instead, they relied on Fannie Mae and Freddie Mac to broaden the types of loans they purchased from mortgage lenders, relaxing underwriting guidelines and pushing the moral envelope. Fannie Mae and Freddie Mac had a fiduciary responsibility to look after the well being of their shareholders, not the consumer. As such, the loans created over the next few years put an emphasis on profit — excessive prepayment penalties, interest only and “teaser” rates. The appeal to consumers: These new loans came with little or no money down.
In FY 2009, FHA insured 30% of total purchases and 20% of total refinances in the housing market (it does not lend its own money). Here are just some of the benefits of using the FHA.
- Low down payment of 3.5 percent. The down payment can even be a gift from a relative, non-profit organization or employer.
- Interest rates are competitive with conventional mortgages
- Guidelines allow buyers to qualify for more home than conventional loans
- There is no income cap for FHA
- Fixed interest rate with no prepayment penalty
Uncle Sam NEEDS YOU!
When you use the FHA to purchase a home, you pay an upfront mortgage insurance premium (MIP). This upfront premium is commonly rolled back into the mortgage to avoid an out-of-pocket expense. In addition, you pay a monthly MIP. The monthly MIP is less expensive than private mortgage insurance (PMI) for a conventional loan with 5 percent down (if you can still find a lender originating 95% LTV conventional loans). These MIP fees generate $1 billions in revenue for the government every year.
The FHA loan can also be used to finance home improvements for purchases and refinances under its 203K program.
Find FHA approved lenders in your area
Find FHA loan limits in your area
DHW asks: Have you used the FHA to purchase or refinance a home? How was your experience?
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Tags: 203k, fannie mae, FHA, fha lenders, fha loans limits, freddie mac, home, purchase, refinace
Posted in 203k, 203k lenders, FHA, fha lenders, fha loan limits | 1 Comment »
Monday, November 16th, 2009
As any good Realtor will tell you, price moves a home. But sometimes Realtors (as well as sellers) are afraid to take their own advice. As housing evaluations have dropped around the country, listing prices have been slow to follow. To get the job done, and your home sold, a price reduction might be in order. However, nothing beats pricing a home correctly from the start. Even with price reductions, you may never fully catch up the the market. No groundhog has popped its head up to officially declare the housing decline over.
Here is a slide show of cities leading the country in price reductions.
DHW asks: Do you see your city on this list?
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Tags: cities, home, home seller, home values, Housing, housing evaluations, housing news, housing prices, listing, price, price reductions, pricing a home, Real Estate, real estate news, realtor, realtors, Sales, seller, sold
Posted in Housing Article, cities, cities leading country in price reductions, home, home prices, home sales, home sellers, house, listing prices, price reductions, realtor, realtors, sellers | 1 Comment »
Tuesday, November 10th, 2009
Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.
Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.
NAR chief economist, Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.
DHW asks: Do you see a bottom to the housing market?
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Tags: $6500, $8000, $8000 tax credit, 177900, 2009, 2010, 6500 tax credit, 6500 tax credit extension, 8000 tax credit extension, bottom, Builders, buyers, congress, down, extension, first time buyers, first time homebuyers, foreclosure, foreclosures, home, home buyers, home prices down, home prices down sales up, home sales, home sales data, home sales up, home sales up prices down, home seller, home values, homebuyers, Housing, housing bottom, housing credit extension, housing inventories, housing inventory, housing news, housing prices, housing report, housing sales data, housing tax credit, inventories, inventory, lender, loan, mortgage, nar, national association of realtors, Obama, president barack obama, President Obama, price, Real Estate, real estate news, realtor, realtors, Sales, sales data, short sale, short sales, tax credit, tax credit extension, third quarter, up, VA compromise sale, worker home ownership and business assistance act of 2009, worker homeownership and business assistance act of 2009
Posted in Housing Article, home sales, housing tax credit, realtors | 1 Comment »
Saturday, November 7th, 2009
DesperateHouseWise.com added a new page to its site. Modification Center offers helpful information for homeowners seeking a loan modification or refinance. Find information about Making Home Affordable and local foreclosure prevention events. You can even find a free, HUD-approved housing counselor.
DHW also added Housing Tax Credits. This page provides in-depth information regarding the recent extension and additions to the housing tax credits.
DHW asks: Have you applied for a loan modification? How was your experience?
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Tags: $6500, $8000, $8000 tax credit, 6500 tax credit, 6500 tax credit extension, 8000 tax credit extension, and Business Assistance Act of 2009, bill h.r. 3548, buyer, buyers, counslor, fannie mae, first time buyers, first time homebuyers, foreclosure, foreclosure prevention, guidelines, h.r. 3548, home, home buyers, home owner, home owners, home seller, homebuyers, homeowner, homeowners, Homeownership, house, Housing, housing counselor, housing news, housing report, housing tax credits, lender, loan, loan modification, loan modification letter, modification center, mortgage, Obama, President, president barack obama, President Obama, Real Estate, real estate news, refinance, seller, tax credit, tax credit extension, Worker, worker home ownership and business assistance act of 2009, worker homeownership and business assistance act of 2009
Posted in Housing Article, foreclosure prevention, housing counselor, housing tax credit, housing tax credits, loan modification, loan modification center, making home affordable, refinance | No Comments »