Following in the footsteps of its counterpart Fannie Mae, Freddie Mac is offering a summer sales
promotion for buyers who purchase a home from its inventory of foreclosures or HomeSteps
properties. Since banks typically sell foreclosures “as-is” without incentives, warranties, or repairs, this incentive could help buyers view a HomePath property more like a traditional sale, and less like a distressed property, during their search process.
For offers received by July 31 that close by September 30, Freddie Mac is offering:
• 3.5% in closing costs to buyers
KW Research 10
• $1,200 bonus to buyer agents
This is on top of the incentives already being offered:
• A two year HomeProtect Home Warranty
• Up to 30% savings on new appliances
Note that this program comes with a few eligibility requirements, which includes the home must be a single-family, owner-occupied, financed dwelling used solely for residential purposes.
Showing posts with label home buying. Show all posts
Showing posts with label home buying. Show all posts
Thursday, July 7, 2011
Wednesday, December 2, 2009
FHA Mortgages to Cost Borrowers More
Home buyers will have to make a larger down payment to get an FHA-backed mortgage and will need to have higher minimum credit scores under changes announced today by HUD Secretary Shaun Donovan.
Reporting from Washington - Home buyers will have to pay more cash upfront to get a mortgage backed by the Federal Housing Agency and will need to achieve higher minimum credit scores under changes announced today by Housing and Urban Development Secretary Shaun Donovan.
In testimony prepared for a House hearing on the agency's increasingly precarious finances, Donovan also said he was considering raising the premium the FHA charges for mortgage insurance and will ask Congress for the authority to do so if needed.
He wants to make those and other changes because a recent audit has shown that the FHA's reserves have fallen below mandated levels as the agency has become a larger part of the housing market. The percentage of mortgages insured by the FHA has soared from 6% in 2007 to almost 30% this year. The FHA insures mortgages made with as little as 3.5% for a down payment and has become vital in a housing market where credit remains tight and borrowers' bank accounts have been depleted by the financial crisis.
In Southern California, the number of FHA-backed loans has soared, becoming a crucial source of financing for first-time home buyers, particularly those snapping up foreclosed homes. FHA loans made up 38.3% of all Southland purchase loans in October, up from 32.5% a year earlier and just 2% two years prior, according to MDA DataQuick, a San Diego real estate research firm. Riverside County had the region's highest rate of FHA loans, at 49.2% of the market.
"The loans FHA insures must be safe and self-sustaining for the taxpayer over the long-term," Donovan said in his testimony. "With these reforms and others we will be considering, the Administration is committed to ensuring that they are today -- and into the future."
Donovan said the expanded role of the FHA, which he oversees, is only temporary until the mortgage financing market recovers.
Many lawmakers are concerned that the FHA, which is funded by mortgage insurance premiums paid by borrowers, will need an infusion of government money. The agency is supposed to hold a secondary reserve fund equal to 2% of all the mortgages on its books. An annual independent actuarial study released last month showed the reserve had fallen to .53%.
Aware in September that the reserve fund would fall below 2%, the FHA announced several policy changes to reduce its risk of future losses to limit the chances the fund will have to be tapped. Those changes included requiring lenders to have at least $1 million in cash and other assets, up from $250,000, to issue FHA-backed loans.
But with the actual shortfall of the reserve fund larger than expected, Donovan announced the additional changes today.
"We've learned from recent history that the market is fragile, and we have to plan for the unexpected," he said.
Many details still need to be worked out. For example, the agency wants to increase the upfront cash required from borrowers so they "have more 'skin in the game' and a stronger equity position in their loans."
But administration officials are analyzing several ways to do that. Likewise, HUD is analyzing what the minimum credit score should be for an FHA-backed loan. Any change there would be temporary, he said.
Donovan can make those changes without congressional approval, but would need a vote by lawmakers to increase its mortgage insurance premium because it is at the mandated limit.
Donovan did not propose increasing the minimum down payment from 3.5%, a change some lawmakers are advocating. Rep. Scott Garrett (R-N.J.) has introduced legislation raising the minimum down payment to 5%.
Courtesy of LA TIMES
Reporting from Washington - Home buyers will have to pay more cash upfront to get a mortgage backed by the Federal Housing Agency and will need to achieve higher minimum credit scores under changes announced today by Housing and Urban Development Secretary Shaun Donovan.
In testimony prepared for a House hearing on the agency's increasingly precarious finances, Donovan also said he was considering raising the premium the FHA charges for mortgage insurance and will ask Congress for the authority to do so if needed.
He wants to make those and other changes because a recent audit has shown that the FHA's reserves have fallen below mandated levels as the agency has become a larger part of the housing market. The percentage of mortgages insured by the FHA has soared from 6% in 2007 to almost 30% this year. The FHA insures mortgages made with as little as 3.5% for a down payment and has become vital in a housing market where credit remains tight and borrowers' bank accounts have been depleted by the financial crisis.
In Southern California, the number of FHA-backed loans has soared, becoming a crucial source of financing for first-time home buyers, particularly those snapping up foreclosed homes. FHA loans made up 38.3% of all Southland purchase loans in October, up from 32.5% a year earlier and just 2% two years prior, according to MDA DataQuick, a San Diego real estate research firm. Riverside County had the region's highest rate of FHA loans, at 49.2% of the market.
"The loans FHA insures must be safe and self-sustaining for the taxpayer over the long-term," Donovan said in his testimony. "With these reforms and others we will be considering, the Administration is committed to ensuring that they are today -- and into the future."
Donovan said the expanded role of the FHA, which he oversees, is only temporary until the mortgage financing market recovers.
Many lawmakers are concerned that the FHA, which is funded by mortgage insurance premiums paid by borrowers, will need an infusion of government money. The agency is supposed to hold a secondary reserve fund equal to 2% of all the mortgages on its books. An annual independent actuarial study released last month showed the reserve had fallen to .53%.
Aware in September that the reserve fund would fall below 2%, the FHA announced several policy changes to reduce its risk of future losses to limit the chances the fund will have to be tapped. Those changes included requiring lenders to have at least $1 million in cash and other assets, up from $250,000, to issue FHA-backed loans.
But with the actual shortfall of the reserve fund larger than expected, Donovan announced the additional changes today.
"We've learned from recent history that the market is fragile, and we have to plan for the unexpected," he said.
Many details still need to be worked out. For example, the agency wants to increase the upfront cash required from borrowers so they "have more 'skin in the game' and a stronger equity position in their loans."
But administration officials are analyzing several ways to do that. Likewise, HUD is analyzing what the minimum credit score should be for an FHA-backed loan. Any change there would be temporary, he said.
Donovan can make those changes without congressional approval, but would need a vote by lawmakers to increase its mortgage insurance premium because it is at the mandated limit.
Donovan did not propose increasing the minimum down payment from 3.5%, a change some lawmakers are advocating. Rep. Scott Garrett (R-N.J.) has introduced legislation raising the minimum down payment to 5%.
Courtesy of LA TIMES
Monday, May 18, 2009
"Summerize" Your Home with These Spring Projects
It's hard to believe, but the official start of summer is just a few weeks away! Here are some spring cleaning projects you should definitely consider tackling before the hottest days of summer descend upon us.
Air Conditioning
It's important to have your air conditioner in perfect working order before summer starts. Taking care of any issues after the summer heat hits can potentially result in an increase in price, as well as an increase in the time it takes for a technician to visit your home. You should also replace any filters now. Simply remove the old one and take it to your local home improvement center. Sales representatives should have no problem finding its replacement.
Clean out your garage
Organizing a garage can be an excruciating experience during the hot summer months, so if that's something you need to do, don't put it off any longer. Once you clean out your garage, either donate any unwanted items or sell them.
Paint
Late spring is the perfect time to paint the interior of your home since the weather best lends itself to keeping your windows open, allowing the fresh air in and the paint fumes out. If you decide to paint the inside of your home, think about lightening the existing color as opposed to darkening it. Lighter colors are not only inviting, they create the illusion of a bigger, more open space.
Buy fans
Installing ceiling fans and using portable fans are great methods for cutting the heat inside your home. They are also far less expensive to use than an air conditioner. Using fans of any kind also enables you to keep windows open at night, allowing fresh air to circulate throughout the house.
Install dimmer switches
Dimmer switches not only add ambience, they also cut down on energy and the unwanted heat given off by brighter bulbs. Another tip is to use low-wattage light bulbs whenever possible.
Good luck and happy "summerizing!"
Air Conditioning
It's important to have your air conditioner in perfect working order before summer starts. Taking care of any issues after the summer heat hits can potentially result in an increase in price, as well as an increase in the time it takes for a technician to visit your home. You should also replace any filters now. Simply remove the old one and take it to your local home improvement center. Sales representatives should have no problem finding its replacement.
Clean out your garage
Organizing a garage can be an excruciating experience during the hot summer months, so if that's something you need to do, don't put it off any longer. Once you clean out your garage, either donate any unwanted items or sell them.
Paint
Late spring is the perfect time to paint the interior of your home since the weather best lends itself to keeping your windows open, allowing the fresh air in and the paint fumes out. If you decide to paint the inside of your home, think about lightening the existing color as opposed to darkening it. Lighter colors are not only inviting, they create the illusion of a bigger, more open space.
Buy fans
Installing ceiling fans and using portable fans are great methods for cutting the heat inside your home. They are also far less expensive to use than an air conditioner. Using fans of any kind also enables you to keep windows open at night, allowing fresh air to circulate throughout the house.
Install dimmer switches
Dimmer switches not only add ambience, they also cut down on energy and the unwanted heat given off by brighter bulbs. Another tip is to use low-wattage light bulbs whenever possible.
Good luck and happy "summerizing!"
Tuesday, April 28, 2009
Listing of the Week - 4949 Penn Place $204.900 Edmond, Oklahoma
4 Bed
2.5 Bath
3 Car Garage
2,157 SF
1.08 Acres
Deer Creek Schools
This nice and updated Edmond home was built in 2003 and is located in Deer Creek School District. Very quiet and private street with wonderful views of open acreages. This home sits on more than 1.08 acres and features: wood floors, updated paint, updated fixtures, open floor plan, fireplace, tall ceilings, brand new 2009 roof, sprinkler system, covered patio, large 10x12 outbuilding w/ electricity, above ground swimming pool, etc. Call Wyatt Poindexter with Keller Williams Realty at 405-417-5466 or visit www.WyattPoindexter.com.
HOME OBEO VIRTUAL TOUR:
www.4949PennPlace.com
YouTube:
http://www.youtube.com/watch?v=4NszC5-j1bY
Monday, August 4, 2008
How to Evalutate a Home Sellers Asking Price
Evaluating an owner's asking price is crucial to your investment. The seller can set the asking price at whatever he or she wants. There are no laws or rules that must be followed when setting an asking price for a property. In fact, there are many strategies for pricing a property that can be related to motivation, negotiation, emotional investment in a property, and so many others..
Let's first look at some possible seller strategies for pricing a property so we understand how pricing can be dependent upon so many issues.
The seller could have an idea in his or her head as to what the property is worth, and, without any consultation, pick a price out of thin air. Or they could look at comparable sales (comps) of properties that have sold near the property to determine a fair market value. They can then price the property higher or lower, depending on how motivated the seller really is.
If there are no comps to compare properties, the seller may have to judge a property's worth based on a different type of property, property that sold a long time ago, and adjust for appreciation, or even look at neighboring, comparable cities that could indicate what the property is actually worth.
A truly fair seller could get appraisals done by a few different people, and take the average of the values.
Keep in mind, however, appraisals can be very expensive and are at best a guesstimate as to what a property is worth.
The best way to evaluate a seller's asking price is to blatantly ask the Realtor or seller, how the price was determined, and to give supporting evidence.
You may find yourself in a situation where the broker has a pile of comps, perhaps an appraisal, and supporting documentation as to why the property is priced at what it is. If you find yourself in this situation, beyond validating and verifying the supporting documents, you will very easily be able to evaluate if the asking price is above, at, or below market value. This is the easiest situation in which to find yourself.
Unfortunately, although this previous example is how every property should be presented to a buyer, it is not always realistic. You may have to ask the broker for comps and do the research yourself in order to evaluate the seller's asking price.
If the property is in your own community, then, as a real estate insider, you should know your real estate market inside and out. However, if you are searching in an unfamiliar area, you will need to request the services of other commercial real estate players.
If you do decide that the seller's asking price is in alignment with your investment strategy and goals, and you put the property under contract, the next step would be to get an appraisal done by an independent party that has no interest in the subject property whatsoever, in order to validate your assumptions.
This appraisal, after all, will be similar to a bank's appraisal and help to determine how much money can be loaned on the project. The closer you are to the bank's appraisal, the better shape you will be in to meet project costs, debt service and make your desired profit.
Knowing what a property is really worth and evaluating the seller's asking price are two major ways that you can approach making a sound and final decision regarding an investment. Always have supporting and verified documentation for the subject property so you know exactly what you are getting and for what price.
Let's first look at some possible seller strategies for pricing a property so we understand how pricing can be dependent upon so many issues.
The seller could have an idea in his or her head as to what the property is worth, and, without any consultation, pick a price out of thin air. Or they could look at comparable sales (comps) of properties that have sold near the property to determine a fair market value. They can then price the property higher or lower, depending on how motivated the seller really is.
If there are no comps to compare properties, the seller may have to judge a property's worth based on a different type of property, property that sold a long time ago, and adjust for appreciation, or even look at neighboring, comparable cities that could indicate what the property is actually worth.
A truly fair seller could get appraisals done by a few different people, and take the average of the values.
Keep in mind, however, appraisals can be very expensive and are at best a guesstimate as to what a property is worth.
The best way to evaluate a seller's asking price is to blatantly ask the Realtor or seller, how the price was determined, and to give supporting evidence.
You may find yourself in a situation where the broker has a pile of comps, perhaps an appraisal, and supporting documentation as to why the property is priced at what it is. If you find yourself in this situation, beyond validating and verifying the supporting documents, you will very easily be able to evaluate if the asking price is above, at, or below market value. This is the easiest situation in which to find yourself.
Unfortunately, although this previous example is how every property should be presented to a buyer, it is not always realistic. You may have to ask the broker for comps and do the research yourself in order to evaluate the seller's asking price.
If the property is in your own community, then, as a real estate insider, you should know your real estate market inside and out. However, if you are searching in an unfamiliar area, you will need to request the services of other commercial real estate players.
If you do decide that the seller's asking price is in alignment with your investment strategy and goals, and you put the property under contract, the next step would be to get an appraisal done by an independent party that has no interest in the subject property whatsoever, in order to validate your assumptions.
This appraisal, after all, will be similar to a bank's appraisal and help to determine how much money can be loaned on the project. The closer you are to the bank's appraisal, the better shape you will be in to meet project costs, debt service and make your desired profit.
Knowing what a property is really worth and evaluating the seller's asking price are two major ways that you can approach making a sound and final decision regarding an investment. Always have supporting and verified documentation for the subject property so you know exactly what you are getting and for what price.
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