FHA and Conforming Loan Limits Released
The U.S. Department of Housing and Urban Development has released new FHA and conforming loan limits based on changes enacted last week as part of the massive economic stimulus bill. Under the legislation, loan limits in high-cost areas are increased to $729,750, the same as last year. They had dropped to $625,500 this year before passage of the legislation. In a Mortgagee Letter released yesterday on the change, HUD says the new loan limit for an area will be based on market calculations from either... Read More
America’s Best and Worst Housing Markets
As the housing downturn wears on, some cities are stabilizing and somearen’t. In Las Vegas, the weakest market in the country, prices continue to drop. “I don’t know what those guys were drinking when they thought all this building made sense. If it does work out soon, then there’s some force out there in the universe that I’m not aware of,” Steve Cesinger, chief financial officer at Dewberry Capital, an Atlanta-based real estate investment firm. Forbes magazine analyzed... Read More
Second-Home Buyers Are Looking at Foreclosures
Falling prices, especially in areas plagued by foreclosures, are enticing thousands to purchase a second home. Buying a foreclosed home, or an otherwise distressed property, is becoming particularly commonplace in Las Vegas. In January about 80 percent of residential sales in the area were foreclosures, according to the Greater Las Vegas Association of REALTORS®. To attract buyers, the association is offering bus tours of foreclosed properties and wooing potential international buyers through global... Read More
10 Most Affordable Cities to Buy a Home
More people can afford a house today than in at least five years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.A family earning the national median income of $61,500 a year would be able to buy more than 60 percent of all homes sold in the last three months of 2008 by committing less than 28 percent of their total income toward paying the mortgage, the report found. That figure is up 56.1 percent from the third quarter of 2008 and up 46.6 percent from... Read More
Who Will be Eligible for Foreclosure Help?
With the federal government hoping to finalize details for its $75 billion foreclosure prevention program by March 4, officials are fine-tuning eligibility requirements. So far, they are targeting borrowers who spend more than 38 percent of their earnings to make loan payments on primary residences. The Mortgage Bankers Association wants the Obama administration to broaden the refinancing component of the initiative, noting that the threshold of 105 percent of a home’s current property value... Read More
11 Markets With Highest Home Appreciations
Not all U.S. housing markets went south last year. First American CoreLogic Inc., in its latest study, identified the best-performing markets in the U.S. for 2008.In many cases, the markets that made the list are areas that never enjoyed significant increases in value over the last decade — but neither did they lose value over the last three years. Nationwide, American CoreLogic, which predicts loan performance for banks, reported housing prices were down 11.1 percent last year. It predicts... Read More
30-Year Rates Drop to Near 5%
Mortgage rates across the board fell this week, a welcoming sign to potential buyers and home owners looking to refinance.The 30-year fixed-rate mortgage averaged 5.04 percent this week, a drop from last week’s 5.16 percent. Last year at this time, the 30-year rate averaged 6.04 percent, Freddie Mac reports. Freddie Mac reported the following for other rates for the week: 15-year mortgage rates: averaged 4.68 percent, down from last week’s 4.81 percent. Last year at this time: 5.64 percent. 5-year... Read More
Curb Appeal is Key in This Market
Curb appeal remains the standard. If a house doesn’t have it, the property is likely to languish on the market. A Michigan State University study estimated that good landscaping adds 6 percent to 11 percent to the eventual sales price of a home. It doesn’t take a ton of cash to get curb appeal. Often a little bit of elbow grease will do the trick. Here are the basics: Front yard and porch. Mow the grass and keep it green. Keep the porch immaculate – no dirt or bugs. Mulch all the beds. Flowers... Read More
What’s In the Foreclosure Prevention Plan?
The Obama administration yesterday released its long-awaited plan to stem foreclosures. It’s organized into three categories: 1) Help for homeoners making their payments but at risk of default and foreclosure. Homeowners with a Fannie Mae or Freddie Mac loan would be eligible to refinance as long as their mortgage doesn’t exceed 105 percent of the home’s current market value. Currently owners need to have at least 20 percent equity. Potential impact: 4-5 million households. 2) Help... Read More
5 Tips for Homebuyers Seeking a Mortgage
Here’s a warning for potential borrowers: Nervous lenders have tough new rules and are paperwork crazy. “Borrowers are going to have to prove they are the borrower they say they are,” says Keith Gumbinger, vice president of HSH Associates, a mortgage-industry publisher in Pompton Plains, N.J. Gumbinger says homebuyers should consider these things before they apply for a loan. 1. Down payments are critical. Borrowers should expect to put down at least 10 percent for a “conforming loan”... Read More
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