By Gino Blefari, President and CEO – Intero Real Estate Services, Inc.
For many years, the Federal Housing Administration, by virtue of its policies designed to help people with lower incomes or those just starting out, made it possible for millions of Americans to purchase their own homes. They made it possible for these people to take part in the American Dream.
Fast-forward to 2006, at the height of the “boom” real estate market, and the FHA found itself backing just 3 out of 100 home loans, as “non-conforming” loans were being given to, pretty much, whoever asked for them, and their requirements were virtually hassle-free when compared to those that the FHA had in place.
Today, the FHA backs 3 out of every 10 new home loans, because, as other lenders have tightened restrictions, FHA has followed the status quo, keeping things fairly liberal.
The result of all of this? Problems. Big ones.
On December 2, 2009, the Secretary of Health & Urban Development, Shaun Donovan, stood before Congress and announced that the FHA’s cash reserves have fallen well below the Federally-mandated level of 2%, to a staggering .53%.
To try to alleviate the FHA’s problems and raise reserves to their legally-required levels, Mr. Donovan indicated sweeping changes would be coming to the FHA’s loan process. Here’s some of what you should expect:
Turn-of-the-century bayside villages, quiet rural settings, country club communities, comfortable urban neighborhoods and secure retirement enclaves are all part of Bradenton and Manatee County. Bordering the Gulf of Mexico between Tampa and Sarasota, Manatee County has earned the reputation of being one of the friendliest communities in on the Gulf Coast, in addition to its diverse neighborhoods and Florida charm. The agents of our Bradenton office proudly serve the residential opportunities throughout Manatee County and beyond.
Manatee County Sales Reports
Pam Ali, branch manager of Michael Saunders & Company’s Bradenton office, is pleased to report significant activity in home sales throughout Manatee County. In the Multiple Listing Service (MLS) for Manatee County, there were 243 single-family homes that sold in the last 30 days. The average sales price was $230,488. (more…)
As many homeowners continue to struggle with making their home mortgage payments and fear of losing their homes, there is help available. The government program and websitewww.MakingHomeAffordable.gov provides homeowners with home mortgage information from both Freddie Mac and Fannie Mae as well as contact information for the mortgage servicers who have committed to assist eligible homeowners with either refinance or modification options which may provide them with the opportunity to stay in their homes. The Making Home Affordable site also shares some great “how to’s” to guide homeowners through these challenging times and help them avoid pitfalls when reaching out for assistance. I’ve attached a flyer which provides an overview of some of the support options available – please feel free to share this with homeowners you may know who could use this information.
Click on the document below to open and save as a PDF.
With stricter qualifications and more scrutiny than previous years for securing a home loan, preapproval letters provide piece of mind for sellers in knowing that the buyer is capable of handling the purchase. The following article lends some helpful tips for homebuyers in today’s market.
Today, the first step in landing a home loan is obtaining a letter of preapproval. This means a mortgage lender has verified that you’re approved for a mortgage of a certain amount over a fixed timeframe.
Preapproval letters are prepared even before you’ve picked out your home. They remove some of the uncertainty in the home-buying process. In the current housing market, real estate agents and sellers won’t want to work with buyers unless they have one.
“Before you even get in my car, you want to get preapproved,” says Gerry Bourgeois, a real estate broker and president of Towne & Country Realtors in Leominster, Mass.
With a letter in hand, buyers know exactly how much they can borrow – and therefore how much house they can afford. A preapproval letter shows the seller and the seller’s agent that the buyer is capable of buying their house. “For most sellers, the issue is not whether they can get an offer, but whether they can close the deal,” says Tara-Nicholle Nelson, a real estate broker in Oakland, Calif.
Agents see preapproved buyers as more serious (and more valuable) because they’ve taken proactive steps to secure a preapproval. When it’s time to make an offer, a preapproved buyer will be in a better position to negotiate.
Here’s what home buyers need to know about the new rules of mortgage preapproval.
Here is a piece of encouraging news for everyone in our industry. It is comforting to know that consumers still believe in homeownership and recognize this as the ideal time to buy. With reduced home prices matched with low interest rates, we are experiencing a true recipe for real estate success. The big question now: Who is still sitting on the fence?”
Market In Review: The Wells Fargo View Sm
Despite the ups and downs in the economy, Americans still believe in the dream of homeownership. According to the June PULSE Top 25 Metropolitan Statistical Areas Survey, 83 percent of consumers believe buying a home is a good financial decision.
Attitudes of respondents in their prime home purchasing years (ages 25 to 44) had not been adversely affected by the market in the past several years.
In fact, three-fourths of survey respondents said now is a good time to purchase a home because of home price declines. Low interest rates (see chart), tax benefits, and seller incentives also remain attractive for consumers looking to purchase their first home or move up from their current home.
Sarasota’s downtown is a vibrant destination brimming with a wealth of fine restaurants, specialty shops and splendid cultural attractions. With lifestyle options varying from soaring penthouse residences to quaint cottage-style homes, the downtown area boasts the perfect opportunities for anyone seeking the vivacious pace of city life. Centrally located at 1801 Main Street, Michael Saunders & Company’s downtown office is perfectly sited to allow our Realtors the convenience to serve property buyers and sellers throughout Longboat Key, Lido Key, Bird Key, Siesta Key and anywhere in Sarasota quite easily.
How is the Downtown Sarasota Market?
Gary Loughlin, branch manager of the Main Street office, finds the market to be improving in general with property pricing being the most important consideration for both buyers and sellers. As of July 17, the downtown Michael Saunders office has over 40 pending transactions, a number that already exceeds the total of July 2008. This month’s closings span the pricing spectrum and involve properties that have spent a variety of time on the market. Of course, some are very quick closings and others have been in the works for quite a while. (more…)
Visitors from around the world choose Englewood for its unspoiled beaches and some of the richest fishing grounds found in the Gulf of Mexico. Staffed by an exceptional team of area specialists, our Englewood office is strategically located at the intersection of Highway 776 and Beach Road, along the shores of Lemon Bay.
How’s the Market in Englewood?
According to Barbara Fendley Saputo, branch manager of Michael Saunders & Company’s Englewood office, business to date in 2009 has surpassed 2008 in the same timeframe by 27 percent. Every component necessary to make this an opportune time for a buyer is in place:
Low interest rates
Reasonable prices
Favorable exchange rates for foreign buyers(more…)
I wanted to share a great YouTube video regarding why this is an ideal time to buy. While we don’t need a video to remind us, it’s always great to hear a re-enforced message from someone as well respected as David Bach. Property prices are great, interest rates are incredible, and everyone in the industry, including sellers, are motivated to make deals happen.
Feel free to reach out to one of our MSC Mortgage Loan Officer for additional information regarding mortgage programs and interest rates.
Visit MSC Mortgage to speak to one of our loan officers by clicking here: MSC Mortgage
Renowned around the world for its sugary sand, Siesta Key is a major attraction for those in search of a property close to the area’s finest beaches. Our Siesta Key office is located on the north end of Siesta Key Village, which also serves as quite an attraction for visitors and residents alike. Picture perfect and ideal for laidback tropical afternoons, the Village was recently transformed into an inviting pedestrian-friendly area, where benches, streetlights, additional crosswalks and a gazebo create an attractive setting. Additionally, the great restaurants and vibrant nightlife make this a destination not to be missed.
How is the Market on Siesta Key?
Debbie Judge, branch manager of Michael Saunders & Company’s Siesta Key office, reports positive news for Siesta Key’s inventory of available properties. For the first two quarters of 2009, the supply of available single-family homes is down 22 percent compared to the first five months of 2008. Furthermore, condominium inventory is down 9.2 percent. After a very strong June, Debbie expects to see a further decline in properties available for buyers. Her conclusion: Educated buyers are scooping up the values.(more…)
During the first quarter of 2009, the mortgage industry experienced strong origination activity due to a number of factors including the ongoing low interest rate environment, a drop in the national median home price, an abundance of homes on the market and new government programs that are available to encourage homeownership, as well as refinances.
According to Inside Mortgage Finance, mortgage originations increased by 71%. In total, an estimated $445 billion of single-family mortgage loans were made.
Of the originations in first quarter, the May 29 issue of Inside Mortgage Finance showed that 78% of originations were for refinances and 22% were for purchase money mortgages.
Credit and financing options continue to be available to qualified borrowers. Consumers should be aware that when obtaining a loan, it’s likely they will be asked to verify their income, demonstrate a solid credit history, and bring a down payment to the table.
• According to results released by the National Association of REALTORS® on May 12, the national median home price of single family homes sold in the first quarter was $169,000, a 6.2% decline from fourth quarter 2008.
• In addition, the Center for Housing Policy recently reported that between 2007 and 2008, the income needed to purchase a median-priced home dropped in 194 of 199 metropolitan areas.
These factors appear to demonstrate that the tide may be turning and home inventories are stabilizing in some areas of the country.
Does refinancing fit your situation?
Whether you're buying a home or refinancing, MSC Mortgage provides valuable online tools
and resources to help you make the decisions that are right for you.
For the best service with any of your home financing needs,
talk to one of our private mortgage bankers today.
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