Maybe you haven’t thought about which type of loan you will be getting..but here is something to think about. Right now the interest rates are fabulous (in the 4’s), which you and I know that will come to and end. Think about when interest rates go to 8 and above and you plan on moving. Your loan (FHA) can be assumed by a qualified buyer at the 4% interest rate. You have just made your home more saleable to the next buyer…it’s something to think about if you plan on moving up or just selling within 5 plus years.
Housing fell 5% in June to 549,000 below expectation of 575,000 and was the lowest in 8 months. This comes after a 33% drop in New Home Sales in the latest survey. Building permits are up but not for single family mostly for multi-family housing. No new tax credit which didn’t help.. and low employment adds to the weakness in the market. Housing and jobs have always been very closely tied together. The senate is expected to pass an Unemployment Benefits extension today for people whose benefits have expired prior to the 99 week maximum…if this passed then this will add to the already ballooning budget deficit.
Bank of America has implemented a new short sale process that has work wonderful. I have had a 100% success rate with this new program. No more trying to get thru to a person, you now just upload all your documents and get a response with a three day period. If your considering a short sale and have a Bank of America Loan, please give me a call and I will be happy to help with the process.
The U.S. House of Representatives voted to give home buyers who qualified for a federal tax credit more time to settle on their pending purchases.
The house voted 409-5 to extend the deadline for closing home purchases for Sept. 30. The program initially required borrowers who signed contracts before April 30th to complete paperwork by July 1 to get a tax credit of as much as $8,000
The tax credit may have fueled a temporary increase in home sales, which fell after the April deadline passed. New-home sales dropped 33% to a record low of 300,000 in May, the Commerce Department reported. Applications for loans to purchase properties fell at the end of May to the lowest level since 1997, according to the Mortgage Bankers Associations.
Now is the time to build your new home:
Home values are falling and the mortgage market is still in crisis..if you want the best investment of your time and money in building a new home now is the time.
1. It’s a buyers market, land prices are often the biggest investment in building and prices have dropped as much as 30-50%. Investors who have in the past bought speculative lots are not doing so with the current slowdown in the housing market. This leaves land available for the buyers interested in purchasing the land a perfect time to build.
2. Interest rates are excellent and are lower than those offer the previous three decades.
3. Energy efficient and green construction is not only good for the environment but also good for the wallet. Combining low maintenance, energy saving construction is the wave of the future and enhances your new home. Building your new home not only can save you money in the down market but the future also with savings on your utility bills and maintenance of aging features. If your looking for a builders who builds green homes in the Mendocino area give me a call I will be happy to direct you to a contractor who is Leed Certified.
Most people don’t even know what a sewer lateral is…but it’s important to know what your responsibility is as a home owner. The sewer lateral is a part of the sewer that runs from the house to the public sewer main that runs under the street. The repair of a private sewer lateral is the responsibility of the property owner and it could be a costly item. Sewer laterals usually back up from roots, broken pipes and it’s usually not covered by your homeowners policy. Cities are now requiring homeowners to be in compliance with new regulations which mean that you need to have your sewer lateral in good condition with no repairs needed. The cost can range from $2000 and up. Most sewer laterals are old and need to be replaced, so if this happens to you call and find out what your city requires for repairing your lines.
The importance of a home inspection on a new house..just because you are buying a new home doesn’t mean that you shouldn’t get a home inspection. It’s my recommendation that you get a home inspection every time. Here are the reasons: What if there were problems with the foundation, plumbing, wiring etc. Just because it’s brand new doesn’t mean that the contractor that was building the house did it correctly. The final permit that was signed off doesn’t mean that the contractor did his job correctly and the building departments don’t always do a good job checking these items. Down the road issues are what you want to avoid. It’s a little money for the large investment that you are securing. Spend the money for your future investment!
The good news for investors is that you no longer have to wait the 90 day period before you turn a home. The department of housing waived the 90 day no flip rule on foreclosures. This means that buyers using the FHA financing now can benefit from an investor who goes in and makes the house beautiful…and turn it quickly. FHA appraisals have not been easy with all the new requirements from appraisers/lenders. The investor is interested in turning the house quickly making some profit and the buyer is looking for something that shows new, it’s a win win situation.
Say goodbye to the lowest mortgage rates in about 50 years! For the past 16 months the Federal Reserve has helped keep rates low-around 5% for a 30 year loan but purchasing mortgage backed securities. But that program is scheduled to end on June 1 and private investors aren’t expected to step in to fill the void at the same low rates. As a result, the consensus amount economists is that the rates will climb to between 5.3% and 6% by the end of the year. It will be a gradual rise, if this happens the Fed will get back into the market. Jumbo mortgages are expected to hold steady at about 6% or so and that is because the government wasn’t propping up the jumbo market, so these loans won’t be affected much by the Fed’s exit. The upper end housing in the Mendocino County area is still just sitting there…housing over 500,000 are just not moving.
For a while last year it might have seemed as if the long-awaited housing recovery was just about here. Home prices stopped falling in spring and have stayed fairly stable since, according to the housing index. Sales rose from their recessionary lows and inventories came down from their highs. But this pickup turned out to be a short-lived scene. Sales of existing homes dropped sharply in January from the previous month, and inventories crept back up. The economists predict that the national median price for homes will dip another 5% before finally bottoming by year-end 2011. More than 3 million homes are expected to get foreclosure notices this year, as job losses increase. We can continue to hear these results thru the news and various opinions but I feel that we are starting to make turns for the better. More sellers are seeing an small increase over the last couple of years and less inventory always helps. The foreclosures are still hitting the market daily so until these stop we are going to see marginal progress.
