Fannie Mae to Offer Closing Cost Aid on Foreclosures
The largest provider of residential home funding in the United States, announced Friday that it would pay the closing costs on purchases of foreclosed homes in its inventory.The government-controlled company said buyers of qualified properties will get up to 3.5 percent in closing costs, or an equivalent amount for the purchase of new appliances.The goal of Fannie is to clear out the nearly 50,000 properties it has in inventory. Their goal....."Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover," said Terry Edwards, executive vice president for credit portfolio management, in a statement.
What does this mean for you??? This means when you buy a Fannie Mae home 3.5% of your closing cost will be paid for, saving you money.
To find a Fannie Mae home today call me at (951)240-9428 or email jwoldenga@roadrunner.com
Saturday, January 30, 2010
Wednesday, January 27, 2010
No more flip rule!
HUD Temporary removes 'Flipping Requirements Rule'
For contracts signed on/after February 1, 2010
HUD has announced a temporary waiver of the 90 Day Flipping Requirements Rule. The waiver is effective for FHA purchase transaction loans with purchase contracts signed on or after February 1, 2010. Loans with purchase contracts prior to February 1, 2010 are not eligible for the waiver.
The waiver is limited to those sales meeting the following general conditions which are designed to protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers:
· All transactions must be arms-length, with no identity of interest between the buyer and seller or any other parties participating in the sales transaction, including:
· Seller must hold title
· LLC’s, Corporations and trusts must be established in accordance with state and federal law
· No evidence of previous flipping within 12 months
· Evidence that property was marketed openly; via MLS, auction, FSBO
· If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets the following conditions:
· Significant work has been done to the home (documented by a second appraisal verifying that legitimate repair and rehabilitation has been done to substantiate an increase more the 20%); or,
· In cases where no work has been done, the appraiser must provide explanation to support the increase since the prior transfer; and,
· A property inspection must be provided to the buyer prior to closing. (The lender may charge the borrower for the inspection.) The inspector does not need to be FHA approved, but must have NO interest in property, must no receive compensation other than from the lender and may not be involved with the repairs recommended from inspection. At a minimum, the inspection MUST include:
1. Property structure, foundation, floor, ceiling, walls and roof;
2. Exterior, siding, doors, windows, any decks, balconies, walkways and driveways;
3. Roofing, plumbing, all electrical, heating and A/C systems;
4. All interiors;
5. All insulation/ventilation systems as well as fire places and fuel burning appliances.
· The waiver does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
The waiver is scheduled to be effective for one year, unless otherwise extended or withdrawn by HUD. If HUD discovers that there is a significant increase in mortgage defaults and claims attributable to the waiver, HUD may withdraw the waiver immediately.
The complete text of the Waiver is available on the HUD website at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
For contracts signed on/after February 1, 2010
HUD has announced a temporary waiver of the 90 Day Flipping Requirements Rule. The waiver is effective for FHA purchase transaction loans with purchase contracts signed on or after February 1, 2010. Loans with purchase contracts prior to February 1, 2010 are not eligible for the waiver.
The waiver is limited to those sales meeting the following general conditions which are designed to protect FHA borrowers against predatory practices of “flipping” where properties are quickly resold at inflated prices to unsuspecting borrowers:
· All transactions must be arms-length, with no identity of interest between the buyer and seller or any other parties participating in the sales transaction, including:
· Seller must hold title
· LLC’s, Corporations and trusts must be established in accordance with state and federal law
· No evidence of previous flipping within 12 months
· Evidence that property was marketed openly; via MLS, auction, FSBO
· If the sales price of the property is 20 percent or more above the seller’s acquisition cost, the waiver will only apply if the lender meets the following conditions:
· Significant work has been done to the home (documented by a second appraisal verifying that legitimate repair and rehabilitation has been done to substantiate an increase more the 20%); or,
· In cases where no work has been done, the appraiser must provide explanation to support the increase since the prior transfer; and,
· A property inspection must be provided to the buyer prior to closing. (The lender may charge the borrower for the inspection.) The inspector does not need to be FHA approved, but must have NO interest in property, must no receive compensation other than from the lender and may not be involved with the repairs recommended from inspection. At a minimum, the inspection MUST include:
1. Property structure, foundation, floor, ceiling, walls and roof;
2. Exterior, siding, doors, windows, any decks, balconies, walkways and driveways;
3. Roofing, plumbing, all electrical, heating and A/C systems;
4. All interiors;
5. All insulation/ventilation systems as well as fire places and fuel burning appliances.
· The waiver does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
The waiver is scheduled to be effective for one year, unless otherwise extended or withdrawn by HUD. If HUD discovers that there is a significant increase in mortgage defaults and claims attributable to the waiver, HUD may withdraw the waiver immediately.
The complete text of the Waiver is available on the HUD website at: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Tuesday, December 1, 2009
REALTOR® Magazine-Daily News-Nine Consecutive Gains for Pending Home Sales
REALTOR® Magazine-Daily News-Nine Consecutive Gains for Pending Home Sales
Nine Consecutive Gains for Pending Home Sales Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.
Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”
By Region
* Pending sales in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago.
* In the Midwest, the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008.
* Sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago.
* In the West, the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.
Not Out of the Woods Yet
Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.“
Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.Source: NAR
Nine Consecutive Gains for Pending Home Sales Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the NATIONAL ASSOCIATION OF REALTORS®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.
Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the home buyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”
By Region
* Pending sales in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago.
* In the Midwest, the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008.
* Sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago.
* In the West, the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.
Not Out of the Woods Yet
Yun cautioned that home sales could dip in the months ahead. “The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.“
Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.Source: NAR
Monday, November 23, 2009
Happy Thanksgiving!
Wanting to wish everyone a Happy Thanksgiving. To each of you, I am most thankful for. Hope you all have a fantastic holiday!
Jessica Woldenga
Jessica Woldenga
Real Estate Facts
Real Estate Market FAQs Got questions about where real estate is headed? Here are informed answers to some of the most frequently asked questions about today’s housing market.
When will housing hit bottom?
There isn’t any single answer to this question. It depends on where you live. Home prices are rising again in the most convenient suburbs of such cities as New York and Washington, D.C. California has seen an all time high in the past three months. In other places that are in less demand, prices continue to fall.
How can I figure out the value of my home?
Talking to a real estate professional and/or hiring an appraiser is the best idea. But even after getting a professional opinion, it is hard to tell what a home will sell for until you put it on the market.
Is now a good time for a renter to buy a home?
It could be. Prices in many areas are down significantly from their peak a couple of years ago. Plus, Congress has extended the tax credit for first-time home buyers and added a $6,500 credit for many previous owners of homes who sign a contract to buy by April 30, 2010.
Should I invest in foreclosed homes at auction?
A foreclosure/auction home can be a risky buy, even for the most experienced real estate investors. Use caution.
Source: The Wall Street Journal, James R. Hagerty (11/17/2009)
When will housing hit bottom?
There isn’t any single answer to this question. It depends on where you live. Home prices are rising again in the most convenient suburbs of such cities as New York and Washington, D.C. California has seen an all time high in the past three months. In other places that are in less demand, prices continue to fall.
How can I figure out the value of my home?
Talking to a real estate professional and/or hiring an appraiser is the best idea. But even after getting a professional opinion, it is hard to tell what a home will sell for until you put it on the market.
Is now a good time for a renter to buy a home?
It could be. Prices in many areas are down significantly from their peak a couple of years ago. Plus, Congress has extended the tax credit for first-time home buyers and added a $6,500 credit for many previous owners of homes who sign a contract to buy by April 30, 2010.
Should I invest in foreclosed homes at auction?
A foreclosure/auction home can be a risky buy, even for the most experienced real estate investors. Use caution.
Source: The Wall Street Journal, James R. Hagerty (11/17/2009)
Thursday, November 5, 2009
Tax Credit Extended Plus more......
Both Houses OK Tax Credit Extension, and Expansion
The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010 for first-time buyers. But they did not stop there it gets better.............
They have added a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.
Yes you heard that right not only do first time buyers benefit but now any buyer benefits *
The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly. “REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.Taxpayers can claim the credit on their federal income tax returns.
If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
Source: The Associated Press (11/5/2009)
* Please talk to your tax advisor on the details of this program
The House today and the Senate yesterday passed legislation to extend the $8,000 home buyer tax credit to May 1, 2010 for first-time buyers. But they did not stop there it gets better.............
They have added a $6,500 tax credit for repeat buyers if they've lived in their home for five of the past eight years. Home prices are capped at $800,000.
Yes you heard that right not only do first time buyers benefit but now any buyer benefits *
The legislation in both houses was included in a bill to extend unemployment benefits and is expected to be signed by President Obama shortly. “REALTORS® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” says NAR President Charles McMillan. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.”Under the bill, income limits are expanded to $125,000 for individuals and $225,000 for joint filers. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
Households who have binding contracts in place by April 30 will be allowed an additional 60 days to complete their transaction. The deadline for members of the military serving out the U.S. for at least 90 days between Jan. 1, 2009, and May 1, 2010, has been extended one year.Taxpayers can claim the credit on their federal income tax returns.
If the credit exceeds their tax bill, the government will issue a check. Taxpayers will be able to claim the credit on their 2009 income tax return for purchases made in 2010.
Source: The Associated Press (11/5/2009)
* Please talk to your tax advisor on the details of this program
Fha And Condo's
FHA Delays Implementing Rules for Condo Loans
The Federal Housing Administration says it will implement a new approval process for condo financing on Dec. 7 – the second time the deadlines have been pushed back. The delay also brings a relaxation of new rules, according to the Mortgage Bankers Association, which has been negotiating with FHA. Under the latest iteration of the rules, 50 percent of units in a condo project will be eligible for FHA funding and up to 100 percent will be eligible in “well-established” projects with a minimum of 10 percent reserves.
Half of the units will have to be sold to owner-occupants before FHA will back any loans.In an important move, FHA said it wouldn't require the recertification of some 40,000 projects that have already been certified for FHA financing. "If what the MBA says is the deal, it's essentially a nonevent," said mortgage banker Faramarz Moeen-Ziai.The U.S. Department of Housing and Urban Development confirmed a delay in implementation but wouldn’t comment on the changes the MBA says FHA has agreed to.[Editor's note: FHA Commissioner David Stevens talks about the new condo rules and other FHA issues, including appraisal guidelines and the agency's credit performance, in an interview with REALTOR® Magazine.
Source: Inman News, Matt Carter (11/05/2009)
The Federal Housing Administration says it will implement a new approval process for condo financing on Dec. 7 – the second time the deadlines have been pushed back. The delay also brings a relaxation of new rules, according to the Mortgage Bankers Association, which has been negotiating with FHA. Under the latest iteration of the rules, 50 percent of units in a condo project will be eligible for FHA funding and up to 100 percent will be eligible in “well-established” projects with a minimum of 10 percent reserves.
Half of the units will have to be sold to owner-occupants before FHA will back any loans.In an important move, FHA said it wouldn't require the recertification of some 40,000 projects that have already been certified for FHA financing. "If what the MBA says is the deal, it's essentially a nonevent," said mortgage banker Faramarz Moeen-Ziai.The U.S. Department of Housing and Urban Development confirmed a delay in implementation but wouldn’t comment on the changes the MBA says FHA has agreed to.[Editor's note: FHA Commissioner David Stevens talks about the new condo rules and other FHA issues, including appraisal guidelines and the agency's credit performance, in an interview with REALTOR® Magazine.
Source: Inman News, Matt Carter (11/05/2009)
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