Happy Friday Ya’ll….
Posted by Ricki Lynn Miller | Leave A Comment »
Home Values, As seen by…
Yourself…
Your Prospective Buyer…
Your Lender…
Your Appraiser…
And finally the Tax Assessor!
Obviously this is a joke, but your homes
value isn’t. If you want to know what your
home’s current value really is,…
Call a REALTOR. That’s what we do.
Have a Great Weekend 
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FHA Tries To Limit “Buy And Bail” Purchases
Posted by Kevin Kueneke | Currently 1 Comment »
I recently wrote a post about FNMA’s underwriting guideline change regarding retaining a principal residence as a rental when buying a new home. The gist of the new guideline is that the retained property needs to have a minimum of 30% equity in order for rental income to be used to help qualify for the new home. Otherwise, the buyers must have an increased amount of reserves in the bank and also sufficient income to carry both mortgages.
Lenders used to allow buyers to merely provide a rental agreement and then use a portion of that rent to offset the house payment. Unfortunately, some buyers would provide a fake rental agreement thinking that they would be able to easily rent out the home.
However, after a few months sitting vacant, and after a few more mortgage payments are made, the nov
elty of having a rental property wears off. The decision to walk away for many folks became very easy to make.
This decision is even easier to make if the retained property is upside down, like many in today’s market. Unfortunately, many people over the last twelve months have purchased more affordable homes with the intention of letting the previous home go, creating what lenders now call “Buy and Bails”.
FHA has temporarily decided to tighten their guidelines to help avoid this practice. Similar to FNMA, if the retained property has sufficient equity in the home (25%), then rental income can be used. Otherwise, borrowers income must be able to support both properties. **Relocation buyers are excluded from this rule as long as an executed lease agreement (with a minimum one year term) is provided as well as proof of receipt of rental deposit**
Even if the vacated property does not have an FHA-insured loan, FHA feels that if the property ended up in foreclosure it might have an impact on the value of nearby homes with FHA-guaranteed mortgages.
I understand FHA’s reasoning behind the guideline change and it was really only a matter of time before FHA followed FNMA. In the grand scheme of things, this change is another step towards reducing future foreclosures, but it does further emphasize that FHA is geared toward the first-time homebuyer.
Any questions? Please feel free to call me at (760)500-1919 or email me: Kevin@MyCWMtg.com
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Here Comes The Bottom!
Posted by Pam & Joanna | Currently 1 Comment »
Americans felt better about the economy in August, as a barometer of sentiment posted the biggest boost in two years amid falling gas prices.
Two reports suggested that a bottom could be nearing for the housing market. The Conference Board, a private research group, said Tuesday that its consumer confidence index rose to 56.9, up from a revised 51.9 in July.
That’s the largest gain since August 2006, and is ahead of the 53 expected by economists surveyed by Thomson/IFR.
It’s also the second month in a row that sentiment improved, after a six-month slide since January.
This is an interesting time to say the least. We know tthe pulse of real estate is different from region to region and even from neighborhood to neighborhood.
While some neighborhoods like Carlsbad and similar coastal properties are still selling in a relatively short amount of time, just inland a few miles like Vista or Oceanside we are seeing an abundance of foreclosures hit the market at incredible values.
Either way you look at it, it’s a great time to buy whether you are an investor, a first time homebuyer or a ‘move-up’ buyer.
The stars and the planets have aligned and all the right things are in the right place to jump into a fantastic market.
My crystal ball tells me ‘don’t wait till you know the market has hit the bottom because you won’t know until you’re past it!’
Anne D’Innocenzio, AP Business Writer Contributed to this article
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Buying A Home Should Be Exciting…
Posted by Kevin Kueneke | Currently 1 Comment »
Unfortunately, the process can also be very stressful. Here are a few things to keep in mind when looking for a home that can help the process go a little smoother and hopefully keep it fun.
Firstly, find a real estate professional with whom you connect. Home buying is both a financial and emotional commitment and it is critical that the real estate professional you choose is not only highly skilled but also a good fit with your personality. Just as important is to find a competent mortgage loan officer, someone that keeps up with the ever changing mortgage market. Many loans that were available six to twelve months ago are not available now. Someone that “does loans on the side” may not be current.
There is no perfect time to buy a home so if you find the right home, do not try to second-guess interest rates or the housing market by waiting longer as you risk losing the opportunity. Worthwhile homes are now being priced to sell and are receiving multiple offers. Mortgage interest rates can increase dramatically in a short period of time drastically affecting your borrowing power. It is very important to plan ahead, get your ducks in a row, and get pre-approved for a mortgage prior to shopping. You must be realistic and know what you can truly afford.
One of the biggest problems I had when I was shopping for my first home was that I had trouble accepting that no house is perfect. There was something wrong with each and every home. If the kitchen was right, the bedrooms were too small. If the yard was the perfect size, the house was on a busy street. Best bet is to make a list of your top priorities and focus on things that are most important to you and let the minor ones go. 
Do not forget to factor in maintenance and repair costs in your post-home buying budget even if you buy a new home because there will always be costs. I had to buy a lawnmower, a rake, yard waste cans, you name it. Worse yet, the existing carpet, which seemed fine with the seller’s furniture on it, looked old and worn once I had moved in my furniture. Then my furniture looked old and worn with the new carpet…
Buying a home, especially your first home, is a big financial commitment and should be well thought out. Preparation is key. Did you ever take a test in school without studying, choosing the “I’ll just wing it” approach? I have and it was no fun.
Plan ahead. Rely on the experts. Keep it fun.
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