This Month in Real Estate: April 2011 Comments Off
Home Buyer Advice: 7 questions every home buyer must ask themselves Comments Off
Chris LaGarde, the Home Buyer Specialist for Chester County, gives you the 7 questions every home buyer needs to answer for themselves before they know they are ready to buy a home.
Home Buyer Seminar, Saturday, February 12th Comments Off
Learn how YOU can take advantage of this incredible Buyer’s Market!
FOR BOTH FIRST TIME & REPEAT BUYERS!
Next Date is Saturday February 12th, 2010 at 10:30 am at the Keller Williams office in Exton. (Map is below)
If this date does not work for you, we can set up a private seminar that fits your schedule.
You will learn the following:
- What tax advantages there are to Ownership
- Why now is the time to buy
- Overcoming major obstacles like “no money” or “bad credit”
- 10 deadly mistakes buyers make in this market and how to avoid them
- Why “MOVE UP” seller/buyers have a HUGE advantage in this market.
Taught By:
- Norm Miron, Wells Fargo Mortgage
- Chris LaGarde, Buyer Specialist, The Chris & Caleb Team, Keller Williams Real Estate
- John Benson, National Property Inspections
SEATING IS LIMITED!
To reserve your seat, please complete the registration below.
Home Buyer Seminar, January 20th, 2011 Comments Off
Learn how YOU can take advantage of this incredible Buyer’s Market!
FOR BOTH FIRST TIME & REPEAT BUYERS!
Next Date is Thursday, January 20th, 2010 at 6 pm at the Keller Williams office in Exton. (Map is below)
If this date does not work for you, we can set up a private seminar that fits your schedule.
You will learn the following:
- What tax advantages there are to Ownership
- Why now is the time to buy
- Overcoming major obstacles like “no money” or “bad credit”
- 10 deadly mistakes buyers make in this market and how to avoid them
- Why “MOVE UP” seller/buyers have a HUGE advantage in this market.
Taught By:
- Norm Miron, Wells Fargo Mortgage
- Chris LaGarde, Buyer Specialist, The Chris & Caleb Team, Keller Williams Real Estate
- John Benson, National Property Inspections
SEATING IS LIMITED!
To reserve your seat, please complete the registration below.
Chester County Home Buyer Seminar Comments Off
Learn how YOU can take advantage of this incredible Buyer’s Market!
FOR BOTH FIRST TIME & REPEAT BUYERS!
Next Date is Wednesday, October 13th, 2010 at 6 pm at the Keller Williams office in Exton. (Map is below)
If this date does not work for you, we can set up a private seminar that fits your schedule.
You will learn the following:
- What tax advantages there are to Ownership
- Why now is the time to buy
- Overcoming major obstacles like “no money” or “bad credit”
- 10 deadly mistakes buyers make in this market and how to avoid them
- Why “MOVE UP” seller/buyers have a HUGE advantage in this market.
Taught By:
- Norm Miron, Wells Fargo Mortgage
- Fran Patton, Wells Fargo Mortgage
- Chris LaGarde, Buyer Specialist, The Chris & Caleb Team, Keller Williams Real Estate
SEATING IS LIMITED!
To reserve your seat, please complete the registration below.
BREAKING NEWS: FHA Minimum downpayment will be raised. . . Comments Off
As you may, or may not know, the Federal Housing Administration (FHA) is in some trouble from a financial standpoint. I read the “Daily Forecast Update” from the National Association of Realtors today, and that update mentions that the loan underwriting standards for FHA loans will be changing, in the MORE STRICTER side of things. I do not have any time frame on when these changes will be implemented as of now. Several items that were mentioned to be changed are:
- Minimum Down Payment: It has been 3.5% but is rumored to be jumping to 5%. I don’t know that for sure thought. That means, that if you are purchasing a home at $200,000, TODAY your minimum down payment will be $7000. IF it goes to 5%, that jumps the minimum down payment to $10,000. That’s a difference of $3000. That can be a very big deal for first time home buyers.
- More limitations on Seller’s Assist: A Seller Assist is where, at closing, the Seller gives money back to the Buyer, usually to reduce closing costs. Currently the maximum allowed Seller Assist is 6% for an FHA loan. On a $200,000 purchase, that can be as much as $12,000 of assistance. I have not heard what they will be lowering them to, but I believe it will probably be reduced by 1 to 3%.
- Raising Minimum Credit Scores: Currently, the minimum credit score to qualify for an FHA loan is about 600. I have not read or heard what they may change it to.
Understand, the FHA does not give out loans, but does insure them. And in order to insure them, the loans, those using them and the homes they are buying must qualify for the loan. Many first time home buyers use an FHA loan when they purchase a home for several reasons:
- Credit scores are less of an issue: On a conventional loans, if your credit score is under a 720, then the interest rate that you would qualify for would be higher than what the base rate is. For instance, if the rate currently available is 5.125% and your credit score is 680, the interest rate you may qualify for may be 5.75%, for example. On an FHA loan, the rate is the rate, as long as you have the minimum score or better. So if the available rate is 5.375% (which is what it was yesterday, Jan. 19th) then that is the the rate no matter how close to the minimum score you have.
- Interest rates are generally the most favorable: If you have a less than stellar credit score, the chances that your rate with an FHA loan will be lower than that if you went with a conventional loan are very good.
- The Debt-to-income ratios are more lenient: Debt-to-Income (DTI) limitations for conventional loans are generally in the mid 30′s, meaning that if your overall debt payments (credit cards, auto loans, mortgages) constitute more than 35% of your overall Gross (pre-tax) income, then your “DTI” would be too high to qualify for that loan. On an FHA loan, currently it is in the mid to high 40′s.
- Private Mortgage Insurance is less on a monthly basis: The FHA allows the PMI to be structured in such a way that it can reduce the effect on a monthly payment by as much as 40%. That can equal as much as $100 or more and that is a significant savings for a first time home buyer.
My advice:
When, not if, but when these changes are put in to place and depending on how much of a change it is, this will definitely slow the market down. Less buyers will be able to qualify for a loan which equals less demand. So if you are a buyer or are considering buying between now and the next two years, I highly recommend that you speak with a qualified Buyer Agent today. They can help you determine how these changes will effect you and help you create a plan to put you in the best position possible when you do go to buy. For sellers – If you must seller or are considering selling in the next two years, your best window may be in the next 3 months. Speak with a qualified Realtor who knows your local market and can give you good advice.
Of course, if you live in Chester, Montgomery, Delaware, Lancaster or Berks Counties, I would be more than happy to help you.
Articles referenced in this post:
Home sales up in Chester County and nationally Comments Off
Home sales both nationally and locally had their strongest performance of 2009 in November. Undoubtedly aided by the deadline on the 2009 First Time Homebuyer Tax Credit, sales showed modest gains over a strong October 2009 and substantial gains from a year earlier (November 2008).
Nationally, sales were 44.1 percent higher than in November 2008, the National Association of Realtors reported yesterday, with 51 percent of the purchases attributable to rookie buyers. Locally the comparison between November 2009 and 2008 was much more significant with Chester County sales up 82%, Delaware County up 101% and Montgomery County 81%.
Experts anticipate that the market may hit a lull in the early part of 2010 as buyers take their time looking prior to the April 30 deadline for the expanded and extended tax credit. Two things to keep an eye out: will mortgage rates begin to rise and will the inventory of houses continue to decrease (they’ve gone down considerably over the last few months in the three Suburban West counties)
Results of the First Time Home Buyer Tax Credit in 2009 Comments Off
As you know by now, the First Time Home Buyer Tax Credit has been extended until April 30th, 2009 and also expanded to include some home owners selling their home and buying another. So what are the results that the credit passed last year had on the overall market? Let’s take a quick look at the stats:
- According the the IRS, about 1.4 Million people have taken advantage of the Credit.
- California was #1 in number of people filing to receive the credit – approximately 160,785.
- Texas was #2 with 131,472, #3 was Florida with 105,865
- While Alaska and Wyoming had the fewest number of claims
- From a “Per Capita” perspective, meaning the percentage of people in that state the numbers are different
- Nevada was #1, Utah #2, and Arizona #3
- An overwhelming percentage of buyers said that the credit was the main driving force in their decision to buy
- 10% of buyers said it was the only reason
Watch this market update video for more information.
First Time Home Buyer Profile for 2009 Comments Off
What are other first time buyers doing?
The tax credit extension and expansion in November has fueled new discussion about home buyers and the housing market in 2010. Here’s a look at first-time buyers in 2009.
- The median age is 28, significantly down from where it was in 2005 at 32.
- Location or Neighborhood was the No. 1 “must-have” for 36% of buyers.
- 2 out of 3 sellers paid at least part of the buyer’s closing costs.
- 76% used their own savings for the down payment.
- 1 in 4 had help from their family for the down payment.
As elevated levels of distressed properties are expected to continue for the next few years, here is a glimpse of buying a distressed property:
- 27% of foreclosures* were purchased by investors.
- 47% of distressed* properties were purchased by first-time buyers.
- 89% of those first time buyers that purchased a distressed property were motivated by the $8,000 tax credit.
- 7 in 10 agents have seen an increase in multiple offers.
- Approximately 3 out of 5 agents discuss the differences between buying distressed and traditional properties at the buyer consultation.
* Distressed – Short Sale and REO, Foreclosure – REO Only
