What Happened to 100% Financing?! April 9, 2008
Posted by GregChaffin in : Financing, Market Reports, Real Estate , add a comment
The days of 100% financing are over for the time being. The exception is VA loans for our veterans. FHA is fast becoming the financing of choice for numerous borrowers for various reasons. FHA loans offer a low down payment and provide the security of a fixed payment. FHA is used when borrowers have limited funds to close requiring a minimum investment of only 3%.
There is a saying in the mortgage industry “No credit is good credit”. FHA is not a credit score driven program. Borrowers who are faced with credit limitations on conventional financing may find a solid alternative through FHA. Borrowers who have no credit established are able to obtain alternative credit sources for creditors who don’t report to the 3 major credit bureaus. This method makes it possible to “build” a credit file for potential borrowers.
Major benefits for borrowers seeking FHA financing are; New debt-to-income ratios of 31/43%. No reserves are required, Sellers in the transaction can contribute 6% towards the buyers closing cost, Borrowers down payment can be in the form of a gift letter from another person, or a gift swap program. What makes a gift swap program different, the seller contributes the down payment funds to a non profit organization that in turn make the funds available to the buyer for their down payment.
Ameridream, Nehemiah and Genisis are the organizations who make this possible for buyers.
The new loan limits for the West Texas area are $271,050.00. This means single family homes with a sales price of $279,181.00 will qualify for FHA financing. Singlewide and Doublewide manufactured homes are acceptable for FHA financing. Some restrictions apply see your lender for details.
Grag Chaffin, Coldwell Banker Mortgage Specialist
(432) 528-3192
http://gregchaffin.coldwellbankermortgage.com
Greg.Chaffin@mortgagefamily.com
March Madness! Real Estate Air Ball or Bouncing Back? March 28, 2008
Posted by AndrewK in : Market Reports, Real Estate , add a comment
Last year was a not so good year for real estate and existing home sales in most areas of the country. However, 2008 has yet to reveal its place in history. We all hope that foreclosures and defaults will fall while home sales and prices will rise again (sustainably that is). Well we may just see a better year for real estate sales in the United States. According to Lawrence Yun, the chief economist for the National Association of Realtors:
The National Association of Realtors® said that sales of existing homes rose by 2.9 percent in February to a seasonally adjusted annual rate of 5.03 million units. It was the biggest increase in a year and caught economists by surprise.We’re not expecting a notable gain in existing-home sales until the second half of this year, but the (February) improvement is another sign that the market is stabilizing.”
This shows the cyclical nature of the real estate market and free market economies in general. They bounce back. Sometimes on their own and sometimes with the assistance of government. In any case our human nature requires us to seek shelter and therefore makes real estate a necessity, much like increased demand for gasoline in the face of rising prices. I am confident that the national real estate market, with the help of government, will stabilize and become even stronger in years to come.
Welcome to RealTalk: San Angelo February 29, 2008
Posted by admin in : @San Angelo, Market Reports, Real Estate , add a commentHello everyone! I want to welcome everyone to our new website about San Angelo real estate. We are maintained by Andrew Killingsworth and Coldwell Banker Patterson Properties. There are many useful links you will find in our posts or on either side of the page. Don’t miss our CurbAppeal and DirtTalk sections. In CurbAppeal, you will find profiles of interesting homes and homeowners that are noteworthy in the San Angelo area. We will be profiling historic homes, interesting architecture and landscape design, and maybe a few rescue stories. Check out DirtTalk for updates on new constructions trends, building sites, and land issues.
With our new website we hope to accomplish several goals. First, we hope to educate the public on issues such as real estate, mortgages, insurance, taxes, construction, and design. Second, our purpose is to bring together the community to discuss these important topics. We want YOU to participate in the conversation. Our agents can answer almost all of your questions about San Angelo and its real estate market so ask away. How many times have you had a simple question about real estate but didn’t want to call a pushy agent who will pressure you into a decision? Using our site is absolutely free and we will never contact you unless you ask us.
Posted by admin in : Financing, Market Reports, Real Estate