26Sep
The FHA will no longer allow homebuyers to rent out their current home and use the expected rental income as part of the basis for obtaining a new mortgage to buy another home. Most buyers must now show that they can cover both mortgages unless they have 25-percent equity or provide proof of a job relocation and arrange a one-year lease on their current home. The FHA hopes the new rule - implemented as a temporary measure on Sept. 19 - will prevent buyers from purchasing a less expensive home and abandoning their current mortgage.
Source:
Inman News (09/24/08)
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23Sep
More evidence that the housing market still contains a lot of uncertainties, and not only in Florida: despite price falls which have encouraged buyers, getting that elusive home loan remains a major obstacle:
The price may be right, but if buyers can’t borrow enough, the house isn’t affordable. Difficulty borrowing is keeping many Americans from buying. “The industry went from little or no credit standards to credit standards on steroids,” says Marc Savitt, president of the National Association of Mortgage Brokers.
According to the Federal Reserve Board, about 85% of lenders, worried about falling prices and rising foreclosures, have stiffened requirements for borrowers in the past three months. Those with a credit score of 600 or lower cannot get loans at all, says Keith Gumbinger of HSH Associates, a mortgage information publisher.
Read the whole story here.
22Sep
There’s a silver lining in the economic crisis: A week of rapid-fire financial calamities could break an impasse in South Florida’s real estate market, as vulture fund investors send signals that it’s time to buy.
Read the full story here.
22Sep
Experts say that the government’s enormous plan to relieve Wall Street banks of their bad investments has a decent chance of stabilizing home prices, at least in theory. By buying troubled mortgage debt from major banks under the bailout plan, the government can help make more money available to borrowers - and hopefully at lower interest rates.
Read the full story here.
22Sep
Another complication could be on the horizon for short sales. Some lenders are agreeing to allow a short sale, but only if sellers sign a note promising to pay some or all of the balance due - debts that could burden them for the rest of their lives.
Read the full story here.
20Sep
Need some background into how Florida property taxes reached the situation its in today? Try this article, in which the author has set out his views in a straightforward style to help unravel the mysteries.
The same author has also summarized his views on Florida’s economic history and status here.
19Sep
The ongoing crisis in the financial markets continues to create a series of good news/bad news scenarios for consumers who either already own their own home or would like to buy one. So how does it affect mortgage rates?
Read the full story here.
Some highlights:
“Last Wednesday, the average rate on 30-year fixed loans was 5.73 percent, and mortgage bankers question how much lower it can really go.”
“Mortgage bankers say because homes have depreciated in value, credit scores need to be stellar.”
“One other warning from lenders: Don’t bother asking about refinancing for the purpose of taking cash out of the house because it’s largely off the table.”
19Sep
Signed into law last month by President Bush as part of a bigger housing bill, the $7,500 federal tax credit for first-time homebuyers is aimed at luring those on the fence back into the real estate market. Realtors have been learning more about the tax credit to answer questions from buyers.
Read the full story here.
19Sep
Short sales are supposed to be a win-win that gets the seller out of a tight spot, a buyer a good deal and the bank off the hook. But they can turn into a minefield of frustration for sellers, potential buyers, real estate agents and lenders. According to David Knight, vice president for Wells Fargo & Co.’s default and retention division, the key to a successful short sale is: “First thing is to contact your servicer and let them know you intend to sell.”
Read the full story here.
19Sep
Florida is the No. 1 state for the national flood insurance program, which fills the void left by standard insurance policies that don’t cover damage from rising water. The state accounted for 2.2 million, or 40 percent of the federal program’s policies in 2007. To avoid paying too much for their premiums, homeowners should review their flood insurance polices with their agents to be sure they’re in the right risk category.
Read the full story here.
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