Well I have been writing about FHA loans for awhile now. FHA loans could be changing sooner than later. There is talk about raising down payments minimals from 3.5% to 5% which could mean on an average $300,000 dollar home you would be looking at an additional $4500.00. There is also talk about the upfront insurance premium going from 1.75% of the loan amount to to 3% of the loan amount, with the $300,000 example you would need $9000.00 for insurance premiums which is due at the closing of the home. FHA loans now allow a 6% sellers assist, that could change to 3% or even possibly 2%. Right now your allowed on a $300,000 6%(added to purchase price) or $18,000 in seller assist to go towards closing, that would change to a maximun of $9000.00(based on actual selling price). There is also talk about raising the annual insurance premium up from the now .55% of the loan. The annual premium on an FHA loan is added into the monthly mortgage payments. FHA loans which currently have no credit score minimal, it is based on individual circumstances, they are talking about needing a minimal credit score.
If your planning on using an FHA loan for financing, sooner than later would be best. Changes if they happen could take effect in early 2010.
Purchasing a home in Westchester, Putnam or Dutchess County NY? Visit www.townandvillagerealty.com for all your real estate needs.
Monday, December 7, 2009
Thursday, December 3, 2009
When you have an offer on your home
If your working with a realtor or your a "for sale by owner" there are a few things you might want to know. Perhaps your agent didn't tell you, if your a for sale by owner, then you just might not ever know.
When you receive an offer on a home, you can counter their offer, but continue to show the home and receive other offers from other home buyers. You are not obligated to a buyer until you have signed contracts. An offer to purchase is just that an offer, until you have contracts signed, nothing is binding.
Once the offer is accepted you still have to get through the home inspection, which undoubtedly they will want to negotiate the repairs either by credit or a price reduction. Once again you are back to negotiating, you still don't have a meeting of the minds.
Until your I's are dotted and the T's are crossed,you and the home buyer have come to a "meeting of the minds" contracts have been signed, keep the house on the market, counter your offers that come in, but do not stop showing until you have signed contracts.
PS. Once you accept an offer, it is only fair that parties that want to show the home are aware of the accepted offer.
I work in New York, where contracts are drawn up by attorneys, and our offers are subject to the attorney's review.
You might live elsewhere and it could differ from state to state, either by law or by practice. Ask your real estate agent where you live, if you come across the problem.
Thinking of selling or purchasing a home in Westchester, Putnam or Dutchess county NY? Please visit Town and Village Realty
Questions about Westchester Real Estate Market contact me at lisa@townandvillagerealty.com I'll be sure to promptly respond.
When you receive an offer on a home, you can counter their offer, but continue to show the home and receive other offers from other home buyers. You are not obligated to a buyer until you have signed contracts. An offer to purchase is just that an offer, until you have contracts signed, nothing is binding.
Once the offer is accepted you still have to get through the home inspection, which undoubtedly they will want to negotiate the repairs either by credit or a price reduction. Once again you are back to negotiating, you still don't have a meeting of the minds.
Until your I's are dotted and the T's are crossed,you and the home buyer have come to a "meeting of the minds" contracts have been signed, keep the house on the market, counter your offers that come in, but do not stop showing until you have signed contracts.
PS. Once you accept an offer, it is only fair that parties that want to show the home are aware of the accepted offer.
I work in New York, where contracts are drawn up by attorneys, and our offers are subject to the attorney's review.
You might live elsewhere and it could differ from state to state, either by law or by practice. Ask your real estate agent where you live, if you come across the problem.
Thinking of selling or purchasing a home in Westchester, Putnam or Dutchess county NY? Please visit Town and Village Realty
Questions about Westchester Real Estate Market contact me at lisa@townandvillagerealty.com I'll be sure to promptly respond.
Wednesday, December 2, 2009
Are we heading towards a sellers market?
Only time will tell if were heading towards a seller’s market.
Indicators show that at the very least we could be heading to a neutral real estate market.
Closed transactions in the Northeast have risen 12% compared to last year’s real estate market. The reason most believe this has happened is due to what was supposed to be the expiration of the tax credit for Nov.30th, which has now been extended to June 30th to close. With the tax credit extended you will start to see more home buyers looking to purchase before the expiration of June 30th.
Sales were up; however the median price on a home was 7% below last year’s values.
FYI-Real estate is local and the values could differ from state to state, city to city, town to town. I work in Westchester NY and we still have bidding wars going on. However the overall median price in the US is down 7%.
Housing inventory in the US average is at 7 months. This still teeters towards a buyer’s market. 6 months of inventory and it becomes a neutral real estate market, not favoring home buyers or sellers.
Once the Federal Reserve decides to start phasing out their investing into mortgage securities (which seems to be a probability) Interest rates hovering at 5% will not last, and you’ll start seeing them rise. The meeting for the Federal Reserve will be held in the spring.
According to real estate experts we have not seen a better time to buy. Interest rates are hovering at 5%, even dipping every now again, home prices are affordable and of course the first time homebuyer credit.
What does all this mean for the home buyer?
As prices begin to rise(which they have in different areas of the US), if the supply of homes for sale start to tinker at the 6 month mark( right now it’s at 7 months),if interest rates begin to rise, and the tax credit expires, you will have missed the best buyer market since the 1970’s.
Of course the Feds, could decide to keep rates low, who knows, the gov’t might decide to extend the tax extension, inventory on houses could rise(especially with the tax credit extended to current home owners), which would all favor the buyer.
What I do know is that we in a buyer’s market right here right now , don’t let home ownership pass you by.
Indicators show that at the very least we could be heading to a neutral real estate market.
Closed transactions in the Northeast have risen 12% compared to last year’s real estate market. The reason most believe this has happened is due to what was supposed to be the expiration of the tax credit for Nov.30th, which has now been extended to June 30th to close. With the tax credit extended you will start to see more home buyers looking to purchase before the expiration of June 30th.
Sales were up; however the median price on a home was 7% below last year’s values.
FYI-Real estate is local and the values could differ from state to state, city to city, town to town. I work in Westchester NY and we still have bidding wars going on. However the overall median price in the US is down 7%.
Housing inventory in the US average is at 7 months. This still teeters towards a buyer’s market. 6 months of inventory and it becomes a neutral real estate market, not favoring home buyers or sellers.
Once the Federal Reserve decides to start phasing out their investing into mortgage securities (which seems to be a probability) Interest rates hovering at 5% will not last, and you’ll start seeing them rise. The meeting for the Federal Reserve will be held in the spring.
According to real estate experts we have not seen a better time to buy. Interest rates are hovering at 5%, even dipping every now again, home prices are affordable and of course the first time homebuyer credit.
What does all this mean for the home buyer?
As prices begin to rise(which they have in different areas of the US), if the supply of homes for sale start to tinker at the 6 month mark( right now it’s at 7 months),if interest rates begin to rise, and the tax credit expires, you will have missed the best buyer market since the 1970’s.
Of course the Feds, could decide to keep rates low, who knows, the gov’t might decide to extend the tax extension, inventory on houses could rise(especially with the tax credit extended to current home owners), which would all favor the buyer.
What I do know is that we in a buyer’s market right here right now , don’t let home ownership pass you by.
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