National Real Estate News

FHA Loan limits increasing in 2018!!

December 11, 2017 by Michael Dunn

Roger Gettler with Legacy Mortgage just shared this with me:

The Federal Housing Administration (FHA) announced increased loan limits for 2018, reaching nearly all areas of the country. The new loan limit will be $294,515 for a one-unit property, which is up from $275,665 this year. In areas defined by FHA as ‘high-cost,’ county loan limits may be as high as $679,650 for a one-unit property, which is also an increase from current 2017 limits.

Mostly attributed to rising home values, these increases allow consumers to purchase and refinance homes at higher price points with access to the benefits of FHA loan options. These mortgage loans generally carry lower down payment requirements and more flexible credit qualifying standards than conventional financing.

The Housing and Economic Recovery Act requires certain baseline limits to be reviewed each year. Because the U.S. House Price Index Report published by the Federal Housing Finance Agency showed a 6.5% gain in home values since third quarter 2016*, the limits for 2018 were increased; however, these new limits will only apply to FHA case numbers assigned as of 1/1/2018.

There is still first time home buyer money as well! Contact me with any other questions or to get the process started!

Michael Dunn, Realtor

Coldwell Banker Legacy

505-379-5849 Call or Text

AbqDunn@gmail.com

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FHA Monthly mortgage insurance (MIP)

January 30, 2015 by Michael Dunn

FHA Monthly MIP has been decreased! The monthly premium used to be 1.35% and is now only .85%. This is a huge break through after FHA has continued to increase the premiums over the last couple of years to offset their foreclosure debt. Now that they have recouped their costs from the collapse of the real estate market, they are giving the benefits back to today’s home buyers with a lower premium.

This allows for buyers, especially first time homebuyers, to qualify for more! The lowered amount equates to about $40 savings or in an increase in purchase price of about $6,000 for every $100,000 financed.

Rates are still near historical lows, home prices are still near the bottom and are on a upward trend, and credit guidelines are starting to loosen again. People are asking when is the time to buy and NOW is the answer for all the above mentioned.

Info provided to me by Aaron Thompson Legacy Mortgage

Fed to Keep Interest Rates Low Until 2013

August 10, 2011 by Michael Dunn

In an unusual step, the Federal Reserve vowed Tuesday to keep interest rates low for at least the next two years.

The Fed said it’ll keep its key benchmark interest rate near zero through mid-2013. The Fed’s commitment was welcome news to many in the real estate industry who see it as a positive move for the housing industry, allowing buyers more time to take advantage of ultra low mortgage rates.

The Fed said in a statement following its regular policy-setting meeting Tuesday that the overall economy has grown “considerably slower” than it expected and that consumer spending “has flattened out.” Some economists in recent days have expressed concerns that the U.S. is heading for a double-dip recession.

Fed officials “are very nervous about the economy,” says Mark Zandi, chief economist at Moody’s Analytics. “This is unprecedented for the Fed to indicate they are ready to keep rates low for two more years.”

Still, the Fed continues to forecast a moderate pick-up in growth for the economy in the second half of the year.

SOURCE: msnbc.com

Move up buyers

August 3, 2011 by Michael Dunn

More home owners who want to trade in their current home to buy a larger one are holding off, feeling trapped by a sluggish housing market and the loss of equity in their current home, The Los Angeles Times reports.

“Potential move-up buyers … are largely sitting on the sidelines these days, leaving a key part of the housing market stuck in neutral,” The Los Angeles Times‘ article notes. “The promise of rising prices and upward mobility, once a powerful force in the American housing narrative, has been all but shattered by the downturn.”

Move-up buyers are often classified as home shoppers looking in the $300,000 to $800,000 price range, according to the research firm DataQuick. Home sales dropped the most in that category in June, dropping 25.5 percent from June 2010, according to DataQuick. On the other hand, sales of homes priced below $200,000 dropped 11.4 percent from June 2010 and home sales priced at more than $800,000 fell 17.6 percent.

The “move-up” category creates a chain of buyers and sellers that is important for a healthy real estate market, since trading up “fuels price gains and helps home owners to build equity,” The Los Angeles Times‘ article notes.

“The way to think about [it] is a chain of trades that normally occurs, and if that chain is broken at any point, or it doesn’t begin because you don’t have enough entry-level buyers, then the whole dynamic of the marketplace is affected and the level of resales is going to be very small,” says Ed Leamer, director of the UCLA Anderson Forecast.

SOURCE: www.latimes.com