Market Report: 2013

ID-10083915On the matter of a national real estate market, there are a lot of ways of measuring it; from the broad “healthy/non-healthy” aspect, down to very specific statistics. In most any way you look at it, during the year of 2013, the real estate market was doing well. The market on the whole went up 6.92% in average list price, representing an overall appreciation of assets. This is a great sign for all involved in real estate, though there is a lot of talk as to whether or not the market is in fact heading into another “bubble”. Yes, the market went up, as most people would expect it to, but will that be the downfall of the market in the future?

I don’t think it will. Several analysts agree that the indications of a possible “bubble” are present, but nothing is conclusive. So far the growth has been good and “healthy”, steady at nearly 7%, but it would take something closer to 15-16% to outrun the inflation rate and cause the market to crash. I believe the market is in for some very good times to come. Business Insider and Forbes, among other sources, give several reasons why real estate is definitely prepped for the upswing.

The first indicator is the continued rise in home prices, as aforementioned. The continual increase in value of properties in areas that were severely hit during the “bubble burst” of 2008 (such as California) is very promising. On top of that, there is an anticipated influx of demand for homes. Among the expected hopeful home-owners are the young people who are finally back into jobs and are looking to move back out of their parent’s homes, more first-time buyers (or ex-renters), and several investors who are realizing the boom in need for rental places.

Furthering this point, there are a lot of financial indicators, as well as social indicators that the market is set to flourish. Financing for building or purchasing homes is getting easier. Banks are carrying easier credit standards, mortgage rates are at a record low, and foreclosures are becoming fewer as banks are starting to default back to other forms of resolution on delinquent accounts, including selling off home loans and accepting short sales.

In conclusion, the real estate market did well in 2013 and there are no obvious reasons that progress shouldn’t continue into 2014. Things are looking good for the current or hopeful home owner.

Photo courtesy: FreeDigitalPhotos.net

Now Harder to Qualify For A FHA Loan

Buying a home is never an easy decision but now, things may have become more difficult. The FHA has changed guidelines that govern how you qualify for a loan which willangry_shout add collection accounts and judgments to your debt to income ratio which took effect on OCT 15, 2013.

If you have more than $2000 in collection accounts a lender is now required to take those debts into consideration because you are considered to be more at risk of not making your mortgage payment if you have to pay those debts. This will make it increasingly more difficult for individuals to secure loans for the purchase of property that have had a hiccup or two in the past. It happens to us all and it has happened to me as well. Although you make every effort to pay your bills on time life sometimes throws you lemons and you just have to make lemonade. Luckily, I have many programs to help home buyers secure the home of their dreams without needing to qualify for a conventional loan.

It is important to note that judgments need to be paid off in order to qualify for an FHA loan but collection accounts do not. There are exceptions to this if a payment schedule has been arranged.

If you are going to try and secure an FHA mortgage the key is to get your debts under control. It’s not easy to do and takes time but it can be done. I am speaking from experience here. I had quite a bit of debt myself with many accounts that were charged-off but after a few years of paying and working with creditors I was able to clean up all that bad history. You don’t have to wait years to buy a house though. Start reaching out to those creditors and see if there is any way they can work with you to take care of those debts if you are looking to secure a home loan. If you want more information on how you can qualify for a home without conventional financing feel free to contact us and we can discuss those options with you. Everyone deserves a second chance, let us help you get yours!

FHA Allowing Loans After Foreclosure

Reblogged from MortgageLoan.com

Borrowers who suffered a foreclosure or bankruptcy during the recent recession may still be able to qualify for an FHA mortgage under new guidelines established by the Department of Housing and Urban Development (HUD).

The new rules allow borrowers whose credit was damaged due to a temporary loss of employment or income to still qualify for an FHA mortgage if they’ve recovered from that situation and maintained a clean credit history for at least 12 months.

That means that borrowers who recently experienced a bankruptcy, foreclosure, short sale, loan delinquencies, debt collections or other events that had a negative impact on their credit may still be able to qualify for an FHA loan in as little as one year after that event.

Still regarded as good credit risks

“As a result of the recent recession many borrowers who experienced unemployment or other severe reductions in income, were unable to make their monthly mortgage payments, and ultimately lost their homes,” wrote Asst. Housing Secretary Carol Galante in a letter to lenders outlining the new guidelines. “FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage.”

To qualify, borrowers must be able to show that their credit impairments were the result of a loss of employment and/or income that was beyond their control, and which reduced their income by at least 20 percent for a period of at least six months. They must have resolved any outstanding debt issues that were not cleared away by foreclosure or bankruptcy, and not have any credit blemishes over the past 12 months.

In addition, borrowers must undergo credit counseling in order to be approved, which may be done in person, by telephone, over the Internet or by any other method the FHA approves.

Read the rest at MortgageLoan.com

Is Your Housing Market Hot Or Not?

Reblogged from MarketWatch.com

matchstickBuzz about superhot markets, where homes are under contract within days of being listed, may ring true if you live in San Francisco.

Not so much if you’re in Poughkeepsie, N.Y.

As your real estate agent will rightly preach, market conditions vary by location and it’s important for buyers and sellers to know what kind of environment they’re working in.

Queen Anne style homes in San Francisco.

You’ll get your first clue by looking at the area’s job market, because low unemployment means more people are likely able to afford a monthly mortgage payment, said real-estate consultant Louis Cammarosano. Then, talk with a local real estate agent about housing prices and how long homes are sitting on the market before they’re sold.

Prices were up in May, year over year, in each of the 20 markets examined in the S&P/Case-Shiller Home Price Index.

Plus, almost 90% of U.S. markets are expected to experience price appreciation over the next year, according to Veros Real Estate Solutions, a risk management and valuation services firm. Its forecast covers 969 counties, 324 metropolitan areas and 13,502 ZIP Codes, and estimates how much prices will rise between June 2013 and June 2014.

Still, housing markets improve at their own, unique paces.

Your playbook as a buyer or a seller is determined by whether the local market you’re dealing in is frothy, stalled or somewhere in between. What follows are some guidelines for each type of market.

Read More….

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