Well George Bush signed the "Housing and Economic Recovery Act of 2008" on July 30th, so what does this mean for you?
1.If you are in MN the new conforming loan limit of $625,500 does not apply. We are still capped at $417,000 if you want conforming loan rates that will be backed by Fannie Mae and Freddie Mac.
2. In the metro area the FHA loan limit for 1-unit residences will be $335,800. The limit is $271,050 throughout the rest of MN.
3. If you are a new home buyer: You can qualify for a tax-credit up to $7500 if you purchase(d) a home between April 9,2008 and June 30, 2009. The credit is repayable over 15 years (basically making it an interest free loan)
4. FHA Foreclosure Rescue: If you have a problematic subprime loan and your lender agrees, you could qualify to have your loan balance reduced to 90% of your current appraised value. You would then have a new 30 year fixed FHA loan. Any equity built after this modification would be split 50/50 with the lender.
5. Seller-funded downpayment assistance programs: (ex. Nehemiah) Are prohibited starting October 1st, 2008. You still can get downpayment assistance from nonprofits or other sources such as churches, employers, or family members
6. Minimum FHA down payment: Will be increased from 3% to 3.5% of the purchase price starting January 1, 2009
These are the main items that may have a direct effect on your next home purchase. If you have any questions or would like additional information feel free to contact me.
Tuesday, August 5, 2008
Wednesday, April 2, 2008
April 2nd, 2008 MN Real Estate Market Summary
The Dow was up 391 points yesterday as Wall Street is optimistic that the worst of credit crisis is behind us and that the economy is faring better than expected. With all of the money rushing into stocks, treasury yields rose on the 10 year note 13 basis points, causing rates on 30 year fixed rate mortgages to go up by 1/8 to 1/4 of a percent.
In other news...
1.New home construction fell nationally for the 24th straight month
2.National City, Ohio's biggest bank, may sell itself as it faces the prospect of more losses from subprime loans.
3. MN received a $4.3 million federal grant that could help prevent up to 7,000 foreclosures across the state. Some of that money will be used to hire additional foreclosure counselors to help homeowners work with their lenders.
4. A MN real estate investment company, TJ Waconia, is being sued by North Minneapolis communities for fradulent dealings in their communities leading to a high number of foreclsoed properties.
Jim Steel
Fairway Residential Lending/IBR Realty
jsteel@frlcorp.com
In other news...
1.New home construction fell nationally for the 24th straight month
2.National City, Ohio's biggest bank, may sell itself as it faces the prospect of more losses from subprime loans.
3. MN received a $4.3 million federal grant that could help prevent up to 7,000 foreclosures across the state. Some of that money will be used to hire additional foreclosure counselors to help homeowners work with their lenders.
4. A MN real estate investment company, TJ Waconia, is being sued by North Minneapolis communities for fradulent dealings in their communities leading to a high number of foreclsoed properties.
Jim Steel
Fairway Residential Lending/IBR Realty
jsteel@frlcorp.com
Tuesday, April 1, 2008
MN Real Estate Spring Market Update
Spring is here and I would like to take the opportunity to give everyone an update on the mortgage and Real Estate industry in MN.
Long-term mortgage rates remain very low and the Federal Reserve has been lowering short-term rates. The Prime-lending rate is currently at 5.25%. Now is a great time to "Fix Your ARM" and lock in to a low fixed rate. With a combination of the new MN lending laws and the credit crunch the economy is experiencing, it is becoming more difficult for people to borrow money. However, there are still many great loan programs out there and the government is trying to get people to buy more homes. For example, the new FHA loan limit in the Twin Cities Metro Area is $365k, which is about $90k higher than the old limit. By raising this limit the government is willing to insure more home mortgages as they are trying to get lenders to start borrowing money again. Now is a fantastic time to purchase a home.
With all of the tightening is the mortgage industry, inventory of homes on the market remains very high. The number of new listings is down but the number of homes selling each month is down as well. The number of foreclosures keeps growing and you see more and more bank owned or short sale properties on the market all the time. Because of this, the Twin Cities Metro Area and some additional counties throughout MN are considered to be in a "declining market." While the news seems glum, Real Estate is cyclical and values will go up once again. Homeownership is the staple to building wealth.
Long-term mortgage rates remain very low and the Federal Reserve has been lowering short-term rates. The Prime-lending rate is currently at 5.25%. Now is a great time to "Fix Your ARM" and lock in to a low fixed rate. With a combination of the new MN lending laws and the credit crunch the economy is experiencing, it is becoming more difficult for people to borrow money. However, there are still many great loan programs out there and the government is trying to get people to buy more homes. For example, the new FHA loan limit in the Twin Cities Metro Area is $365k, which is about $90k higher than the old limit. By raising this limit the government is willing to insure more home mortgages as they are trying to get lenders to start borrowing money again. Now is a fantastic time to purchase a home.
With all of the tightening is the mortgage industry, inventory of homes on the market remains very high. The number of new listings is down but the number of homes selling each month is down as well. The number of foreclosures keeps growing and you see more and more bank owned or short sale properties on the market all the time. Because of this, the Twin Cities Metro Area and some additional counties throughout MN are considered to be in a "declining market." While the news seems glum, Real Estate is cyclical and values will go up once again. Homeownership is the staple to building wealth.
Tuesday, December 18, 2007
MN Real Estate Market Update
Weekly Market Activity Report
The Twin Cities housing market is well into its annual winter holiday pause. New listings have been minimal, yet total inventory of homes for sale remains at record levels and the number of sellers continues to far outweigh the number of buyers. Conservative lending standards and decreased consumer confidence seem to be keeping home buyers away despite low mortgage rates, motivated sellers, improved housing affordability and great housing stock.Over the last three months, newly signed purchase agreements have declined by 20.0 percent from the same period in 2006 and 34.3 percent since 2005. Meanwhile, new listings have declined by only 1.8 percent. The number of homes for sale has dropped 5,000 units in the last 12 weeks but remains 12.9 percent higher than this time last year.The forecast calls for improved buyer activity, but it will likely take more than a year of gradual increases before comparisons to today's buying market are quantifiable.
*Thank you to Mpls Area Associaction of Realtors for the above information
The Twin Cities housing market is well into its annual winter holiday pause. New listings have been minimal, yet total inventory of homes for sale remains at record levels and the number of sellers continues to far outweigh the number of buyers. Conservative lending standards and decreased consumer confidence seem to be keeping home buyers away despite low mortgage rates, motivated sellers, improved housing affordability and great housing stock.Over the last three months, newly signed purchase agreements have declined by 20.0 percent from the same period in 2006 and 34.3 percent since 2005. Meanwhile, new listings have declined by only 1.8 percent. The number of homes for sale has dropped 5,000 units in the last 12 weeks but remains 12.9 percent higher than this time last year.The forecast calls for improved buyer activity, but it will likely take more than a year of gradual increases before comparisons to today's buying market are quantifiable.
*Thank you to Mpls Area Associaction of Realtors for the above information
Monday, November 26, 2007
Welcome to my Blog. Come here for the latest on what is happening in the MN Real Estate market. We will discuss what is going on with mortgage rates and programs as well as what is going on with the housing industry. We will have examples of what we are experiencing in the market. I am also here to answer your questions.
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