With interest rates creeping back up, not running but creeping and on average a 8 month supply of homes on the market,plus a tax credit of up to $8000.00 and prices down by 14%+- there has not been many better times to buy your first home.
I remember when my wife and I bought our first home in 1978, we got an interest rate of 8.5% and were very happy, three years later rates were 15% for what seemed like forever, it was only about 9years to get below 10%
With below average rates,100% financing available for first time buyers in Marion,parts of Hamilton and Johnson counties and the interest rate moving, get on the bus now,or if you like wait and find out if rates go double digit again, unlikely but I sure didn't see it coming the last time either.
To learn more about 100% financing and tips for buying your first home, sign up for one of the FREE homebuyers classes just scheduled. Seating is limited so get on the bus and take a seat.
http://findingbuyers.byreferralonly.com/HomebuyingClass/Default.aspx
Tuesday, June 23, 2009
Wednesday, May 20, 2009
Indianapolis Tops In Affordable Housing
As you read this how quickly do you feel intrigued by the opportunity to buy in the most affordable market in the country. It's not necessary to take action now. I think you'll agree with me, this is good news for our local market and believe me when I tell you that it's a good time to buy.
Across the country housing affordability jumped 10 percentage points during the first quarter of 2009, the highest level in 18 years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.
“Underlying the increase in affordability are lower home prices and record low interest rates. Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to purchase homes again.
Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95% of all homes sold were affordable to households earning the area’s median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.
For more information, visit www.nahb.org.
Across the country housing affordability jumped 10 percentage points during the first quarter of 2009, the highest level in 18 years, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.
“Underlying the increase in affordability are lower home prices and record low interest rates. Combined with the $8,000 federal tax credit for first-time home buyers, consumers are beginning to purchase homes again.
Indianapolis was the most affordable major housing market in the country during the first quarter. Almost 95% of all homes sold were affordable to households earning the area’s median family income of $68,100. Indianapolis has now topped the affordability list 15 consecutive quarters.
For more information, visit www.nahb.org.
Thursday, April 30, 2009
Wednesday, April 29, 2009
From One Of My Favorites Writers
Might as well panic
If you don't know what to do, and you're frightened, might as well panic.
That seems to be the first rule of being a member of the human race. Apparently, panicking is an acceptable substitute for forethought, contingency planning or actually taking productive action. We almost want to blame the thing we're anxious about on the person who isn't panicking. "Don't you care! Can't you see that we're all gonna die! That we're going to go bankrupt? That the world as we know it is going to end?"
More people are killed by deer than sharks, but you don't see park rangers running around like nutcases.
There's huge pressure on our leaders and co-workers and institutions to panic. If for no other reason, we say, they should panic as a sign that they care, that they are taking things seriously.
A while ago, I said that the devil doesn't need an advocate.
Let me add to this: we have enough caution. We don't need an abundance of caution. That's too much.
From Seth Godin want to know more about Seth go to Seth's Blog
FROM Dan:
After giving Seth's short blog I wondered how this fit into real estate and thinking back over the couple of years I see several ways that buyers have panicked and made some costly mistakes.
One common mistake has been to not get pre approved before looking at homes, buyers may feel they cannot get approved and not take the first step of getting pre approved, many lenders will also give advise to help you turn your credit around.
Some buyers got in to big a hurry and got loans that were not in their best interest because, if they had waited 90days the could have saved hundreds of dollars each month.
Saving money by not having a home inspection, this one is a guarantee to costing you money.
If you would like to learn more about the most common mistakes home buyers make, sign up for one of my home buying boots camps, the price is right FREE and there is no obligation to work with any of the presenters.
Just check out:
Home Buyer's Boot Camp
If you don't know what to do, and you're frightened, might as well panic.
That seems to be the first rule of being a member of the human race. Apparently, panicking is an acceptable substitute for forethought, contingency planning or actually taking productive action. We almost want to blame the thing we're anxious about on the person who isn't panicking. "Don't you care! Can't you see that we're all gonna die! That we're going to go bankrupt? That the world as we know it is going to end?"
More people are killed by deer than sharks, but you don't see park rangers running around like nutcases.
There's huge pressure on our leaders and co-workers and institutions to panic. If for no other reason, we say, they should panic as a sign that they care, that they are taking things seriously.
A while ago, I said that the devil doesn't need an advocate.
Let me add to this: we have enough caution. We don't need an abundance of caution. That's too much.
From Seth Godin want to know more about Seth go to Seth's Blog
FROM Dan:
After giving Seth's short blog I wondered how this fit into real estate and thinking back over the couple of years I see several ways that buyers have panicked and made some costly mistakes.
One common mistake has been to not get pre approved before looking at homes, buyers may feel they cannot get approved and not take the first step of getting pre approved, many lenders will also give advise to help you turn your credit around.
Some buyers got in to big a hurry and got loans that were not in their best interest because, if they had waited 90days the could have saved hundreds of dollars each month.
Saving money by not having a home inspection, this one is a guarantee to costing you money.
If you would like to learn more about the most common mistakes home buyers make, sign up for one of my home buying boots camps, the price is right FREE and there is no obligation to work with any of the presenters.
Just check out:
Home Buyer's Boot Camp
Thursday, April 23, 2009
Monday, April 20, 2009
The Indiana Housing and Community Development Authority (IHCDA) announced that Hoosiers may be eligible for up to $25,000 in zero-interest, non-amortizing loans for Hoosiers to purchase foreclosed homes. Hoosiers who buy foreclosed homes to use as their primary residence can qualify for a $15,000 loan from IHCDA’s Market Stabilization Fund. The Federal Home Loan Bank of Indianapolis has committed to supply matching loans of up to $10,000.“When Hoosiers open the door to their new home, they open several windows of opportunity,” Lt. Governor Skillman said. “This is a unique use of federal dollars that will encourage homeownership while revitalizing communities.”The money comes from HUD’s Neighborhood Stabilization Program (NSP), which allocated $84 million to IHCDA. The state will use $33 million of that allocation for the Market Stabilization Fund. Assistance from this fund will be made available to income-qualified individuals and families who choose to purchase foreclosed homes in areas of the state in greatest need of assistance.Areas of greatest need are identified, with the assistance of the Indiana University Center for Urban Policy and the Environment, using a combination of HUD-provided data and proprietary data. Indiana is the only state using NSP money in a statewide program to help people buy foreclosed homes.
How the Market Stabilization Program (MSP) Works: IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence. To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.
These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.
This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves. To determine income qualification, compare household income and family size to the income guidelines listed below. To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.
To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC. Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor. IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit http://www.indianahousingnow.org/ and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines. Site will be live by the end of April.
MSP Brochure and Detailed Information: The following link is a consumer friendly brochure on the MSP program: Consumer Brochure. To view a PowerPoint with detailed MSP information click here: NSP PowerPoint. If you would like more information on all of IHCDA’s programs, please visit their Web site at www.in.gov/ihcda. Federal Home Loan Bank of Indianapolis's Program: The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching loans of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.
How the Market Stabilization Program (MSP) Works: IHCDA will offer up to $15,000 (not to exceed 20% of purchase price) to assist home buyers with the acquisition and/or rehabilitation of a foreclosed residential property located within an area of greatest need.
These funds may be used in conjunction with the IHCDA First Home product, FHA, VA, USDA, or prime fixed rate product. No adjustable rate or subprime mortgage products will be allowed for the purchase of these homes.
Home buyers may use these funds for closing costs and down payment assistance related to the purchase of a foreclosed home or residential property that will be used as the primary residence. To be eligible for rehab funds a residential structure must not meet local building code and therefore is unable to be purchased in its present condition.
Buyers may use both acquisition and rehabilitation assistance in the purchase of a home, but the combined assistance may not exceed $15,000.
These funds will be in the form of a zero-interest, non-amortizing, second mortgage loan. These funds do not have to be repaid as long as home buyers use the home as a principal residence for at least ten years. If the home buyer sells the home within the first five years, the subsidy is repayable to IHCDA on a shared net proceeds basis. If the home buyer refinances within the first five years, the entire subsidy is repayable to IHCDA. After year 5 and through year 10, the home buyer will retain 20% in equity of the award amount per year.
This funding will be available to home buyers that are at or below 120% of area median income and who intend to occupy the home themselves. To determine income qualification, compare household income and family size to the income guidelines listed below. To use the current income limits for MSP as a second mortgage only: MSP Stand-Alone Limits.
To use the current income limits for MSP in conjunction with a Municipal Revenue Bond (MRB) or Mortgage Credit Certificate (MCC): MSP Income Limits with Bond or MCC. Home buyers will be required to participate in 8 hours of pre-purchase education provided by an IHCDA certified counselor. IHCDA will be coordinating with lenders/servicers, Fannie Mae, Freddie Mac and HUD to list foreclosed properties on a centralized Web site. Visit http://www.indianahousingnow.org/ and click on the Market Stabilization Program link to determine if a foreclosed property is in an eligible neighborhood. Lenders will be required to sell the properties listed on the site at a discount that meets or exceeds NSP guidelines. Site will be live by the end of April.
MSP Brochure and Detailed Information: The following link is a consumer friendly brochure on the MSP program: Consumer Brochure. To view a PowerPoint with detailed MSP information click here: NSP PowerPoint. If you would like more information on all of IHCDA’s programs, please visit their Web site at www.in.gov/ihcda. Federal Home Loan Bank of Indianapolis's Program: The Federal Home Loan Bank of Indianapolis’s (FHLBI) Neighborhood Stabilization Assistance (NSA) program is offering matching loans of up to $10,000. The main qualification for the NSA program is that the home buyer must have already secured IHCDA funds. Once IHCDA funding is secured, proceed by contacting an FHLBI member financial institution. Find a list of member institutions, program guidelines and other information by clicking here.
Saturday, April 11, 2009
Fannie Mae Foreclosures
First in order to not speak in Realtoreez (spelling?) lets explain what Fannie Mae is. Fannie Mae refers to the federally chartered company, the Federal National Mortgage Association, which is the nation’s largest supplier of home mortgage funds. You probably already know that Fannie Mae purchased a lot of loans that are now called bad paper, in other words the homeowner for a variety of reassons stopped making payment, the house was foreclosed on and Fannie Mae now owns the house and finally after what seems a long time have decided to do something about selling these homes. In Marion county alone there approximately 159 Fannie Mae owned homes for sale ranging from $6500.00 to $259,900 and more on the way, so Fannie Mae has decided to take action. If you are a first time buyer you can purchase one of these homes for 3% down payment, below are the basic guidelines.
HomePath® Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.
HomePath® Renovation Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.
If you're an investor interested in renovating a property, you may qualify for financing under our HomeStyle® Renovation Mortgage product. Most HomePath Renovation lenders also offer our HomeStyle Renovation product, but there are many other lenders as well. For more information, contact your preferred lender.
* Ask your lender for cost details on loans without mortgage insurance.
I have my lender looking into the precisely what the guidelines for investors are and will post that on Monday.
Have a good weekend,
Dan Baize
HomePath® Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
The benefits include:
Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)
You may qualify even if your credit is less than perfect
Available to both owner occupiers and investors
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
No mortgage insurance*
No appraisal fees
Also eligible for HomePath Renovation Mortgage (see details below)
HomePath Mortgage financing is available from a variety of lenders - both local and national.
HomePath® Renovation Mortgage Financing
This special financing is available on Fannie Mae homes with the following logo:
Available only on homes you make your primary residence and offers these benefits:
Financing to fund both your purchase and light renovation
Low down payment and flexible mortgage terms (fixed-rate or adjustable-rate)
Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit, state or local government, or employer
No mortgage insurance*
HomePath Renovation Mortgage financing is available from several lenders.
If you're an investor interested in renovating a property, you may qualify for financing under our HomeStyle® Renovation Mortgage product. Most HomePath Renovation lenders also offer our HomeStyle Renovation product, but there are many other lenders as well. For more information, contact your preferred lender.
* Ask your lender for cost details on loans without mortgage insurance.
I have my lender looking into the precisely what the guidelines for investors are and will post that on Monday.
Have a good weekend,
Dan Baize
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