We hope that each and every one of you has a great Thanksgiving! Although this has been a year filled with great hardships for many, including us, there are MANY THINGS TO BE GREATFUL FOR!
Please join us in remembering those things today, a showing our appreciation when ever possible.
And THANK YOU for being a part of our circle. Our clients, friends and family are what our business is all about, so thank you again.
Fannie Mae, the largest federal loan insurer, has made some changes in their guidelines for home loans. The new rules go into effect 13 December this year. While it may make getting that loan a bit more difficult for a few, it will make it easier for some.
The minimum down payment required by Fannie Mae remains at 5%. However, that money may now be a gift or grant from a non-profit. Current rules require that down payment minimum be from the borrower’s personal funds unless 20% or more was paid down. Addition funds above the 5% can be gifted or granted.
Since most lenders (remember, Fannie & Freddie are Insurers, not lenders) require 10% or more, most homeowners still had to come up with money from other sources.
Now the more difficult part. The debt-to-income ratio has been decreased. Current guidelines allow 55% of the borrower’s income to go toward debt. The new standard drops that to 45%.
Payment histories are now going to play a heavier roll in the process also. A missed or late payment might have been overlooked or minimized before but now will carry a 5% DTI (Debt-to-Income Ratio) hit! This could be huge for some.
Source: The New York Times READ MORE
For ALL your real estate related needs and/or questions call (530 315-2808) or visit us on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!
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We’d like to know what you think about the current trend of using social networks like facebook® and twitter® to assist you in real estate matters. Some argue that it is a waste of time while others insist that social networking is MANDATORY for any business that wants to survive today. We hear arguments from both camps. At Encore Real Estate Services (aka EncoreRES) we want to know how you find the information you actually use. What are your resources? YOU are what our business is all about so YOUR preferences are what are important to us.
Do you use facebook®? If so, is it a source of information for you or do you only use it for keeping up with your friends? How often do you use it?
Do you use twitter®? And if so, again, what do you use it for? How frequently do you tweet?
Are you a member of a professional social site like LinkedIn®? Do you lean more toward recommendations made by your peers on these sites?
Our business is helping YOU. We are looking for the best way to do that. Responding to this article will help. It will also get you entered into a drawing for a $125.00 surprise gift. Of course we also want to hear about other things that we may be able to help you with. News about something in your neighborhood? Let us know, we’ll post such items here too.
For ALL your real estate related needs and/or questions call (530 315-2808) or visit us on line at EncoreRES.com or any of the links below. Please note: all visits to our sites are secure AND confidential. We do NOT track your activity!
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HUD homes are homes that have been repossessed by the lender (usually a bank) then purchased by the federal government. The good news is that these folks seem determined to get these homes resold and back into the hands of loving owners.
The paperwork has been lessened, and is in place ready to go. There are few special requirements for perspective buyers, although there are some for selling and listing agents. Brokerages must be certified, and agents must be trained and registered (this is of course in addition to our DRE license).
More good news: There is no long time period of not knowing whether your offer (bid in their terminology) was accepted or not. Have you ever suspected that the listing agent held you offer back because they wanted theirs to be accepted? That can’t happen with the HUD process. In fact, the listing agent has no say in the process.
Even more good news: Buyers who intend to occupy the home get first chance. Their bids are the only ones allowed for the first 30 days. Bids are held for the first 10 days. If 2 or more matching acceptable bids are present an electronic lottery decides which one gets the property. No price wars! If no acceptable bid is present new bids will be checked as they arrive. If, after 30 days, no acceptable bid has been made, the process is opened to investors et al.
We applaud this step towards fair and responsible handling of these properties. Will the banks follow suit? Time will tell…
To see if you qualify for one of these great homes wit great deals contact Yuba Sutter Homes and Loans today. Email us or call (or text) 530 315-2808
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Stable home prices, low mortgage rates could gas economy Mortgage rates continue at record low rates AND the housing prices are stabilizing in many areas accross the nation.
Freddie Mac reports interest rates for a 30 year fixed rate loan as below 5% since last May. The National Association of Realtors® reports that home prices are up from a year ago in 77 of 155 major metro areas. The 2008-2009 report showed only 30 areas (last years at his time).
Source: USA Today MORE
Consumer Confidence Rises to Highest Since June The confidence level rose more than expected! It is now at the highest rate since last June according to Reuters.
Their belief is that this will spur increased spending through the holiday season at least. Although this is great news, and anything that helps the economy helps the housing market as well, it is not expected to make a significant difference to the unemployment figures on the national level.
Source: Reuters, New York by Caroline Valetkevitch MORE
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California and Florida shared a lot of comparisons during the current housing boom-then-bust cycle. Both had a multitude of new buyers brought in by easy loans. Both had current owners hooked on upgrading and refinancing with high risk loans. And both had builders building like there was no end in sight. And when the bubble burst, both lead the nation in unsold new homes, mortgage defaults and lost equity due to declining prices in homes.
California has pulled ahead in the recovery however. During the last year or so, our market has begun to recover. It is still weak and fragile but in better shape than many. Florida remains on the critical list. Some experts believe this is due largely to the foreclosure processes use by the two states. As reported here recently, California’s process excluded us from some of the foreclosure interruptions and other messes that plagued other states.
Ours is the less complicated, non-judicial method, keeping things out of the court room. Some argue that going before the judge offers better protection for the homeowner. Others claim that this is simply an unnecessary delay (sometimes for months) and expense. Like 22 other states (the ones in the news lately), Florida requires that the process go before the judge.
Mark Zandi, chief economist for Moody’s Economy.com credits this difference as a major player in the improver recovery rate for CA.
California home prices have stabilized and even increased since the big bust. Sales numbers have increased, though dipping a bit after the end of the tax incentives.
We have seen prices in the Yuba-Sutter area increase in recent months. This seems to be a continuing trend. Yes, we still have foreclosures coming onto the market, short sales to get through, and many homeowners with mortgages that are in access of their home’s value, but the recovery is under way!
For those that can, (credit is still very tight) this is a GREAT TIME TO BUY. Email or call us today to find out if you can get in on the recovery. Buyer, seller, needing help, or needing to get out…we have experts to help you NOW. Email or call Yuba Sutter Homes and Loans (530 315-2808) today. Know your options. Make an informed decision. Begin your own economic recovery now!
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Interest rates have gone up for three weeks in a row now for the “normal” (the 30 year fixed rate) home loan. This is not terrible news however. This three week raise is from record (since 1971) lows of 4.19% on Freddie Mac
The average rate for a 15 year fixed loan dropped again, down to 3.66%. Rates have been historically low since April, making investors nervous. Since gains are directly linked to housing interest rates, investment returns have been low.
While this may sound greatfor the housing industry, we believe it has shortcomings. Recent history has shown us that interest rates alone aren’t enough to rebound the housing industry. And lack of confidence by investors slows down the economic recovery.
Does this mean it’s too late to buy? NO! Interest rates are still fantastic. Prices are below the sustainable market price. Money is available. Banks are still unloading their foreclosure inventory. If you are a renter or a first time buyer this may be the best opportunity you will ever see to own your very own piece of the American Dream!
You can buy for less than you can rent! It’s true. If you would like to see how the two compare check our calculators out. Or just email or call us (530 315-2808) for the most accurate and personalized information.
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California is participating in a federal program to help home owners who are struggling to make their mortgage payments. $1.83 BILLION has been made available to help with buy-downs, late payments, etc. Although slated to have begun Monday, the Keep Your Home California program will be delayed a “few weeks” according to sources.
Logistical issues are blamed for the delay. According to the California Housing Finance Agency (the agency overseeing the program) the federal government has made a moving target of the requirements. In addition, many new groups of potential beneficiaries have been added, and more money.
Diane Richardson (an agency official running the program) said the the program has more than doubled. However, it will start on a limited basis within a few weeks.
Two main focuses of aid will be to the unemployed homeowner having trouble making their payments ($875 million), and $790 million to pay down loan balances. Lesser amounts have been earmarked for homeowners who have temporarily fallen behind on payments and for those in danger of loosing their home to foreclosure.
For more information check their web site HERE.
Source: The Sacramento Bee. (Just click the name to read the full article.)
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Are you looking to make your home a little more “green”? Maybe some of those old appliances are nearing the end of their life? Or how about just old fashioned saving money? Right now California is sponsoring a rebate program for those that choose to upgrade their appliances to higher efficiency models.
According to the Sacramento Bee the program had $8.3 Million in funds remaining as of last Tuesday night. However, an audit that removed things like duplicate applications has brought that total up to $11.8 Million available. Have you claimed your share?
Rebates run from $50.00 for room air conditioners to $1,000 for central heat and air systems, including things like $300 to $750 for water heaters. For more details click HERE.
To date (as of Tuesday evening) 191,502 Rebates have been applied for. The leading appliance seems to be the washing machine with 75,734 so far.
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