Stay Real ~ Mortgage: FHA 203(k)

Hey everyone, I wanted to talk to you all about a certain type of mortgage that many may not be aware of, but can be very beneficial and help to get you to the desired status of home ownership. The FHA 203(k) program provides a single close loan that enables a qualified buyer to purchase a home that may need repairs, to refinance an existing home for the purpose of remodeling, or to move an existing home to a mortgaged property. The streamlined FHA 203(k) program allows the buyer to finance a maximum of $35,000 to make improvements. Both programs generate the necessary funds for renovation by financing the as-completed value of the home, rather than the present value.

FEATURES:

• primary residences that are 1 to 4 unit properties
• purchase and rate/term financing
• fixed rate mortgages with 30 year term
• up to six months for rehabilitation
• one underwriting review and one closing for rehabilitation construction and permanent financing

This type of loan is meant for borrowers who:

• want an alternative to a closed-end second mortgage or HELOC
• can benefit from flexible qualifying requirements
• are looking for a cost effective way to repair or improve their current home
• plan to purchase a home that needs repairs
• want to rehabilitate a neglected or damaged foreclosure property

This is a very smart way to go if your needs fit the ones I described and I would recommend consulting a mortgage counselor for more details. The economy is tough but dont get discouraged because, just like the FHA 203(k) programs, there are many other options to assist you in closing on the home you want. I strongly recommend consulting a Mortgage counselor in order to see all of your options because it may be easier than you think to acquire the home you want and get it when you want it.

Stay Real ~ Fact time

"Kemo Sabe", meaning an all knowing one, is actually a mispronunciation by Native American of the Spanish phrase, Quien lo Sabe, meaning one who knows."

Touring A Home: Buyer Turn Offs

Hey everyone,
     Weather is not too good here for yet another day but still gotta stay positive, so lets talk Real Estate. When a seller is preparing to showcase their home to potential buyers they need to keep one very important concept in mind: DEPERSONALIZE!
      The touring process for the buyer is very emotional. The objective is to allow them to completely visualize themselves living in the house and connect with the home on a personal level. If all of the seller's "personal" items are displayed throughout the home it makes the objective almost impossible. For example, one of the open houses I hosted was inundated with personal items. Everywhere I looked I saw another picture of the family, the kids' toys were scattered throughout the home, and they obviously had a few pets. I felt like I was in someone else's house, which although I knew I was, it is not supposed to overwhelmingly feel like that. The buyer needs to picture themselves living there in order to completely connect with the home. So let us go through three steps to cover the most common buyer turn offs in order to keep your beautiful home from giving off the wrong impression:

Step 1: Cut the personal clutter! Clean up toys, shoes, clothes, and TAKE DOWN PERSONAL PICTURES (especially on the fridge).

Step 2: If you have a pet(s), first of all do not leave them there when the house is being shown. Secondly, clean up their toys, beds, food bowls, and if they shed, clean that too.

Step 3: Lastly, bathrooms and kitchen. If they look gross, guess what? people will get grossed out. Weird right? but it does happen. So make sure there is not any old toothpaste or anything hangin' out in the bathroom sink and get the toilet spotless. As for the kitchen the theme continues, clean sink, oven, stove top, and countertops. Kitchen and bathrooms are very personal rooms in the home and could possibly be a deal breaker if not clean.

Great Video: Rebound or Relapse?

Check out this great MSN video - Housing Rebound or Relapse?


This video features a debate on whether the housing market is looking positive or staying negative. What do you think?

Market Update

"I think we have turned the corner on prices," said David Blitzer, chairman of the S&P's index committee. "It looks very good."

"The best news on the housing front is that prices have turned," said Patrick Newport, U.S. economist at IHS Global Insight.

As you can see by the quotes above, home prices are on the way up. National home prices rose in June when compared to the same month of the previous year, according to the S&P index. This is the first year-to-year increase since back in september of  2010, in which the housing market was being affected by a federal home buying tax credit. In the 20 major metro areas that the S&P tracks, June was the second straight monthly increase in home prices for all 20. Foreclosures are on the decline and mortgage rates (below 4% all year) are lower than most people can remember them ever being. The National Association of Realtors stated that sales of previously occupied homes jumped 10% in July 2012 (compared to July 2011).

     So let's take a look at the big picture and what this all means for our economy as a whole. Since the bust of the housing market, home prices have fell which made homes worth less than the mortgages against them. Therefore, if home prices rise, there will be a greater ability to overcome the mortgages against them. If people are feeling wealthier due to the increased value of their homes, it will increase consumer spending. Since consumer spending is responsible for approximately 70% of our economy, the economy as a whole could see an upswing due to the home price increase. Also, when people start to see the value of their home increase there are going to be more homes for sale on the market, which in turn means that there is a bigger selection for potential buyers.

       As you can see from what I have been saying, the increase in home prices could potentially put a spark in the economy which would mean things are starting to get better. Only time will tell, so stay-tuned for the next market update!

A Brighter Home

Good Morning,

      Hope everyone enjoyed the long weekend, but now its back to business. I want to share a little bit of advice that will go a long way. One of the most important things when showing your home (or even just in general) that a lot of people do not even realize is the lighting. Energy efficient light bulbs are the product of choice lately, the bulbs last longer and save you money in the long-run. Which bulbs are best? While nearly 75% of energy efficient light bulb customers are choosing CFLs (compact florescent lamps) the real gold is in LEDs (light emitting diodes). LEDs shine brighter, last for decades, save more money in the long-run, and turn on instantly without the warm-up period that CFLs need. Although LEDs are more expensive, their price has dropped nearly 20% in the last year so it is becoming more affordable. When it comes to showing your home wouldn't you rather have a brighter light in order to showcase your home more effectively? I would assume that your answer would be yes, so whether you are looking to list your home or not I would recommend researching LED lights and see just how beneficial they could be for your home. Check below to begin your research and start seeing what is available for you, I've inserted a few selections for you to begin with. As always I hope this information is useful and if you have any questions or concerns please let me know and I'll do my best to get you the answer.

LABOR DAY!

I hope everyone can enjoy their labor day. I know the weather is not the best today but you gotta make due with what you got so stay positive and have a great day. Ill be back tomorrow with a housing market update and examination so come back and see whats up with the housing market!