Real Estate Home Loans in Boise Idaho, Waterstone Mortgage - Prime Equity Group: Dean Tucker Waterstone Mortgage - Prime Equity Group

First-time home buyers should take note, the most recent quarterly index of national home prices showed improvement for both its first quarter and the year-ago figures. This is according to the latest Standard & Poor's Case-Shiller National Home Price Indices report that was released today.

The U.S National Home Price Index rose 3.6 percent year-over-year in the second quarter to 138.03, and rose 4.4 percent from the first quarter of this year.

First-time Homebuyers really need to be taking advantage of record low interest rates and home values. Mortgage Interest deductibility has not changed and, if anything, tax rates will go up, which makes the present buying situation extremely attractive for the first-time buyer and one of many compelling reasons to buy a home now.

So why aren't more people buying homes now? Sure, job insecurity and concern over property appreciation are factors here, but there are still plenty of renters who do qualify for a mortgage, except they are paralyzed by indecision and misinformation.

The bottleneck that I am seeing is that we as real estate professionals (Realtors^®, Builders and Mortgage Lenders) are not effectively communicating the value of owning versus renting, regardless of the economy. We need to paint a better picture of what the future will look like for people who continue to rent. They're not seeing any immediate pain. And understandably, they're sitting back, feeling thankful that they don't have an investment that is losing equity or a mortgage they can't afford.

These are legitimate feelings, however they are very short-sighted. This economy will not remain in a downturn. It will bounce back. When it does, home prices and interest rates will rise. If renters buy now, they can get great value, plus the benefit of a very low fixed rate, 30-year mortgage that is an investment toward their future. Renters should be thinking about what that investment will be worth in 30 years. At the very least, they will recoup their total investment, and probably much more. How much equity does a rent payment provide year after year?

What will social security look like after those 30 years? Will it even exist? If someone is counting on that income for support, think again. In your retirement years, if you have a house to sell, you can use the profits to help support yourself, not to mention the fantastic sense of well being of owning a home free and clear. Home ownership will allow you to have a better lifestyle when you're 60 or older.

We have to educate and connect current renters with their future pain if they choose not to buy. Promoting home ownership should be a proactive, not reactive, effort. We as real estate professionals need to reach out to renters and put to rest their fears about the risk of home ownership. What renters should fear is not buying a home!  Even if now is not the right time for them personally; let's make sure we put them on the path to buy, and a secure financial future.

Idaho First Time Homebuyers do have access to 100% financing! The property must be a single family residence and stick built construction - no multi-units or manufactured housing. Buyers have at least $1,000 of their own funds into the transaction which can go towards down payment or closing costs.

Home prices are fantastic right now and mortgage rates are at historical lows. Call and get prequalified, you could be living in your very own home this year, (208) 287-1717.

A new survey by Trulia.com found that 72% of all renters wish to own their own home. Of those that want to own their own home, one third are ready to buy now and two thirds say that they will wait two years or more. 

One-third is a very sizable number and combined with consistently low mortgage rates at or near their historic lows, the stage is set for entry-level home sales to continue to surge.  As the entry-level market continues to improve, that provides demand for those that are moving up to the next price level. 

While renters are eager to own, they are concerned about the unemployment picture, the economy, and down payment options.

Please see my upcoming posting, 100% Financing available for Idaho First Time Homebuyers

Effort designed to encourage principal write-downs for responsible borrowers 

WASHINGTON - In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain 'underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or 'underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens. "This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."

Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.

In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.

HomePath: A purchase program for specially designated Fannie Mae REO Properties. 

• Here is where you determine if the property is eligible for HomePath financing:
  • www.homepath.com 

Specs:

• Owner Occupied:
  • 1 Unit to 95% with 660 Score/2 Units to 80% with 620 Score/3-4 Units to 75% with 620 Score
  • 1 Unit to 97% LTV with 660 Score (HomePath Flex Code 2097-00)
• 2^nd Home:
  • 1 Unit to 90% with 660 Score/80% with a 620 Score
• Investment:
  • 1 Unit to 85% with 660 Score/1 Unit to 80% with a 620 Score/2-4 Units to 75% with a 620 Score
• Purchase Only
• 30 & 15 Year Fixed Only
• No MI Required!!!
• No Appraisal Required!!!
• Max 50% DTI Regardless of DU
• 2^nd Home Requires 2 Months Reserves and 2 months reserves on each additional financed 2^nd home or investment property
• Investment Property Requires 6 Months Reserves and 2 months reserves on each additional financed 2^nd home or investment property)
• Seller Contributions: Up to 6% for LTV's 75.01-97%
• Min $500 From Borrower Required on FNMA HomePath Flex Program (>95% LTV)

A significant decline in jumbo mortgage rates (loans above $417,000) are helping to move some of the highest-end inventory.  Sales volumes of homes worth more than $1 million across the country are up more than 35% from this time last year according to the National Association of Realtors. They also stated that homes between $700,000 and a million were up 29% from last year.

There is no question that high unemployment and concern about the economy is pressuring the housing market at all price points, but it is clear that the ultra-low mortgage rates are having a dramatic impact on the highest end of the price spectrum.

Conventional lenders (Fannie Mae and Freddie Mac) do not make jumbo loans.  Those loans usually are held by banks.  These banks are becoming more comfortable making higher end loans these days and are looking to take advantage of a premium that they just can't earn with a conventional mortgage where their margins are simply too thin.

Over the past week, Congress has taken quick action and passed H.R. 5981. The bill gives FHA the authority to adjust its annual mortgage insurance premium, yielding approximately $300 million per month in value to the FHA Mutual Mortgage Insurance Fund at a time when its reserves are perilously low.

As I have previously stated in my testimony before Congress, FHA will lower its upfront premium simultaneously with the increase to the annual premium¹. It is our intention that effective on September 7, 2010, FHA's upfront mortgage insurance premium will be adjusted down to 100 basis points on all amortization terms and the annual mortgage insurance premium will increase to 85-90 basis points on amortization terms greater than 15 years². A Mortgagee Letter will be forthcoming once President Obama signs the bill into law, but with today's passage of H.R. 5981 and our expedited implementation schedule, I wanted to immediately inform the industry of our plans so the lending community can begin preparing for the operational and system changes required to implement FHA's new mortgage insurance premium structure on all new case numbers by September 7, 2010.

With this authority, FHA is in a better position to address the increased demands of the marketplace and return the MMI fund to congressionally mandated levels without disruption to the housing market.

While we appreciate and applaud this recent action, there is still work to be done. HUD remains steadfast in its commitment to comprehensive FHA reform legislation, similar to the FHA Reform Act passed earlier this year by the House, which would further enhance FHA's lender enforcement capabilities and risk management efforts. We hope Congress will take swift action to pass a broader FHA reform bill when they return from the August recess. FHA's risk management efforts will not be complete without the ability to monitor lender performance and ensure compliance with our rules.

Although the transition timeframe is short, implementation by September is critical. Thank you in advance for the efforts of you and your organization to make this change happen on such short notice. We appreciate your hard work and continued partnership.

¹The upfront and annual premium changes do not apply to the following FHA Programs: Title I, HECM, HOPE for Homeowners (H4H), Section 247 (Hawaiian Homelands), Section 248 (Indian Reservations), Section 223 (e) (declining neighborhoods), Section 238(c) (Military Impact areas in Georgia and New York).

² LTV's <= 95% will increase to 85bps and LTV > 95% will increase to 90 bps

In today's challenging real estate market, more buyers are looking at REO properties. Foreclosures are presenting both realtors and lenders new challenges. To help, Fannie Mae's HomePath® program is designed to move Fannie Mae REO properties.

For the homebuyer, HomePath could be just what you or your client needs to move into a new home:

• Low down payment and flexible mortgage terms (fixed-rate and adjustable)

• No Mortgage Insurance

• No Appraisal Fee

• Borrowers may qualify even if their credit is less than perfect

• Available for owner-occupied, second and investments

• Single-family, condo, duplex, 4-plex all eligible

• Low down payment can be funded by:

- Borrower's own savings

- A gift or grant

- A loan from a non-profit organization, state or local government or employer

Give me a call today at (208) 287-1717. I know HomePath and REO properties. I can help you or your customers make the most of this unique program designed to help revitalize and stabilize neighborhoods.

Last night Congress finally passed legislation to restore funding to the 502 single-family rural housing program.  Senator Michael Bennet (CO) and Reps.  Kanjorski (PA) and Capito (WV) championed this issue that has been working its way through Congress since March. 

The legislation will increase the guarantee fee for borrowers (but still allow it to be financed), which will make the program self-sufficient.  The legislation also increases the commitment authority so Rural Housing Service can formally guarantee loans (they had been providing conditional commitments).  We anticipate a notice from Rural Housing shortly after the President signs the bill.