Real Estate Home Loans in Boise Idaho, Benchmark Mortgage - Prime Equity Group: June 2010

The House will vote Tuesday on a bill to give first-time homebuyers more time to close in order to claim a federal tax credit that expired at the end of April. The House bill would give homebuyers that had a contract in place before April 30 until Sept. 30 to close on the sale. That would allow them to claim the $8,000 tax credit for first-time homebuyers. The House is slated to vote on the bill under expedited procedures for bills that enjoy broad support.

This is great news for first time home buyers and move-up buyers in Idaho!

A new study by Trulia.com showed that sellers are holding their asking price on 88% of homes listed for sale as of June 1st.  Conversely this does means that 22% of sellers did lower their asking price at least once from listing to sale.

The 22% is a decrease from this time last year where the number was 23.6%.  More expensive homes ($2 million and up) saw the largest price reductions.  Real estate is very localized:  A year ago Las Vegas saw price decreases on 30% of all listings.  But this time around, they only dropped prices on 10% of homes listed for sale.  But in Kansas City, prices were dropped on 31% of homes listed compared to 20% a year earlier.

Obviously, low 30 year fixed mortgage rates and the now expired tax credit has helped.  But the improvement in the ratio of original asking price vs. sold price is more likely the result of properly listing the home at the correct and current market price. 

To get pre-qualified for a home loan call me at (208) 287-1717 or visit: www.deantucker.com

 The Idaho Housing and Finance Association (IHFA) have launched a new program to make homeownership a reality through its IdaMortgage program. The new Affordable Advantage Loan offers a down payment as low as $1,000, and has no mortgage insurance requirement, saving qualified borrowers money on the mortgage payment every month.

"This IHFA exclusive financing option is a great tool for homebuyers as the housing market in Idaho continues its recovery," said Gerald Hunter, IHFA president and executive director. "It offers another affordable lending option for low- to moderate-income homebuyers across the state."

Features of the Affordable Advantage Loan include:

• As little as $1,000 needed from borrower to close
• A low-cost, 30-year fixed interest rate 
• No mortgage insurance required, reducing a borrower's monthly payment 
• Financing to first-time homebuyers (including those who have not owned a home in the past three years) with good credit histories, requires a 680 
• Income limits apply 
• Loans are serviced in Idaho by IHFA

Home buyers should call me today at (208) 287-1717 to check their eligibility, or visit IdaMortgage  www.IdaMortgage.com

Tax Credits May See Extension
The home buyer's tax credit has been wildly popular. It gave both first time and previous home buyers a sizable tax credit provided that they sign a purchase contract no later than the end of April and close no later than the end of June.

It was so successful, that pending home sales (contracts signed but not yet closed) rose 22.4% when compared to April 2009.  However, with increased underwriting turn times, many people that met the requirement by signing a contract before the end of April will not be able to close in time.  Under the current law, they would lose their tax credit.

Senator Harry Reid is offering an amendment to the American Jobs and Closing Tax Loopholes Act of 2010 that would extend the closing time from June 30th to September 30th.  Note: If you did not sign a contract by April 30th then there is no extension for you.  It is only for those that signed a contract in time but just can't close on time.  It remains to be seen if his proposal will pass, I will keep you posted. This might be great news for some homebuyers in Boise, Eagle, Meridian, and other locals in Idaho's Treasure Valley!

Consumer Confidence Reaches a High Point
According to a newly released report by Reuters/University of Michigan, their Consumer Confidence index rose again to a reading of 75.5.  This is the best reading this year and the best reading since January 2008.

It shows a picture that consumers are more confident in how they perceive their economic outlook. A higher consumer confidence number generally signifies that consumers are more willing to spend.  This is important because consumer confidence is one of the largest factors in home demand.

The Real Estate markets in Boise, Eagle, Meridian, and beyond are looking up. National statistics are very positive too! 

Pending Home Sales Surge - National Figures:

A pending home sale is simply a signed contract on a home that has not yet closed. The National Association of Realtors reported that we continued to see gains in home sales for the third consecutive month.  The index rose 6.0% last month and 22.4% when compared to April 2009.  The April increase follows a 7.1% in March and a 8.3% increase in February.

While certainly some of the gain can be attributed to the rush to get a contract signed prior to the end of the tax credit, there is definitely underlying demand as consistently low rates and increased consumer confidence in the housing market has helped to drive up demand for homes.

Unemployment Rate Drops:

The Labor Department reported that our nation's unemployment rate dropped from 9.9% to 9.7%.

Non-farm payrolls increases 431,000 in May.  However, 390,000 new hires were due to the wave of census hiring.  That means that only 41,000 private sector jobs were created.  While this is an improvement, it was certainly much less than market expectations and a further sign that our recovery isn't as hot as once believed.

In 1934, the Federal Housing Administration (FHA) was created by the National Housing Act for the primary purpose of insuring long-term residential mortgage loans and, thereby, promoting home ownership in the United States. Today, the FHA is the largest government insurer of mortgages in the world.

FHA loans have surged in popularity. In 2005, government-backed FHA loans represented about 2.8% of total loans originated. Today, the number is closer to 30%. Over the past couple of years, as credit standards tightened, FHA loans have become the loan of choice for many homebuyers.

Contributing to the popularity of FHA loans is that the maximum loan amount limit has increased from $303,750 in Ada County to as much as $729,750 in Blaine County, maximum loan amounts depend on the county in which the home is located. (see http://fhaboise.com/fha-limits/)

Also, if you qualify for a loan, the loan-to-value (LTV) ratios are potentially higher than those for conventional mortgage loans. With FHA loans, a buyer can borrow up to 96.5% of the value of a home. The potential for a higher LTV also makes FHA loans an attractive option for homeowners wanting to refinance. And FHA loans come with fixed mortgage rates providing stable payments over the life of the loan. Also, FHA closing costs can be financed into the total amount of the mortgage.

Traditionally, FHA mortgages were used to assist first-time homebuyers who may not have otherwise qualified for a loan. But FHA loans are no longer just for first-time homebuyers. They are increasingly used by move-up buyers.

If you would like to learn more about the FHA loan process - and how it might help your clients move into a new home - please call me today.