Real Estate Home Loans in Boise Idaho, 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

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)

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.

Sales of previously occupied homes surprised economists by beating economic and market estimates.  According to the National Association of Realtors, June Existing Home Sales beat estimates by 190,000 units.   The annualized rate came in at 5.37 million units vs. consensus estimates of only 5.18 million units.

This is the first reading since the housing tax credit has expired, so it is a positive sign that we surprised to the upside.  The month-over-month numbers for June were actually down 5.1% but the year-over-year numbers showed an increase of 9%!

Only 17 out of the 91 European Union's banks failed their stress test.  The ultimate goal of the stress test was to give the global markets more confidence in the EU.  The results were released last week and so were the criteria.  No one expected the criteria to be so tough.

These tests ran a bank's balance sheets through a series of worse case scenarios.  A bank fails the stress test if its Tier-1 capital ratio is below 6% under two scenarios: Adverse scenario and adverse scenario plus sovereign risk.  The adverse scenario assumes that the bank must face an economic climate that is so severe that it is only experienced once in 20 years.  The same tests in the U.S. last year assumed a once in seven year possibility.  These tests assumed a further decrease of 6% in unemployment from current levels and a 6% hike in interest rates from current levels.  

Borrowers who walk away from mortgages they can afford to pay - making "strategic defaults" - are running increasing risks that they'll be penalized for doing so.

Starting in October, Fannie Mae says, strategic defaulters will be disqualified for new Fannie Mae-backed loans for seven years after their foreclosures. Fannie also says it will go to court where it can to recoup outstanding mortgage debt from borrowers who strategically default.

Under a bill that's passed the House and awaits Senate action, the Federal Housing Administration would be barred from insuring mortgages for those who previously ditched a mortgage they had the ability to pay.

Get-tough policies are forming at the same time that about a quarter of mortgage borrowers owe more than their homes are worth.

Fannie Mae buys about 40% of all mortgages and packages them for resale to investors. The FHA insures about 30% of home mortgages.