FHA Trims Waiting Period for Borrowers Who Experienced Foreclosure
The FHA is reducing the amount of time a borrower must wait in order to receive an FHA-insured mortgage, according to a new mortgagee letter from the Dept. of Housing and Urban Development. Currently set at three years, the FHA now allows eligible borrowers to receive an FHA-insured loan in as little as one year. Eligible borrowers include those who experienced unemployment or other severe reduction in income and were unable to make their monthly payments, and ultimately lost their homes to a pre-foreclosure sale, deed-in-lieu, or foreclosure.
FHA is allowing for the consideration of borrowers who have experienced an economic event and can document that:
- Certain credit impairments were the result of a loss of employment or a significant loss of Household Income beyond the borrower’s control;
- The borrower has demonstrated full recovery from the event; and,
- The borrower has completed housing counseling.
The guidance in the mortgagee letter is applicable to purchase money mortgages in all FHA programs, with the exception of Home Equity Conversion Mortgages.
Borrowers who may be otherwise ineligible for an FHA-insured mortgage due to FHA’s waiting period for bankruptcies, foreclosures, deeds-in-lieu, and short sales, as well as delinquencies and/or indications of derogatory credit, including collections and judgments, may be eligible for an FHA-insured mortgage if the borrower:
- Can document that the delinquencies and/or indications of derogatory credit are the result of an economic event as defined in the mortgagee letter,
- Has completed satisfactory housing counseling, as described in this ML, and
- Meets all other HUD requirements.
Looking for that next home or need to sell yours now in the Greater San Diego Area? Visit www.clarkransom.com for full access to ALL the homes for sale and detailed market information.
Housing inventory crunch seems to be easing up
Source: The LA Times
A new report from Realtor.com indicates that the number of listings rose 1.4 percent from June, which is the fifth consecutive monthly rise. In comparison with last year, the number of homes listed for sale has started to increase in some markets. Read the full story
Click HERE to Be the FIRST to find your new home the minute it hits the market! Sign up for Listing Alerts at http://www.clarkransom.com.
Tax-Free Accounts for Homes
Source: The New York Times
A coalition led by Smart Growth America of Washington is calling for policy that would allow Americans to have a tax-exempt account to save for the down payment on a mortgage, just like tax-free savings accounts for health care and college tuition. Proponents suggest it would encourage Americans to start saving earlier for a down payment and closing costs. Pretax contributions could be made to such an account for up to 10 years.
Read the full story.
Click Here to find a new home and put that Down Payment to good use.
Should Home Sellers Overprice or Underprice Real-Estate Listings?
Source: The Wall Street Journal
When setting an asking price, there are two major strategic approaches: overpricing when inventory is low to get higher initial offers, or pricing homes below nearby properties to instigate a bidding war in a market with pent-up demand. But what’s the best method? New research on a behavioral trait called “anchoring” sheds some light on the power of price. Read the full story
Click Here to to find home values in your neighborhood to help price your home for sale.
The percentage of home buyers who could afford to purchase a median-priced, existing single-family home in California dropped to 36 percent in the second quarter of 2013, down from 44 percent in first-quarter 2013 and from 51 percent in second-quarter 2012, according to C.A.R.’s Traditional Housing Affordability Index (HAI). The second quarter 2013 figure fell below 40 percent for the first time since the third quarter of 2008.
Nearly all regions of the state experienced sharp quarter-over-quarter declines in housing affordability, with Bay Area and coastal regions recording the greatest decreases in the index due to significantly higher home prices.
At an index of 71 percent, Madera County was the most affordable county of the state, while San Francisco and San Mateo counties tied for the least affordable at 17 percent.
Visit www.clarkransom.com if you are considering buying, selling or investing in Real Estate.
Realtor.com announced the results of its Back to School survey, which looks at the impact school boundaries have on buyers looking to purchase a home within two years. Realtor.com® found that three out of five home buyers surveyed said school boundaries will impact their home purchasing decision.
A majority of home buyers who said school boundaries will have an impact are willing to pay 1 percent to 10 percent above budget to live within school boundaries. Of those surveyed, 91 percent said school boundaries are “important” or “somewhat important,” while only 7.43 percent said school boundaries are “unimportant” or “very unimportant.”
Home buyers who said school boundaries will have an impact on their decision also indicated that they would give up several amenities to live within school boundaries of choice:
- 62 percent would do without a pool or spa
- 51 percent would give up accessibility to shopping
- 44 percent would pass on a bonus room
- 42 percent would offer up nearby parks and trails
Click HERE to watch a video on “What you DON’T want to do before you Buy that Home.”
CA BRE # 01929144