Palm Harbor Realtors on Why Getting a Mortgage Gets Tougher Every Day
August 25th, 2010 categories: Buyer News and Tips, Mortgage Updates
Palm Harbor Realtors on Upcoming Mortgage Industry Changes
As Palm Harbor Realtors we’ve been studying up on the Financial Reform Act that became law last month. Government regulators will be interpreting the law and creating rules for years to come, so it’s too early to tell how many of the facets of this sweeping legislation will affect you the homeowner.
In July, RISMedia reported that CMPS Institute (a leader in the mortgage industry) had this to say: “The main takeaway for homeowners and buyers is that mortgage rates are currently very low, and lending guidelines are not as bad as they could be once the new law goes into effect. This means that if you can qualify for a mortgage now, you should do so, and not gamble your homeownership goals on the future impact of the new law”.
They cited that it’s going to get harder to qualify for a mortgage even if you’ve got a great credit score, plenty of equity in your home (should you have one already), and have plenty of cash. And they certainly aren’t alone with their prediction that we’ll all be Read the rest of this entry »
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FHA Loans for Pinellas Home Buyers
July 1st, 2009 categories: Mortgage Updates
If you’re looking to finance a Pinellas short sale or Pinellas foreclosure and have 3.5% for a down payment, then an FHA loan is your ticket to home ownership. The FHA is not a lender, nor do they set interest rates. The Federal Housing Administration is a federal government agency (a division of the U.S. Department of Housing and Urban Development, or HUD), that offers mortgage insurance on loans originated by their approved lenders. In a nutshell, it’s insurance that protects the lender in case the borrower defaults.
The FHA was created in 1934 after the Great Depression, and was widely popular until recent years when subprime lenders offered something seemingly better: artificially low interest rates, no-interest payments and a false dream. Daily, lender requirements are becoming more and more stringent, and, as a result, FHA loans are once again commonplace and the only vehicle for many to own their Duendin homes.
Advantages of an FHA loan include:
- low 3.5% down payment and closing costs
- gifts from family members, employers or charitable organizations are welcomed
- minimum credit scores are lower than for conventional loans
- lenders will consider payment of rent, utility bills and auto insurance premiums when evaluating the applicant
But Whoa! Hold on, there’s a tiny downside …. Read the rest of this entry »
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Beware: Don’t Miss the Boat(s) on Your Pinellas Real Estate Purchase! How Rising Mortgage Interest Rates Hurt Your Bottom Line … Even in a Declining Market
May 30th, 2009 categories: Mortgage Updates
As Pinellas real estate prices have continued to drop each month, some Pinellas home buyers continued to play it cool, sit back and wait until a particular Dunedin Fl neighborhood becomes affordable in their eyes. Beware! There’s another boat you don’t want to miss.
Conventional interest rates had been hovering at historic lows of 4.75% – until this week, where they ended at 5.27%! It is unlikely they will stay in these low ranges, whether the 4’s or the 5’s for any length of time say most experts. Mortgage interest rates are tied to the bond market which has begun to take hits due to the state of the economy. Money.com had this good synopsis Thursday if you want to delve deeper.
So, if you’re waiting for that $200,000 home to fall another $10,000 or 5% – this will take about three months in our current market. Now its September 1st and you’re going to offer $190,000 and save about $50/mo on your mortgage payment. But wait! Interest rates have risen one point to 5.75%. Now your mortgage payment is $125.00 MORE than it would have been last week. This scenario has now cost you an additional $75.00/month – for the next THIRTY YEARS!!
$200,000 home with an 3.5% FHA 30 year loan:
4.75% = $1006.78/ mo payment
5.75% = $1126.30/mo
6.75% = $1251.79/mo
Some will say, “not a big deal.” Really? A 2% jump in interest equates to an additional $3,000 per year and over $162,000 over the life of the loan. Hmmm…
What’s the other boat? Trying to time the bottom of the market. A post for another day!
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Buying Pinellas Real Estate? FHA Loan Limits Increased!
March 1st, 2009 categories: Mortgage Updates
HOT OFF THE PRESSES: If you’re considering purchasing Dunedin real estate, and have just a little cash for your down payment, note that the FHA loan limits for Pinellas, Hillsborough and Pasco counties just increased back to their early 2008 levels of $292,500.
This news is so fresh the FHA hasn’t even updated its website, but The Peach is here to let you know that you can purchase your Crystal Beach FL home up to $303,000 with only a 3.5% down payment. SWEET! Looking for a Tampa Bay golf course home? We’ll be expanding this section soon so stay tuned.
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Seller-Funded Downpayment Assistance for Pinellas Real Estate Purchases Soon to be a Thing of The Past
September 6th, 2008 categories: Mortgage Updates
Effective October 1st, you can no longer have the seller pay your down payment on your Palm Harbor real estate investment, or even a hut in Timbuktu. Unless you’re a veteran of the armed forces, you 
will need at least 3% of your own or gifted money to purchase a home anywhere in the US – with no exceptions. The reason? The recent approval of HR 3221 and all that it entails.
The passage of this bill eliminates ALL seller-funded down payment assistance with FHA-guaranteed loans. In addition, if you were thinking of buying a new home, home buyers will no longer be able to rely on nonprofits that funnel money from home-builders into seller-funded down payment assistance programs.
HR 3221 therefore finalizes HUD’s long quest to end that practice as well. The US Department of Housing and Urban Development (HUD) claims that the provision of monies from the seller causes an artificial inflation in the housing market statistics. This is because the record of the transaction at closing, (known also as the HUD), reflects the price of the home to be higher to compensate for the closing costs paid by the seller (a fair argument).
The belief is also that the odds of the homebuyer defaulting on the loan triples as they are basically buying the home with no money out of their pocket but with money provided by another party. Seller-funded down-payment assistance has become extremely popular as it was used on more than 35 percent of all home purchase loans insured by FHA in fiscal year 2007. This is a dramatic increase compared to less than 2 percent seven years ago. We want you to be aware of how the changes can affect you and your home purchase plans. Feel free to contact us regarding this pending change.
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