It seems that at least once per week someone prominent who should know better will go on TV and say that you need a 20% down payment to buy a home. That is total crap. FHA loans with 3.5% down payment are still available and I see loan officers offering Conventional loans with 5%, 10% and 15% down every day too. If you happen to be a qualifying Veteran or live in a rural area, you may even qualify for a 0% down loan. The other thing I hear at least once a week from these "experts" is that you need cash to … [Read more...]
Twin Cities Home Affordability Has Peaked
March 22, 2012 by Leave a Comment
As we see Twin Cities home prices bottom (and likely tick up) and interest rates begin to rise, home affordability in the Twin Cities is likely to fall in 2012 and beyond. For years we've seen home prices decline. This decline wooed us into a sense that home affordability would keep getting better the longer we waited. Well in the last 6 months we've seen a dramatic decrease in the number of homes for sale while also seeing an equally large increase in the number of buyers in the market, which has caused overall … [Read more...]
Quick Tips: Boost Your Credit Score For Better Mortgage Rates
February 11, 2012 by Leave a Comment
Credit scores play a huge role in today's mortgage market. Blame it on the high default rates of the last half-decade brought on by lending standards that let anyone borrow almost any amount of money. Lenders are reserving their lowest rates for the customers that are most likely to make on-time repayments and history has shown that the higher your credit score is, the lower risk you are. Mortgage rates are near an all-time low in Minnesota. However, the low rates you see advertised on TV and online are only … [Read more...]
The Home Buyer Financing Fallacy
September 6, 2011 by 2 Comments
For many months I've been hearing via almost every media channel out there that today's home buyers are struggling to get financing - that banks have too high of standards and that many people are not able to get a loan. Funny thing is, that's totally untrue.Buying a home is not only a big emotional step, but it is a huge financial step as well. You're taking on a fixed location and a fixed set of costs for many, many years to come. For most people, their home is their largest single asset. For quite a few … [Read more...]
2010 Twin Cities House Prices – Fall Forecast
September 22, 2010 by 3 Comments
Twin Cities Median Sales Price - All Properties (image courtesy Minneapolis Area Association of REALTORS) What does the fall and winter 2010 hold for Twin Cities home prices? If the last couple years are any benchmark, we should see median sales prices drop substantially... most likely back to the $155,000-$160,000 range that we have seen the last two years. The fact that buyer activity has slackened since the expiration of the tax credits and our very seasonal market make this a pretty safe bet to make. It is … [Read more...]
Q&A: Should I Refinance My Home?
September 10, 2010 by Leave a Comment
With the ultra-low interest rates right now a lot of people are wondering if they should refinance their home. It can make a lot of sense for anyone planning to stay in their home more than 3 years - but every case is different and there are no hard rules. It is important to take into account the specifics of your situation. Some people don't have the money to refinance. One option is to "buy up" the interest rate for discount points, which would mean you would have a higher than market rate interest rate … [Read more...]
8 Predictions for 2010 Twin Cities Housing Market – August Update
August 24, 2010 by 3 Comments
Below you will find my predictions from a January 7, 2010 blog post and my comments on each of those predictions as of August 24, 2010: Foreclosures will continue to come on the market and many will be scooped up quickly with multiple offers. Correct! This has been the case so far this year, though this was certainly the easiest prediction I made - the months supply of foreclosures is still very low - 2.8 months currently - but has ticked up a little in the last few months. Unless we see 4+ months supply … [Read more...]
USDA Rural Development Program Receives Cash Infusion
July 29, 2010 by 3 Comments
According to the National Association of REALTORS, the USDA will once again have funding for their guaranteed loan program: ------------------------------------------------------------- Thousands of Rural Home Buyers Aided by Passage of Housing Funding Measure Washington, July 28, 2010 The restoration of the single-family rural housing program that would guarantee home loans for rural buyers was passed by the Senate today and is on its way to President Obama. The National Association of Realtors® has … [Read more...]
40% Of Twin Cities Home Purchasers Used FHA In 1st Half 2010
July 9, 2010 by 3 Comments
The trend from 2009 continues: nearly 40% of all home buyers in the Twin Cities during the 1st half of 2010 used FHA Loan to finance their purchase. This is up from just 2% in 2007! Why are so many buyers using FHA loans to purchase their home? Here are some reasons: FHA requires only a 3.5% down payment FHA 203k (rehab) loans can make it easier for buyers to fix up houses FHA underwriting requirements are often now more lenient than Conventional mortgages (below) FHA allows higher debt to income ratios … [Read more...]
Twin Cities Home Buyer Financing Over The Years
July 8, 2010 by 5 Comments
I took some time today to go over some NorthstarMLS data (the Twin Cities area MLS data service) to see how home buyer financing has changed over the last few years and put together a few pie charts that I thought you might enjoy. Click on each image for a bigger view: Buyer financing shifted dramatically from 2007 to 2008 as FHA and Cash became far more popular financing options and shifted again in 2009 when FHA and Cash doubled in percent usage. There are several different trends happening here … [Read more...]
