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...]
Contracts for Deed – The Good & The Bad
March 17, 2012 by Leave a Comment
The Star Tribune put out an article that talks about the people and organizations offering contracts for deed and how they can be a great option for buyers but can also be risky for buyers, especially if they don't have help from someone experienced in those type of sales. It's important that before buying a home on contract for deed that you speak with an attorney or real estate agent about the terms of the contract and have a title company provide title and closing services to ensure your contract is recorded … [Read more...]
3 Home Buyer Financing Lies
September 21, 2011 by 1 Comment
#1 - Buyers need 20% cash down to buy a home Did you know that some buyers can still buy a home with NO DOWN PAYMENT? The USDA Rural Development and Department of Veterans Affairs loan programs both offer 0% down payment options. In the case of the USDA, it is income and location restricted. For VA loans, active military and veterans are often eligible based on their time, type and years of service. There can also be some smaller local programs with very specific criteria that can get you close to no down … [Read more...]
Jumbo Mortgages Are No Fun
October 20, 2010 by Leave a Comment
#1 - Jumbo Mortgages are Illiquid Assets Right Now The secondary market for jumbo loans has largely dried up, which has reduced availability, tightened debt-to-income (DTI) and loan-to-value (LTV) ratios, and increased the interest rates on these loans. None of this helps the demand for or sale of housing. Adding liquidity to this market would spur sales and increased sales of real estate has ancillary benefits for the economy in terms of consumer spending. Government intervention could help fix a broken … [Read more...]
Minnesota Offers $2 Million in Energy Saver Rebates
September 30, 2010 by Leave a Comment
An additional $2 million in Energy Saver Rebates is available for homeowners who install eligible energy-saving home improvements. These improvements must be financed using a Fix-up Fund loan, which allows homeowners finance the cost of making energy efficient upgrades. Rebates up to $10,000 are available for application on a first-come, first-served basis. More information and an Energy Saver Rebate application are available at www.mnhousing.gov. Or call Minnesota Housing at 651-296-8215 or 800-710-8871. … [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...]
"I'm taking myself out of the house-buying frenzy until after the end of April"
April 15, 2010 by 1 Comment
A friend of mine posted to Facebook the following: I'm taking myself out of the house-buying frenzy until after the end of April. I can't take the stress anymore! I've never been so frustrated or disappointed. This same message is being said by many of my current clients. Dissatisfied by the low inventory of quality houses in the 1st time buyer price points ($250,000 and under) and tired of being in multiple offers on so many houses, many buyers are stepping back and taking a wait and see philosophy. From … [Read more...]
