Has Housing Hit Bottom?

I watched the Today Show 3 weeks ago and Matt Lauer interviewed Barbara Corcoran (multi-gazillionaire investor in New York City) and was asking her if the housing market has hit bottom yet?

I thought this was an interesting question and kind of chuckled because of course I knew better; "Of course it hasn't!", I yelled at the television screen.   Or has it?

Then for the 3 weeks following this interview, positive economic news has come out: 1) more new  home buyer traffic in model homes reported by builders (highest volume in 3 years!); 2) 5 weeks in a row of declining initial unemployment claims; and 3) a possible resolution to the European economic  crisis announced today.

Because more economic indicators are pointing to the inevitable fact that we MAY have hit bottom (halleluja), I revisited the Matt and Barbara interview online and listened to her answers again.

Your credit monitoring program WORKED! It got us into our home-Closing 9/12/11

Marty, you began working with us 14 months ago and thank you for introducing us to your credit monitoring program!  It worked!   

You were persistent, you helped with our abundant questions, you were easy to contact and we loved how responsive you were to our texts and phone calls!  

We appreciate how friendly and nice you are!  Please thank your processing team for helping us with the Grant Program through Sunset City because that made all the difference in us getting in the home we wanted.   

Your processor, Kelsi, is awesome!  

Zach and Riley Foster, Closing 9/12/11

It doesn't take 20% down to buy a home!

Surprisingly, most buyer's I am talking to (8 out of 10 buyer's I speak with are first time home buyer's) think that it will take a MUCH LARGER down payment to buy a home than is actually required.  I regularly hear from prospective buyer's that they believe they need a down payment of 20%, or at least 10%, to buy a home.

Minimum down or ZERO down home loans are available!

Regular FHA loan financing: Through a short introduction of financing options which are currently available, I give prospective buyer's the good (GREAT!) news that FHA requires only a 3.5% down payment!  For FHA financing you don't have to be a first time home buyer! 

The minimum down payment money for FHA financing can come from several sources:

• With tax refund time around the corner, sizable refunds are common.
•  Parents or grandparents can gift the down payment and all that has to be done is to ask (or beg them) for a gift of down payment money.
• Maybe 401k money is tucked away and these funds can be accessed through a 401k loan.

FHA ZERO down loans: State Funded Programs allow for ZERO down payment if the first time home buyer has a better credit score than what is required for regular FHA loans.  ZERO down loans are only available to first time home buyer's (or to VA eligible buyer's).

FHA minimum down and FHA ZERO down programs are helping buyer's to buy homes that are "on sale" and finance the purchase at all time low interest rates!

HARP 2.0 is here!

As of December 1, 2011, HARP 2.0 will begin to help the underwater conventional loan homeowner who has not been able to refinance into a lower interest rate because they have little or no equity in their home (relative to their mortgage).

Click here for the HARP 2.0 tutorial on how to get started: HARP 2.0

Call me at 801-540-5108 to begin your HARP 2.0 mortgage application. 

HARP 2.0 preparatory steps to take

HARP 2.0 has waived ALL of the Loan to Value limitations and NO MATTER how upside down you are in your present loan, I can help you with a HARP 2.0 loan!

There are preparatory steps to take to be ready with your application on December 1, 2011 when the program is scheduled to roll out.

For the 5 preparatory steps, see my Blog tab "HARP 2.0" (on the home page of my blog under the picture of the Delicate Arch) or click here HARP 2.0 for the list of items needed to properly prepare for your loan application.  

Call me with questions at 801-540-5108 or e-mail: Harp2.0@martyqualls.net.

Get your FULL credit approval first!

An online "fast application", or a "pre-qualification" without a credit report pulled is causing problems!

Get a FULL credit approval letter before shopping!

At the recent National Association of Realtors (NAR) Convention in California, it was reported that TWICE as many purchase contracts are failing this year as compared to last year!

Realtors are taking phoney credit approvals from mortgage lenders who aren't doing their due diligence with their borrowers and then later the same lenders are finding that, OOPS, the borrowers credit, income, assets, or whatever caused the train to come off the track after the COMPLETE application information DIDN'T check out.  :(

My credit approvals are always backed up by a credit report AND an Automated Underwriting System (AUS) approval.  When my credit approval accompanies a purchase contract, all that needs to happen is the offer needs to get accepted, appraisal and title report received and close the loan!

Don't take a chance on a failed purchase offer because of the failure of the lender to do a FULL credit approval for the borrower.  :)

The VA loan is the BEST loan out there! And it should be! Thank you Veteran's!

I want to thank my Dad, Mel Qualls, for his Military service!

Is the American taxpayer footing the bill for HARP 2.0?

As I read an article written in the Financial Times this morning it became clear to me that the Home Affordable Program enhancement that is to be released 12/1/11 has some far reaching American tax payer ramifications. 

Underwater mortgage refinancing: Who's bailing out who? 

Because mortgage loans greater than 125% loan to value cannot be included in regular Collateralized Mortgage Obligations (CMO's), the mortgages created in HARP 2.0 (this program targets homeowners who are REALLY upside down in their mortgages) are ultimately, created, insured and owned by Fannie and Freddie and can't be sold in a "regular" bond issue.  These loans will need to stay on Freddie and Fannie's balance sheets for now. 

So what's the rub and why can't they stay with Fannie and Freddie?    

VA loans up to $417,000

I continue to be amazed that if a Veteran would like to purchase a home, VA will allow up to a $322,700 (inclusive of the VA funding fee) loan amount with a ZERO down payment!   Higher loan amounts up to $417,000 are also available with a down payment.   

VA financing for eligible Veterans and National Guard

The VA purchase program can't be beat for maximizing your return on dollars that don't need to be paid at closing for a down payment.  Additionally, there is no mortgage insurance to be paid monthly, which, for a ZERO down loan is an unbelievable benefit!   

Cash out refinancing with a VA loan can consolidate bills or get money to remodel your home and the loan to value goes up to 90%, which is 10% higher in loan to value than Conventional financing and 5% higher in loan to value than FHA (and FHA requires monthly mortgage insurance, VA does NOT!).

Eligible Veterans and National Guard have a great loan to take advantage of with the VA loan!

5 steps to avoid buying a money pit

I read a great blog post today and wanted to share some ideas to help buyer's avoid buying a home that is going to cost them a lot of money later.

I have always encouraged home buyers to hire a professional inspector who goes through the home carefully and professionally BEFORE ordering the appraisal or at least before closing.  

With a professional inspector by your side you can discuss the finer details of the report they have prepared, and you can benefit from their experience and ask questions about the following items.

Hire a professional to inspect your home before you close your home purchase!

How to avoid buying a money pit:

1. Attend inspections-when possible always walk through the home with the inspector, the additional insight, comments and "watch for this in the future" points they will bring out during the inspection walk through are priceless.  THIS is my #1 best to do suggestion of the 5 points!
2. READ the report and the seller disclosures carefully- when in doubt, ask questions!
3. Get multiple repair bids-2-3 is really the minimum and caution and research here will save many repair cost surprises later.  At this point, you have already paid the inspector for their knowledge, ask them questions about what the probable cost of a repair item might be.  When out of the inspectors area of expertise, hire a licensed professional for more information (roofer, HVAC, electrician, plumber, structural engineer).
4. Stop overconfidence in its tracks!  Even the easiest repair jobs will cost more and take more time than you think.  I can remember clearly the time I replaced my toilet wax seal when I tiled my bathroom.  It ALL takes longer than you think!
5. Prioritize price reductions and credits OVER seller repairs-to be in control of WHO does the repair and WHEN the repair is done, take a price reduction or a seller paid closing cost credit INSTEAD of having the seller do the repair before closing.  

You did good Orrin Hatch! Freddie and Fannie did a bad one!

Full article "$13M in Fannie and Freddie bonuses is an out rage!"

I am so happy that Orrin Hatch is my Senator!  The full article is linked here if you would like to read it. I have been following this as I became aware of, and angered by, the news that Fannie and Freddie executives received bonuses from US taxpayers who are keeping the two agencies afloat. 

Hatch, along with 58 other Senators, are demanding tighter oversight of funds paid to these two entities.  Way to go Orrin and other concerned Senators!  We DO need to send a message to our fiscal leaders and demand that these things don't happen again!