FHA loans remain a great first time buyer tool

It’s true, the FHA administration recently reduced the maximum loan amounts for FHA loans.  However, this will not substantially impact most borrowers.    And, in fact, FHA can be your best option for achieving home ownership.

Things to consider:

1. First time home buyers with FHA loans can regularly make their payments – build credit and equity.  This will put you in a better position to move on from your stater home and take a step up with your next purchase.
2. FHA loans can help you into your first home and beyond.  So if you’re considering buying a home, consider getting an FHA loan and withing with an expert like me in this field.

Contact me below..

FHA loans remain a great first time buyer tool

Cities Where Owners Are Still Underwater

Cities Where Owners Are Still Underwater

Though homeowners are gaining equity across the country, the number of underwater borrowers in some areas remains high. The metro with the highest share of homeowners with negative equity is Miami-Miami Beach-Kendall, Fla., where the number of those in the red has grown 13.1 percent year over year, according to a new report from CoreLogic.

Nationwide, the number of homes with a mortgage in negative equity—which can occur due to a decrease in a home’s value or an increase in the homeowners’ mortgage debt—dropped 1 percent between the third and fourth quarters of 2017. About 2.5 million homes, or 4.9 percent of all properties with a mortgage, were still in a negative equity position as of the fourth quarter, according to CoreLogic. Overall, negative equity in the fourth quarter plunged 21 percent year over year.

In the fourth quarter of 2009, negative equity peaked at 26 percent of all residential properties with a mortgage, according to CoreLogic’s records. The following metros had the highest share of negative equity in the fourth quarter of 2017:

• Miami: 13.1%
• Chicago: 10.1%
• Las Vegas: 9.2%
• Washington, D.C.: 6.5%
• New York: 5.4%
• Boston: 3.7%

Source: CoreLogic

Homeowners Keep Getting Richer and Richer

Homeowners Keep Getting Richer and Richer

Homeowners with mortgages have seen their equity increase 12.2 percent year over year, according to CoreLogic’s newly released Home Equity Report. Homeowners gained more than $15,000 in home equity between the fourth quarter of 2016 and the fourth quarter of 2017—the highest growth in home equity in four years, according to the report. Western states saw the largest increases.

“Home-price growth has been the primary driver of home-equity wealth creation,” says Frank Nothaft, chief economist for CoreLogic. “Because wealth gains spur additional consumer purchases, the rise in home-equity wealth during 2017 should add more than $50 billion to U.S. consumption spending over the next two to three years.”

Meanwhile, the number of borrowers who are in a negative equity territory is decreasing. The total number of mortgaged homes in negative equity—those who owe more on their mortgage than their home is currently worth—dropped to 2.5 million homes, or 4.9 percent of all mortgaged properties in the fourth quarter of 2017.

“There are wide disparities in home-equity gains by geographic area, with higher-priced, capacity constrained markets along the East and West Coasts registering the largest increases,” says Frank Martell, president and CEO of CoreLogic. “The average homeowner in California and Washington had a wealth gain of about $40,000, reflecting the high price of homes in California and the rapid appreciation in Washington. In contrast, the average owner in Louisiana had little change in their housing wealth during 2017, given much lower prices and modest price growth.”

Source: CoreLogic

Floor Plan Fads You’ll See More Often

Floor Plan Fads You’ll See More Often

Home floor plans can take much longer to evolve than design trends. Changes tend to occur over years, as some designers and architects look to push the envelope and take a gamble on what they believe will resonate with buyers. But a few trends are starting to emerge.

BUILDER recently weighed in on some of the hottest fads that could impact more floor plans in 2018, including:

1. Flexibility for multigenerational households. More homes are being built to accommodate multigenerational households, such as with a main-level bedroom suite or even an in-law unit to offer privacy to cohabiting relatives. Flexible layouts that can accommodate a variety of living arrangements are growing in demand, builders say. In 2014, 60.6 million Americans resided in multigenerational households, according to the Pew Research Center. Homeowners may not need the extra space quite yet, but they desire to use it one day. The extra bedroom on the main floor may be outfitted as an office or study until it’s needed.

2. The modern farmhouse. White farmhouses are in high demand. These homes are characterized by large windows, simple roof lines, and bright white siding that may be paired with dark windows. “The modern farmhouse aesthetic seems to have struck a chord with the American home buyer because it relates back to a more bucolic era while also embracing all the needs of modern life,” says Jonathan Hyman, architectural department manager at Donald A. Gardner Architects. “The simplicity and clean lines, along with a little nostalgia, help the modern farmhouse create a relaxing environment in our chaotic contemporary lives.” Some designers are experimenting with adding more color to the farmhouse look, like in soft pastels of light green or soft tan colors.

3. Greater storage options. Storage is getting more emphasis on floor plans. Mudrooms and laundry areas are showing up on more home layouts as separate spaces rather than combined areas. Homes with open layouts are finding more need for storage to tuck away items. Mudrooms are popular as drop zones for backpacks, coats, and shoes. Also, the placement of this storage is getting more consideration in regards to homeowners’ lifestyles. For example, some layouts from the Nelson Design Group in Jonesboro, Ark., feature master bedroom closets that open directly into the laundry room. Pets are also getting more thought. Design Basics, based in Omaha, Neb., includes “pet centers” in some of its floor plans, which feature dog-washing stations and other storage.

Source: “The Top Five Trends in Floor Plans,” BUILDER (March 6, 2018)

Common Contract Contingencies

Common Contract Contingencies

Seventy-four percent of contracts in the first month of the year contained settlement contingencies, according to the January 2018 REALTORS® Confidence Index survey, conducted by the National Association of REALTORS®.

The monthly survey, based on responses from more than 3,500 REALTORS® about their latest transactions, examines what real estate pros are seeing most often in contracts. The most common contingencies are home inspection (58%), appraisal (44%), obtaining financing (43%), having clear title (11%), and selling a current home (5%).

Nine percent of agents reported encountering no problems that threatened to delay their deals. The most pressing problems that agents say they faced in ushering an on-time settlement were the following:

• Issues related to obtaining financing: 30%
• Appraisal issues: 16%
• Home inspection/environmental issues: 19%
• Titling/deed issues: 11%
• Issues in buy/sell distressed property: 4%
• Contingencies stated in the contract: 10%
• Home/hazard/flood insurance issues: 2%
• Other: 24%

Source: “REALTORS® Confidence Index Survey: January 2018,” National Association of REALTORS® (2018)

Now that we’ve entered into a buyers’ market, creating a positive first impression and showcasing the best attributes of your home are essential in today’s real estate market.

Following these simple tips will help you to prepare your home to sell.

• De-personalize: remove family photos, personal memorabilia etc.
• Remove Furniture: Create a feeling of space
• Clean your house: Clean home tells buyers that it is well maintained
• Paint the walls: Keep walls neutral
• Bring in the light: Take down heavy Window treatments.

Thinking about up sizing or downsizing? Let me help you.

Don’t forget to also do all the minor repairs like light bulbs and leaky faucets.  Also add a bit of curb appeal with a nice door mat and trimmed shrubbery.  Update your kitchen if you’re looking to gain the most bang for your buck.  Finally De-clutter. Donate or dumb it.

Give me a call if you’re thinking of up sizing or downsizing and I can help with more ideas!