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Home Sales on the Decline: Have We Reached the Bottom? (broken link)
So we have to wait a couple more days to see if and what the real numbers are going to be.
RE is local...
Las Vegas is going to show increased volume. And it is up much more sharply in March. If the present trend continues sales will cross 2007 in April. Prices are down in February and likely down slightly in March. I would think April will show flat over March if the present trend continues.
It is going to be a lot better year than last year.
Hope more parts of the country are doing better. In the Tampa area it is still not very good, but as you stated it could hardly be worse, or maybe better for the buyers.
Location: Georgia, on the Florida line, right above Tallahassee
10,471 posts, read 15,831,906 times
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Real Estate is local. (As olecapt stated)
It depends on local conditions as to how quickly the home market recovers.
It also depends on whether the home buyer can qualify for a new loan, afford the terms of the new loan, and whether they can even find a lender who will loan them the money. Certain zip codes are black balled. Loan terms have changed.
Fannie and Freddie are implementing new loan level price adjustments (LLPA) based on credit score and loan to value.
Unless you're eligible for VA financing within the conforming loan limits, 100% LTV financing (aka "zero down") is no longer available in the conforming mortgage markets.
The following products are extinct:
Fannie Mae Flex 100
Freddie Mac 100
My Community Mortgage 100
Home Possible 100
If you are short on down payment with credit scores below 680, you should consider FHA financing, which is not as credit score sensitive as conventional programs. Fannie Mae Flex 97 is still available as well as Home Possible 97. Both conforming programs allow for 3% down.
Home buyers should also plan on having "reserves" after closing. The amount of reserves may vary depending on the program from 2 - 6 months of proposed mortgage payments for owner occupied when it's said and done.
First time home buyers may need help with closing costs from Sellers...if they're willing...in order to meet the reserve account conditions.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,847,817 times
Reputation: 958
Quote:
Originally Posted by 70Ford
Real Estate is local. (As olecapt stated)
It depends on local conditions as to how quickly the home market recovers.
It also depends on whether the home buyer can qualify for a new loan, afford the terms of the new loan, and whether they can even find a lender who will loan them the money. Certain zip codes are black balled. Loan terms have changed.
Fannie and Freddie are implementing new loan level price adjustments (LLPA) based on credit score and loan to value.
Unless you're eligible for VA financing within the conforming loan limits, 100% LTV financing (aka "zero down") is no longer available in the conforming mortgage markets.
The following products are extinct:
Fannie Mae Flex 100
Freddie Mac 100
My Community Mortgage 100
Home Possible 100
If you are short on down payment with credit scores below 680, you should consider FHA financing, which is not as credit score sensitive as conventional programs. Fannie Mae Flex 97 is still available as well as Home Possible 97. Both conforming programs allow for 3% down.
Home buyers should also plan on having "reserves" after closing. The amount of reserves may vary depending on the program from 2 - 6 months of proposed mortgage payments for owner occupied when it's said and done.
First time home buyers may need help with closing costs from Sellers...if they're willing...in order to meet the reserve account conditions.
Not entirely true. The 100% programs are still available in markets that have not been labeled declining by FNMA/FHMLC. However, in the markets that have been labeled declining, Flex 97, HomePossible 97, and MyCommunity 97 have been cut to 92% loan to value. Of course there is always the issue of MI, which seems to be tightening up quite rapidly. Other than that your post is very accurate.
I don't think we will ever see a boom like the previous one, as I just don't think the lenders will make it as easy as they did to borrow money. It is not impossible to borrow money now, you just have to prove that you can pay it back, and I wouldn't have it any other way even though my paycheck depends on people qualifying for loans.
Not entirely true. The 100% programs are still available in markets that have not been labeled declining by FNMA/FHMLC. However, in the markets that have been labeled declining, Flex 97, HomePossible 97, and MyCommunity 97 have been cut to 92% loan to value. Of course there is always the issue of MI, which seems to be tightening up quite rapidly. Other than that your post is very accurate.
I don't think we will ever see a boom like the previous one, as I just don't think the lenders will make it as easy as they did to borrow money. It is not impossible to borrow money now, you just have to prove that you can pay it back, and I wouldn't have it any other way even though my paycheck depends on people qualifying for loans.
I'm glad you say that and I hope they raise your pay check. If all parties involved are handle things in a responsible way, the market will be much healthier.
People grow up over here that having debt is good for their credit score, use credit cards, get loans, etc that is promoted. Shouldn't people learn how to spend money they really can afford.
I hope the mortgage brokers stop giving zero down motgages and have people save some money and than buy a home. If you have to save money and later buy you apreciate more what you have. I guess a huge issue is that a lot of people own hardly anything more in their home than some furniture if they don't have it bought on their credit card. If you bought in 2005 a zero down and now have lis pendens, who is paying in the end? Aren't the tax payers paying?
And two other major cities in the nation reached new 1 year highs: Dallas & Houston, TX
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