You might not have yet heard, but for one year, Fannie Mae and Freddie Mac will insure home loans bought or insured up to $729,750, up from $417,000. This will make jumbo loans more affordable, especially good for investors. For details, read below.
Daily Real Estate News January 25, 2008 House OKs Lift on Fannie, Freddie Loan Limits.
The economic stimulus package hammered out between the White House and Congress on Thursday lifts the size of home loans that may be bought or insured by Fannie Mae and Freddie Mac.The Fannie/Freddie cap would rise to $729,750 for one year. Currently Fannie and Freddie are capped at $417,000.The measure also would permit the Federal Housing Administration to indefinitely insure loans up to that same level. Currently, FHA loans may not exceed $367,000.“The stimulus package announced today is a positive step toward strengthening the housing market and our economy," NAR President Dick Gaylord said in a public statement. "The increase in loan limits should provide liquidity to the mortgage market in all parts of the country allowing qualified home buyers who may have been on the sidelines to enter the market." The measure is also expected to make jumbo loans more affordable because it will make them more attractive to investors, who since summer have shunned home loans that don’t pass through Freddie or Fannie.“In high-cost states, many home buyers with good credit could save $3,000 to $5,000 per year by not being forced into the current jumbo mortgage market," Gaylord said. "Currently, only families in lower cost areas are able to qualify for these types of affordable loans. Such a move would stimulate home sales and help stem the rise in foreclosures, reducing the number of foreclosures by as much as 210,000."In particular, prospective home buyers in costly regions like California, Northern Virginia, and New York have faced higher mortgage rates and tougher loan terms, and those areas would get relief under the plan, says Susan Wachter, a professor of real estate and finance at the Wharton School of the University of Pennsylvania."This is meaningful because the mortgage crisis and meltdown is geographically concentrated," she says. "This response will assist the stressed areas."
Source: Reuters, Patrick Rucker (01/24/08) and REALTOR Magazine Online
Saturday, January 26, 2008
Saturday, January 12, 2008
Military and moving to Northern Virginia? Unsure if you should buy when you arrive? Read on…
It’s almost relocation time for military members, the PCS (permanent change of station) season starts generally in the spring and rolls through the summer. With a change of station comes many decisions, none the least of which is whether or not to buy at your next duty station. Some military members have bought and sold homes at each installation they’ve been assigned, but the current housing market is cause for some potential home buyers to pause and survey the market where they’re soon to call home. Here are some things to think about as you consider whether to rent, buy or attempt to procure base housing…
If you’re buying, this is a BUYER’S MARKET… which is good if you’re moving to Northern Virginia right now. This means you can get more house for your money, and there’s many more homes to choose from than in the past. You can also take advantage of this market by looking at homes within the beltway instead of in the outlying areas of the DC metro area. The average commute for many military members to and from their duty station is between 30–45 minutes (especially at the pentagon, National Guard Bureau, JP1, Ft Myer and the like). If you have the opportunity to reduce that commute time to 10-20 minutes, why not take advantage of it and have more time at home with your family – something harder and harder to come by these days.
There are many different types of homes, neighborhoods, price ranges, schools to choose from, and all these options can be overwhelming when faced with moving to a new area. Although most military members are used to constant change, there’s always a steep learning curve when you arrive at the new duty station. The stress of finding a new home is can be quite intense, and yet it is the anchor point for many other decisions. If you’d like help finding your new home and settling into the Northern Virginia area, please call or email me – it would be my honor to help get you settled into your new home and neighborhood.
Contact me any time, I’ll return your call or email promptly.
Your Arlington, Alexandria, and Falls Church, Virginia Military Relocation Specialist,
Mike Frank
myfrankrealtor@gmail.com
571-217-1690
If you’re buying, this is a BUYER’S MARKET… which is good if you’re moving to Northern Virginia right now. This means you can get more house for your money, and there’s many more homes to choose from than in the past. You can also take advantage of this market by looking at homes within the beltway instead of in the outlying areas of the DC metro area. The average commute for many military members to and from their duty station is between 30–45 minutes (especially at the pentagon, National Guard Bureau, JP1, Ft Myer and the like). If you have the opportunity to reduce that commute time to 10-20 minutes, why not take advantage of it and have more time at home with your family – something harder and harder to come by these days.
There are many different types of homes, neighborhoods, price ranges, schools to choose from, and all these options can be overwhelming when faced with moving to a new area. Although most military members are used to constant change, there’s always a steep learning curve when you arrive at the new duty station. The stress of finding a new home is can be quite intense, and yet it is the anchor point for many other decisions. If you’d like help finding your new home and settling into the Northern Virginia area, please call or email me – it would be my honor to help get you settled into your new home and neighborhood.
Contact me any time, I’ll return your call or email promptly.
Your Arlington, Alexandria, and Falls Church, Virginia Military Relocation Specialist,
Mike Frank
myfrankrealtor@gmail.com
571-217-1690
Sunday, January 6, 2008
Considering buying a FORECLOSURE?
Buying a foreclosure (aka REO or Real Estate Owned) can save you a lot of money – BUT – be prepared for some additional hassles, longer timelines than when buying a non-foreclosure, potentially missing appliances, damage to the house and other oddities. I felt it a very timely topic, since some mortgage companies business is over ¼ foreclosures right now, and growing.
You may have also seen “short sale” during your recent home search. Be aware, this type of purchase requires “3rd party approval”, such as the bank that holds the mortgage. Although there is a published sale price, and you have put in your offer, that offer is subject to the bank approving the deal, not the owner of the house. Short sales are more challenging than foreclosures, at least with foreclosures the bank already owns the property, thus eliminating that “3rd party approval” step and process.
Are you sure you want a foreclosed home? Yes, you can get a good deal, but be ready to potentially buy all new appliances, do some handyman work to include painting, fixing holes, rehanging doors, installing sinks, etc. When the owner finally lost their house, and the bank took over, the previous owners in some cases will remove everything they can from the house and sell it to help cover their losses. Some owners are quite upset when they leave and damage the property. So, when you say you’re interested in buying a foreclosure, be prepared for some extra work and investment to get the house back into shape.
A good realtor can help you through the purchase of buying a short sale, foreclosure, or any other home for sale. Not all realtors have experience in working with foreclosures and short sales however. Be sure to ask how much experience they have in working with such properties. I am in the process of buying a foreclosure myself in Arlington, and it’s been an eye opening experience to say the least. It’s not impossible, but you do have to set your expectations appropriately.
A couple of good web sites to check out for more information on foreclosures:
http://www.all-foreclosure.com/.
http://www.therealestatebloggers.com/category/foreclosure/
Feel free to contact me to talk about foreclosures, or how you can find your next home.
Mike
571-217-1690
myfrankrealtor@gmail.com
You may have also seen “short sale” during your recent home search. Be aware, this type of purchase requires “3rd party approval”, such as the bank that holds the mortgage. Although there is a published sale price, and you have put in your offer, that offer is subject to the bank approving the deal, not the owner of the house. Short sales are more challenging than foreclosures, at least with foreclosures the bank already owns the property, thus eliminating that “3rd party approval” step and process.
Are you sure you want a foreclosed home? Yes, you can get a good deal, but be ready to potentially buy all new appliances, do some handyman work to include painting, fixing holes, rehanging doors, installing sinks, etc. When the owner finally lost their house, and the bank took over, the previous owners in some cases will remove everything they can from the house and sell it to help cover their losses. Some owners are quite upset when they leave and damage the property. So, when you say you’re interested in buying a foreclosure, be prepared for some extra work and investment to get the house back into shape.
A good realtor can help you through the purchase of buying a short sale, foreclosure, or any other home for sale. Not all realtors have experience in working with foreclosures and short sales however. Be sure to ask how much experience they have in working with such properties. I am in the process of buying a foreclosure myself in Arlington, and it’s been an eye opening experience to say the least. It’s not impossible, but you do have to set your expectations appropriately.
A couple of good web sites to check out for more information on foreclosures:
http://www.all-foreclosure.com/.
http://www.therealestatebloggers.com/category/foreclosure/
Feel free to contact me to talk about foreclosures, or how you can find your next home.
Mike
571-217-1690
myfrankrealtor@gmail.com
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