Having the Nicest Home on the Block a Challenge

Andy Davis

Home buyers are wise to take careful note of the houses around them before they make an offer on that picture-perfect home. Buying the most expensive house in the neighborhood isn’t always the best strategy. Sure, they’ll have bragging rights, but your buyers may need to be informed about some challenges during resale. After all, unloading the priciest home on the block and seeing an increase in equity isn’t easy. “A lot of buyers forget a home is an investment,” says Brendon DeSimone, a real estate expert and author of “Next Generation Real Estate.” “The world changes. Things happen fast. People transfer, people lose their jobs. Now imagine yourself as the seller of that home.” With the nicest home on the block, home owners who do any upgrades – even minor – may be doing a larger mismatch between their home and the surrounding homes.

By considering the home as an investment, buyers will look at homes that leave some room for improvement and that will allow them to build equity and hopefully even pay it off when they do sell. DeSimone actually recommends to his clients buying the worst house in the best neighborhood. “You can add value on your own,” he says. “If you’re choosing between an awesome house in a crappy location and an awful house in a great location, I would choose the latter.” Improvement doesn’t need to entail a total renovation either. DeSimone says just regular maintenance, refreshing the paint, and making minor repairs that the previous owner ignored could add to the home’s value.

Source: Realtor.com 

Market Recovery Double-Edged Sword

Andy Davis

Most real estate and mortgage professionals realize that the housing recovery has been extremely good since the low in 2012.

In November the Fannie Mae Home Purchase Sentiment Index indicated that consumers aren’t as optimistic about housing prospects for the future.

Fannie Mae concludes that the decrease in the sentiment index was mainly due to two things; Expected decrease in supply and  affordability.

With current interest rates near an all-time low affordability is still high, but higher interest rates could derail consumer sentiment.

Homebuyers Unsure of How to Improve Credit

Andy Davis

A recent TransUnion survey indicated that the majority of potential homebuyers planning on purchasing a home within the next 12 to 18 months don’t know how to improve their credit.

Even more surprising was the amount that didn’t even know what a credit score was made up of and that it directly impacted their mortgage loan interest rate.

If you are interested in purchasing a property within the next year and don’t know anything about a credit score call us today for a free consultation.

Condo Financing Gaining Popularity

Andy Davis

You may have heard that it is extremely difficult to get approved for a home loan to buy or refinance a condominium. That was the case for several years after the housing market crashed, but lenders finally have loosened the rules on condo financing. Borrowers seeking to get a condo loan these days will find more lenders to choose from and more condominiums that are eligible for financing. Mortgage giants Fannie Mae and Freddie Mac have eased some of the requirements on loans for condos, and a growing number of lenders offer loans that go outside the box of the condo rules in conventional financing, says industry experts.

You’ll still need good credit and stable income to qualify for a condo loan — just as you would with a loan to buy a house. But you are less likely to face restrictions relating to the property itself. When approving a condo loan, the lender wants to make sure the building is financially stable. Because the financial stability of a condo project depends on the owners paying their bills, lenders tend to view condo loans as a riskier investment than a house. Lenders are more flexible when analyzing condominiums’ financial stability.

Late in 2014, Fannie issued new guidelines to lenders allowing them to issue loans in developments where up to 15 percent of the owners were 60 days past due on monthly payments. The threshold had been 30 days. Another change made it easier to finance condos in new developments. Still, many condo buildings don’t meet Fannie and Freddie’s requirements; however, there are several options that have now become available for portfolio lending, as well.

Source: BankRate.com 

Vacation Home Sales Up in 2014

Andy Davis

Vacation home sales jumped to a record 1.13 million last year which is the highest rate since 2003

This is a 57% increase from 2013

As vacation home purchases soared, investment purchases dropped for the fourth straight year

Market share of investment sales dropped to 19% of the market from 20% in 2013

It Is Getting Easier to Purchase a Home

Andy Davis

Good news for prospective home buyers. Purchasing a home is getting easier. The following are some of the reasons why:

– New disclosure requirements are more clear

– Creative loan products are coming back to the market

– Lender buybacks are decreasing

– FHA Mortgage Insurance has decreased

– Interest rates are still low

Are Overlays Affecting Your Customers?

Andy Davis

Fannie Mae and Freddie Mac have their own guidelines, but sometimes investors require their lenders or brokers to go above and beyond making it difficult for qualifying customers to get a loan. Click this link to check out my video about overlays and how they may be affecting your customers.

Specialty Loan Products

Andy Davis

 

D&V Home Mortgage is excited to introduce our Lot Loan Program and our Foreign National Mortgage Program.

Call today for mortgage rates and terms for these great new products!

Open House Flyers

Andy Davis

Fort Myers Mortgage Company

Every Realtor would rather make 6% than 3%.

Call or email for a custom open house flyer today and start getting both sides on your listings!

Custom flyers for FHA, VA, Conventional, and Jumbo Loans.

D&V Home Mortgage Loan Product Update

Andy Davis

97% Primary – 620 (First Time Homebuyer)

97% Primary – 620 (My Community Mortgage)

95% Primary – 620 Score

90% Second Homes – 620 Score

85% Investment – 720 Score

50% DTI max all programs

High LTV Condos to Same LTV’s as above!

Limited Review Condos (70%LTV SH, 75% LTV Pri Res)

Investment Cash-Out to 75%

Up to 10 Financed Properties

Delayed Financing Exception

Conforming Flips

  Call or email today with conventional, VA, FHA, or Jumbo Scenarios!Fort Myers Mortgage Company

Homeownership Rate At 20-Year Low

Andy Davis

 

Fort Myers Mortgage Company

The homeownership rate in America hit a 20-year low, dropping to 64% in the fourth quarter of 2014. This was 1.2 percentage points (+/-0.4) lower than the fourth quarter 2013 rate (65.2%) and 0.4 percentage points (+/-0.4) lower than the rate last quarter (64.4%). The rental vacancy rate of 7% was 1.2 percentage points (+/-0.4) lower than the rate in the fourth quarter 2013 and 0.4 percentage points (+/-0.3) lower than the rate last quarter. The homeowner vacancy rate of 1.9% was 0.2 percentage points (+/-0.2) lower than the rate in the fourth quarter 2013 and 0.1 percentage point higher (+/-0.1)* than the rate last quarter. The homeownership rate of 64% was 1.2 percentage points (+/-0.4) lower than the fourth quarter 2013 rate (65.2%) and 0.4 percentage points (+/-0.4) lower than the rate last quarter (64.4%). Paul Diggle, property economist for Capital Economics said that the decade-long decline in the share of the population who own their home may now be drawing to an end. “Yet the long decline in the homeownership rate may finally be drawing to a close,” he says. “After all, mortgage delinquency and foreclosure rates have fallen back to long-run norms, credit conditions are showing signs of loosening and wage growth may soon accelerate, helping young households to make the leap into homeownership. Source: HousingWire

Good News for Interest Rates

Andy Davis

The Federal Open Market Committee at the end of January calmly resisted the urge to set into play an increase in key interest rates, saying for now that holding the federal funds rate at 0-1/4 percent is “appropriate.” The FOMC statement described U.S. economic expansion since December at “a solid pace”–optimistic language not seen in previous statements. “Labor market conditions have improved further, with strong job gains and a lower unemployment rate,” the statement said. “On balance, a range of labor market indicators suggests that underutilization of labor resources continues to diminish. Household spending is rising moderately; recent declines in energy prices have boosted household purchasing power. Business fixed investment is advancing, while the recovery in the housing sector remains slow. Inflation has declined further below the Committee’s longer-run objective, largely reflecting declines in energy prices. Market-based measures of inflation compensation have declined substantially in recent months; survey-based measures of longer-term inflation expectations have remained stable.” But the FOMC made no move to put a rate increase in place, saying in determining how long to maintain the target range of 0-1/4 percent, it would continue to assess progress toward its objectives of maximum employment and two percent inflation. Source: MBA