New FHA Condo Rules Boost Affordability
According to a recent report by the National Association of Realtors, HUD will be enacting new FHA condo rules. These rules will change a few things, but most importantly they will extend the approval process to individual condo units and extend the FHA certifications of condominium developments from two to three years. This change will ease the compliance obligations put on condo boards likely adding to the total number of FHA approved condos. Providing additional affordable housing options will allow a whole new group of first time home buyers to enter the market. These changes, along with the already low FHA mortgage rates, will make it that much easier for families to buy a property of their own. These changes come as NAR and HUD have been working together to solve a recent decrease in condo lending in recent history and provide affordable options to more families across the United States. The rule changes will take affect in mid October...Market Concerns Cause Mortgage Rate Drop
Recent market activity has been cause for a small concern among investors. A shift in investment strategies has caused mortgage rates to drop. As seen in the chart below provided by Freddie Mac, interest rates have decreased almost a full percentage point since the beginning of the year. With rates being at a multi-year low, now might be the right time for new investors to start putting some money into real estate to secure lower...The Wealthy Are Still In On Real Estate
According to a recent report, Tiger 21, a large group of wealthy investors with combined net worth in excess of $75 billion, has been increasing it’s holdings in real estate. During the last quarter the share of their portfolios dedicated to real estate has grown 2%. Also of note, the cash on hand by this group has increased drastically in order to have liquid assets available. As seen in the graphic below, the groups largest piece of the pie, making up over a quarter, is in real...Cash-Out Refinancing Loan to Value Reduced to 80%
As of September 1st 2019, the maximum amount available for a cash-out refinance will be decreased to 80% of the homes current market value. Previously the new loan could be equal to 85% of your homes worth. This 5% drop is inherently due to the high levels of cash-out refinance activity in recent years adding to government risk. Ultimately this move by the FHA is aiming to ensure the repeat of the events leading to the last recession are not in...Ben Carson out at HUD at end of term
Ben Carson has decided to leave the department of Housing and Urban Development (HUD) after his first term. He has stated that he will finish out the term but wants to pursue private sector interests. Carson’s service for HUD has been a mixed bag. He launched discrimination investigations against some of the larger online advertising firms. He also proposed some policy changes that on the surface seemed to conflict HUD’s...Connect With Us
