First part of 2010 was very good with houses selling quickly because of the Tax Incentive we figured out. We found out because after the Tax Incentive was cut off, our activity also stopped! The buyers that are out there want good buys, so are they are coming in lower and expecting more. Foreclosures are still there but with multiply contracts and bidding which doesn’t allow a buyer to “steal” the property. Some of those foreclosures need to be left alone with all the work that is needed. Don’t have too many investors in the market with cash since it is very hard to get a loan on some of those houses in their condition and very hard for an investor.
We are selling more FHA’s with 3.5% which anyone can use the Government loan and borrow close to $300,000. FHA does have MIP but that mortgage insurance is now tax deductible, so just pay it. Finding a lender that will do 5% down is still available on Conventional with PMI (private mortgage insurance) but harder to find. There are very few second mortgages out there like we used to do. (We were doing a lot of first and seconds to get an 80% loan to value.) If there are any seconds, the interest rates are very high. The seconds are the ones that have been wiped out on a foreclosure since the first wipes out any other loan (except a tax lien) when they foreclose on the property.
Getting qualified has been getting tougher though! We could get you a loan with a credit score of 580 but now you must have a credit score of 640 in order to get an FHA loan which is the easiest loan to qualify for! Keep working on those credit issues and don’t be late on your payments!
With interest rates still closer to 4.35% and lower and with prices "flat," what are you waiting for to buy? Call us for your Planning and Strategy Meeting to see if you can or should buy (without obligation).
