By the end of February, The Wall Street Journal felt confident enough to print a headline touting, “At Last! Banks Rev Up Lending”. FHA loans are among the most popular loan programs funding real estate purchases in Maine right now. But there is much confusion over the term “FHA Loan”. To be perfectly clear, let’s get some terms straight. “FHA” stands for the Federal Housing Administration. And “FHA Loans” aren’t … aren’t loans that is. But that doesn’t mean that FHA loans aren’t going to continue to be significant to the Central Maine real estate market from Lewiston-Auburn to Augusta through 2012.

The term “FHA loans” actually refers to real estate loans made by companies other than the FHA. If that isn’t contradictory enough, the banks and other loaning entities are called ‘FHA Lenders’ (the ones who aren’t, actually). The reason behind the naming contradiction is that these mortgage loans are only guaranteed by the FHA – that is, insured by it, not funded by it.

The FHA offers to act as an insurer in order to lower the risk to the actual mortgage lender. Since the availability of FHA insurance makes it less hazardous for those lenders to grant people mortgages, the ultimate effect (and intention of FHA loans in the first place) is to make it easier for potential homeowners to obtain a mortgage, thereby freeing up the kind of large capital that mortgage loans usually involve. FHA loans help ‘unlock’ the real estate market, allowing people to move in and out of residences more freely.

FHA loans can be a good deal for some people, but as with most financial alternatives, there are both pros and cons to the program. A key advantage of FHA loans is that potential buyers with marginal credit scores can more readily quality to get them. FHA loans also carry relatively low interest rates, and because they are based on the good credit and massive financial power of the federal government (AKA taxpayers), down payments and closing coats for FHA loans can be kept low.

While FHA loans are popular amongst current Lewiston-Auburn and Augusta Maine Buyers, there are some more competitive Conventional Insurance loan programs out there for buyers who can come up with a 5% down payment! For home buyers in Central Maine with good credit scores, other private mortgage insurance options are available. In many cases their premiums may be lower than comparable FHA premiums. As is well known, the FHA also places a limit on the size of a mortgage it will guarantee. If your transaction involves a larger “jumbo” mortgage, FHA loans won't be available. This isn’t much of an issue here in Central Maine but in other parts of the country where real estate prices are more expensive, it can be.

When you are thinking about buying a home, the first step is getting pre-qualified with a reputable lender or mortgage broker to assess your financing options and the pros and cons of the programs available to you in the Central Maine real estate market. The Tanya Busch Team is here to help you with these and all of the other current intelligence we take into account when helping you find a property and structure the most favorable terms for your Lewiston-Auburn or Augusta area real estate purchase. We have an in-house lender available to answer all your mortgage-related questions to assist you with the first step. Contact us today and we’d be happy to set you up!

You can reach us at (207) 689-9880 or www.TanyaB.com

Things are heating up here in the Lewiston - Auburn Maine real estate market. Yes, Androscoggin County home sales are up 19.7% since last year!

"Where are the SOLD signs" you ask?

Well, if you blink, you might miss them.

Regulations vary from state to state. Maine Realtors are technically only allowed to put up the sought after SOLD sign on the day the home sale is actually going to close. While happy sellers of The Maine Real Estate Network want to shout the news of their successful home sale from every rooftop, many home buyers (understandably) would like to simply start enjoying life in their new home without the Realtor's sign.

This time of year, we are truly building up our muscles getting those signs in (and then out) of the frozen ground. After all, Lewiston-Auburn home sellers are not looking to have a sign permantly planted in their front yard, they want a Realtor with the tools and determination to produce a solid and continuous marketing blast that will get their home sold quickly and for top dollar...and earn that coveted SOLD sign, if only for a few hours.

Yes, you will see our signs all over the Lewiston-Auburn Maine area...but not for too long in the same spot!

For a FREE, no-pressure consultation on getting your home sold fast and for top dollar, give me a call at 207-240-2250 or use our on-line form at www.homeseller.me.

If your for sale sign went up and came down without resulting in a successful sale, or if you just want to learn how to have a successful home sale, you may want to check out the information available on www.theunsoldhome.com. This is a great resource for frustrated and hopeful home sellers alike!

Whether you are considering selling your home, or just curious about current home values in your area of Maine, you need to look beyond advertised prices of Maine homes for sale. To get a feel for actual home values, you need to look at the prices homes have actually sold for.

Previously, this information was only available to real estate agents, but now you can have the same access to this useful information. Feel free to use the tool below to search sold prices for Maine, or bookmark www.homeseller.me to be able to come back at anytime and search from the privacy of your own home.

For a free, no-pressure evalutaion of your home's current value,

please give me a call at 207-240-2250 or use the on-line form at www.homeseller.me.

If you were waiting for the Maine real estate market to hit rock bottom, wait no longer. The tricky thing about waiting for the bottom is that you won't know when it has happened until it has already passed by. Recent data suggests that that has already happened here in Maine.

Research economists at the National Association of Realtors (NAR) recently published a report showing that Maine is one of 12 states to show price growth from the 4th quarter of 2010 to the 4th quarter of 2011.

Here in Androscoggin County, home sales are up 19.7% and prices are up 4.17%. While you may have already missed the bottom, you have not yet missed out on the incredible deals still available. We have an impressive inventory of well-priced homes for sale in the Lewiston/Auburn Maine area and interest rates are still at all time lows.

Give me a call and let me help you take advantage one of the best times to buy real estate. 207-240-2250.

Photo courtesy of NAR

We may have close to a foot of snow on the ground, but believe it or not, Spring is on it's way!

The Auburn Public Library will host it's 3rd Annual Farmers Market this Friday (March 2nd) from 4:30 to 6:30pm. At the market you can not only pick up some great local food and products, you can also sign up for and get more information on CSA's (community supported agriculture) offered by local farms.

Enjoy live music by The Peterson Project, let the kids have some crafting fun, and pet the baby goats and piglets (yes, they will have them right there in the library.)

This event has grown every year and is becoming known in the area as a sure sign that Spring is on it's way!