Homebuyer specialist, Conv, FHA,VA,CHFA Patricia Leary, NMLS#99279

If you have been reading the latest headlines you may feel nervous about home ownership. Real estate is cyclical and the market is on its way to recovery in most areas. Property is still your best long-term investment.

In more than two-thirds of the country housing affordability has dipped to pre- housing bubble levels, creating opportunities for those looking for a bargain. Home prices are expected to rise in 2013 due to fewer distressed sales and impending housing shortage.

A major advantage to home ownership is building equity. The average seller who purchased a home in 2002 gained 24% in equity, while those who purchased their homes 11 to 15 years ago had a median gain of 40%.

Mortgage rates have decreased over the last fifty years to record lows. Due to the economic downturn, borrowers with stellar credit and a solid employment history are best able to secure financing right now. However as conditions improve, the market will expand for borrowers who may not fit the mold of traditional lending standards, such as the self employed.

Property is more affordable now than it has been in 40 years. 91.2% of mortgages are current and only 3.75% are in foreclosure. Two-thirds of Americans say that now is the best time to buy.

With a 203K renovation mortgage get extra money to fix up either your current home or the home you are buying as part of your mortgage. You can use the money for cosmetic updates, major renovations or even additions.

This can all be done with a 203-K renovation loan with only 3.500% down payment required. Money to fix up and remodel your new home can be included into your mortgage.

If you are planning to stay in your current home but want to renovate this could be the way to do it. If you want to sell your property but it is tired and not selling you can refinance into this mortgage, do the upgrades needed and then list your home for sale.

SOME IDEAS:

• Kitchen & bathroom remodels
• New kitchen appliances
• Repair/replace roof
• Repair or add a new deck or porch
• Refinish hardwood floors/new carpets
• New furnace, AC, plumbing, electrical
• Make a house handicap accessible

This may be the opportunity to create your dream home!

A decision to restore the $729,750 maximum loan limit on government-backed loans in high cost areas likely will be made by House and Senate leaders. They will wrap up negotiations before November 11th. The conforming loan limits lapsed on October 1st of this year.

This gives Realtors, homebuilders and other mortgage related groups a few more days to lobby members of Congress to raise the maximum loan limit from the current $625,000 to $729,750 for up to two years.

We are also hoping that they increase the floor in lower cost areas to 125% of the median house price from the current 115%. This would raise the Federal Housing Loan limit in nearly 600 counties in 42 states.

Let’s hope that they do something to help the home owners who are not in the high cost areas as well. This would help more homeowners to refinance as well as helping future buyers.

The Obama administration is seeking ideas on how to convert the federal government’s inventory of foreclosed properties into rental properties that can be managed by private enterprises or sold in bulk. Their goal would be to stabilize the housing markets across the country that are suffering from a large number of foreclosures.

Do you think this is a good idea? I think so because first of all there are vacant non-performing assets (empty properties) that will start to provide some returns and stop some losses to lenders and hopefully lower costs to all of us.

Renting to previous owners should not be allowed and the rental levels should be decided by each local market.

Foreclosure laws vary by each state. One general commonality among the various laws is that the lender must migrate the loss to a previous owner through a timely resale of the property. Many of the lenders foreclose on the properties ride out the tough times and then sell at a profit. This is not in our best interest.

Will Uncle Sam become a landlord? We’ll have to wait and see if Congress is willing to turn foreclosures into rentals with a federal law that will override state foreclosure statutes.

Fannie Mae’s Homepath program allows a borrower to purchase a Fannie Mae owned (REO) property with a low down payment.

Benefits:

• Low down payment 3%
• Down payment can be a gift
• No appraisal required!
• No Mortgage Insurance
• Seller contributions for closing costs allowed
• Available for primary residences, second homes, and investment properties

To find properties go to www.homepath.com. Put in State, county or town you are looking for and you will see the properties available. You will find the purchase prices listed, there is no negotiating price.

On the investment side the down payment is higher than the 3%, but still lower than the down payment required with regular financing. This program is for single families, 2 family and also 3-4 family residences.

The required credit score required is also lower than the current Fannie Mae required scores to obtain financing.

All around this is a great program so if you are lucky enough to find a property owned by Fannie Mae that you would like to purchase and need financing you are getting a deal.

There are more properties going in to foreclosure all the time so keep on watching the website for new entries.