![]() |
|
|
A large percentage of home buyers in the Greater Rochester area finance their homes with FHA mortgages. FHA loans are a great product for many individuals due to their low down payment requirement. In recent years, as conventional loans have experienced drastic changes and increasingly strict eligibility requirements, FHA loans have also emerged as a very stable form of financing.
In the mortgage and real estate industries, we've been hearing whispers about upcoming FHA changes for a while now, but it wasn't until recently that those changes were officially announced.
FHA announced changes in the following areas:
These changes will go into effect on April 1, 2010.
According to individuals I've spoken with in the mortgage industry, the changes aren't nearly as drastic as many feared. Don't hate me for this, but honestly, I think they make sense.
At 2.25%, the mortgage insurance premium will still be much lower than it used to be. Considering that buyers can still wrap it into their loans rather than being responsible for it upfront, the increase won't have much of an effect on borrowers.
Increasing the down payment requirement for buyers with lower credit scores also makes sense. If someone hasn't proved that they're able to handle other lines of credit, why should they be able to take on something as large as a home loan without showing the bank they have some funds available? Most conventional loans won't lend money to someone with a credit score below 580 at all, so FHA is still ahead of the curve.
Finally, reducing the seller concessions to 3% of the purchase price will have the largest impact on borrowers, but it too makes a lot of sense. In the past, when a buyer asked for 6% seller concessions, they would often "bump up" the purchase price to above the asking price in order to come to a consensus with the seller. In recent years, tightening appraisal rules have made that difficult, since the properties often didn't appraise for the higher price! That caused issues as transactions neared closing and sometimes led to deals falling apart. 3% is a much more manageable number and should help stem the tide of appraisal issues.
It all boils down to this. I'm a huge believer in the benefits of home ownership. Purchasing a home is often the most rewarding step individuals can take in their lives. BUT... and this is a big but... only if it's right for them! A few years back, when subprime mortgages were running rampant, scores of people purchased homes who shouldn't have been able to afford them, and many of those people have since become victims of foreclosure. That's not the way it should work. Some people are just not ready to own homes.
That's why these FHA changes are actually a positive step. People who can't handle the increased down payment requirements or need additional seller concessions may not be at the point where they should be thinking about buying a home. If they take a year or two to save up some money and clean up their credit scores, they should be able to qualify for any loan without a problem.
If you're considering purchasing a home in the Rochester area and don't know if this is the right time for you to buy, don't hesitate to contact me. I'd love to sit down with you and examine the pros and cons!
*****
I am proud to help buyers and sellers in the Greater Rochester, New York area find the homes of their dreams. If you are considering purchasing or selling a home in the Rochester area, don't hesitate to contact me. I pride myself in providing the best possible service for my clients!
When you work with me... 
Visit my website at www.YourNYDreamHome.com to learn more about the services I offer!
Contact:
Kristen Wahl
Realtor Associate
(585) 455-5524
KWahl@RealtyUSA.com
Connect with Me On These Social Networks...
![]() |
|
|
It's a big week for the Greater Rochester Association of Realtors. This Tuesday, our board will be joining forces with the boards from Buffalo and Syracuse to form a new, cooperative MLS system known as MLXchange.
With MLXchange, all the real estate data in our three cities will be shared on a single online system. It should blend the traditional borders between the three metro areas and make cooperation much easier and more common.
Obviously, as agents, we have the potential of conducting business in a much larger area. But, as consumers in the Greater Rochester area, what changes should you expect to see with the new system?
If you receive e-mailed reports or a Client Gateway from your real estate agent, both will have a very different look with the new system. There is a lot more information for you to browse through, including...
If your home is currently listed with a real estate agent, they'll need to fill out a form with you by the end of January to ensure they have all the newly added fields. They may also want to come by and take some additional photos.
I've be holding training sessions to teach the agents in my office about the MLXchange system, and it's been a tough transition for some. We've been using the same system for a number of years, and there will certainly be an adjustment period.
In my mind, though, the new system is a step in the right direction for the Greater Rochester real estate community. There has been a move toward larger MLS systems throughout the nation in recent years, and it's about time we created more unity in Upstate New York. After all, the internet has made the sharing of information something consumers expect.
And anyway, increased cooperation can only mean smoother transactions for my buyers and sellers in the Rochester area, and isn't that what matters most?
*****
I am proud to help buyers and sellers in the Greater Rochester, New York area find the homes of their dreams. If you are considering purchasing or selling a home in the Rochester area, don't hesitate to contact me. I pride myself in providing the best possible service for my clients!
When you work with me... 
Visit my website at www.YourNYDreamHome.com to learn more about the services I offer!
Contact:
Kristen Wahl
Realtor Associate
(585) 455-5524
KWahl@RealtyUSA.com
Connect with Me On These Social Networks...
![]() |
|
I would like to wish all the many great people in my life a happy new year. 2009 was a tough year for many. Hopefully lessons were learned and everyone can move forward in a positive direction.
It's a great time of year to think about how you want your life to be, and what steps you are going to take to get there.
I was fortunate to have a good year in real estate, as well as obtain my brokers license. Persistence pays off, so keep going, keep dreaming, and keep fighting for what you want.
Make 2010 a year to remember!
![]() |
|
|
The U.S Department of Energy has approved New York's plan to provide consumers with rebates for purchasing certain energy-efficient refrigerators, clothes washers, freezers, and dishwashers through a program funded by the American Recovery and Reinvestment Act (ARRA).
New York's Great Appliance Swap Out will allow the State to issue more than 170,000 rebates totaling $16.8 million during President's Week in February, 2010. Under the plan, consumers could receive rebates for purchasing eligible appliances individually or in a bundle.
For an individual purchase, appliances will qualify only if they have earned the ENERGY STAR® label, meaning that they are up to 30 percent more efficient than standard models on the market.
For a bundled purchase, consumers may receive a larger rebate by purchasing three eligible appliances that meet standards issued by the Consortium of Energy Efficiency (CEE) that are higher than ENERGY STAR standards.
Customers purchasing appliances may receive the following individual rebates:
Refrigerators: $75 ($105 with documented recycling)Guidelines for the program:
Rebate forms and instructions will be available soon at www.NYApplianceSwapOut.com or through NYSERDA's hotline (1-877-NY-SMART).
Watch for more details coming soon!
*****
I am proud to help buyers and sellers in the Greater Rochester, New York area find the homes of their dreams. If you are considering purchasing or selling a home in the Rochester area, don't hesitate to contact me. I pride myself in providing the best possible service for my clients!
When you work with me... 
Visit my website at www.YourNYDreamHome.com to learn more about the services I offer!
Contact:
Kristen Wahl
Realtor Associate
(585) 455-5524
KWahl@RealtyUSA.com
Connect with Me On These Social Networks...
![]() |
|
|
Today is the birthday of a good friend of mine, Rich Levin! Happy Birthday Rich!
He is a real estate coach and a very good one!
If you would like to wish him a "happy birthday" here is how you can find him: Rich Speaks
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2010 ActiveRain Corp. All Rights Reserved