Real estate prices continued to post exorbitant year-over-year declines during the three months ended June 30, 2008 according to a new report from the National Association of Realtors (NAR)

Nationwide, the median existing single family home price plummet 7.6% to $206,500 in the second quarter, down from $223,500 in the same period of 2007. The median price represents the point at which half of all homes sold for more and half sold for less.

A record number of foreclosures helped drive down prices, according to NAR. In fact, foreclosures and short sales accounted for about 33% of all existing homes sales.

Banks price homes to sell when demand for homes drops, typical Idaho sellers will take their homes off the market, let them sit or reduce their prices in small increments. But banks will slash prices to where the homes will sell quickly. Poor economic conditions are also hurting the housing market as a whole.

During the boom, many housing markets thrived despite tough economies. We’re now we’re getting into a time when the actual economy is starting to affect housing markets even more.

Despite the media Boise Idaho real estate still proves to be a great investment compared to Say Sacramento California where home prices plunged 35.6%, Los Angeles 29.6% and Phoenix was down 22.5% for the quarter.

The average median price for Boise City – Nampa Idaho is now $191,000 making it a marvelous time to get into the home of your dreams. With the FHA down payment assistance program still in effect until Oct.1^st you can purchase a bargain for little to no money out of your pocket.

Written by Lisa Kratz Apex Mortgage | Meridian, Idaho
| (208) 888-9251 | myIdahoHomeLoan.com

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Not too long ago, no-down payment loans were at the peak of popularity for homebuyers.
With the recent credit crunch lenders have tightened their standards, borrowers once again are expected to “put some personal interest” into the transaction and cash down payments are definitely back in style.
The biggest advantage of a down payment today is simply the ability to qualify for a loan, since only a handful of so-called Idaho “zero-down” loan programs still exist. Yet down payments have other benefits, too!

One great way to look at investing from the start is the more money you put down to buy a home, the smaller your monthly payments will be, A down payment becomes a homeowner’s instant equity when the purchase transaction closes, and that equity can be borrowed against with a home equity loan or line of credit. Guidelines to qualify for these loans have become much stricter. Some loan programs require cash reserves for this very reason.

Benefits of a down payment:

• Borrow less money to buy the same-priced home.
• Get a better overall deal from your Idaho Mortgage Lender loan products and programs
• Get a lower interest rate, due to less risk
• Pay less for upfront and or monthly mortgage insurance.
• Simply avoid private mortgage insurance altogether, if the down payment is at least 20% of the purchase price.

Almost all Idaho Lenders require a down payment to be “sourced and seasoned,” meaning the lender needs to know how you obtained the funds and that you’ve had control of those funds for at least several months. Gifts and seller’s concessions are acceptable, up to the percentage allowed by the loan program, but borrowed money cannot be used as a down payment because it is debt that has to be repaid.

Many homebuyers have difficulty coming up with a down payment. Here are some ways to do it!

5 ways to get your Idaho Down Payment:

1. Get a gift from your parents, friends, or other family member
2. Sell your free and clear motorcycle, car, boat, guns or other assets
3. Liquidate your stocks, bonds and mutual funds
4. Take loan from your 401k and pay the interest each month to yourself
5. Get a gift from the seller in a form of down payment assistance

Government-backed programs allow smaller down payments.
Two government-run programs are designed to help homebuyers who haven’t saved much for a down payment. An Idaho FHA Loan (The Federal Housing Administration), offers mortgage insurance that allows qualified buyers to purchase a home with a 3-percent down payment, all of which may be a gift. An Idaho VA Loan (The U.S. Department of Veterans Affairs) offers a home-loan guarantee program that helps many veterans.

Written by Lisa Kratz
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com

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Follow-up article to: “Government Steps in to Rescue Fannie, Freddie.”

Many have been hearing about the recent turmoil with Fannie Mae and Freddie Mac, the private equity firms responsible for funding about half the nation’s mortgages. Home owners, as well as loan-seekers want to know: “What does it mean for me?”

The following article explains well the situation, as well as the proposed solutions for these Idaho mortgage funding institutions. In short, they have enough money, it’s simply a matter of investor confidence that they will always continue to have enough money. The proposed government solutions help reassure investors that they will. “There has been no liquidity crisis for Fannie or Freddie … It’s simply been a crisis of confidence in the equity.”

The details of the problems and solutions will continue to unfold. Some experts think lending requirements could continue to tighten, until full market confidence returns. More than ever, we believe loan seekers should work with a local lender who will take the time to listen, and take advantage of borrower attributes that might be skimmed over by large lending firms.

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Written by Lisa Kratz and Mike Little
Apex Mortgage  |  Meridian, Idaho  |  (208) 888-9251  |  myIdahoHomeLoan.com

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This article about Fannie Mae and Freddie Mac is written by N.P.R. and A.P. Next, see our myIdahoHomeLoan comments in the next article: Fannie Mae and Freddie Mac “Crisis” … What Does it Mean?

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The federal government moved in to help bolster Fannie Mae and Freddie Mac on Sunday with a Treasury Department proposal that sets the stage for a government-orchestrated rescue. In the short term, the plan enables the two quasi-governmental agencies to continue to borrow money at favorable rates in order to fund their operations.

Last week, concerns about the financial stability of Fannie Mae and Freddie Mac were at the forefront of investors’ minds, and shares of both companies tumbled.

Here, a look at some of the factors behind the rescue operation launched this weekend.

What is the government proposing?

The Treasury Department disclosed a three-part plan to enable both companies to continue to play “a central role” in the nation’s housing market in their “current form as shareholder-owned companies.”

The department’s plan would temporarily increase Fannie and Freddie’s line of credit with the Treasury; give the Treasury Department the ability to purchase stock in either of the two companies — if it becomes necessary; and give the Federal Reserve a say in setting financial requirements and standards for the companies.

The department said it arrived at the plan after consultations with the Federal Reserve, the Office of Federal Housing Enterprise Oversight — the agency that regulates Fannie and Freddie — as well as the SEC, and Fannie and Freddie. Congress would have to approve any of the measures.