The deadline looms at eleven weeks away, which may seem like a long way off. But according to the author of this article, it can take that long or even longer to line up financing, inspections, and schedule closing. Unforeseen circumstances, such as a problem with the home inspection, can lead to further negotiations between buyer and seller, further slowing the process. It’s important not to bank on taking advantage of the tax credit if you’re doing so at the last minute!
If you’re like many first-time homebuyers, the $8,000 tax credit can be a lifesaver. If you don’t find the property you’re looking for in enough time, you may be forced to purchase a smaller property or give up some of the items on your wish list – or worse, hold off on making a purchase altogether.
Idaho real estate is an excellent investment, and there is no time better than the present with average prices down and Idaho mortgage rates at historic lows. Making a purchase in the Boise area could be an especially wise investment when the market corrects itself and home prices begin to rise again. With so many amenities in the area, it is likely to become a hot real estate market again, and you could be in a position to build some serious home equity.
Contact an Idaho mortgage loan specialist to find out what excellent loan programs are available for Idaho first-time homebuyers – then go out and find the home of your dreams!
Posted by admin on 18 Aug 2008 5:19 pm. Filed under Idaho Home Loan.
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 BoiseIdaho 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 BoiseCity – NampaIdaho 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.1st 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
Posted by admin on 23 Jul 2008 7:06 am. Filed under Idaho Home Loan.
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
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
– 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.
The Fed also said Sunday that the companies could borrow funds at a discounted rate — known as the “discount window” — from the Federal Reserve Bank of New York “should such lending prove necessary.”
So does all of this amount to a bailout?
Right now, it’s more of an effort to battle the markets’ lack of confidence. Opening the discount window to Fannie and Freddie “instills confidence in investors, so investors will continue to fund Fannie and Freddie,” says Frederick Cannon, chief equity strategist for Keefe, Bruyette & Woods. “I don’t see them using the window.”
Fannie and Freddie float bonds in the debt markets and use the money they raise to fund mortgages and guarantee mortgages. There has been no liquidity crisis for Fannie or Freddie, Cannon explains: “It’s simply been a crisis of confidence in the equity.” The actions over the weekend, he says, will enable the two companies to continue to support the mortgage market.
Why did the government choose to step in over the weekend?
The rescue effort was orchestrated to calm investors worldwide and to prevent the collapse of these two housing finance giants. Fannie and Freddie own or guarantee more than $5 trillion in mortgages — nearly half of all the mortgages issued in the United States.
The announcements on Sunday were intentionally made prior to the opening of the Asian stock markets and a Monday morning auction of $3 billion in securities by Freddie Mac.
Last week, Treasury Secretary Henry Paulson said no immediate bailout was necessary in an attempt to calm investors. The Treasury’s proposal on Sunday reflects a shift in gears to assure investors that the companies have all the money they might need, and that there’s no immediate danger of a collapse. It’s also a means for encouraging the continued purchase of Fannie and Freddie’s securities.
Both companies said on Sunday that they hold more than adequate capital. Freddie Mac also said it expected that its June 30 results will show that the firm has “a much greater surplus” above the minimum requirements.
What are the next steps?
The rescue provisions announced over the weekend will be added to a housing bill that is making its way through Congress. But Congress has to wrestle with a number of questions that regulators left unanswered. Fannie and Freddie are chartered by Congress, but they are public companies. What implications does this have for other private companies if the government bails out Fannie and Freddie? If the Treasury Department steps in and buys Fannie and Freddie stock, will those shares be of the same class as those held by institutional and indvidual investors, and will they be worth the same?
What are the implications of these proposals for taxpayers?
For years, advocates in Congress and in the private sector have been pushing for Fannie and Freddie to have a stronger, single regulator. Among those is FM Policy Focus, a group of financial services and housing organizations. Executive Director Mike House says the legislation in Congress now is “strong and adequate” for meeting this goal. The group also supports the Treasury’s proposals, which it says “will prevent taxpayers from having to bear the burden on this.”
House says the key thing is for “Congress to act expeditiously and get the legislation passed so that the market will get stabilized.”
If I own a home or plan on purchasing a home, what does this mean for me?
The stability of the mortgage market — keeping money available for people to buy homes — is closely tied to Fannie and Freddie. That’s because the companies presently fund a huge block of the nation’s mortgages, and the cornerstone of their mission is to fund mortgages for low- and moderate-income buyers.
“My sense is that all the turmoil makes homeownership more difficult,” both in terms of perceptions of homeownership and its value, says Bruce Gottschall, executive director of Neighborhood Housing Services, a Chicago-based nonprofit that assists low and moderate-income people with homeownership.
The tightening of the credit markets that has been building over the last couple of months impacts peoples’ ability to borrow money to buy homes. “From our experience, those in the low and moderate income are hit hardest and earliest in terms of that availability of credit,” he says.
– Written by Joshua Brockman, NPR, with reporting by Jim Zarroli. The Associated Press contributed to this report.
If you are in the market for an Idaho Home Equity Loan - sometimes called a Home Equity Line of Credit, or simply HELOC - there are a few important considerations. With these loans, you are essentially putting your home up as the collateral, so be sure you are getting the best Idaho mortgage rate and that you can afford the payments.
Here are a few more tips on getting the best Idaho home equity loan:
Know your credit score before applying for a loan. This will give you the leverage you need to get the best interest rate! Your credit report will show your credit score, sometimes called FICO credit score, from the three major credit bureaus (Transunion, Experian, and Equifax). They’ll all show about the same number, so lenders just use the middle one. Your “middle credit score” affects your ability to qualify and ultimately your interest rate.
It’s popular – and a good idea – to use your Idaho Home Equity Loan to pay off credit cards and other high-interest debts, but be sure to think it through carefully. Make sure you can afford the home equity loan payment and that your home value is stable. I wouldn’t advise going over 100% loan-to-value in today’s current real estate market. In other words, don’t let your mortgage balance plus your total home equity loan balance total more than your house is worth.
Once you get those nasty credit cards paid off, destroy them (at least cut up all but one)! You do not want to let yourself fall into the same trap again. Next get on a simple household budget and, here come’s the hard part… stick to it. Once you receive the money from your loan, be sure to use it wisely and save a bit of a safety net for emergency and unexpected expenses.
Do some research and comparison shopping of these loans. Most folks think all loans and lenders are the same – but they’re not. A good loan officer will take the time to understand your unique circumstances, then seek out the best loan for you.
My Idaho Home Loan. com can help you obtain a Home Equity Loan, or an Idaho mortgage loan for all types of goals. We offer innovative loan products, a simple process, and fast, friendly service. Click here to get pre-qualified immediately.
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Written by Lisa Kratz and Mike Little
Apex Mortgage | Meridian, Idaho | (208) 888-9251 | myIdahoHomeLoan.com
Posted by admin on 10 Mar 2008 4:04 pm. Filed under Idaho Home Loan.
Your aim as a pre-foreclosure and/or foreclosure investor is to invest in the most profitable deals available. That being said, a lot depends on your ability to source good properties to invest in. But what if great deals came to you, and you didn’t have to always hunt them down yourself? Does this sound too good to be true? Well, it’s not.
Take a moment to think about the process involved in finding and investing in pre-foreclosure and foreclosure property investments. It doesn’t take much imagination to realize that a lot depends on acquiring and using the right information, as well as working with people.
In fact, it’s often through people - certain people - that you will be able to acquire and use the critical information you need to make the best investment decisions. These people include, in particular, the professionals who know about upcoming pre-foreclosure and foreclosure properties before anyone else. It follows that if they tell YOU about these properties before anyone else, you’ll have an advantage!
So who are the professionals who can give you the “inside scoop”? There are three in particular: real estate agents who specialize in pre-foreclosures and foreclosures, mortgage brokers who may be aware of pending foreclosures, and property experts you can hire to find properties for you.
Firstly, with regard to real estate agents, there are agents who focus on representing pre-foreclosure sellers and also those who specialize in, for example, representing banks trying to get rid of real estate owned (REO) properties. REOs are properties that have not been sold at a foreclosure auction, and which the bank has been forced to buy. You won’t necessarily hire such agents to begin with, but if you have made yourself known to them, have always acted with the utmost professionalism, and have proven yourself to be an active investor in their area, they will hopefully get into the habit of calling YOU when a property lands on their books.
Similarly, if you are on good terms with various mortgage brokers, they may - within the limits of their legal duties - proactively let you know about properties that have just gone into foreclosure. In order to stay on their radar, I suggest you keep in regular touch with them, and be equally prepared to refer business to them.
You can also hire people to find properties for you. Sometimes known as “bird dogs”, these property finders are typically paid - either a retainer and/or a commission on the value of the sale - to find potentially profitable pre-foreclosure and/or foreclosure properties. Just be sure to check a person’s background, credentials and experience before you hire them to do this essential leg-work for you.
As you might imagine, you’ll be in a much better position to profit from pre-foreclosure and foreclosure investing if you have a team of professionals on board to bring you deals.
This article about Fannie Mae and Freddie Mac is written by N.P.R. and A.P. Next, see our 