Real Estate News for the Region

Good News for the Region

Combined with the $8000 tax credit for Indiana’s first time home buyers and exceptionally and, not to mention, historically low Indiana FHA rates have driven home sales in Northwest Indiana higher than the previous month by a whopping 13.4%.

Most of the questions that I am getting are about the Indiana First-time homebuyers tax credit Several of my buyers have taken the time at the closing table to fill out an amended federal tax form and mailed it on the way to their new home to get the money all that much sooner.

Pricing has also picked up in Northwest Indiana in May as many buyers, who had been priced out of the market are able to come back and in bid on homes that were previously out of their price range. A recent example is a home that sold for $132,000 but was appraised at $150,000 and the home around the corner was under contract for $188,000 and was 400 square feet smaller. Granted, this was a foreclosed home and had been vacant for over a year, but a good deal is a good deal.

Home sales, nationally, did increase in May, but at a slower pace than Northwest Indiana.

May was the 3rd straight month that home sales have increased telling me that this may be more than just a seasonal increase. There is still a glut of bank owned properties and “short sale” properties that act as a drag on the region, but with rates still great and the tax credit,

Now, is the time to buy – Now, More than ever. The tax credit ends towards the end of 2009, and there are plenty of great deals to be had.

Home sales pick up some steam

Lake County existing single-family home sales

May 2009: 363

April 2009: 320

Porter County existing single-family home sales

May 2009: 111

April 2009: 86

Indiana FHA Home Loan

Are you unhappy where you are living? Are you too old to be living with mom and dad?

With an Indiana FHA Home Loan…You can change your life.

Whether, you are a first-time home buyer, have owned a home before or have less than perfect credit FHA more than likely has a program that will best suits your needs. I am Dave Woodson and I am The Mad Mortgage Machine and I will take you through the Indiana FHA loan process step-by-step.

With an FHA Loan you can:

* Purchase a Home (really kind of a no-brainer and with the $8000 tax credit and rates the lowest they have been in years, and now you can use it as a down payment*)
* Remodel Your Home
* Make Home Repairs
* Make Energy-Efficient Improvements, and with new tax credits out there you can save a ton as well.

FHA Loans are guaranteed loans, which means that lenders offer you a lower, more affordable rate. Even, if you have less than perfect credit or are a first time home buyer, an Indiana FHA Loan can help you save thousands of dollars on the home of your dreams.

If you are looking to buy a home or even sell your home consider using an FHA home loan with its lower down payment requirements, lower mortgage insurance rates (which is still tax deductible) and less stringent guidelines vs. Fannie Mae.

So, if you are ready for a change, download and fill out my Mortgage Planning Questionnaire that is designed to help me and your Real Estate Agent of choice find the home of your dreams.

*details are being worked out

Fannie and Freddie makes Indiana FHA and easy choice

I got good news and bad news….

OK, first the good news…mortgage rates are down and housing prices are lower — which is fantastic for many buyers and those looking to refi.

Here is the bad news…there are new underwriting and appraisal changes taking here in the near future that are putting huge obstacles in the way of many borrowers and loan officers.

Fannie and Freddie have increased add-on fees for loans purchased after April 1.  Applicants are being hit with fees in the range of 3% to 5% simply because of the property type, credit scores and the amount of down payment.

A few major lenders that sell their loans to Fannie and Freddie are piling on just a little more, with ever tightening underwriting guidelines far beyond what either requires.  An example of this is, as of April 6, Wells Fargo, one of the nations largest mortgage companies (and just posted some record profits) and bank is imposing a new minimum FICO score of 720, up from 620, on all conventional loans that have less than 20% for down payment.  On top of that, it is requiring a total debt-to-income ratio of 41%  down some 4% from the previous 45%.

Fannie now has a mandatory fee of 3/4% on all condos, no matter what the applicant’s credit score is.  The once very popular interest-only condo loan with a 20% down payment and a credit score of 690, will now be imposed with the following add-ons: 1/4% as an “adverse market” fee, a 1.5% for below-optimal credit score (beinh 30 points lower that 720), a 3/4% for the interest-only payment feature, and let’s not forget the property is a condo.  The total added fees comes to an extra 3.25%.  Hey, it can be paid upfront or simply rolled into the loan.   HELLO, Indiana Condo builders and buyers make sure you go back and read that again.

And, now for the icing on the cake, besides all those extra fees, borrowers are going to start getting hit with not one but two sets of cost increasing appraisal rule changes. Fannie and Freddie are now requiring all appraisers to complete an extra report on “market condition” that will include detailed statistical analyzes of local sales and pricing trends, which is above and way beyond normal appraisal data. Appraisers that I have talked to will be charging an extra $40 to $50 for the additional time to complete the form.  You can expect to the higher fees will be passed onto the home buyer and those looking to refi.

Wait, yes there is more…

Beginning May 1, Fannie and Freddie will be refusing to fund loans that have appraisals that don’t follow a set of “rules” known as the Home Valuation Code of Conduct. Those changes include:

Mortgage brokers will no longer order appraisals directly.  The lenders or investors will use a third-party “appraisal management company” to assign the job to appraisers within certain networks.

Well, how will this affect the consumer? Consider the notification that one of my friends got in Texas that starting April 20th, that all good faith estimates provided to applicants must indicate a flat $455 charge for appraisals arranged through the appraisal management company (that they lender will dictate who to use).  My friend previously only charged $300 to $350, and they will have to pay upfront for the appraisal, and this before  an inspection or valuation is done.

My issues is what will happen if the appraisal comes in to low and they don’t qualify for a refi or purchase program they were looking for?  They will have two choices pay another $455 for another appraisal with no guarantee that problem will be solved or simply cancel the app.

Please read this carefully, that the over all effect of the underwriting guidelines, credit score and pricing changes will simply push some people who are able to buy a house right out of the market.

These new rule changes are just plain ridiculous…well there is still some good news for the Indiana home buyer and those looking to refi their Indiana home.

The Indiana FHA Program:

• Indiana FHA does not require a huge down payment, just 3.5% will do.
• You can still get the home seller to pay all of your closing costs up to 6% of the sales price.
• No silly add-on fees from Fannie or Freddie this is a US Gov’t backed loan
• It is a great option for the Indiana First Time Home Buyer

Any questions please feel free to give me a call at (219)841-5053

An Indiana FHA How-To

There are many opportunities for a person or a family to get an Indiana FHA loan help. Maybe you need a FHA loan as a first time homebuyer. Maybe you are struggling with possibility of foreclosure.  Or, just maybe you need to refinance and get a lower interest rate. Whatever the reason, your first step should be to call FHA loan specialist and get pre-approved, you can do that right here with me.  .

When you contact me, your Indiana FHA loan Expert, I will talk to you about the types of loans available, and what you may qualify for. To get answers quickly, make sure you have all of you information and resources ready. Here are a few tips:

• Know your credit score and is your history is clean. Check your report for any errors before applying for a loan because your credit worthiness is the key to getting any loan.  Sidenote here, most lenders have instituted a 620 minimum credit score.

• Proper identification to prove just who you are including your Social Security number. Also, have the addresses of where you may have lived over the last two years.

• Make sure you have your Income information on hand. Your Indiana FHA home lender will need proof of income.  Plus, the names and contact information for employers over the last two years. Also, you will need to have your most recent W2’s as well.  Sidenote: I once did a loan for a guy that had 62 different W2’s in a two years span.  He was a professional stage hand.

When you have these items ready to go, it will easier to talk to you about the loans that are available to you. I would be ready to prequalify you for an Indiana FHA Home loan. This is the best process of getting you qualified for a loan, based on the information that you provide. When this information has been verified, you will receive a preapproval for an Indiana FHA Home loan.

If you are ready to get going feel free to give me a call or you can download the Mortgage Questionaire. You may just be surprised by how easy it can be to get an Indiana FHA loan.

Why an Indiana FHA Makes Sense

Are you looking to buy a home in Indiana? Or, are you struggling to keep your home? Perhaps you should consider a FHA Home Loan. A FHA loan is a government-backed loan that generally has a lower interest rate than many conventional more traditional Indiana home loans. So, before you write off this home loan as an impossible option, please keep in mind that thousands of Indiana home owners are enjoying the benefit of them right now.

There are many ways an Indiana FHA home loan can help you to buy that new home you are looking to buy or help you in so many other ways.

#1: Lower Interest Rate: One of the main benefits of an Indiana FHA loan is to help individuals get a lower interest rate. If FHA is backing your home loan, you are less risk to the lender. So, they offer a better lower interest rate, and can save you thousands of dollars over the lifetime of the home loan. That is money in your pocket.

#2: Much Easier to Qualify: Lenders have increased standards for lending money making it more difficult to get a home loan.   If you do not have a credit score over 680 or a large down payment, then the best bet to get a lower interest rate is with a FHA loans. You do not need to have as much down to qualify for for an Indiana FHA Loan.

#3: Get Out of a High Interest Rate Loan: Perhaps when you first bought your home, you were put into a sub-prime loan and you have a higher interest rate and it keeps adjusting.  Maybe, you are just paying much more than the 4.5 to 6% that is available now. A FHA loans can help you to get a lower rate even on a refi.  There are several options available with the FHA Streamline and Cash-out options.

#4: You are an Indiana First Time Home Buyer: If you have not owned a home in the last 3 years or have ever owned a home and are worried about doing so, a FHA loan can help. An Indiana FHA loan is very affordable and ideal for the first time homebuyer. who is unsure of the next step.  I have helped hundreds realize the dream of home ownership. Plus, with the $8000 Indiana First Time Home Buyer Tax Credit, you are getting paid to buy a new home.

FHA loans have helped millions of people to get into homes that they want and need, or to protect them from losing their hard fought investment.

For more information feel free to call me or apply now for an Indiana FHA Loan
Dave
The Indiana FHA Expert

Ten Great Reason to be a First Time Home Buyer

And, now to conclude the Top Ten Reason to be an Indiana First Time Home Buyer.

Part 2

5) Seller’s all across Indiana are more willing than ever to give incentives for First-Time Home Buyer up to 6% in many cases

4) The Interest, Mortgage Insurance, & Property Taxes can all be written off on your taxes, thus reducing your overall tax liability

3) Indiana First-Time Home Buyer Opportunities are boundless with the higher Indiana FHA Limits for 2009

2) I did mention that point about the noisy neighbor?  How about a garage?  Telling the landlord where to stick it?

And the #1 reason To Be A First-Time Home Buyer in 2009,

1) The investment in yourself and your first step to wealth accumulation

There are Ten Great Reasons to buy a house in 2009.   Why aren’t you taking advantage of some or all of them?  Don’t wait many of these opportunities will disappear by the time that 2010 rolls around.

If you are thinking that is your year to become a First-Time Home Buyer in Indiana, Call or email me ro set up an appointment to see how you can become a First-Time Home Buyer today!

Dave Woodson
The Indiana FHA Expert

10 Great Reason to be an Indiana First Time Home Buyer – Part 1

There are 10  Great Reasons to Buy a Home as a First Time Home Buyer

Here are the first 5

10.  This is a double whammy, you get to tell your Landlord and the noisy neighbor upstairs to get lost

9.  There are tons of great financing options for The Indiana First-Time Home Buyer

8.  As an Indiana First-Time Home Buyer you have many Foreclosures, HUD Homes, Handy Man Specials, Estate Sale, or Short Sales to choose from some at a reduced price and that equals instant equity.

7.. Interest rates are near historical lows this is a great benefitas a First-Time Home Buyer

6.  The $8000 First-Time Home Buyer Income tax credit (no need to pay back as long as you live in the home for 3 years)

Stay tuned for more great reasons to buy a new home in Indiana

Dave

The Fed Meeting and Indiana Mortgage Rates

The Federal Open Market Committee (the Fed) is starting its scheduled, 2-day meeting to discuss the country’s monetary policy (or lack thereof).  The group will be issuing a press release to the markets upon adjournment.

There are 8 scheduled FOMC get-togethers (this is not your run of  the mill kegger) annually and the post-meeting press releases are among the most powerful market-moving events of the year.

However, it is not the Fed’s actual policy changes that causes fortunes to be won or lost.

These changes are predicted and traded — so, therefore, they are hedged — on Wall Street using the Fed Funds Rate Futures.  Example, Wall Street predicts with 97% certainty that the Federal Reserve will not make a policy change at this time.

As opposed to policy change, it is the verbiage of the FOMC’s press release that really moves the markets.  Really, this is because the press release is a clear-eyed, stare you dead in the face, look into what the Federal Reserve thinks of the United States economy — its strengths, its weaknesses, and its threats.

After its January 2009 meeting, the FOMC’s press release said:

* The economy has weakened further
* Employment has declined steeply
* A gradual recovery may come later in 2009 (Big Ben restated that on 60 Minutes)

Since that meeting, though, a number of high-profile economists, including Fed Chairman Ben Bernanke, have said the likelihood of economic recovery increased for late-2009.  Hip-Hip Hooray

This is why tomorrow’s FOMC press release is so important. It will contain clues about the Federal Reserve’s next steps and current psyche.  Undoubtedly, it can make a significant impact on the mortgage markets.

In general, when the Fed alludes to inflation and stronger growth, mortgage rates rise.  Talk of a recovering economy and rising oil prices in tomorrow’s press release, therefore, would likely raise rates from their current low levels towards levels not seen for 6 months.

In the end, it’s what the Fed says that matters more than what the Fed does. The FOMC is expected to leave the Fed Funds Rate within its target range of 0.000-0.250 percent.

The Fed speaks and this week in Indiana Mortgage Rates

Mortgage markets lost a little ground last week, just edging mortgage rates tad higher in a week marked by the largest stock market gains since November.  I bet many of you are liking your 401k now.

Once again, mortgage rates couldn’t sustain a rally for more than 5 days.  Not since late-2008 have mortgage rates managed to fall two weeks in a row.

Last week’s market was impacted by three distinct factors:

1. Bank balance sheets were not as bad as feared
2. Discussion started on new bank valuation methods (regulations)
3. Traders got optimistic that “the worst is over” (have we really hit bottom)

The rally will likely continue this week, as futures were up this morning.  This after the 60 Minutes interview with Ben Bernanke in which the Fed Chief said he won’t let big banks fail and that the recovery will likely begin later this year.  I am not sure how many saw it, but I have a new respect for the man and what he said they did wrong in the 30’s to prolong that depression will not happen this time.  We ARE NOT in a depression!!!

This was the  first interview with a sitting Federal Reserve Chairman in history.

Coincidentally, the Federal Reserve will be in the spotlight this week as it concludes a two-day meeting Wednesday after which the Fed will issue its standard, post-meeting press release at 2:15 P.M.  Although it’s not expected to make Fed Funds Rate changes, the markets will closely watch the Fed’s language for clues about the next phase of monetary policy.

In general, when the Fed indicates that inflationary pressures may build, mortgage rates rise.  Moreover, in the above interview, Bernanke alluded to such inflation and the need to control it in the future.

Despite the small rise in rates last week, mortgage rates remain low and favorable for high-credit scoring borrowers.  Volatility is still a factor, however, so if you’re nervous about rates rising, it may be best to lock early in the week — before the Fed’s Wednesday announcement.

Indiana FHA Home Loan Limits

Thousand of Indiana homeowners will benefit from new increased FHA Home Loan Limits with fixed rate refinance loans up to $410,000 in several  designated high cost areas.  Home refinancing has never been easier with cash out loans available up to 95% for qualified Home Ownerss. In an effort to curb the rising foreclosure rates, the Housing of Urban Development (HUD) raised the Indiana mortgage maximum limits for 2009 and the loan changes can be seen below by county.   Also, available are FHA Streamline, Energy Efficient, and many more FHA Home Loan products.

If you have any questions or would like more information on how to become qualified for a FHA Home Loan. pleave give me a call or download our Mortgage Planning Questionaire.

MSA Name	County Name	State	One-Family	Two-Family	Three-Family	Four-Family
SCOTTSBURG, IN	SCOTT	IN	$271,050	$347,000	$419,400	$521,250
SOUTH BEND-MISHAWAKA	ST. JOSEPH	IN	$271,050	$347,000	$419,400	$521,250
MADISON , IN	JEFFERSON	IN	$271,050	$347,000	$419,400	$521,250
EVANSVILLE , IN-KY	POSEY	IN	$271,050	$347,000	$419,400	$521,250
EVANSVILLE , IN-KY	GIBSON	IN	$271,050	$347,000	$419,400	$521,250
EVANSVILLE , IN-KY	WARRICK	IN	$271,050	$347,000	$419,400	$521,250
EVANSVILLE , IN-KY	VANDERBURGH	IN	$271,050	$347,000	$419,400	$521,250
FORT WAYNE ,	ALLEN	IN	$271,050	$347,000	$419,400	$521,250
FORT WAYNE	WELLS	IN	$271,050	$347,000	$419,400	$521,250
FORT WAYNE	WHITLEY	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	BOONE	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	BROWN	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	MARION	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	MORGAN	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	PUTNAM	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	SHELBY	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	HANCOCK	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	JOHNSON	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	HAMILTON	IN	$271,050	$347,000	$419,400	$521,250
INDIANAPOLIS-CARMEL	HENDRICKS	IN	$271,050	$347,000	$419,400	$521,250
NORTH VERNON , IN	JENNINGS	IN	$271,050	$347,000	$419,400	$521,250
ANDERSON	MADISON	IN	$271,050	$347,000	$419,400	$521,250
CONNERSVILLE	FAYETTE	IN	$271,050	$347,000	$419,400	$521,250
RICHMOND	WAYNE	IN	$271,050	$347,000	$419,400	$521,250
PERU	MIAMI	IN	$271,050	$347,000	$419,400	$521,250
MUNCIE	DELAWARE	IN	$271,050	$347,000	$419,400	$521,250
VINCENNES	KNOX	IN	$271,050	$347,000	$419,400	$521,250
GARY	LAKE	IN	$410,000	$524,850	$634,450	$788,450
GARY , IN METROPOLITAN DIVISION	JASPER	IN	$410,000	$524,850	$634,450	$788,450
GARY	NEWTON	IN	$410,000	$524,850	$634,450	$788,450
GARY	PORTER	IN	$410,000	$524,850	$634,450	$788,450
DECATUR ,	ADAMS	IN	$271,050	$347,000	$419,400	$521,250
WARSAW	KOSCIUSKO	IN	$271,050	$347,000	$419,400	$521,250
KOKOMO	HOWARD	IN	$271,050	$347,000	$419,400	$521,250
KOKOMO	TIPTON	IN	$271,050	$347,000	$419,400	$521,250
COLUMBUS	BARTHOLOMEW	IN	$271,050	$347,000	$419,400	$521,250
FRANKFORT	CLINTON	IN	$271,050	$347,000	$419,400	$521,250
PLYMOUTH	MARSHALL	IN	$271,050	$347,000	$419,400	$521,250
AUBURN	DE KALB	IN	$271,050	$347,000	$419,400	$521,250
MICHIGAN CITY-LA PORTE, IN	LA PORTE	IN	$271,050	$347,000	$419,400	$521,250
GREENSBURG	DECATUR	IN	$271,050	$347,000	$419,400	$521,250
CRAWFORDSVILLE	MONTGOMERY	IN	$271,050	$347,000	$419,400	$521,250
ELKHART-GOSHEN	ELKHART	IN	$271,050	$347,000	$419,400	$521,250
JASPER	PIKE	IN	$271,050	$347,000	$419,400	$521,250
JASPER	DUBOIS	IN	$271,050	$347,000	$419,400	$521,250
NEW CASTLE	HENRY	IN	$271,050	$347,000	$419,400	$521,250
TERRE HAUTE	CLAY	IN	$271,050	$347,000	$419,400	$521,250
TERRE HAUTE	VIGO	IN	$271,050	$347,000	$419,400	$521,250
TERRE HAUTE	SULLIVAN	IN	$271,050	$347,000	$419,400	$521,250
TERRE HAUTE	VERMILLION	IN	$271,050	$347,000	$419,400	$521,250