17
May
By support
Home Seller Tips

Selling Your Home FHA? Learn These Tips To Ensure A Smooth Closing

What Are The Requirements To Sell A Home Using FHABefore an owner can market a property to buyers that want to use a FHA loan, he will want to familiarize himself with the FHA’s standards. FHA won’t insure loans on just any property.

While their standards aren’t as stringent as they used to be, a home needs to be in relatively good condition to qualify for FHA financing.

Location and Lot

To qualify for FHA financing, the property has to be located on a road or easement that lets the owner freely enter and exit. The access also has to be paved with a surface that will work all year — a long dirt driveway that washes out in spring won’t qualify.

The FHA also wants the lot to be safe and free of pollution, radiation and other hazards. For that matter, it also needs to provide adequate drainage to keep water away from the house.

Property Exterior

The FHA’s requirements for making a loan start with the home’s roof. To pass muster, the house must have a watertight roof with some future life left. In addition, if the roof has three or more layers of old shingles, they must all be torn off as part of the replacement process.

The property’s exterior has to be free of chipped or damaged paint if the home has any risk of having lead paint. Its foundation should also be free of signs of exterior (and interior) damage. It also needs full exterior walls.

Property Interior

The property’s interior also needs to be inspected. FHA standards require that the home’s major systems be in good working order. Bedrooms should have egress routes for fire safety and the attic and basement should be free of signs of water or mold damage.

The bottom line is that the FHA wants to make loans on homes that borrowers can occupy. This doesn’t mean that a home has to be in perfect condition to be sold to an FHA mortgage-using borrower. 

Contact your trusted mortgage professional to discuss these issues as well as any other questions regarding the sale of your home.

 

05
Feb
By support
Market Outlook

What’s Ahead For Mortgage Rates This Week – February 5th, 2018

Whats Ahead For Mortgage Rates This Week – January 29, 2018Last week’s economic releases included readings on pending home sales, Case-Shiller Home Price Indices and construction spending. The Federal Open Market Committee of the Federal Reserve released its monthly statement and weekly readings on mortgage rates and new jobless claims were released. Last week’s economic readings wrapped with a report on consumer confidence.

Case-Shiller: Home Prices Rise in November

Home prices rose an average of 0.70 percent monthly and 6.20 percent year-over-year according to Case-Shiller’s national home price index for November. Seattle, Washington posted the highest year-over-year home price growth rate at 12.70 percent. Las Vegas, Nevada posted year-over-year home price growth of 10.60 percent and San Francisco, California posted a home price growth rate of 9.10 percent. Home price gains were attributed to slim supplies of available homes in many areas.

While analysts suggested that strong housing markets (as reflected by high demand for homes) were good for the economy, issues of affordability, slim inventories of homes available and obstacles facing builders continue to impact housing markets.

Recent gains in home prices are fueled by artificially high demand caused by low inventories of homes for sale. Builders cited shortages of labor and buildable lots and said increasing materials costs were impacting rising prices for new homes. Construction spending rose 0.70 percent in December, which exceeded expectations of 0.50 percent and November’s month-to-month reading of 0.60 percent growth in construction spending.

Pending Home Sales Rise, Key Fed Interest Rate Unchanged

The National Association of Realtors® reported 0.50 percent growth in pending home sales in December and the highest month-to-month reading since March 2017. Year-over-year pending home sales gained only 0.50 percent. Pending sales reflect purchase contracts signed with sales not yet closed.

The Federal Reserve’s Federal Open Market Committee announced that it would not raise the target federal funds range of 1.25 to 1.50 percent, but indicated that inflation was nearing the Fed’s goal of 2 percent annually. Analysts said this could foreshadow a rate increase at the Committee’s next meeting in March.

Mortgage Rates, Weekly Jobless Claims

Mortgage rates rose last week according to Freddie Mac’s weekly Primary Mortgage Markets Survey. Rates for a 30-year fixed rate mortgage rose by seven basis points to an average of 4.22 percent; the average rate for a 15-year fixed rate mortgage rose six basis points to 3.68 percent. The average rate for a 5/1 adjustable rate mortgage ticked up one basis point to 3.53 percent. Discount points averaged 0.50 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

First-time jobless claims dipped by 1000 claims to 230,000claims. Analysts expected 240,000 new claims. The University of Michigan reported a lower reading for consumer sentiment in January with an index reading of 95.7 as compared to an expected reading of 95.0 and December’s reading of 95.90. Consumer sentiment remains near pre-recession highs. Consumers cited tax breaks and large stock market gains as the basis for high confidence.

What‘s Ahead

This week’s economic releases include readings on job openings and consumer credit along with weekly reports on mortgage rates and new jobless claims.

31
Oct
By support
Mortgage Rates

What’s Ahead For Mortgage Rates This Week – October 31, 2016

Last week’s economic reports included S&P Case-Shiller Home Price Indexes, along with readings on new and pending home sales. Recurring weekly reports on mortgage rates and new jobless claims were also released.

Case-Shiller: Pacific Northwest Shows Fastest Home Price Growth

According to the Case-Shiller 20-City Home Price Index for August, home prices in Portland, Oregon and Seattle, Washington grew fastest year-over-year. Portland posted an August index reading of 11.70 percent and Portland followed closely with a reading of 11.40 percent. Denver, Colorado rounded out the top three cities with the fastest rates of home price growth with a year-over-year reading of 8.80 percent. The 20-City Home Price Index rose 0.30 percent year-over-year to 5.30 percent in August.

Low inventory of available homes poses challenges for housing markets, but Case-Shiller reported that the national home price index was 0.60 percent lower than its peak reading in 2006. The 20-City Home Price Index was 7.10 percent lower than the 2006 peak. This provides a positive context for healthy home price growth, but concerns linger about a repeat of the housing bubble that burst and caused home prices to crash.

David M. Blitzer, Chairman of the S&P Index Committee said that a new housing bubble is unlikely. Home buyers are not taking out huge mortgages as was common prior to the Great Recession; mortgage lenders have adopted stricter qualification standards to help ensure that borrowers can afford their mortgages.

New Home Sales Rise in September

Sales of new homes rose to a seasonally-adjusted annual rate of 593,000 sales in September according to the Commerce Department. Although lower than analysts’ expected reading of 600,000 sales, September’s reading surpassed August’s reading of 575,000 sales. August’s reading was downwardly revised from its original reading of 609,000, which suggests that new home prices are growing at a slower rate than expected.

High demand for homes boosted September’s reading for pending home sales, which represents homes under contract for sale that have not closed. Pending home sales increased in September with a reading of 1.50 percent growth as compared to August’s negative rate of -2.50 percent. Pending home sales provide indications of future completed sales and mortgage loan volume.

Mortgage Rates Rise, New Jobless Claims Fall

Mortgage rates were lower last week according to Freddie Mac’s Primary Mortgage Market Survey. The average rate for a 30-year fixed rate mortgage fell five basis points to 3.47 percent; rates for a 15-year fixed rate mortgage averaged 2.78 percent, which was one basis point lower than the prior week’s reading. The average rate for a 5/1 adjustable rate mortgage was also one basis point lower at 2.84 percent. Average discount points were 0.60, 0.50 and 0.40 percent respectively.

In spite of growth in home prices and volume of sales, consumer confidence slowed in October. October’s index reading of 98.60 as compared to an expected reading of 101.00 and September’s reading of 103.50. Analysts said that uncertainty over the upcoming presidential election contributed to October’s lower reading.

What’s Ahead

Next week’s scheduled economic reports include readings on inflation, construction spending core inflation, and labor reports. Non-farm payrolls, ADP employment, national unemployment rates will also be released. Freddie Mac’s mortgage rates report and new jobless claims will also be released.