• FHA loan limits are currentlly $303,750 in the Charlotte metro area.  The current base loan limit for the country for FHA is $271,050.  FHA rates were increased to help during the housing crisis, but this temporary boost is set to expire on October 1, 2011.  The current intention of the administration is to let the limits go back down to the base loan limits. This means your “borrowing power” with an FHA loans may well decrease by $32,700 by the fourth quarter of 2011.
• The administration has recommended raising the FHA up-front mortgage insurance from 1% to 1.25%. Don’t be surprised to see something happen during 2011 raising the amount of up-front mortgage insurance on FHA loans.
• The administration is recommending that Fannie Mae and Freddie Mac raise their minimum down payment from 5% to 10%.  We would expect considerable debate on this issue, but if this goes through, home buyers will need twice as much in cash to put down than they do today. Still hard to say when this might pass.
• Currently the loan limit for conforming loans is $417,000 for the Charlotte metro area.  (Beyond that amount, you are into a jumbo loan.) Fannie Mae has annouced that the high cost loan limit of $729,400 in other parts of the country will drop to $625,500 as of October 1, 2011.  While this may not impact the Charlotte region this year,  most experts agree that Charlotte area’s conforming loan limits could also go below $417,000 at some point in the forseeable future.

To learn more about the administration’s direction for “reforming America’s housing finance market” you can read their recent press release:
http://www.treasury.gov/press-center/press-releases/Pages/tg1059.aspx.

So no matter “how you slice it,” the longer you wait to purchase a home, the more it will cost you!

Want more information about buying a home? Contact Carolinas Realty Partners!

Foreclosures have additional serious, negative consequences:

• If you are foreclosed on, your credit score will drop somewhere between 250-300 points.
• The foreclosure will remain on your credit record for seven years.
• You will be unable to qualify for a mortgage to purchase another home for at least 24 months and maybe as long as for 72 months.
• You may be unable to get hired for any job dealing with money.
• In some professions, you might actually lose your job.

And keep in mind that every month you are late with a mortgage payment prior to a foreclosure notice, your credit score is also dropping: by 40-110 points the first 30 days you are late and by 70-135 points by the time you are 90 days late.

And if you are contemplating a short sale, keep in mind that your credit score will drop between 100-200 points once the short sale is completed and you won’t be able to buy a new home for five years financing with a conventional loan. (If you are using a VA loan, you could buy a new home in two years; with an FHA loan in three years.) But these time frames all assume you’ve re-established your credit and payment history in the intervening years.

If you’d like more information about this subject contact Carolinas Realty Partners.

Another way to look at it… every 1/2% change in interest rates is approximately equal to a 5% change in sales price! Every 1% change in interest rates is equal to a 10% change in sales price. In other words, when interest rates go down by a 1/2%, it’s like buying a house at 5% less. Obviously, the same house “costs” you 5% more with every 1/2% increase in interest rates.

So, with current low, low interest rates, not only do you get to pay less on a monthly mortgage and save money over the life of the loan, you get to buy “more” house than you could afford with higher rates.

If you are planning to buy and planning to do FHA financing, it’s even more critical that you buy now. As of September 7th, FHA’s up-front mortgage insurance and monthly mortgage insurance goes up. Watch this important video: FHA Buyer Tax September 7th to learn more, as very few people have been talking about this issue and September 7th is less than one month away!

With interest rates expected to stay low throughout 2010 (and where they go in 2011 is anyone’s guess right now), it’s the perfect time to think about buying a home. For more information Carolinas Realty Partners are always happy to help.

Lot of people think it’s impossible to buy a home today with low or no money down programs… but there are quite a few programs available to home buyers today in Charlotte and North Carolina, especially for first-time home buyers who have credit scores above 620.

Here’s a list of a few of the loans available  around the country;(and you don’t need to be a first-time buyer for a number of these).

• FHA Loans: require a only a 3.5% downpayment. Lots of mortgage lenders are active in making these types of loans.
• USDA Loans: these are 100% financing. There are income limitations, but if you are buying a home in a USDA-eligible area, these loans are a wonderful source of financing. But not all lenders do these, so shop around.
• VA Loans: these are 100% fiancing. You don’t need to be a first-time buyer for these, but be sure you work with a lender who has experience with VA Loans.
• HUD Homes: there are lots of HUD foreclosure homes available for sale and financing at only $100 down. Contact your realtor for a list of these homes.

Here’s a list of low or no money-down loan programs available specifically in Charlotte and/or North Carolina:

• House Charlotte Loans: 100% financing.
• North Carolina Finance Agency: part of the NC Bond program, these loans requre only $1,000 down.

It’s an awesome time to buy a home! Interest rates are at historic lows and prime borrowers can borrow at less than 5%, including FHA, Va,USDA loans. These rates are not just for conventional 20% down loans. Home prices are still low. This combination of low rates and low home prices rarely comes about. For more information contact Carolinas Realty Partners. We can put you in touch with some top Charlotte-area lenders and help you find that dream home!

If you’ve been planning to buy a house this spring with an FHA loan, you need to know about several FHA financing changes coming in about six weeks that will increase your cost of borrowing. These deadlines are:

ISSUE:  FHA FINANCING – SELLER CAN NO LONGER CONTRIBUTE MORE THAN 3% FOR CLOSING COSTS AND PREPAIDS.   As a  buyer, you will likely need to have more money for closing or you could end up with a higher interest rate which could impact your ability to qualify.  This will be more of an issue for homes that are $150,000 and below. 

DEADLINE:  APRIL 4^TH, 2010 to be in contract.

ISSUE:  FHA FINANCING – UPFRONT MORTGAGE INSURANCE PREMIUM INCREASING FROM 1.75% TO 2.25%   This means you will likely need to have more money for closing or could end up with a higher interest rate which could impact your ability to qualify.  On a $200,000 purchase, you would be charged $1,000 more to do the loan.   

DEADLINE:  APRIL 4^TH, 2010 to be in contract.

These changes will seriously impact how much money you need to bring to closing and how much of a purchase amount you might qualify for. With interest rates also predicted to rise in the coming months, there’s never been a better time to buy!