Scottsdale Real Estate Blog - Financing/Mortgage

Interest Rates Are Dropping!

Things have definitely slowed down since the tax credit expired.  However, we're hoping sales will pick up again with the lowering interest rates that caught everyone by surprise.

It was predicted that interest rates would rise to around 6% in 2010.  No one was ready for this latest drop, below 5%!  Some are now saying we could see rates as low as 4.5% again!

How Low Can We Go?

We now have a great combination for buyers - prices have backtracked to 2003 values and interest rates are below 5%.  Some say prices have another 20% to fall, but I'm not a gambling person and with these low interest rates right now, I'm not sure I'd want to wait if I were thinking about buying a home in Scottsdale.

What if prices don't fall another 10% or 20%? …

1405 Views, 0 Comments

Final Days to Get In On The Home Buyer Tax Credit

Friday is the last day a buyer can qualify for the Home Buyer Tax Credit.  You must have a fully signed and accepted contract by Friday, April 30th, in order to qualify.  You have up to June 30th, 2010, to close.

I have been waiting for a Scottsdale townhome short sale to get approved so my buyer would be able to take advantage of the tax credit.  Things weren't looking good and she was ready to move on.  Just yesterday I got the notice from the listing agent that the bank approved the short sale.

My buyer was losing her locked-in interest rate but could get a 10-day extension.  I am hoping that we can get this to closing (I don't trust that the short sale mortgage holder will have their act together in 10 days) so my buyer will have her Scottsdale…

1422 Views, 0 Comments

No Spot FHA Approvals for Condos

FHA has once again removed the ability to do an FHA spot approval on condominium purchases.  They seem to have gone back and forth over the past year.  They took it away, brought it back and took it away again.

Here is one of the excerpts from a 2009 Mortgagee Letter from the Department of Housing and Urban Development:

"“Spot Loan” Approval Process
Mortgagee Letter 2009-46B eliminated the Spot Loan Approval Process as defined in Mortgagee Letter 1996-41 for all FHA case number assignments effective on or after December 7, 2009. However, to address concerns involving the volatility in the condominium market, the new effective date for the elimination of this practice is for all FHA case number assignments on or after February 1, 2010. FHA may…

1515 Views, 0 Comments

The First Time Buyer Tax Credit Has Been Extended

This isn't really news by the time I'm posting this and most of you probably know it has been extended.

Well, everyone figured it would get extended - right?

There was word that it would get extended but until it was signed, sealed, and delivered, it was just "talk."  I had no idea if it would be extended or not.  And I certainly had no idea what the rules would be.

Details of the "Home Buyer" Credit

Notice I did not put "First Time" Buyer Credit, because now it isn't just for first-timers!  The credit is the same for first-time buyers as before but with a maximum earnings increase (up to $125,000 for an individual, $250,000 for a couple), allowing even more to qualify for the credit.  It is still 10% of the purchase price up to $8,000.

And…

1469 Views, 0 Comments

Will the First-time Buyer Credit be Extended?

I am hearing different things about the current First-time Buyer Credit that is set to expire at the end of November.  I’ve been told that an extension is in the works but we won’t know until it is officially announced that it was accepted and in force.  Will it remain the same – $8,000 and only for first-time buyers?

If you are waiting to purchase to see if there will be an extension and if it will be better, you are taking a gamble.  However, if you don’t already have a contract in the works you might not hit the current deadline to close your sale.

Has the credit helped the sagging Scottsdale real estate market?

I have heard different opinions and I guess it depends on where an agent works and what kind of market they work in.  Some agents…

1399 Views, 0 Comments

New Appraisal Agreement - HVCC

I had heard of something new coming on May 1st to the mortgage industry.  I was trying to find out what it was, and I found out today.  It is called the Home Valuation Code of Conduct, or HVCC for short.  Do a search for either name and you will see some links explaining it, dating back to 2008.

HVCC is not a law

It is an agreement between Fannie Mae and Freddie Mac and New York's Attorney General Andrew Cuomo.  Some banks have already been following the agreement although it was slated to go into action starting today (May 1, 2009).

Supposedly, it is trying to keep banks from turning to a shortlist of preferred appraisers and to use AMC's (Appraisal Management Company) instead.  AMC's are like middlemen for appraisers and charge each appraiser a…

1524 Views, 0 Comments

The $8,000 Tax Credit Made Easy

Update:  Please read my latest post about The First Time Home Buyer Credit being extended as it contains some updates to this post. 

A possible short sale homeowner will be listing her Scottsdale home for sale with me soon.  She is hoping that we will be able to sell it without having to do a short sale but I am not optimistic about it (she needs more than the home is worth based on comparables and the home is located on a busy street, bringing its market value down even further).  She mentioned that the $8,000 tax credit will not really benefit her because her home is out of most first-time buyers' affordability, needs, and wants.

I told her that she might not get a first-time buyer for her home, but this credit will help her because a first-time…

1421 Views, 0 Comments

Lower Interest Rates a Christmas Gift?

Rates are going down again and the timing makes you wonder if this is a holiday gift for weary buyers and sellers.  Will these lower rates kick start the real estate market for 2009?  How long will these rates last?  Will they go even lower?

I have read some great and interesting articles lately regarding the economy and interest rates.  Some feel that lowering interest rates is not enough to get buyers interested.  They feel home prices are still too high and buyers are only buying the best values.

Well, that's pretty much always true.  In a normal market, the best homes in a buyer's price range are the ones that will be purchased.  The overpriced homes will sit until the sellers start reducing.

But our inventory is still very lopsided compared…

1576 Views, 0 Comments

Mortgage Rates Lowest Since 2004

I just read an article by Inman news explaining how the mortgage interest rates fell this week to lows we haven't seen since 2004.  That's great news for Scottsdale home buyers who are indecisive about buying now or waiting until later.  With the recent special Fed rate cut, buyers may think it's best to hold out for even lower rates.  That could be a risky gamble.  I'll explain why.

Although I am starting to get more buyers than I can handle, they are passing by decent properties and insisting on viewing everything on the market in their price range.  I can't blame them, although I saw a few Scottsdale homes for sale I'd purchase in a minute if I were looking.  But today's buyers think there's something better out there, or they're waiting for better…

1701 Views, 0 Comments