Fewer New Homes on The Market Nationwide

May 28, 2010 by Leave a Comment

New Home Supply April 2009 - April 2010The supply of newly-built homes for sales plummeted in April, a positive indicator for the Raleigh housing market as we head into the summer months.

It’s no wonder that homebuilders are breaking new ground at the fastest clip in 2 years.

At the current sales pace, the nation’s complete supply of new homes would be sold in just 5 month’s time.  That’s more than double the pace of a year ago.

Also, as more good news, in terms of total housing units, the government reports that New Home Sales topped one half-million homes sold for the first time since May 2008.

It’s a similar spike as within the Existing Home Sales data released earlier this week.

But before we declare the housing market “repaired in full”, we have to consider a few of the reasons why home sales are charting so strongly.

The first reason is the federal homebuyer tax credit’s April 30 expiration. In order to claim up to $8,000 in tax credits, home buyers must have been in mutual contract for a property before May 1. There is no doubt this contributed to a run-up in sales, especially among first-time home buyers.

The second reason is that mortgage rates have remained exceptionally low, defying expert predictions.  Low rates don’t sell homes, but they do make monthly payments easier to manage for households torn between renting or buying.

And, lastly, March and April’s new home sales may have been buoyed by aggressive discounting on behalf of homebuilders.  As compared to February 2010, April’s average new home sale price was lower by 13 percent.  That’s a sharp drop in a short period of time.

For now, though, homes are selling, supplies are dropping, and buyer interest is high. It’s no wonder builder confidence is soaring.

If you are considering a New Home Purchase in Raleigh, NC – please contact us to get pre-qualified!  We offer VERY competitive pricing, and in North Carolina Predatory Lending Laws require the Builder to allow you to use the Mortgage Company OF YOUR CHOICE. Steve and Eleanor Thorne, Mortgage Banker in Cary , 919-649-5058

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Maximum Income Requirements USDA in Wake County NC

January 25, 2009 by Leave a Comment

The Raleigh / Cary markets are considered an MSA (Major Suburban Area??) by the Government.  So, in Wake County that’s how you will find the maximum income limits specified for Wake County. These numbers changed at the beginning of the year, and the new income limits (which are based upon the number of people in your household) are as follows:

1 to 4 person family $86,100
5 person or higher, the limit is $93,000

If you like the idea of using a USDA Home Loan to purchase a home in Wake County, and you meet the income requirements… then you also need to consider the property location.  If you are considering a property in Apex, look at this map.  If you are looking in Holly Springs, look at this line along Ten Ten – and if you are thinking about Wake Forest, check out the map here.  If you have a specific address you want to check and see if it qualifies, you can always click here!

Remember, USDA Home Loans are 100% loans with no PMI! The Wall Street Journal says, “Created in 1991 as a way to boost homeownership in rural areas, the program is being tapped by home buyers in overbuilt exurbs who are attracted to the no-money-down terms.”  (Click Here to see their interview with our client!)

For questions about purchasing a home using USDA – please call Steve and Eleanor Thorne at Corporate Investors Mortgage Group, 919-649-5058. We’re EXCITED!  It’s truly a great time to purchase a home in the Triangle!

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Cash Out of Home with FHA Refinance

January 5, 2009 by Leave a Comment

Do You Have Cash in Your Home?Have you heard the joke about the way you see your house, and the way the tax guy sees it and the way your appraiser sees it?

Well, it’s pretty funny… because everyone has a difference perspective!

If you believe you have some equity in your home, and you would like to take cash out, FHA might be your best bet! Not on a home like the one above (of course), the maximum FHA loan in Wake County is now $271,050… but FHA now allows you to cash out up to 95% of the value of the home!

FHA allows you to use this money for investments, to take a vacation, pay off bills, home improvements… almost anything you need!  Some folks think rates will be at 4.5%!  To find out how to get your 4.5% mortgage - click here!

Call us for details, and the current interest rates! Steve and Eleanor Thorne, Corporate Investors Mortgage Group, 919-649-5058.

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USDA No Money Down Mortgage

December 16, 2008 by 4 Comments

Not For FarmsWe’ve helped many customers buy homes with an old program offered through the USDA… not farms… HOMES.

The Rurual Economic Development Fund is what it use to be called, now it’s just a part of the USDA, and the goal is to provide mortgages, and incentives for folks to purchase homes in less “densly” populated areas!

So, in Wake County, NC that would be the areas in Apex, Holly Springs and Wake Forest (click the links for maps).  All of Fuquay and Garner qualify for a NO MONEY DOWN, USDA mortgage… parts of Durham qualify (look at the areas around Briar Creek!) and all of Johnston County qualifies.

Again, it’s a NO MONEY DOWN loan, with NO PMI!  One of our customers was just quoted in the WSJ about this program!  He said, “I couldn’t believe it until I got to closing!”  He only paid $1200 out of pocket to get into a very nice $228,000 home!

If you want more information about qualifying for a USDA home loan, please click here!  Remember!  If you are a first time homebuyer, or you have not owned a home in the last three years, you might qualify for a $7500 Tax Credit!

PS!  The program is running out of money.  Please click here for details!

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One Works at Bragg – One in Wake County!

October 28, 2008 by 6 Comments

ft braggWe are working with a couple looking for property that will allow the Veteran to commute to Fort Bragg (in Fayetteville, NC) and the spouse to work in Apex, NC (Wake County).

Since we’ve been making mortgage loans for many years in the Triangle, this is not the first couple we’ve met who decide to purchase a home in Harnett County or the Southern Most areas of Johnston or Wake County!  It’s a “hot spot” for Veterans – and the homes are VERY affordable! 

Lot prices in this area are also lower than in more populated sections of Raleigh, making new homes, custom built in this area very attractive right now!

The Veteran’s Administration does not make VA loans, just HUD does not issue FHA loans.  The VA insures these loans.  Here are the basic guidelines for qualifying for a VA loans:

  • Total Debt Ratios not to exceed 41 to 43% (depending on energy efficiency of home).
  • Credit needs to have a score, however the VA does not publish a guide on a minimum credit score.  Most Investors want a score of at least 600 – although exceptions are certainly made.  The VA is most interested in a 12 month history of “clean credit.” (click here for more details)
  • Must be a Veteran (to see if your service experience qualifies click here).  If you are qualifying with another person’s income, they must also be a veteran, or a spouse. (more information about co-signors here)
  • We must verify employment, there are no stated income VA loan products.
  • You can receive a gift for closing costs, and/or the seller can pay for closing costs.

If you have other questions about VA home loans, please call us, we’d love to help you too!

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Qualify for VA Mortgage Loan

October 13, 2008 by 12 Comments

There’s the WHITE HOUSE, and then there’s that white house, with the picket fence and the dog out back, and a couple of shade trees where you can string up a hammock.

If you’ve been in the Armed Services, and you’re looking for that special house – you have a TON of things working to your advantage!

  • You are eligable for a 100% loan with NO monthly PMI! The mortgage insurance companies have taken a beating with all of the foreclosures – and monthly PMI is running ridiculously high right now! (over $200 a month!)
  • Did I mention it’s a 100% loan??? We are in a RARE appreciating market here in the Triangle – and if you are planning on staying in your home for 3 or 4 years, you could be in a GREAT position to build some equity!
  • Interest Rates are STILL at their LOWEST point! Which makes homeownership more affordable than ever!
  • There are a TON of homes for sale- meaning you will probably get a very good “deal” on a home!!

Okay – to qualify for this mortgage loan here’s what you need!

You need decent credit. VA minimum credit score is unpublished. This means that you are either “accepted” through the computerized underwriting system – or you’re not.  Most of the approvals we are getting make us believe that you need a score of AT LEAST 580 on each of the three bureaus. At the very lesat, the VA wants you to have 12 months of “clean credit.” If you don’t have that, or you have questions about how to increase your credit scores yourself – click here. (you do not need to pay someone!)

You need a job (or a source of income lasting at least 4 more years).  Not just a job – but one we can verify the income on.  If you are a fireman, and a painter – and you make decent income working as a painter, but don’t report all of that income to Uncle Sam – I can’t use all of that income to qualify you.  It’s as simple as that.

If you are going to purchase a home with another person who is NOT a Veteran, you must be MARRIED. For more information on Co-Signors for VA mortgage loans, click here.

Your total debt is calculated a little differently for a VA mortgage loan.  To calculate the MOST you can qualify for… add up the Principal, Interest Taxes and Insurance.  ADD to that the “average” monthly Utility cost, any revolving debt you have with more than 3 months left to pay, any installment debt with more than 3 or 4 months left, and any child care expenses.  That TOTAL NUMBER should not be more than 41% of you GROSS (before taxes) income on a monthly basis.

Example: PITI is $1020.  Heating Bill will average $120.  Credit Cards are paid in full each month, so zero.  Car payment is $375, no children.  Total monthly bills $1515.00.  Your monthly BEFORE TAX income is $4000.  You take $1515, divide that by $4000 and it’s 37.9.  This number is well below the target number of 41, so you’re GOLDEN!

If you are a Veteran considering a home purchase in North Carolina – please call us!  Steve and Eleanor Thorne, 919-649-5058

Filed Under: First Time Home Buyer, VA Mortgage Loans Tagged With: , , , , , , , , , , , , ,

FHA Refinance

September 16, 2008 by 3 Comments

Okay – so here’s something that will stump the loan officer. 

You bought a property in Feb. of 2008.  You got a Heck of a Deal – and you purchased the home for $237,000.  The appraisal in February was for $245,000 (and the appraiser thinks it’s worth more now).  The loan in February was a conventional 100% Community Reinvestment loan (those are no longer available).  Your credit is good, you qualify, and since your rate is currently 6.875% – you’d like to refinance.

And maybe you’d like to refinance to an FHA loan, which today is 5.625% with no origination fee, and save over $250 a month on your monthly payment…

Well  -  you have a problem.

Buried in the new FHA guidelines, 702.2… it says:

Property Acquired Less Than One Year.  If the property was acquired less than one year before the loan application and is not already FHA-insured, in addition to the calculations described above, the original sales price of the property also must be considered in determining the maximum mortgage. With conclusive documentation, expenditures for repairs and rehabilitatoin incurred after the purchase of the property may be added to the original sales price in calculating the mortgage amount. (this use to be six months)

And there you have it folks.  If you are refinancing from Conventional to FHA (or USDA or anything else) then you need to have 12 months history owning the property. 

Since it’s not really worthy of a post – you should also know that USDA is for purchases only.  Since it’s the only really good 100% program for those of us who are not Vets – figured I’d mention it.

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The FHA Bailout Plan

June 4, 2008 by Leave a Comment

Congress, and specifically the NC delegation and Rep. Barney Frank have a new plan to stop the “bleeding” for many American Families who are upside down in their homes.  This is really not so much a problem for those of us with property in the Triangle – but for folks moving here (and by my unscientific calculations almost 65% of the mortgages are currently being written for folks MOVING HERE), it could be a great deal.

The crux of the problem, as seen by Franks, are the number of new vacant homes that are competing on the market with “used” re-sale homes.  We need to get folks into those new homes, draw the inventory down – and Badda Bing – no more Housing Crisis.

How he proposes to do this is with a 300 Ba Ba BILLION dollar overhaul of FHA which creates a complicated system whereby the banks take a little loss – the seller takes a little loss and the government takes the risk.

IMHO there’s no chance this will make it’s way through Congress prior to the election - but the provisions in the bill – which expand the FHA authority are helpful, and if passed, this could be the end to the Housing Crisis.

The question we must all weigh is weather or not we are willing to take on this additional risk to our collective “Uncle Sam” balance sheet.  It could backfire, drive the dollar lower… and that would put gas at what – $6 bucks a gallon???

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Step 1 of Homebuying in Cary

June 4, 2008 by 7 Comments

fha housesCary has been called “The Land of $400k Houses.” Not so… there are TONS of affordable housing in this area, and there are still ways to purchase those homes with less than perfect credit – and 100% financing.

To do this… you will need a team of dedicated “assistants” (if you will) in the form of your agent and lender – as we will need to work as a team to negotiate the best terms for you and fashion the contract so that it reflects the financing and closing cost terms.  IT CAN BE DONE, and we work with some of the top, award winning agents in this area!

So If You Want to Buy A House? Relax!  Breahe!  You CAN DO THIS!!

Remember these words, “First the LOAN, then the HOME.” In today’s faced paced market, “ball parking” your price range with an agent, or online, is good, but you MAXIMIZE your buying power by being PRE-APPROVED with a Mortgage Loan Consultant FIRST.

The pre-approval process is a simple one, and will provide you with the options which meet your payment comfort zone. The process generally involved calling us and talking on the phone for 30 to 45 minutes.  After that conversation, we decide when we should meet in person.

We can send you Good Faith Estimate of your closing costs, and give you a pre-qualified letter at that time. THEN you are better equipped to meet with a Realtor and find the most house for your money.  Because multiple offers come in on the same home (especially if you are looking at Foreclosed Property!), a PRE-APPROVED buyer has a better chance of being the new homeowner!  This is the first of six steps in the Homebuying process…

If you are considering a purchase in Raleigh or buying a home in Cary, contact Steve and Eleanor Thorne at Corporate Investors Mortgage Group in Cary, NC 919-649-5058

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Risk Based Pricing?

June 4, 2008 by 5 Comments

fha mipYou are buying a home this summer and you are LOVIN’ Life!  Yippee!

Well, if you have credit scores over 640 – there’s more good news!  Effective July 14 FHA will move to Risk Based MIP and your cost of home ownership will be less!

So, what does Risk Based MIP mean and what happens if your score is NOT a 640?

Risk Based MIP means that if you are considered a lower “risk”, because your credit score is 580 (for example) then you will have a higher UFMIP.  What is UFMIP??  It’s the UpFront Mortgage Insurance Premium charged on an FHA loan, and there’s a monthly fee too.  This is going up to 2.0%… meaning that if you borrow $100,000 on an FHA loan – you will also be charged $2000 in MIP.  This mortgage insurance is ADDED to your loan – so your Principal and Interest payments are now based on $102,000 (base loan of $100,000 plus MIP of $2,000).  If you sell the home or refinance in the first 7 to 10 years then a portion of the MIP is refunded back to you.

The most significant part of this change is NOT that the UFMIP is going up… the most significant part is that FHA is going to these steps which many see as the first in moving FHA into the “new” sub prime role.  The Risk Based Matrix actually accept scores down to 525 (and lower)… although we don’t know of “Investors” who are willing to purchase loans at these low credit scores.  FHA does not make loans – they only insure them.  So even though their matrix says you can have a lower score and get a FHA loan - it doesn’t mean that SunTrust (for instance) has to make loans at the lower score.  Our best bet is that it will be at least 12 months before loans for people with credit scores under 580 are made.

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