We’re including a speech by Daniel Mudd, the President and Chief Executive Officer of Fannie Mae. He does a good job of explaining everything that’s been going on with the housing market. We’ll include the main areas of his speech in five blogs so that you can read it.
“It is clear that housing is critical to the US economy. The building, selling, buying, lending, fixing, and furnishing of homes generates 9 million jobs, six percent of all employment, and more than 20 percent of our gross domestic product. Typically we spend 20 to 30 percent of our income on housing, and our homes represent 18 percent of our net worth.
It is also clear that the housing correction has been damaging to the economy. It’s taken $166 billion off the GDP,…
The FHA Modernization Act will soon be reducing the 3% down payment requirement to 1.5%. This act will also increase the loan limit from $251,000 to $417,000. These two improvements will make it easier for home buyers around the country to get the home loan they need.
This act will also help people not looking to buy a new home. The FHA is another element that is being used right now to help people refinance to save their sub-prime loans. It is estimated that about 53,000 will have refinanced using FHA in the last four months. This is good news since statistically, FHA-backed loans less often result in foreclosure than many other types of loans.
It’s tough to tell who qualifies for the new 1.5% down payment and the new loan limit…
A big advantage of using an FHA loan is that you only have to put 3% down. And, you can get a third party to pay that 3% for you, which means that you don’t have to make a down payment. This is one way of getting a 100% loan for buyers.
When negotiating the sales price, you can get the seller to contribute 3% to a non-profit organization like Nehiamiah or AmeriDreams. These non-profits then turn around and grant the money back to the buyer for a fee. This fee is usually a few hundred dollars. So, basically you’re getting the seller to buy your down payment. The main caution for FHA loans is that the home you buy has to appraise for the purchase price – but this is something you would want to happen anyway with the home you’re buying.
The…
Two things are very important when building credit. First, you need to have a high limit and a low balance. The more you have of this combination, the better your score. Second, you need to make your payments on time. These two things will build a credit score in no time.
For example, I had a lady last week who had a credit score in the low 500s. Her credit report showed that she had not paid a few things. She actually had paid these things, but the creditor did not update the report to show that she had paid in full. So, I made two corrections in her report showing that she had paid what she in fact had. Doing this changed her ratio of credit limit to amount owed (in other words, her true balance). Correcting this amount owed increased her…
We’ve included our first quarterly letter of 2008 from Prudential Carolina Real Estate in Charleston. This letter to the public will be published in this Sunday’s Post and Courier (as it always is), so we’re getting it to our clients before it hits the press!
February 17, 2008
To our friends and neighbors,
Periodically we share our thoughts with you about our local real estate market. 45 days into a new year and looking toward spring, it seems a good time to do that again. The two questions on everyone’s mind are: “Is my financial investment in my home safe?” And, “Is this a good time for me to buy or sell?”
We all know there are some current challenges in the housing market, but there is also much good news that often gets buried…
The country’s largest wildlife art and nature event is held every year in Charleston, SC. The Southeastern Wildlife Exposition (SEWE) is expected to have over $35,000 people attend this year. It is the 26th annual expo, and it’s considered one of the biggest festivals in the Charleston area. The expo is always the weekend before President’s Day – this year it will be held Feb. 15-17. Attendees can enjoy wildlife exhibits, original artwork, lots of food, and various nature presentations. It is a very kid-friendly event, and there will be many different kinds of native and exotic animals to see. It’s a great educational opportunity for kids and adults, and it’s one of the biggest promoters of wildlife conservation and preservation in South Carolina! More…
A couple of weekends ago the 28th annual Charleston Boat Show had a record breaking turnout. Charleston has several boat shows throughout the year since the area attracts so many boaters and boat races. The Charleston Boat Show is one of the biggest boat shows that we have, though. This year over 10,000 people attended the show, which is an 11% increase from last year and a 20% increase since 2005. The show continues to grow, with the increase of residents and visitors to Charleston that we’ve had in the past few years. There will be several other boat shows throughout the year. The next one coming up will be in the spring, and it will have more of the yachts and luxury boats for sale. We’ll get you more information as we get it!
If you enjoy…
We wanted to pass along a new home listing at Folly Beach with a great dock and boat access. The private dock has a shower, a sink, refrigerator/freezer, and lights. It also has a 35 foot floater with the capability of driving a 17 foot boat onto it. The home has its own boat landing, so you'd have easy access to water. This house has great waterfront views, plus a lot of extras - granite countertops in the kitchen, hardwood floors throughout, a wood ceiling in the great room, new fixtures throughout, and a backyard bar-b-que/grilling station. If you're looking for a Folly Beach house with good boat access, you should check this one out! More info
We’ve included a list of everything you need to get started on your home loan. These requirements are standard for any lender. Depending on the lender, you may not need all of this information upfront, but they’ll request the following at some point during the loan approval process.
1. Pay stubs for the most recent 30-day period.
2. Bank statements for all your accounts (checking, saving, 401K, etc.) for the last 2 months.
3. W-2 tax statements for the past 2 years (if you’re self-employed or have a commission-based income, you’ll need to provide personal and business tax returns for the past 2 years along with your most current year-to-date profit/loss statement).
4. Employer info (name, phone number, and address) for your
This new listing at Turtle Bay has views of the marsh and Folly River. This marshfront home at Folly Beach includes a deep water boat slip, too! It has 3 bedrooms and 3 baths with 1,550 sq ft. The kitchen has granite countertops, the living room has built-in bookshelves, the first floor has hardwood floors, the master bedroom has a walk-in closet and access to the deck with Folly River views, and the master bath has double sinks and separate shower and Jacuzzi tub. The home also has a screened porch and a 2 car garage. Turtle Bay is one of the newer marshfront communities at Folly Beach. It’s a short bike ride to the beach, and about a 10 minute drive to downtown Charleston. This home would be ideal for buyers looking for waterfront or marshfront
