DETROIT ? Feb. 5, 2010 ? Lucas Harrison-Zdenek has tried twice since last summer to get a federal loan to buy a foreclosed home.
His credit score hasn?t been good enough. It was 575 last fall when it needed to be 580, and is now 606 when it needs to be 620. He was denied again earlier this month.
The Ferndale, Mich., massage therapist is hopeful that an update to his credit report to reflect some recently paid debts will push his score up to 620. He?s aiming for a mortgage on a four-bedroom, 1 1/2-bath house in Ferndale that?s priced at $70,000.
A Jan. 1 change in federal lending guidelines has made it harder for people to benefit from Neighborhood Stabilization Programs, which help lower-income buyers purchase foreclosed homes. The rules pushed the minimum credit score to 620 for an FHA loan.
?Every time we get denied, I feel like we are closer to getting approved,? said Harrison-Zdenek, 25.
He?s now renting a house in Berkley for his wife, Genevieve, and 3-month-old son, Lincoln.
Harrison-Zdenek?s experience is pretty common for people who are at or below 50 percent of the local median income, or $31,450, for a family of three.
The programs include mandatory homeowner counseling classes and applicants must be able to qualify for a mortgage. And 25 percent of the federal grant money must go toward helping those at 50 percent of the median local income buy homes.
Officials administering the program say it has been a big challenge to find families who qualify in the low-income category and have the necessary 620 or higher credit score and 24 months of income history. Additionally, the Oakland County, Mich., program doesn?t allow people with a foreclosure or bankruptcy in the past three years to participate.
?It is brutal. It means that they don?t get the house,? said Gordon Lambert, chief of operations for Oakland County?s community and home improvement division. ?This credit crunch is really, really impacting the whole community.?
Marsha Scheer, who coordinates the Neighborhood Stabilization Program for Ferndale, said the city has closed on homes sold to five low-income buyers so far. The city hopes to help 25 to 30 families buy homes in the community.
Ferndale contracted with Home Renewal Systems to implement its program. Home Renewal handles everything from getting potential buyers qualified, finding homes, rehabilitation work and closing on the mortgage.
Cathy Doig, marketing director for the company, said federal lending guidelines have made it harder to get people in homes.
She said that people with lower incomes sometimes have low credit scores because of damaged credit. More often, though, applicants are ineligible because they haven?t established credit. These are people who do not use credit cards or make installment payments on vehicles, but they pay their bills on time.
?In order to have a high credit score in this country, you have to use credit,? Doig said.
She said the company?s staff works with these potential homeowners on getting their credit scores up, but that can take months.
Harrison-Zdenek is hopeful that he will qualify for a mortgage before the minimum credit score is raised again.
?If (the loan officer) didn?t feel Genna and I were worthy of homeownership, they wouldn?t try so hard,? Harrison-Zdenek said.
Copyright ? 2010 Detroit Free Press. Distributed by McClatchy-Tribune News Service, Greta Guest.
Monday, February 8, 2010
Tuesday, February 2, 2010
Fannie to offer closing cost aid on foreclosures
WASHINGTON ? Feb. 1, 2010 ? Fannie Mae, the largest provider of residential home funding in the United States, announced on Friday that it would start to pay closing costs for buyers of foreclosed homes in its inventory. Buyers of qualified properties will get up to 3.5 percent in closing costs or an equivalent amount for the purchase of new appliances.
Fannie wants to clear out the nearly 50,000 properties it has in inventory ? listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
?Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,? Terry Edwards, executive vice president for credit portfolio management, said in a statement.
? 2010 Florida Realtors?
Fannie wants to clear out the nearly 50,000 properties it has in inventory ? listed on HomePath.com, the Web site created by Fannie Mae last year to sell the growing number of foreclosed homes. The offer is available to any owner-occupant who closes on the purchase of a property listed on HomePath.com before May 1, 2010. Applicable properties can be found on HomePath.com, along with property descriptions, photographs, community and school information, and more.
In addition, some Fannie Mae-owned properties are eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers qualified homebuyers the ability to purchase with as little as 3 percent down.
?Attracting qualified buyers to the market and reducing inventory of vacant homes is critical to stabilizing neighborhoods and helping the market recover,? Terry Edwards, executive vice president for credit portfolio management, said in a statement.
? 2010 Florida Realtors?
Monday, February 1, 2010
Consumer Confidence Index Increases Moderately in January 2010
RISMEDIA, February 1, 2010?The Conference Board Consumer Confidence Index, which had increased in December 2009, improved further in January 2010. The Index now stands at 55.9 (1985=100), up from 53.6 in December. The Present Situation Index increased to 25.0 from 20.2. The Expectations Index increased to 76.5 from 75.9 last month.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is one of the world?s largest custom research companies. The cutoff date for January?s preliminary results was January 19th.
?Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions. Consumers? short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists,? said Lynn Franco, director of The Conference Board Consumer Research Center.
Consumers? assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are ?good? increased to 9.0% from 7.5%, however, those stating business conditions are ?bad? increased to 46.1% from 45.7%. Consumers? assessment of the labor market improved moderately. Those claiming jobs are ?hard to get? declined to 47.4% from 48.1%, while those claiming jobs are ?plentiful? increased to 4.3% from 3.1%.
Consumers? short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9% from 21.2%, while those anticipating conditions will worsen increased to 12.7% from 11.8%. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9% from 20.6%. However, those expecting more jobs to become available in the months ahead declined to 15.5% from 16.4%. The proportion of consumers anticipating a decrease in their incomes declined to 16.2% from 18.4%.
For more information, visit www.conference-board.org.
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The monthly survey is conducted for The Conference Board by TNS. TNS is one of the world?s largest custom research companies. The cutoff date for January?s preliminary results was January 19th.
?Consumer Confidence rose for the third consecutive month, primarily the result of an improvement in present-day conditions. Consumers? short-term outlook, while moderately more positive, does not suggest any significant pickup in activity in the coming months. Regarding their financial situation, while consumers were less dire about their income prospects than in December, the number of pessimists continues to outnumber the optimists,? said Lynn Franco, director of The Conference Board Consumer Research Center.
Consumers? assessment of present-day conditions was, on the whole, more positive than last month. Those stating business conditions are ?good? increased to 9.0% from 7.5%, however, those stating business conditions are ?bad? increased to 46.1% from 45.7%. Consumers? assessment of the labor market improved moderately. Those claiming jobs are ?hard to get? declined to 47.4% from 48.1%, while those claiming jobs are ?plentiful? increased to 4.3% from 3.1%.
Consumers? short-term outlook, while overall more positive, was somewhat mixed. The percentage of consumers expecting an improvement in business conditions over the next six months decreased to 20.9% from 21.2%, while those anticipating conditions will worsen increased to 12.7% from 11.8%. Regarding the outlook for the labor market, those expecting fewer jobs decreased to 18.9% from 20.6%. However, those expecting more jobs to become available in the months ahead declined to 15.5% from 16.4%. The proportion of consumers anticipating a decrease in their incomes declined to 16.2% from 18.4%.
For more information, visit www.conference-board.org.
Friday, January 29, 2010
Fannie Mae Offers New Closing Cost Assistance and Appliance Incentive for Homebuyers
Fannie Mae is offering a 3.5% incentive for buyers who purchase and close on a Fannie Mae-owned home between January 28 and April 30, 2010. Buyers purchasing properties listed on HomePath.com that are closed within this period may receive up to 3.5% of the final sales price for:
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
? Closing costs;
? The purchase of new Whirlpool? appliances by Fannie Mae; or
? A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%.
To be eligible for this incentive:
? Offers must be accepted on or after January 28, 2010;
? Property sales must close before May 1, 2010, and;
? Buyers must be owner-occupants (investors are excluded).
The incentive reinforces the organization's commitment to stabilizing communities and assisting buyers. For more information about this incentive, visit www.HomePath.com, read the press release on fanniemae.com, or contact a Fannie Mae listing broker.
Tuesday, January 19, 2010
HUD takes action to speed resale of foreclosed properties
WASHINGTON ? Jan. 18, 2010 ? In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan announced a temporary policy that will expand access to FHA mortgage insurance to allow for a quicker resale of foreclosed properties. The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties or properties resold through private sales.
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
?As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers,? says Donovan. ?FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization.?
With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.
?This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed,? Donovan says.
Acquiring, rehabilitating and reselling foreclosed properties to prospective homeowners often takes less than 90 days in today?s market; and FHA?s 90-day rule can adversely impact buyers if a seller is unwilling to hold a property 90 days thanks to holding costs and the risk of vandalism.
?FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties,? says FHA Commissioner David H. Stevens. ?This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity.?
The waiver will take effect on Feb. 1, 2010, and be effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of ?flipping,? the waiver is limited to those sales meeting the following general conditions:
? All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
? In cases in which the sales price of the property is 20 percent or more above the seller?s acquisition cost, the waiver will only apply if the lender meets specific conditions.
? The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.
? Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD?s website:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
? 2010 Florida Realtors?
Monday, January 11, 2010
Single women outnumber single men when buying a home
CHAPEL HILL, N.C. ? Jan. 11, 2010 ? For a number of reasons, both financial and personal, a growing number of men are shunning the revered institution of homeownership. The figures behind this phenomenon only hint at possible reasons.
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
A comprehensive nationwide study by the University of North Carolina at Chapel Hill?s Center for Community Capital found that men and women under age 40 report fairly comparable levels of contentment with homeownership. Yet the attitudes of bachelors and bachelorettes hint at underlying gender attitudes toward homeownership. Married couples comprise the majority of new homebuyers.
According to the National Association of Realtors? (NAR), the next-largest buying group is single women, who in the past year accounted for more than one in five home sales; single men represented just 10 percent.
The gap has widened since the turn of the century, confirms Paul Bishop, NAR?s vice president for research. Bishop?s survey leaves unanswered questions about the roots of the gender divide. Whatever the reasons, a number of men seem to grasp all too well what economists see as an enigma of homeownership: it has an asset, or investment, value, as well as a consumption value.
?Once upon a time, people bought houses to live in,? says UCLA geography professor William Clark, who writes frequently on homeownership. Today, ?with the sudden run-up in foreclosures, you?re starting to see people ask: ?Is housing a good investment??? he explains.
Source: New York Times (01/07/10) P. D1; Tortorello, Michael
? Copyright 2010 INFORMATION, INC. Bethesda, MD (301) 215-4688
Saturday, January 9, 2010
Fannie Mae Launches Special Approval Designation to Support Florida Condo Market
WASHINGTON, DC ? Fannie Mae (FNM/NYSE) announced today that it is undertaking a comprehensive review of hundreds of condominium projects in the state of Florida in an effort to allow additional projects to become Fannie Mae-eligible through a new "Special Approval" designation.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
A dedicated team of six Fannie Mae professionals based in Florida is conducting a thorough examination of condominium projects across the state that may not currently meet Fannie Mae's standard eligibility criteria and assessing specific criteria more closely, including occupancy, homeownership association dues, financial stability of the project and property condition. Projects deemed to be sufficiently stable following the closer examination are granted a Special Approval designation, meaning lenders can originate and deliver mortgage loans secured by units in these projects to Fannie Mae.
Fannie Mae has been granting exceptions to its condominium eligibility guidelines on a case-by-case basis when requested by lenders. The Special Approval designation streamlines the process for lenders and catalogues projects across the state that are Fannie Mae-eligible. Projects deemed eligible will be listed on www.eFannieMae.com as project reviews are completed, and qualified borrowers wishing to purchase units in these projects will be eligible for financing.
"This new initiative is geared toward providing maximum support for Florida's distressed condo market as we continue to provide liquidity to the housing market more broadly," said Karen Pallotta, Executive Vice President, Single Family Mortgage Business. "The state's condo market has been particularly hard hit by the housing downturn and we're working with the industry and our partners to do all we can to stabilize the market and help spur recovery."
"NAR applauds Fannie Mae for taking this important step to make condo loans more readily available in Florida," said Moe Veissi, National Association of Realtors? First Vice President and broker-owner of Veissi & Associates Inc. in Miami. "Our state is probably the hardest hit as far as the condo market is concerned, and Fannie Mae's new effort to take a closer look at project eligibility could go a long way to putting projects back on a healthy financial track."
Special Approval designations are effective for periods between 9 and 18 months, and lenders are required to confirm the project's Special Approval designation on the date of the loan application. The Special Approval initiative is for established condominium projects only.
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
Subscribe to:
Posts (Atom)
