Archive for Loans
DPA-Is it time to bring it back?
Posted by: | CommentsProblems with Housing? How do we get the ball rolling again? HUD asks themselves what can we do?
Seller Funded Down Payment Assistance! DA! H.R. 600: FHA Seller-Financed Down Payment Reform Act of 2009.
HUD and some non-mortgage, non-real estate industry people fought and successfully killed the “DPA or Down Payment Assistance programs.
Was there a down payment-Yes. Seller provided it out of their equity. House still needed to appraise. My only guess is that they killed it because there was no way to skim money off the top. What did it cost tax payers? Zero, Nada, Nothing, $0.00. $8,000 tax credit? Cost us the tax payers $8000 and the person getting the tax credit got cash? Hmmm? Our politicians and talking heads in the media still don’t get it and they wonder why we are still struggling.
The reality of housing is it is always about jobs, jobs, jobs! It does not matter if you put zero down, 3%, 5%, 50% cash down on your house. Once you loose your job, you lost your job. You are not getting any of that money back. If you don’t have a job, you can’t make any payments!
There should be a class when they take office. Basic constitution and how our economy works.
http://www.thinkbigworksmall.com/mypage/archive/1/52128/
Steve Hillyer
Lending Obstacles
Posted by: | CommentsTougher Appraisals. One of the changes that we are seeing in the real estate market today is the difficulty of obtaining the loan. The lenders have gone from an “anything goes just get it done” attitude to a strict make sure all the ‘t’s are crossed and I’s are dotted” attitude. Some got caught with their hand in the cookie jar and now it would seem we are all going to suffer the results. There are still a multitude of options but lenders are no longer interested in working outside the box.
A recent article on Bank Rate.com indicates that the appraisal is one such area. If an appraiser can not find three comps (“Comps” are recent sales of nearby homes that are similar, or comparable, to the home that’s the subject of the appraisal.) in the area the loan may not go through at all because the appraiser doesn’t have the comparative materials. The lender may have in the past helped this process by helping to ‘find’ the comps. But lenders are running scared and don’t think they can even talk to the appraisers. This is the time to get the seller or the buyer involved.
Home sellers and Real Estate Brokers can offer the appraiser information that might affect the appraiser’s opinion of the home’s value. Also, if the seller is aware of a similar home that is a foreclosure, short sale or divorce situation that has already paid for the appraisal they should share that information so it can be used as a possible comp.
Buyers should look over the appraisal and notify the lender of any errors that could have affected the appraiser’s opinion of the home’s value.
Another factor is; of course, credit rating. Everyone has had a tough time. The economy has slowed, jobs have been lost and people have been slow to pay. We are now seeing the results in lower credit scores. The effects are devastating for most and for the ones that were able to ‘hold-on’ and are now ready to buy again the stricter bank and government policies are holding them back. When the buyers NEED the creative financing options they are no longer available or lenders are frightened.
Steve Hillyer
