FHFA’s Dramatic Easing of Mortgage Standards

From NAR ~ DAILY REAL ESTATE NEWS | TUESDAY, OCTOBER 21, 2014

Federal Housing Finance Agency Director Mel Watt on Monday announced plans to expand home buyers’ access to mortgages by loosening up lending standards.

FHFA’s Latest Efforts

During the Mortgage Bankers Association’s annual conference, Watt said FHFA will release guidelines “in the coming weeks” to allow increased lending to borrowers with down payments as low as 3 percent. FHFA, which regulates Fannie Mae and Freddie Mac, also will help lenders who sell loans to the mortgage giants by easing standards on borrowers who don’t have perfect credit profiles. The move is expected to help open up the credit box to first-time buyers, self-employed borrowers, borrowers who have had recent job switches, and borrowers who faced financial hardship during the recession.

Watt said on Monday that Fannie and Freddie would not force repurchases from lenders of mortgages that are later found to have minor flaws in them, as long as borrowers have kept up with their mortgage payments for 36 months. Watt also said that lenders wouldn’t be forced to buy back bad loans if flaws were later discovered in the reporting of borrowers’ finances, debt loads, and down payments — as long as the borrowers would have qualified for the loans had the information been accurate. [Read More]

Buying A Home?

Buying a home is an exciting and complex adventure. It can also be a very time-consuming and costly one if you’re not familiar with all aspects of the process, and don’t have all the best information and resources at hand.

I enjoy and take great pride in helping people like you find the homes you want, as well as with completing all aspects of the transaction. So when you decide to buy in the Stockton, Manteca and Lodi areas, please call or email me any time.

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Dave Thurman Real Estate

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Commercial Zoned House Sold by Dave Thurman, REALTOR in Stockton, CA

Description: Older 2 bedroom 1 bath bungalow on East Main Street. This property has commercial zoning with potential for plotting. Several retail stores and restaurants in the area. Also, this home could be a good rental investment. House needs updating or demolishing. Sold in present condition (financing is not available). All cash! 2644 East Main Street, Stockton CA 95205

  

When you decide to sell your home in the Stockton, Manteca and Lodi areas, please contact me. And let’s get started!

  

Dave Thurman Real Estate

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Millennials haven’t written off homeownership

Contrary to popular belief, millennials still highly value homeownership, and a majority expects to buy a home in the next five years, according to a CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) survey of young adults age 18-34. C.A.R. President Kevin Brown commented, “Despite recent news reports of young adults moving back home to live with Mom and Dad, millennials haven’t completely written off home buying and still aspire to owning a home.”  Source: C.A.R.

Making sense of the story

  • The survey found that of the millennial renters, the majority (67 percent) rent because they can’t afford to purchase a home.
  • More than half (54 percent) gave homeownership an importance rating of “8” or higher on a scale of 1-10, with 1 being “not at all important” and 10 being “extremely important.”
  • Millennials are optimistic about future home prices, with 59 percent saying they expect home prices will increase in a year, and 63 percent believing home prices will be higher in five years.
  • Of those currently renting, more than one-third (36 percent) would be motivated by affordable home prices to buy now.  Sixteen percent claimed they would be motivated by having the down-payment required to purchase, and 15 percent by an improvement in their finances.
  • One in two millennial renters has student debt, but most don’t feel it is preventing them from qualifying for a mortgage.  Additionally, more than four in 10 (43 percent) don’t have debt that would prevent them from buying a home.
  • Even though many millennials saw their parents struggle through the recession, more than half (59 percent) said the housing crisis didn’t affect their attitude toward homeownership being a good investment.
  • While they aspire toward homeownership, the majority was uncertain or doubtful they could obtain a mortgage now, with 45 percent saying they were not sure, and 33 percent saying they would not be able to obtain a mortgage now.

Read the full story

Talking Points …

  • California home sales remained steady in September, as home price gains eased back from an unusually high increase in August, according to the CALIFORNIA ASSOCIATION OF REALTORS®.
  • Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 396,440 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in September inched up 0.4 percent from a revised 394,700 in August and were down 4.2 percent from 413,850 in September 2013.  September marked the 11th straight month that sales were below the 400,000 level and the 14th straight month that sales have declined on a year-over-year basis.
  • The median price of an existing, single-family detached California home fell 4 percent from August’s median price of $480,280 to $460,940 in September but was up 7.6 percent from the revised $428,290 recorded in September 2013.  The statewide median home price has been higher on a year-over-year basis for more than two years.

From C.A.R. ~ C.A.R. Market Matters is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide. 

Take Charge When Buying a Home

If you approach the home buying process intelligently and with confidence, you are much more likely to buy a house you’ll be proud to call home.

Approaching the task of buying a home can be overwhelming; there’s so much to consider:

  • How much house can I afford?
  • How can I find the best loan?
  • Where will I come up with a down payment, and how much will I need?
  • Should I buy a new or resale home, and which will go up in value?
  • Should I work with an agent or look at homes on my own?

And these questions are just the beginning. Buying a home is one of the largest financial transactions in your lifetime – do your research so you know what you’re doing.

[Read More]

Dave Thurman Real Estate

 

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California Home Sales Maintain Pace in September

California home sales remained steady in September, as home price gains eased back from an unusually high increase in August, C.A.R. reported today.

Closed escrow sales of existing, single-family detached homes in California totaled a seasonally adjusted annualized rate of 396,440 units in September, according to information collected by C.A.R. from more than 90 local REALTOR® associations and MLSs statewide.  Sales in September inched up 0.4 percent from a revised 394,700 in August and were down 4.2 percent from 413,850 in September 2013.  September marked the 11th straight month that sales were below the 400,000 level and the 14th straight month that sales have declined on a year-over-year basis.  The statewide sales figure represents what would be the total number of homes sold during 2014 if sales maintained the September pace throughout the year.  It is adjusted to account for seasonal factors that typically influence home sales.

The median price of an existing, single-family detached California home fell 4 percent from August’s median price of $480,280 to $460,940 in September but was up 7.6 percent from the revised $428,290 recorded in September 2013.  The statewide median home price has been higher on a year-over-year basis for more than two years. The median sales price is the point at which half of homes sold for more and half sold for less; it is influenced by the types of homes selling as well as a general change in values.
More info

Fast Facts

Calif. median home price: August 2014:

  • California: $480,280
  • Calif. highest median home price by region/county August 2014: San Mateo, $1 million
  • Calif. lowest median home price by region/county August 2014:
    Siskiyou County, $127,500

Calif. Pending Home Sales Index:
August 2014: Decreased 4.5 percent from 104.5 in July to 99.78 in August.

Calif. Traditional Housing Affordability Index: Second Quarter 2014: 30 percent (Source: C.A.R.)

Mortgage rates: Week ending 10/16/2014 (Source: Freddie Mac)

  • 30-yr. fixed: 3.97 % fees/points: 0.5%
  • 15-yr. fixed: 3.18% fees/points: 0.5%
  • 1-yr. adjustable: 2.38% Fees/points: 0.4%

From C.A.R. ~ C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 155,000 REALTORS® statewide.

  

Dave Thurman Real Estate

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More buyers are finding homes online and using mobile devices to do it

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Dave Thurman Real Estate

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