New Construction Financing Exists

Posted by & filed under Buying.

When the financial crisis exploded in 2008, new construction financing ended.  Actually, most credit was taken off the table then and for good reason.  On new homes being built, many banks pulled existing mortgage loans creating havoc for builders.  This also hurt individuals who were in the middle of new construction projects. Since then, getting a bank to loan on new construction in Bergen County has been difficult if not…

You’ll Need Better Credit for a FHA Mortgage

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FHA mortgage loans are extremely important to the real estate industry.  The FHA insures, on average, 30% of all mortgages in the US.  Something like 70% of all first time home buyers use FHA loans.  As a result any change, no matter how slight, in FHA policy is big news. The FHA announced new credit requirements for mortgages on October 4th.  The bar has been raised for home buyers.  Buyers must have at…

Is the $8000 Tax Credit Causing Buyers to Overlook Even Better Short Sale Opportunities?

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There are many homes for sale with steep discounts because they are a short sale and you may find a house that is a better “fit” for you in a short sale than trying to buy a home that you really don’t love just because of the tax credit.

Real Estate Appraisal Rules Have Changed….Uh Oh

Posted by & filed under Buying, Selling.

Real estate appraisal rules have changed in major ways.  The changes are a response to the financial crisis.  It’s an effort to avoid issues in the future that created havoc. When the Home Valuation Code of Conduct went into effect by Fannie Mae and Freddie Mac on May 1st, appraisal protocols for mortgage loans changed. To protect consumers, loan officers, mortgage brokers and real estate agents can no longer choose appraisers….

Fannie Mae and Freddie Mac Are Easing Jumbo Mortgage Terms

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Fannie Mae and Freddie Mac buy mortgages which means that they guarantee them. Without the backing of Fannie and Freddie, mortgage lenders have to find other investors to sell their mortgage loans to and those investors charge more so interest rates are higher. Fannie and Freddie backed mortgages are called conforming; the others are called jumbo. The limit on a conforming mortgage is $417,000 but that is about to change….

Mortgage Rate Madness

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The most important first step in buying a home is financing which involves getting prequalified for a home mortgage.  It doesn’t matter if you’re buying Bergen County real estate or a home somewhere else – because your mortgage loan is so critical to your home buying process, you are naturally interested in any news about these loans.  Here is where you begin what I call Mortgage Rate Madness. People afflicted with this disease believe that…

My Take on the Sub Prime Mortgage Mess

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I’m not an economist – I’m just a real estate agent.  But, as opposed to what some of my friends will tell you, I am not crazy and I have a lot of common sense.  This is why what has happened makes no sense at all to me.  If only people had behaved responsibly there would be no sub prime mortgage mess. It all starts with the mortgage.  If you…