206 Westminster Ct, Madison, WI
$159,900( Pending Offer)
Tuesday, October 11, 2011
Monday, October 10, 2011
NEW FHA Loan Limits-Effective 10/1/2011
New FHA Loan Limits- Updated
The FHA has announced changes to the FHA loan limits for the remainder of 2011 beginning October 1st. The new limits mostly affect the most expensive housing markets in the United States, with lower FHA loan limits applied in these high-cost counties unless Congress introduces legislation to change the loan limits.
In an August 19, 2011 press release, the FHA announced, “On October 1, 2011, the Federal Housing Administration (FHA) will implement new single-family loan limits as specified by the Housing and Economic Recovery Act of 2008 (HERA). As a result, FHA will reduce loan limits in the highest cost metropolitan areas of the country while limits would remain unchanged in most other parts of the nation.”
The new, lower limits for high-cost counties that take effect October 1, 2011 were originally scheduled to become effective back in 2009, but the FHA press release states, “continuing strains in credit markets led the Congress to delay implementation. The result has been nearly three years of higher loan limits for some areas based on the Economic Stimulus Act of 2008.
FHA loan limits for most areas will be unaffected. In markets where housing costs are “relatively low” the low-end FHA mortgage loan limit or “floor” remains at the current $271,050 for “one-unit properties”.
The FHA official site adds, “The new “ceiling” loan limit for higher cost areas will be reduced from $729,750 to $625,500 for one-unit properties. FHA loan limits vary based on area median home price, but all will fall within the range of $271,050 and $625,500 for one unit properties.”
In an August 19, 2011 press release, the FHA announced, “On October 1, 2011, the Federal Housing Administration (FHA) will implement new single-family loan limits as specified by the Housing and Economic Recovery Act of 2008 (HERA). As a result, FHA will reduce loan limits in the highest cost metropolitan areas of the country while limits would remain unchanged in most other parts of the nation.”
The new, lower limits for high-cost counties that take effect October 1, 2011 were originally scheduled to become effective back in 2009, but the FHA press release states, “continuing strains in credit markets led the Congress to delay implementation. The result has been nearly three years of higher loan limits for some areas based on the Economic Stimulus Act of 2008.
FHA loan limits for most areas will be unaffected. In markets where housing costs are “relatively low” the low-end FHA mortgage loan limit or “floor” remains at the current $271,050 for “one-unit properties”.
The FHA official site adds, “The new “ceiling” loan limit for higher cost areas will be reduced from $729,750 to $625,500 for one-unit properties. FHA loan limits vary based on area median home price, but all will fall within the range of $271,050 and $625,500 for one unit properties.”
To make this easier to understand, FHA loan limits are now from:
$271,050 to $625,500
Only a small number of FHA loan applicants--those who want to purchase a home in the highest-cost housing markets--are affected by the new loan limits. The FHA says the October 1 lower loan limits will affect “669 counties across the country, out of a total of 3,234 jurisdictions in which FHA insures home loans.”
Where applicable, loan applications with an FHA case number assigned on or after October 1, 2011, will be subject to the new limits--with some exceptions. The press release says those exceptions apply to “FHA-insured to FHA-insured refinances that are noted in HUD’s Mortgagee Letter.”
At the end of the year, loan limits for 2011 will be reviewed as usual for 2012 and any changes will be posted by FHA/HUD in the usual manner.
Where applicable, loan applications with an FHA case number assigned on or after October 1, 2011, will be subject to the new limits--with some exceptions. The press release says those exceptions apply to “FHA-insured to FHA-insured refinances that are noted in HUD’s Mortgagee Letter.”
At the end of the year, loan limits for 2011 will be reviewed as usual for 2012 and any changes will be posted by FHA/HUD in the usual manner.
FHA Loan Rates Today are at:
4.125% with 3.5% down payment
What does this mean in real dollars??
On a $200,000 purchase, your monthly mortgage payment would be $935.37 a month!
Two Story Prairie Style Home on 1/3 of an acre backing to mature trees and green space
$269,900
3282 Box Hill Rd, Sun Prairie, WI 53590
Prairie style 2 story with maple floors on most of the main level. Large kitchen with stainless steel appliances, pantry and eat up bar. Living room has 5.1 surround system, gas fireplace and lots of entertaining area. Large composite deck backs to mature setting and green space! Master suite has full bath, walk-in closet with organizers. Laundry upstairs. 3 additional bedrooms upstairs with Master bedroom suite with full bath. Finished lower level with full bath and 7.1 surround sound built-in. Lots of storage!
Available now at the current rates for $1015 a month. Rates are at 3.875% for a 30 year fixed rate!
5103 Raymond Rd, Fitchburg, WI $200,000 for a ranch home in Verona School District
5103 Raymond Rd, Fitchburg, WI 53711
$200,000 (Accepted Offer)
This home is priced to sell. At the current rates, this home would be $750 a month. This cheaper than rent on the west side. Plus with over 2200 sq. ft, your own yard and the school district make this a great buy for a first time home buyer or empty nester.
Thursday, September 8, 2011
The Return Of Real Estate In Madison, WI
As I am sitting in the waiting room of my financial advisor
at Merrill Lynch, I always like reading the latest news and articles of the
Wall Street Journal, Harvard Business Review and Fortune Magazine. This month I chose Fortune. The headline of the entire magazine is where
I got the title for this article. Shawn
Tully writes a very good article talking about all aspects of real estate from
mortgage lending, new construction and foreclosures and what all of these
pieces not only mean to us as Realtors but what they mean to this market.
Tully starts off talking with a rancher from Texas he
knows. The rancher and home builder,
Mike Castleman, states “the talking heads of the world that are down on real estate
will hate to hear this, but America needs to build a lot more homes.” Castleman is the CEO and founder of
Metrostudy. His company analyzes real
estate data and new home inventory over the past 30 years. The key figures he collects are the number of
homes that are vacant and for sale in each city and the number of months it
takes to sell all of them. With all of
this information, his company can then tell if there is a shortage or surplus
of new housing.
In the 41 cities he studies, 78,000 homes are now either
vacant and for sale or under construction.
This is ¼ the number of 343,000 homes that were on the market at the
peak in 2006. If market conditions
change and normal consumer spending resumes, we will have a shortage. Castleman believes this is where we are
headed and soon.
Consumers are confused due to the over whelming amount of
ever contradicting news. One day it is
the best time to purchase real estate and the rates are at historic lows. The next day, you hear that the market went
down 500 points and real estate prices are falling. What do you believe? All of it has truth and relevance. The market, depending on where you live, is
the best time to buy to higher inventory levels and historically low prices. Plus with the mortgage rates as low as they are
now, it is cheaper to own than rent!
Karl Case from Case-Shiller Price indices agrees that the housing market
is recovering and is in his words “the little engine that could.”
To truly see where prices and real estate are headed is looking
at key fundamentals. The basic forces
that govern the market are the cost of renting versus owning and the level of
new construction. With this view we are
heading back to a new market view of an improving market. Prices have come down 30% nation wide and
harder hit areas saw 55% decrease in values.
The American dream declined and possibly was forgotten for many years
since the 2006 bubble burst. A return of
that dream will start to decrease inventory, start new home construction and
see a rise in pricing.
Mortgage money is available and credit standards are at
historic levels as well. Affordability
is also a large piece of the market and confidence returning. Mark Zandi, chief economist at Moody’s
Analytics, has found that homeowners now pay 9.8% of their income in after-tax,
tax and insurance payments toward the mortgage each month. That is down from the 17.2% it was in 2007. This is so low that he looked and found that
this is as low as 1999.
Another factor to look at is renting versus owning. In 28 of the 54 markets studied, it is now
cheaper to own then rent. Every market
is different and that is why Realtors are so important to help their buyers and
sellers understand what market they live in and what to expect in the current
climate. Add job growth to this equation
and then confidence will start to gain. If
renting is more expensive than owning, the market will start to creep up every
so slowly. Some markets will start to
see them move faster due to the shortage of existing homes and new
construction.
To wrap this up, there will be return to the market and we
are seeing those signs in areas around South Central WI. Once demand starts to increase, then other
sectors will need to ramp up to keep up with demand. This will naturally drive pricing up. In order to get a good price on a home,
Castleman’s advice is to “Beat the Crowd!”
Sunday, August 28, 2011
Short Sales...Why Do They Take So Long??
Items that can make the process seem like it is taking a long time is the submission process for the listing agent. They have to gather a lot of information in a short period of time and submit the entire packet in full before the bank will even look at the offer that was submitted.
A buyer must understand that just because the seller of the home accepted their offer, doesn't mean the bank will accept the terms and price of the offer. They will most likely be renegotiated. Everything from the bank will also be verbal. No offers are final unless they are in writing!! Don't believe that you have an accepted offer until you have the banks signature.
There are a couple of items to consider when looking to purchase a short sale. Here are a list of 7 questions that you should ask to your agent or the listing agent:1. How many offers are being “pended?” Would you get the buyer involved if there were 10 offers already being “pended?” It’s up to the buyer.
2. How long has the property been on the market?
3. How many short sale transactions has the Listing Agent completed?
4. What is the average price of the last five traditional listings that have sold in the marketing area? Why put a buyer through the process of buying a Short Sale property when you could find another property at the same relative price that is a traditional listing? One of the main attractions of a Short Sale property is the PRICE!
5. How many payments has the seller missed? It takes time to complete these sales, and foreclosure could take place prior to a short sale transaction being settled. It’s important to know how long it takes for a property to be foreclosed on from the time of the first missed payment until the “foreclosure sale.”
6. How many second or “junior mortgages” or liens are on the property? Junior mortgages can be a real deal killer.
7. What’s the contact number for a Home Inspector who can inspect the home on a short notice?
Thank you to Leroy Houser for most of this information! He is the leading CRS instructor on short sales and foreclosures.
Happy shopping and let me know if you have any further questions about short sales!
Tuesday, August 9, 2011
The real estate consumer is not always right?
In today's market whether you are a buyer or seller, the market is ever changing. Whether you are selling your home and the agent you hired didn't give you the actual market value but instead took the price that you want to ask for the home or you are a buyer looking for a deal in this market, hire an agent that is going to not only help you every step of the way, but who will truthfully state the market value and what your options are in this market.
Every market is different and sales can vary from city to city and even neighborhood to neighborhood. Real estate professionals know this best and deal with the market everyday. In Teresa Boardman's article: " The real estate consumer is not always right", she states that "when we go along with what the customer or client wants, we are not acting in the client's best interests, or even in our own. And that rule applies to matters other than price, too."
Buyers and seller's have access to an enormous amount of information and TV shows that cover all facets of real estate. Whether it is someones first home or a renovation over haul show, most consumers take what happens on these shows as the truth in their area.
A Realtor has access to and works in the field every day and can provide you with correct data about your home or a home you are looking to purchase. The market may not be for everyone right now but you have to assess your situation and your personal economy to determine what is best for you.
I would personally enjoy working with someone who tells me what I need to hear rather than what I want to hear. It may be scary or hard to listen too, but it is more respectful if I get the truth.
What type of Realtor would you rather work with? I would love to know your thoughts!
Every market is different and sales can vary from city to city and even neighborhood to neighborhood. Real estate professionals know this best and deal with the market everyday. In Teresa Boardman's article: " The real estate consumer is not always right", she states that "when we go along with what the customer or client wants, we are not acting in the client's best interests, or even in our own. And that rule applies to matters other than price, too."
Buyers and seller's have access to an enormous amount of information and TV shows that cover all facets of real estate. Whether it is someones first home or a renovation over haul show, most consumers take what happens on these shows as the truth in their area.
A Realtor has access to and works in the field every day and can provide you with correct data about your home or a home you are looking to purchase. The market may not be for everyone right now but you have to assess your situation and your personal economy to determine what is best for you.
I would personally enjoy working with someone who tells me what I need to hear rather than what I want to hear. It may be scary or hard to listen too, but it is more respectful if I get the truth.
What type of Realtor would you rather work with? I would love to know your thoughts!
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