Foreclosures still rising through 2009

According to the Minneapolis St Paul Business Journal, foreclosures rose 58 percent in 2009. The Twin Cities foreclosure rates was 2.2 percent, which is in line with national statistics. Unfortunately, a rise was 58 percent is more than double the national average of 22 percent.


It’s difficult to say how that has an impact on buyers. It’s definitely still a buyer’s market – but foreclosures can be a double edged sword. The prices may be right but the condition of the homes and the loans may be less than desirable.


Contact an exclusive Minnesota buyer agent to figure out how you can make the most of the housing market today.

Dakota County 2010 First Time Homebuyer Mortgage Program

Thanks to our friend Paul Lundeen for the following info:

Dakota County 2010 First Time Homebuyer Mortgage Program

Highlights:

Current interest rate 4.99%, 30-year fixed rate - rate will periodically change
Must be a first time home buyer or have not owned a home in the past 3 years
Buyers must owner-occupy the property
Income Limit 1-2 person household $83,900
Income Limit 3 person household or more $92,290
Maximum Purchase Price

• $276,683 for single family home, townhome, or condo
• $389,205 for duplexes (not eligible for Downpayment Assistance)

Loan Types – FHA or VA ONLY
Loans immediately available for existing homes throughout Dakota County
New Construction Loans Available for select cities in Dakota County
Downpayment and Closing Cost Assistance Loans up to $10,000 available

• Available assistance depends on household income – call for details
• Zero percent interest loan that must be repaid upon sale or refinance
• Borrower must have at least $750 of their own funds into the transaction

Seller paid closing costs allowed per program guidelines
May utilize one-time $8,000 federal tax credit until deadline
Required 9 Hour Home Stretch Education Class – send your buyers NOW!

• Call (651) 675-4400 or (651) 675-4471 or
  Register online at www.dakotacda.org/home_stretch_registration.htm
  February 20, 8a.m. – 4:30pm
  March 11,16 & 18, 6 – 9pm
  April15, 20 & 22, 6 – 9pm
  April 17th, 8a.m. – 4:30pm
  May 13, 18 & 20 6 – 9pm
  May 15 8a.m. – 4:30pm
  Class space is limited so sign up early
  
• Paul Lundeen
  Senior Loan Officer
  Bell Mortgage
  Direct: 952-374-6107
  Cell: 952-221-6321

The foregoing statement is not an offer to enter into a loan agreement at a specified interest rate. An offer to enter into such an agreement may only be made pursuant to Minn. Statute 47.206. Rates and terms are subject to change without notice.

IRS Releases Homebuyer Tax Credit Information

A week after the original launch date, IRS officials released information about filing for the Home Buyer Tax Credit - 1st Time and Existing.

IR-2010-6 is the official news release and it provides you with links to the filing forms and instructions. It is important for consumers to attach the Settlement Statement with all pertinent transaction information when filing. We have the NEW Form 5405 and Instructions at our website, www.mnrealtor.com.

REMEMBER: Time is running out for existing homeowners to take advantage of the Tax Credit.
WASHINGTON - The Internal Revenue Service released the new form that eligible homebuyers need to claim the first-time homebuyer credit this tax season and announced processing of those tax returns will begin in mid-February. The IRS also announced new documentation requirements to deter fraud related to the fist-time homebuyer credit.

Read the entire Official News Release: IR-2010-6

Analysis of FHA Changes

The Federal Housing Administration made some changes to how they do loans. Word is the changes are painful but necessary. Part of the problem is that the FHA had so few rules in the past and so many mortgages (up to 40 percent) originate with them.

Here are some of the changes:

• Borrowers who get an F.H.A.-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of the loan, up from 1.75 percent.
  
• Sellers will no longer be able to help buyers to the same extent as in the past. The allowed support will drop to 3 percent of the value of the property, from 6 percent.
  
• Many were surprised to see that changes have not been made to the required down payments. Borrowers are still only required to pay down 3.5 percent of the home; private lenders often require at least 15 percent.

You can learn more in the recent article in the New York Times (F.H.A. to Raise Standards for Mortgage Insurance).

Thanks to Senior Mortgage Banker Brian Sunder for sharing the news with Buyers Real Estate Group.

January Monthly Skinny

Minneapolis Realtors just posted the first Monthly Skinny of 2010. The video has become a staple for folks in the Real Estate industry and anyone actively trying to buy or sell a home in the Minneapolis / St Paul area.

90-Day Seasoning Waiver Expanded

We heard some great news from one of Minnesota's top mortgage lender, Erika Kuhlmeyer Dragich at Brookstone Mortgage.

90-Day Seasoning Waiver Expanded

This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA's policies regarding the waiver of the 90-day seasoning required for sellers.Here are the 6 things you need to know about these changes:

1. Waiver takes effect February 1st, 2010 for a period of one year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must me arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller's acquisition cost, the lender must: a. provide supporting documentation and/or a second appraisal andb. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only.

To read the text of this waiver and specific details: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf

Home buying in 2010

Think back to house buying in 2010 – the biggest sales tactics for home sellers were sign yards, newspaper ads and open houses. For the most part only realtors had access to the MLS records. Few people had ever looked up a house online.


But that’s not it. Homes have changed:

Median home values over the past decade have increased more than 25%, from $137,600 in November 1999 to $172,600 in November 2009 (the most recent
existing-home data available). Fewer people are buying detached, single family
homes–82% in 1999 compared to 78% in 2009–but more people are buying homes in suburban neighborhoods–46% in 1999 compared to 54% today.

And homebuyers have changed:

Buyers themselves have also changed. A smaller proportion of married couples are
buying homes these days; while married couples comprised 68% of all home
purchases at the beginning of this century, they represent 60% of all buyers
today. Single men and women have made up the difference–single men purchased 10% of all homes last year, compared to only 7% 10 years ago. Single women now
represent more than one-fifth of all home buyers–21% up from 15% in 1999.

Want to learn more? Check out the latest from RIS Meida. Or contact an exclusive home buyer agent; we’ve been around a long time, we’ve seen the changes and we’ve been helping homebuyers deal with the changes for years.

Submitted by exclusive buyer agent, Mary Rugani.

Help with tax credits

Helping home buyers easily understand the home buyer tax credit is the goal of Better Homes and Gardens Rand Realty with the launch of its new home buyer tax credit website, the company has announced. The website (www.homebuyertaxcredit.com) provides buyers with extensive information and analysis of the tax credit, as well as an eligibility test to help buyers determine if they qualify.

If you have questions about your tax credits, this is a great place to start.

10 tips for homebuyers

Smart Money just ran a helpful article on the 10 Mistakes First-Time Home Buyers Make. Here’s an abbreviated list, you can check out the details on the Smart Monday site.

1. Not knowing how much house you can afford.
2. Assuming foreclosures are great deals.
3. Letting your true feelings show.
4. Failing to find a good buyer's agent.
5. Underestimating the costs of owning a home.
6. Failing to budget for property taxes.
7. Assuming your first offer will get accepted.
8. Skipping the inspection.
9. Doing too much too fast.
10. Failing to include a contingency clause in the contract.

Submitted by exclusive buyer agent, Lee Fisher

Keeping warm when the mercury dips

We love Minnesota. We wouldn’t be here if we didn’t but we’re also happy to get some tips on how to keep warm. RISMedia just came out with a list of tips; some will save money, some will save friends and some will save lives.

It starts with the most important reminders: Be safe! Don’t use an oven or fire to heat your own. Be sure to keep an eye on space heaters.

Then: Be smart! Eliminate drafts. Keep doors closed, especially to rooms you don’t use or plan to heat. Turn down the thermostat when you can to avoid high heating bills.

Finally: Be a good neighbor! Be sure to check on friends, family and neighbors in the cold weather. Make sure they are safe and sound. Offer to get them groceries when you’re out yourself, especially if they find it difficult to move in the bad weather. (This might include new parents as well as the elderly!)

Submitted by Minnesota Home Buyer Agent Mary Rugani

Get a Home Buyer Agent!

It’s not just our best advice, HUD is advising the same in the latest version of their HUD Booklet for homebuyers. NAEBA, the National Association of Exclusive Buyer Agents, views this as an important element of the new era of home buying.

“‘We are pleased to see that the wisdom of having someone in your corner and on
your side is being conveyed to buyers by HUD. Because most real estate agents
represent Sellers, HUD emphasizes, and the National Association of Exclusive
Buyers Agents stresses, that it is a Buyer’s responsibility to find an agent who
will represent their best interests in their real estate transaction.” said
Benjamin Clark, 2010 President of NAEBA.

At the Buyer Real Estate Group, we have long supported the idea of exclusive buyer agents to help us focus on the needs of our home buyers. We save buyers money, we help them get the best purchase agreement possible and we can help them find what they want in a home. We’re focused on the buyers, not the home. If you’re looking for a home in Minnesota, we hope you’ll check us out!