And whether you find those words deeply wise or simply puzzling…The Fed has told us repeatedly that their massive purchasing program of Mortgage Backed Securities is just about over – and this translates to home loan rates rising in the near future. As you can see in the chart below, the amounts of Mortgage Backed Securities the Fed is purchasing are slowly dwindling, as the program is set to wrap up by March 31st, and are clearly trying to ration out the remaining portion. Last week, the Fed purchased $11 Billion in Mortgage Backed Securities, which leaves them with $66 Billion to spend out of their original $1.25 Trillion allotment. So about 95% of the total has already been spent and has purchased about 3 out of every 4 home loans during the past year. When such a large buyer leaves the market, it is very likely that prices will worsen.

This is very important because as the Fed has less money to last through the remaining months of the program, their ability to keep home loan rates low via their purchasing power will wane. And those who can take advantage of currently low home loan rates do not wait, as the clock on these historically low rates is ticking.

Todays Mortgage Rates:

30 Yr Fixed – 4.75% (1 point) / 5% (0 points)

15 Yr Fixed – 4.25% (1 point) / 4.375% (0 points)

5 yr ARM – 3.625% (1 point) / 3.875% (0 points)

7 yr ARM – 3.875% (1 point) / 4.25% (0 points)

FHA 30 Yr Fixed – 4.75% (1 point) / 4.875% (0 points)

FHA 5Yr ARM – 3.875% (1 point) / 4.125% (0 points)

Investment – 5.3755% (0 point) / 5.5% (0 points) 25% down payment required

*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

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Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

If you are on the fence about whether to buy a home or not the new FHA changes that will be implemented this spring/summer may help you make up your mind.

If you have already decided to buy a home with a FHA loan now is the time to purchase before these changes go into effect. Remember you must be under contract by April 30th and settle by June 30th to also take advantage of the tax credit.

As banks have clamped down on mortgage lending, the FHA program has emerged as one of the few ways people can buy a home. A few years ago only 10% of home buyers utilized FHA insured  financing, today that number is 40%. Unfortunately out of a total of 5.8 million loans ($750 billion) that are insured by the FHA  more than half a million of the loans are seriously delinquent and heading toward foreclosure. In November the agency said its cash reserves had tumbled to  .53% of its insurance guarantees, well below the 2% ratio mandated by Congress and the 3% ratio it had last fall. The fund covers losses on the mortgages the agency insures.

The new standards are meant to shore up the agency’s finances. However the agency also wants to make sure that the new rules don’t disrupt the housing market and don’t hurt FHA’s ability to assist the underserved.

We think that the new standards are not unduly restrictive and the FHA is doing its best to protect the taxpayer and do the least harm to the credit supply.

These are the main changes that will affect FHA buyers.

** Upfront mortgage insurance premium (UFMIP) will increase to 2.25% up from 1.75%. Contrary to reports, FHA will continue to allow the financing of the UFMIP.

** Borrowers with credit score below 580 will need at least 10% down.

** Minimum down payment will remain 3.5% for all other borrowers.

** Seller concessions to the buyer (money that seller credits to buyer for closing costs) will be reduced to 3% from 6%.

Potentially Related Posts:
7 Facts About FHA Mortgages
What’s a Perfect Loan for a Philly 1st-Time Home Buyer
Applying for a FHA Loan

Technorati: fha loans, philly home buying, changes to fha loans, 1st time home buyers

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

The IRS gets the final say when it comes to who gets to claim the homebuyer tax credit, who does not, and under what circumstances.

There are some little-known interpretations that most loan officers, real estate agents and even tax advisors don’t know about.

The IRS have made a feeble attempt to update some of the First Time Home Buyer FAQs posted on their website but if it’s anything like the last extension, it will take them a while to do a full update.

In the meantime here are some important facts:

When a First Time Home Buyer buys a 2-4-family home, and occupies one of the units as their personal residence, they are only allowed to claim 10% (or $8000 max) of the unit they OCCUPY–not the entire sales price. Example: If the FTHB bought a duplex for $120,000 and the units are identical, the “cost basis” is $60,000 and the tax credit they can claim would be $6,000.

Income limits are based on ADJUSTED GROSS INCOME.

Income CAN Exceed $125,000 (single) and $225,000 (married) by up to $20,000 and FHTB & Long-term Residences can still get a partial tax credit based upon a “MAGI (modified adjusted gross income) formula” created by the IRS

New Construction – the “date of purchase” is considered the “date” the FTHB OCCUPIES the property–not the closing date or the start-or-construction date.

FIND YOUR PHILLY HOME AND GET YOUR TAX CREDIT  

Technorati: philly home buyer, ist time home buyer, tax credit, irs tax credit

posted by carolyn  REALTOR, Ecosociate™by Ecobroker International 
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Homebuyers ask us all the time about the amenities of a neighborhood and while we pride ourselves on knowing everything about the areas we sell once in a while we don’t know everything (hard to believe huh?) Walkshed Philadelphia allows users to input any address in the city and see the diversity of amenities within a one-mile radius.

Unlike WalkScore that measures the walkability of a neighborhood this site lets users prioritize the amenities they’d like to measure. Philadelphians and those that wish they were can score 19 different categories, ranging from a Philly CarShare pod, coffee shop, library, farmer’s market, and bus stops to tracking quality-of-life issues like instances of violent crime.

This is one more great tool for a well-informed buyers’ arsenal.

FIND YOUR PHILLY HOME

Technorati: philadelphia walkshed, philadelphia home buyers, relocating buyers, philly walkability

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

Do you have friends or clients who are buying a home? I’m a REALTOR who likes to give very different gifts, depending on whether my clients are buying their first, second or fifth home.

First time buyers are more apt to purchase a home that needs a little work.  They don’t have tons of money lying around – after all, they just spent most of their cash on settlement.  I’ve found that a gift certificate from Lowes along with a bottle of wine makes renovations easier. Other times, I choose a gift certificate to a nice restaurant in their new neighborhood.  In the middle of painting, they can get out, get a break, and enjoy a good meal without worrying about the bill. 

Second or third homes are less likely to need major work.  For these buyers, I might call Di Bruno Bro’s, the gourmet food shop in Rittenhouse Square. This way they can have a little bite to eat while they watch the moving truck unload. Odds are they haven’t eaten all day and they’re starving.  With a gift basket all they have to do is dig in.

Good luck to all homebuyers.  Hopefully these little gifts make moving day a little better.

HAVE HOT NEW LISTING DELIVERED FRESH TO YOUR INBOX

Technorati: 1st time home buyers, move up buyers, philly home buyers, closing gifts, philly realtors

posted by carolyn  REALTOR, Ecosociate™by Ecobroker International

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The new legislation includes extending the First-time Buyer Tax Credit of up to $8,000 and raising the qualifying income limits to $125,000 for single taxpayers and $250,000 for joint taxpayers, up from the current $75,000 and $150,000 income limits.

In addition, the legislation offers a new credit of up to $6,500 to qualifying EXISITING HOMEOWNERS who have resided in their homes for 5 out of the last 8 years and are buying a new home.

Agreements of sale will have to be signed by April 30, 2010 and settled by June 30, 2010

Homebuyer tax credit changes: Frequently Asked Questions (pdf)

FIND YOUR PHILLY HOME AND GET YOUR TAX CREDIT  

Technorati: 1st time home buyer, home buyer tax credit, philly home buyers, buy 1st home

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

ORIGINAL OFFERING PRICE: $389,000

612 CHRISTIAN ST, UNIT 1 & 3  BELLA VISTA

2 BEDROOMS / 1.5 BATHS

1,089 Square Feet

Condo Fees: $175/mo

10 Year Tax Abatement

Not your typical bank owned REO property…luxe, beautifully maintained new construction condominium residences. This is a boutique, 3-unit building w/ exclusive single floor residences. All units include temperature controlled garage parking and 8′x8′ storage lockers. Private, keyed elevator from garage opens directly into your unit!
 
Spacious homes boast high-end, traditional finishes including hardwood floors in living spaces/kitchens, Berber carpet in bedrooms, gas fireplaces, extensive recessed lighting throughout, significant moldings, endless windows allowing for extraordinary natural light, and wide-open floor plans. Kitchens w/ solid wood cabinetry, decorative moldings, GE Profile SS appliance package, natural stone countertops, and peninsula to accommodate stools. Baths clad in natural stone feature rich wood vanities, granite tops and double, under mount sinks. Each unit also has incredible closet/storage space throughout. There is a washer/dryer in each unit.

Only 2 available with special financing available through Conestoga Bank. Incredible value…

HAVE HOT NEW LISTING DELIVERED FRESH TO YOUR INBOX

Technorati: short sale, foreclosure, philly condos, philly deals

posted by janice        FIND Your Philly Condo. No Registration Required!

Because approvals, residential inspections, and other steps in the buying process typically take about 30 days, buyers hoping to take advantage of the incentive will need to have a contract by the end of October at the very latest. The new flurry of activity now as house-hunters try to meet the deadline is triggering bidding wars and energizing the property market, which historically is slow at the end of summer. As a result, more homes are getting their full asking price.

There is no repayment obligation required on this credit for qualified principal residences purchased from January 1, 2009 through November 30, 2009. To be exempt from repayment, the home buyer must stay in the home for at least three years. In addition to being a first time home buyer, there are maximum income restrictions.

Home Buyer Tax Credit in a Nutshell:

**The tax credit is for first-time home buyers only

**The tax credit does not have to be repaid

**The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000

**The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009

**Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit

And if $8,000 dollars isn’t a big enough incentive mortgage rates remain historically low:

Rates as of Monday, October 5:

30 Yr Fixed – 4.625% (1 point)/ 4.875% (0 points)
15 Yr Fixed – 4.125% (1 point)/  4.375% (0 points)
5 yr ARM-  3.875% (1 point)/ 3.625% (0 points)
7 yr ARM-  4% ( 1 point)/ 4.375% (0 points)
FHA –  4.75% (1 point)/  5% (0 points)
Investment – 5.125% (1 point) / 5.5% (0 points) – 25% down payment required

Potentially Related Posts: Philadelphia First Time Home Buyers: Federal Tax Credit Final Cut

FIND YOUR 1st HOME IN PHILLY AND GET YOUR TAX CREDIT 

Technorati: 1st time home buyer credit, philly home buyers, philly mortgage rates

posted by janice       SEARCH the Philadelphia MLS. No Registration Required!

30 Yr Fixed – 4.95% (1 point) / 5.25%(0 points)

15 Yr Fixed – 4.25% (1 point) / 4.5% (0 points)

5 yr ARM – 3.875% (1 point) / 4.125% (0 points)

7 yr ARM – 4.25% (1 point) / 4.625% (0 points)

FHA – 4.875% (1 point) / 5.125% (0 points)

Investment – 5.375% (1 point) / 5.625% (0 points) – at least 25% down payment required

*Rates are based on 80% loan to value unless noted and 720+ credit score (with the exception of FHA) *Income and Asset verification required and must meet DTI guidelines *This is not a commitment to lend and other conditions may apply

Overall, Bonds and home loan rates saw some nice gains early last week, but finished just slightly worse than they began, as Stocks closed at highs for 2009 and pulled some money away from Bonds. Whether Bonds can climb back up this week will depend not only on the economic reports due out, but also on how well the markets receive the incoming round of 2-year, 5-year, and 7-year Note auctions.

The $8,000 tax credit for First Time Home Buyerswas also in the news again last week. White House Spokesman Robert Gibbs said that the administration is evaluating the program and the effect it has had on home sales and will soon make a recommendation to the President. Although there’s been talk and speculation regarding the expansion of this program, as of now, potential buyers must complete their first-time home purchases before December 1 to qualify for the special credit.

Technorati: philly mortgage, mortgage market, carina marchese, center city mortgage company

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Brought to you by our favorite mortgage broker:

Carina Marchese
Center City Mortgage
267.238.5785

email Carina for today’s rate

1930 East Moyamensing Ave

3 Bedrooms, 1.5 Baths

1,040 square feet

Lot 16 x 65 (nice yard)

MLS# 5589971

$259,000

Walk Score 74 —Very Walkable 

For more information on this home for sale in Pennsport Philadelphia, please contact The Bovee-Perlow Group at Keller Williams Center City Realty: (267) 238-5779

Technorati: philly homes for sale, pennsport homes for sale, philly home buyers, philly first time home buyers

 posted by carolyn   REALTOR, Ecosociate™by Ecobroker International

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Find Out How Much Your Pennsport Home is Worth