Proposed changes to a federal mortgage loan program that now accounts for a substantial number of all new home loans have Hawai’i lenders concerned that many condominiums in the state could become ineligible for such lending. The proposed changes stem from an effort by the U.S. Department of Housing and Urban Development to reduce fraud and risk in lending through the Federal Housing Administration.
The Mortgage Bankers Association of Hawaii fears that 545 Hawai’i condo projects will automatically lose their eligibility for FHA lending next year under revised rules proposed by the agency.
FHA loans are available for single-family home and condo purchases. For condos, the loans are limited to projects that meet certain requirements, such as those with no less than 50 percent of units occupied by owners, no more than 15 percent of units delinquent on association fees and no more than 10 percent of units owned by one investor. But in some cases these requirements haven’t been reviewed after condos obtained initial FHA lending approval years or decades ago.
Under proposed rule changes, all condos automatically would be removed from FHA’s approved lending list two years after a project was placed on the list. In Hawai’i, that would mean virtually every condo project on FHA’s approved list, or 545 projects, would be removed.
The Mortgage Bankers Association of Hawaii had asked that previously approved condos in the state remain on the FHA’s approved list for two years to allow time for more orderly reapprovals. Initially, the removal was slated to take effect Dec. 7 upon implementation of the new rules. However, recently the agency granted a grace period of one year before condos with old approvals will become ineligible for FHA loans unless they are reapproved.
Contact me for more information on how this proposed change may affect your purchase or sale of a Hawaii Kai condo.
In real estate we only have two types of customers, buyers and sellers. Their needs are, of course, very different and we’ll look here at what sellers of real estate want from us and how we can provide it.
Know the basic precautionary steps to take before you allow that first open house visitor through the door. Don’t be alone, guard your back, check doors and windows and keep keys handy.
If you want to get the listing, no matter what the listing price, then don’t read this. If you actually want to have a chance of selling the home, talk about absorption rate with the listing prospect.
The debate will likely never end as to whether to put your listings on your blog. I side with those who say you should not. But there are plenty in the other camp. Learn the downside.
Foreclosure listings can be daunting to the seller of a home. They look like bargains to many buyers, and there can be many of them as competition during down real estate markets. Smart sellers know that they do have advantages.
Home staging is the process of preparing a home to show in its very best light. This is beyond cleaning. Clutter and personal items are removed, furniture is re-positioned, and items might even be added from rental sources. Learn the basics of staging homes here.
The St. Joseph Statue for real estate sellers is quite a popular strategy, with increasing use during slow real estate sales periods. What’s it all about, and should real estate agents advise that sellers bury St. Joseph in the yard for a faster home sale?
A real estate agent that handles listings will be involved in a myriad of details and activities. From checking the morning hot sheet, to doing comparative market analysis and making listing presentations, the listing agent is kept quite busy.
It’s pretty disappointing to the Seller and not good for the real estate agent to list a property, market it, and get an offer accepted from a willing buyer, only to find out that there’s a problem with the title, survey or access on a property. This problem is mostly in rural areas with properties that have been in the family or current ownership for many years. It is imperative that you help your client by gathering all the documents they have at listing time for examination.
Some real estate agents are getting an advantage in their listing presentations by offering an opt-out warranty if the seller isn’t satisfied with their services. There are opinions on both sides, but it could be for you.
Real estate listing agents spend a great deal of time following up with their listing clients. In these conversations, many times the seller has concerns, questions or complaints that must be addressed.
Tell your listing clients about low offers, disclosure document procedures, closing costs, inspection challenges and repair negotiations at the beginning of the listing for a smoother listing and transaction.
Before you get in front of that listing prospect, be sure you have your ducks in a row. You’re presenting your experience, expertise, marketing and transactions services.
Real estate agents and brokers are called upon regularly to meet with sellers as listing prospects. Whether they’re friends, referrals or just a call on the phone, know how to conduct yourself at the listing presentation.
Many an agent has built their new career on contacting expired listings and impressing them with their ability to do better than the last real estate agent or broker. The consultive approach, with straight-forward information and a formula to help you introduce hard facts about property condition and pricing is presented in this hard-hitting flyer.
Real estate agents daily check what’s called a hotsheet, or recent activity report from their MLS system. It shows new listings, status changes, price changes, etc. There are certain things that an agent wants to watch for their listing clients.
When working as a listing agent, you are showing your clients’ property to prospective buyers. To better serve your sellers, you want to be sure that the prospects you’re bringing to the listing are able financially to purchase and at least have some basic level of interest.
It’s unfortunate that so much time and effort is spent dealing with concerned sellers about marketing and what is and isn’t working in their perception. If real estate agents and brokers would be clear at the beginning as to what they will be doing and how it works, their sellers would be happier.
We all do business every day with companies that have their policies under which they operate. It’s OK for you, as an independent business person, to have policies also. Your CMA is a “work product” that comes from your knowledge and resources. If you leave a listing presentation without a signed listing agreement, then your policy should be to not leave your CMA.
A good comparative market analysis is simply defined as one that helps to yield an accurate and reasonable listing price for a property. However, easily defined and easily produced are not the same. A good CMA requires attention to detail, mathematical skills, experience and a bit of creative thinking.
We all have to start somewhere, but the customer might have a problem with it. Learn what to say to jump the “new agent” hurdle in your listing presentations.
The National Association of Realtors® has prepared a Field Guide to Open Houses. There’s no substitute for experience, and NAR capitalizes on the knowledge of their member base to prepare these field guides.
In a week full of major economic news, mortgage rates ended with little change. Wednesday’s Fed meeting produced little reaction in mortgage markets. The PPI inflation report was higher than expected, but the more closely watched CPI report was right on target, remaining at low levels. Economic troubles in some developing nations produced a flight to safer assets, which helped mortgage markets late in the week.
As expected, the Fed held the fed funds rate steady and made no indication that it will raise this rate any time soon. Its statement contained no surprises. Of note, it described improvement in the job market since the last FOMC meeting, as the “deterioration in the labor market is abating.” The Fed expects inflation to remain low. Finally, the statement reminded investors that the $1.25 trillion mortgage-backed securities purchase program will conclude at the end of the first quarter of 2010. Mortgage investors were generally pleased that there was no unfavorable news from the Fed meeting.
The housing sector data released during the week was mostly favorable. November Housing Starts rose 9%, and Building Permits, a leading indicator, showed similar results. The December NAHB Homebuilders Sentiment index surprisingly dropped slightly, to the lowest level since June. Given the passage of the extension and expansion of the homebuyer tax credit, the index was expected to rise.
For expert assistance with your financing needs, call our in-house mortgage executive, Rick Cannavaro, at (203) 672-2706.
Jumbo loan limits range from $417,001 to $1,000,000*
30 yr jumbo fixed: rate = 5.250% APR = 5.452%
15 yr jumbo fixed: rate = 4.875% APR = 5.154%
7/1 yr jumbo ARM: rate = 4.625% APR =5.225%
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CHFA (Connecticut Housing Finance Authority) rates for the week of December 17 – December 23 , 2009
Homebuyer Mortgage Plan:
Interest rate: 4.375 % (APR range 4.475 – 4.875%)
Fees: Up to One Point (1% Origination Fee) * Payable to Lender
Term – 30 years, fixed rate
Downpayment Assistance Program (DAP)
(Rate listed is for DAP loans with Homebuyer Mortgage Program financing.)
Interest rate: 4.375 % (APR range 4.475 – 4.875%)
Fees: Up to $2000 Application Fee * Payable to Lender
Term – 30 years, fixed rate
