ViewFromTheFootHills.com

Market update January 8, 2010

What’s going on in the market? Scott Cooper of Big Valley Mortgage knows his stuff! Read on…

Rates

Conventional 30 Year 4.875%-5.125%
FHA/VA 30 Year 5.0%-5.25%
Jumbo Conventional 30 Year 5.125%-5.375%
Investor 30 Year 5.25%-5.50%

5 Reasons to Buy Now!

1) Tax Credit Going Away:

$8,000 for First Time Buyers & $6,500 for Move-Up Buyers
• Must be in contract by April 30th, 2010
• Must close by June 30, 2010

2) Rates Positioned to Rise

The Fed has stated that it is set to discontinue buying Mortgage-Backed Securities in March.  (Many Analysts expect Rates to increase over 1%)
Low Rates= Low Payments!

3) Sales Prices Still Low

With increased sales activity and low inventory, we are seeing many properties appraisal for more than the sale price.  In addition, the recession is officially over and the economy is in the beginning stages of recovering.  These are good indications of increased sales prices in the future.

4) Appraisal Ordering is Getting Tougher

HA is implementing an HVCC style appraisal ordering process. This means we will lose the benefit of picking the appraiser.

5) Continued Tightening in Underwriting:

As lending tightens buyers who qualify today, may not qualify tomorrow.

Current Underwriting Basics

• Minimum Credit Score to Buy – 620 FICO
• Foreclosure – Can buy after 3 years
• Chapter 7 Bankruptcy – Can buy 2 years after discharge
• Chapter 13 Bankruptcy – Can buy with 1 year clean payment history from date filed
• Short Sale – Can buy 2 years after a short sale with no lates in the year prior to the short sale
• Can buy 3 years after a short sale with lates in the year prior to the short sale

Bottom Line: If you’re paying at least $1,000 in Rent, you should own!

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This entry was posted on Friday, January 8th, 2010 at 8:31 pm and is filed under Buying a Home, Market Trends. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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