Houses More Affordable Than Ever

The National Association of Realtors has reported that the Housing Affordability Index jumped 13.6% in January to a record high of 166.8. Another sign that buyers bold enough to jump into the market will be rewarded. Not to mention the tax benefit they will receive for doing so prior to the end of the year! The aforementioned index measures the relationship between home prices, income, & mortgage interest rates. The index is the best it has ever been since monitoring of this relationship began back in 1970.

http://www.gatearty.com/blog/Entries/The_%22NEW%22_housing_tax_CREDIT/

Citigroup Lowering Morgage Payments

The national unemployment rate has climbed to 5.8%. Citigroup has announced however that it plans on lowering payments for those recently unemployed. The bank, which is now 36% owned by the federal government, established the Homeowner Unemployment Assist program, which will modify those who are unemployed and are 60 days behind on payments to an average payment of $500 for three months.  Customers must have a loan that is owned and serviced by CitiMortgage to participate in the program.

Read more at our Lakeland Real Estate Blog

Foreclosure Search in Lakeland Florida ?

Like searching the web for new property listings? Statistics indicate you are a part of a growing segment of consumers that make their initial property research online. Recent studies indicate that 97% of buyers search for real estate information on the internet first! That’s even before they contact a licensed professional REALTOR for assistance.  Well here at gatearty.com, we have added a new feature that we are very excited about. With the overwhelming influx of foreclosures in today’s market, there is increased demand for information on new foreclosures. Now you can find them! With our MAP SEARCH feature, you can specifically identify “FORECLOSURES” as a search function. So you can search & receive e-mail notifications once a property comes on the market that meets your specifications. Of course the most up-to-date information is available thru contact with your REALTOR, as the MLS database will feature the properties the instant they hit the market.

Read more at Gate Arty’s Real Estate Blog

Fannie Mae Loosens Up

Effective March 1st, Fannie Mae (which guarantees approximately half of the $12 TRILLION of the United State’s mortgage market) loosened loan restrictions on real estate investors & secondary home buyers. This move is seen as a major coup for real estate investors that wanted back IN the real estate market, but were essentially locked out. The new guidelines allow these borrowers to obtain Fannie Mae-secured financing for up to 10 properties. Most recently the amended limit was only 4 properties. Meaning, if you had already four mortgages, you could not buy another property with Fannie-backed financing. In essence, making it nearly impossible to buy & borrow. There are, of course, stricter financial underwriting guidelines. Some things to expect are:

• No foreclosures or bankruptcies in the last 7 years.

• A minimum credit score of 720 when the four property threshold is exceeded.

• Heightened reserve requirements that are tied to the type of property being purchased. For example, a multi-family dwelling (duplex, triplex, etc.) would have stricter reserve requirements than a single-family home.

• A borrower MUST have at least 25% down on a second home & at least 30% down on an investment property.

In spite of these stricter guidelines, this is great news for professional real estate investors, and is a major step toward loosening the credit flow stranglehold on the housing market. Now Freddie Mac, the other major player & insurer of mortgages, needs to follow suit.

Go here for more details

More Foreclosures

National filings of foreclosure exceeded 3 million in the 2008. Sound like a lot? Let’s put this into some context. That figure represents a staggering 81% increase from the already trying year in 2007. What’s even worse that that is it’s an astonishing 225% increase over 2006. If you are an investor looking for the “PERFECT” time to jump into the market, that time is NOW! With mortgage rates as low as they are, it is the perfect storm for the savvy investor or entrepreneur. The bold buyers must seize the opportunity because markets like this only come around once in a great while.

Read more at our Lakeland Real Estate Blog