Know Thy FHA Changes...

An FHA loan is a very valuable tool with it’s low down payment requirements, lower credit score requirements and the allowance of non-occupying co-borrowers. In the recent slow economy FHA loans have been in big demand, but unfortunately, dealing with that high capacity has lead the government to make some changes. Some changes are already in the works, inevitably more will follow.


One such change that has already been made is An increase in FHA Up Front Mortgage Insurance Premium. This change became effective April 1, 2010. UFMIP went up from 1.75% of the loan amount to 2.25% of the loan amount.

Impact to consumers--Higher up front and/or monthly expense if fee is financed.

Two changes that are in the works and will likely take effect:

1. An increase of FHA Monthly Mortgage Insurance. If enacted it will be an increased monthly expense to consumers.

Impact to consumers--Buyers with tight debt ratios will qualify for lower loan amounts.

2. A decrease in maximum seller contribution from 6% to 3% of contract price. If this does come to pass, it may negatively affect sales in some markets.

Impact to consumers--Those who lack cash for closing costs or downpayment assistance and rely on seller contributions for such, will no longer be in a position to purchase.

These are somethings to be aware of when considering an FHA loan. Don’t necessarily leave everything up to your mortgage professional, feel free to do some reading up yourself and ask questions. An educated consumer is always a better consumer!

The Price is Right!

Some 24 percent of listings currently on the market in the United States as of July 1, 2010, experienced at least one price reduction, according to Trulia.com.  

What does that mean to you, the buyer?  It means there are deals to be had.  It's still a buyer's market.  Your negotiating power is stronger than ever.  There is still a slight imbalance sometimes between what sellers think they should get and what the market will actually bare.  So it is to the buyer's advantage to have an astute real estate agent research other comparable sales in the area and negotiate with the seller.

What does that mean to you, the seller?  It means you need to choose a real estate professional who will price your house right.  You need to have an agent who will research recent sales in the area and find out what your home is really worth and price it accordingly.  This will lend itself to getting your home sold quickly without any price reductions that just prolong the sale.  An agent such as myself, will price it right the first time!

Despite some painting a gloomy economic picture right now, it is really a great time to move real estate!

What an awesome day yesterday. The unexpected unfolded and it made for a really terrific 4th of July celebration.  Great friends Marisa, Phil, Natalie and Philip, Bruna and Rocky joined us for the Town of Penfield Parade. Panini and a beer afterwards for lunch and Mesquite smoked ribs and fixens for dinner.  Such a treat to be able to spend some time with family and friends and to cook an amazing meal. 

Market Ambles Towards a Solid Recovery

Wow, what a June! Figures all of the pre incentive deadline transactions had to close sometime, eh?


In my real estate practice I noticed a significant drop in activity in May. Expected I guess but kind of scary in light of the unpredictability of the market and where its been the past 24 months! Fortunately both buyers and sellers seem to be back in play. The market quiets down in July and August. I'm always bullish so I think 2010 will break the quiet trend during these months.

Discover the featured listings at http://www.realestateonthemove.biz/. New listings added everyday.

The market is the market, sometimes dynamic and sometimes not. Sometimes worse than others and sometimes better. But statistics don't lie!

I've been watching Monroe County home sales for the past few months and see something of note in the numbers.  Weekly median sale prices show an uptick over the median year-to-date and the prior year-to-date. This seems to be the experience both in the suburbs, collectively, and in the City of Rochester. During the comparative periods the sales volume has been relatively the same.

Why is this significant? What does it mean? This means that sales price continues to rise here but a look at the magnitude of the numbers says that the upward move is cautious.  The trend is positive though and something to be pleased with in light of the news reports we hear from other communities.  Lets see what the numbers say at the end of the summer.  Hopefully the trend continues.  I am bullish on the trend! How about you?

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