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4th Quarter 2012 Housing Market Showing Recovery

4th Quarter 2012 Housing Market Showing Recovery

A new report from the U.S. Department of Housing and Urban Development showed a national recovery in the housing marketing in the fourth quarter of 2012, however regional statistics varied. From the summary, housing production was up in 2012 with a 24% increase in new single family home construction over 2011 and there was a 19.9% increase in new single family homes sold. On top of this great news for the housing markets, even better news for buyers was also included in the report: a record low 3.66% average interest rate for 30-year fixed-rate mortgages.

Low Interest Rate Mortgages, Doctor Mortgages, Government Loans

 

The report summary can be found here: Fourth Quarter 2012 U.S. Market Conditions

Positive Housing Numbers in the Southeast Virginia

Positive Housing Numbers in the Southeast Virginia

In a recent report from the U.S. Department of Housing and Urban Development, both the sales of home in Richmond and Virginia Beach as well as the prices of homes are on the rise. Here is an excerpt from the report:

According to CoreLogic, Inc., during the 12 months ending September 2012 (the most recent data available), new and existing home sales in the Virginia Beach and Richmond metropolitan areas increased 8 and 3 percent, to 21,450 and 15,650 homes, respectively. Average home sales prices increased 1 percent each in the Virginia Beach and Richmond metropolitan areas, to $220,200 and $210,100, respectively.

HUD Pic

This is great news for the housing market as it shows stabilization in the region. However, if you are considering buying a home, now is a great time because prices haven’t risen dramatically – yet. Many forecasters are calling for this recovery to be slow, but when trying to build equity in a home, buying at the bottom of the market will give you the biggest opportunity.

If you have questions about funding your home purchase with a traditional mortgage or a specialty mortgage, give me a call. I’d love to help you explore your options. Click here to visit my contact page.

FHA Mortgage Changes – How Will it Affect Your Ability to Buy a Home?

FHA Mortgage Changes – How Will it Affect Your Ability to Buy a Home?

Big changes are expected in the Federal House Administration pending congressional action this week. A recent story in the Wall Street Journal outlines potential losses amounting to billions of dollars as a result of the housing bust that experienced in 2007. Here is an excerpt from the article:

The Federal Housing Administration, a significant backer of new mortgage lending over the past five years, is facing billions of dollars in potential losses, as many loans that it guaranteed during the recession have soured. The agency’s independent audit last fall showed that at its current pace, the FHA would exhaust its reserves and need $16 billion from the U.S. government to cover projected losses.

That would be a blow because, since its creation in 1934, the agency has never required Treasury assistance. The FHA doesn’t issue mortgages. Instead, it insures lenders against losses on loans that meet its standards, and charges fees to borrowers to cover any losses. The agency’s newly installed commissioner will testify before a congressional panel on Wednesday, but the FHA won’t say how much it may need until the White House releases its annual budget request in March.

This graphic from the article shows the shrink and boom of the FHA’s role before and after the bust, the number of defaults the agency has faced and the percentage of pas due loans in a year by year comparison.

FHA Chart from Wall Street Journal

Some of the changes expected as a result of congressional action are as follows:

  • FHA could require that lenders manually underwrite loans for borrowers who have a 620 credit score and debt-to-income ratio above 43%.
  • FHA would increase the down payment requirement to 5%, from 3.5%, for jumbo loans above $625,000.
  • A requirement that new FHA borrowers continue paying annual premiums for the life of the loan as opposed to keeping the policy until the balance reached 78% of the original purchase price.

We will have to wait and see how congress votes in the coming weeks, but changes could come as early as April.  We will stay tuned to any updates and keep you apprised of future developments on this topic. If you are thinking of buying a home and are relying on FHA backing, you may choose to accelerate your  plans to ensure that you get in under the current FHA rules.

 

Dr. Schulman Testimonial

The easiest refinancing process I could imagine. The rates were phenomenal compared to the competitors for a doctor mortgage. And, J’s assistant, Jen, made the process so streamlined that every step was a breeze. I closed only 34 days after I first contacted them to inquire. Couldn’t really ask for anything more from this process. -Jeff Schulman, MD, Alexandria, VA

Interested in learning more about the doctor loan program or getting preapproved for a loan? Click here.

Dr. Chapman Testimonial

I worked with several loan officers during my search for a new home, and at first it was a frustrating experience. The officers never seemed to know who I was, would forget the details of my file, and were often difficult to reach. I got the impression I was just one of hundreds of names on a list, in a process that reminded me of buying a used car.

Then, fortunately, I contacted Mr. Mansisidor. From our initial conversation he was different. Professional, on top of details, and – most importantly – always available. I could call him at any time (and I did) and he would pick up. He knew my file, he knew where we were in the process, and he always had answers to my questions or knew how to get them. Along with his excellent assistant, Jen Geno, he provided a home-buying experience that was low-stress and efficient. I have recommended him to friends and family and will continue to do so.
-Corry Chapman, MD, Alexandria, VA

Sara Reznicek Testimonial

As first-time homebuyers with a lot of questions, J. Mansisidor and his team were the perfect fit. They walked us through the process and were incredibly responsive to our inquiries along the way. J. and his team went above and beyond working within our extremely short time frame to make sure that everything was ready to go for closing. J. and his team made a potentially stressful process easy. We look forward to working with J. and his team in the future and would recommend them without reservation.
-Sara Reznicek, Baltimore, MD 

Dr. Irons Testimonial

J. and Jen provided excellent service during my home buying process. It took me over a year to find and close on a home. Even with the unfortunate multiple extensions to my closing date due to the short sale process, J and Jen handled the extra paperwork and my concerns with finesse. Also, J attended my closing to make sure there were no loose ends. I recommend J and his team without reservations.
-Michele Irons, MD, MS, Richmond, VA

Dr. Nash & Dr. Holt Testimonial

J goes way beyond the call of duty, and is truly exceptional at what he does. He is thorough, professional, intelligent, conscientious and kind. He makes himself readily available, even taking phone calls at night and on weekends. He makes you feel that you are his number one priority, and even came to our closing. I can’t imagine using another loan officer now that we have had the J experience, and we will certainly recommend him to our friends and colleagues.
-Dr. Nash and Dr. Eric Holt

Richard & Morgan Irish Testimonial

Once we had found our future home we ran into the issue of our original lender not being able to work with us to close when we needed. After talking to J. Mansisidor and explaining to him our situation, he came to our rescue and worked diligently to obtain a better mortgage rate and close considerably faster than we could ever have hoped! At each step of the loan he kept us well informed, and gave great attention to the details that are so important. If any of our friends have mortgage needs he will be the first person we recommend!
-Richard & Morgan Irish, Williamsburg, VA