Charleston, SC Posts

head_left_image

New Housing Bill-what does it mean to buyers and sellers?

A new bill was passed by Congress today which will affect Buyers and Seller. 

•1.    DOWNPAYMENT ASSISTANCE BAN: The bill will remove downpayment assistance (DPA) programs for FHA loans effective September 30, 2008.  However, it's not too late!  Now is the time to buy! It's time to get under contract before the deadline.  Sellers, this means, the only way for a non-veteran borroweRS to get 100% financing is going to be gone in less than 60 days. 

•2.    INCREASE FHA DOWNPAYMENT: Additionally, the minimum downpayment has increased from 3% to 3.5%.

•3.    INCREASE LOAN LIMITS: There was a permanent increase in "CONFORMING LOAN" limits also.  The cap use to be $417,000.  Mortgage will now be guaranteed up to $625,500 by Fannie Mae and Freddie Mac. This also applies to FHA loan limit caps making it easier to for borrowers in upper price ranges to get mortgages.

•4.     NEW HOME BUYER CREDIT: The good news about the bill is that first time homebuyers will now be able to receive a $7500 tax credit up to 10% of a homes purchase (but no more than $7500). The refund, however, serves more as an interest-free loan, since it would have to be paid back over 15 years in equal installments.

So what does this mean?

In the Charleston market, one of the biggest obstacles in the current market is financing options for qualified buyers without a downpayment.  Quite frankly, there are none unless the buyer qualifies for a VA loan.  This mean that time is running out for buyers that might qualify under this program.  With the removal of this program, this financing incentive is no longer available reducing options to sellers to attract buyers. It's not too late!

The real estate has serious problems.

You need a realtor with serious solutions.

Call or email the Charleston Relocation Expert if you are ready to purchase a home or need marketing solutions to get your home sold.

 

michele@CharlestonRelocationExperts.com

843-814-6680

Michele Reneau, ABR, GRI, CRS

www.CharlestonRelocationExperts.com

Follow us on Facebook at www.facebook.com/CRETeam

Comment balloon 4 commentsMichele Reneau • July 30 2008 08:56PM
New Housing Bill-what does it mean to buyers and sellers?
share
A new bill was passed by Congress today which will affect Buyers and Seller. •1. DOWNPAYMENT ASSISTANCE BAN: The bill will remove downpayment assistance (DPA) programs for FHA loans effective September 30, 2008. However, it's not too late… more
Charleston mid-year state of the market address
share
We have passed the halfway mark for 2008. 2007 closed out the year with just under 13, 000 closed transactions. We are behind the mark as of June 30, 2008. During the same time frame in 2007, January through June, There were 16, 223 new… more
What do you do when the door is ajar on a vacant property?
share
I was showing property downtown last week in Hampton Park. We got to a house close to Burke High and the stadium. My notes said the property was vacant so I was surprised to see the front door open. As I knocked, yelled and then peeked in, it was… more
Going Green
share
Our office had a vendor come to our sales meeting last week and I signed up for a free evaluation of my house to see how inefficient it was and what fixes could be done. The company, Eco Unit offers several different "green services" to… more
The most darling community
share
I had an Open House on Sunday in White Gables located in Summerville, SC. It was a great turnout for a steamy Sunday afternoon. This community is patterned after downtown Charleston, but without the price tag and with cheaper taxes! It's less than… more
Are lease options a good idea?
share
As interest rates remain unsteady and lenders tighten guidelines, there is a general sentiment among buyers that still believe renting is a waste of money; however, they don't have enough of a downpayment to make a purchase. Lease options or "… more
What does being an American mean to you?
share
In reflection of yesterday's celebration of Independence Day, I'd like to share just a slice of my story. My dad served 26 years in the US Army. My mom met my dad during his tour in South Korea in 1975. She immigrated to the United States… more
It's needed for houses young and old…
share
It's time to add yet another strong recommendation to new listings, for houses young and old alike. Pre listing inspections. I do a pre-CL100 (or termite report) for older homes where the likelihood of termite issues increase when a termite bond… more
Normal Market = Normal Realtor? What's Normal?
share
I read an article about a normal market and I started wondering… what exactly is a normal market? Hmmm… a leveling of house prices, buyers no longer buying on speculation and sellers only selling when it's necessary?? Ok, well, that seems to be… more