Now is the time to turn those prospects into buyers.  As published on July 25 by the AP, mortgage rates are going up.  It is a great time to be a buyer as NEW HOME SALES prices are low, BUILDER incentives are high and RATES are starting to climb.

If you or anyone you know may be in the market for a new home; please be sure to let me know.  As always, I promise to provide the utmost in customer service.

All Types of Mortgages See Rate Increases

The House has gone and done it again.  They have approved the foreclosure relief bill.  I am not sure that this is a good thing for our industry, as it is going to take away the down payment assistance programs a lot of us rely on for our first time home buyers with limited down payment.  I would be interested in seeing what you have to say...let me know.

House Approves Foreclosure Relief Bill

The clock is ticking.  With the House passing H.R. 3221 Housing and Economic Recovery Act of 2008 it is only a matter of time before Down Payment Assistance Programs like Nehemiah and Ameridream are a thing of the past.  Please follow the link below to take immediate action.

http://capwiz.com/nehemia/issues/alert/?alertid=11598811

Here is how the bill reads:

Disclaimer: There are various forms of legislation and rule making regarding downpayment assistance currently in process on Capital Hill. Due to the dynamic nature of the political processes involved, the status of each can change at anytime, with or without our knowledge. For example, a piece of legislation that passes in the House is not a law until it is ratified by the Senate and signed into law by the President. For more information on the Legislative process, visit the U.S. Senate at www.senate.gov and/or the U.S. House of Representatives at www.house.gov.

SEC. 2113. CASH INVESTMENT REQUIREMENT AND PROHIBITION OF SELLER-FUNDED DOWN PAYMENT ASSISTANCE.

Paragraph (9) of section 203(b) of the National Housing Act (12 U.S.C. 1709(b)(9)) is amended to read as follows:

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  (i) such lien shall be subordinate to the mortgage; and
  (ii) the sum of the principal obligation of the mortgage and the obligation secured by such lien may not exceed 100 percent of the appraised value of the property plus any initial service charges, appraisal, inspection, and other fees in connection with the mortgage.
  (i) The seller or any other person or entity that financially benefits from the transaction.
  
  (ii) Any third party or entity that is reimbursed, directly or indirectly, by any of the parties described in clause (i). This subparagraph shall apply only to mortgages for which the mortgagee has issued credit approval for the borrower on or after October 1, 2008.''
(9) CASH INVESTMENT REQUIREMENT-

(A) IN GENERAL - mortgage insured under this section shall be executed by a mortgagor who shall have paid, in cash or its equivalent, on account of the property an amount equal to not less than 3.5 percent of the appraised value of the property or such larger amount as the Secretary may determine.

(B) FAMILY MEMBERS - For purposes of this paragraph, the Secretary shall consider as cash or its equivalent any amounts borrowed from a family member (as such term is defined in section 201), subject only to the requirements that, in any case in which the repayment of such borrowed amounts is secured by a lien against the property, that --


(C) PROHIBITED SOURCES.-In no case shall the funds required by subparagraph (A) consist, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

Ever notice how sometimes when the Feds cut rates, mortgage rates go up?  Me, too.  This is a great explanation as to why this happens.  It is a great article to use with those customers on the fence over continued drops in price.  If the rates go up and the price goes down; there is no upside for the buyer.  Now is the time to buy.  New Home prices are low, incentives are high and rates, although closing, are still near all-time lows.  Check it out and see what you think.

What the Fed Decision Means for You

This is a great article from Inman News.  With all of the negativity we see in the media, this is a refreshing look at the good that is available for buyers in the market place.  Although some of the negativity is rightly attached to this declining market, sometimes it is necessary to look at the "little picture" to see the "big picture". 

Earlier this year Dave Ramsey, financial author and Radio Talk Show host, was on CNN Larry King Live touting what a great buy Tampa Bay housing is right now. He was on The CBS Morning Show this week again commenting on the real estate market from Nashville Tenn. He said "There is no longer a national real estate market.  We are made up of local real estate markets which may be completely different."  He further said, "If I was in Tampa, Florida and I am a buyer this is a great time to buy!"

Read for yourself and make up your own mind; but I for one and planning on focusing on all the positives for our buyes and keeping away from the negative.  A wise man once said, "there are no bad days; just some days are better than others."  Below is the link to the article.

Rediscovering the American Dream