Milford Ct Real Estate News

News Flash!! FHA is squeezed for money!

Donna Springer (Coldwell Banker Residential Brokerage) — Sat, 19 Sep 2009 16:04:36 -0500

Via TED CANTO, Sr. Loan Consultant (Academy Mortgage):

I found this to be very newsworthy information since many of AR members have been really focused on FHA and the First-Time Tax Credit. What a bumpy ride it's going to be. Tell me what you think! We are about to see a whole lot of lenders disappearing as a result of this. In fact, as of November 18th, FHA borrowers will no longer be able to finance their closing costs into their loans when they refinance, known as a "STREAMLINE REFINANCE" as one of the results of the current announcement. We all better wish for a recovery and fast.

The Federal Housing Administration has been hit so hard by the mortgage crisis that for the first time, the agency's cash reserves will drop below the minimum level set by Congress, FHA officials said.

The FHA guaranteed about a quarter of all U.S. home loans made this year, and the reserves are meant as a financial cushion to ensure that the agency can cover unexpected losses.

"It's very serious," FHA Commissioner David H. Stevens said in an interview. "There's nothing more serious that we're addressing right now, outside the housing crisis in general, than this issue."
...
[Stevens] said he is planning to announce Friday several measures that should help the reserves rebound quickly.
...
An independent audit due out this fall will show that the agency's reserves will drop below the 2 percent level as of Oct. 1, the start of the new fiscal year, Stevens said.
...
For one, he will propose that banks and other lenders that do business with the FHA have at least $1 million in capital they can use to repay the agency for losses if they were involved in fraud. Now, they are required only to hold $250,000. Second, he will propose that lenders also take responsibility for any losses due to fraud committed by the mortgage brokers with whom they work.
emphasis added

Here is a table of FHA lenders with a 2 year default rate of 15% or more (This consists of lenders with 100+ originations included). There are 10 lenders with "perfect" records (100% default), but they only have one or two originations each. Many of these lenders will probably go away with the new rules.

The FHA is banking on a "recovery in the housing market":

The new audit shows that even without any new measures, the reserves will rebound to the required level within two or three years largely as the result of the recovery in the housing market, Stevens said. This calculation is based on projections of future home prices, interest rates and the volume and credit quality of FHA's business.

It MUST be Spring-- I see signs of life in my garden and in Milford CT Real Estate

Donna Springer (Coldwell Banker Residential Brokerage) — Thu, 19 Mar 2009 20:17:21 -0500

Well, it seems we are starting to get over that long and dreary winter of 08 and signs of spring and a Spring Market are starting to appear. As of March 19^th, 34 homes in Milford CT have gone on deposit the Average List Price has gone up from $395,332 in February to $416,642. Another sign of new life in Milford CT real estate market is the Days on Market which has gone down from 112 days in February to 97 days so far in March. Go to www. CTHomeConsultant.com to view graphs for Milford CT home sales.

Many of the ‘seeds' needed to support a solid housing market have been planted - a feeling of hope and confidence in our new administration, the $8000 home credit which applies not only to first time buyers but also to most buyers who have not purchased a home in the last 3 years and interest rates hovering in the low 5s. Like all good gardeners -you need good seeds and the some fertilizer to enhance their growth-and now with housing prices repositioned to 2003 or better-before the bubble began ,buyers are doing their homework and no longer driven by impulse buying providing a solid basis for long term goal- Home ownership.

On a very local level, Milford CT has received $750,000 into the city's housing rehabilitation program which doubles the number of homes that it can serve. This grant is through the HOME Investment Partnership Program which is federally funded and offers a variety of loans and grants to develop and support affordable housing. It is administered through the state Department of Economic and Community Development.

According to the March 18, 2009 CT Post " Houses valued at $294,00 or less after the improvements, owned by individual or families earning 80 per cent or less of the city's median income can qualify. Milford's median income for a family of four is $61,500."

In addition to rehabilitating homes, they have expanded the grant to include expanding the living space of homes deemed too small for a family if the lot allows.

If you would like more information about Milford CT real estate or would like to get the word out on a Milford event- contact me donna @CTHomeConsultant.com.

Milford,Orange, Bethany, New Haven and Woodbridge,CT Real Estate Market Reports

Donna Springer (Coldwell Banker Residential Brokerage) — Tue, 10 Feb 2009 06:35:23 -0600

January 2009 versus January 2008 Real Estate Market Reports for Woodbridge, Bethany, Orange, New Haven and Milford,Connecticut

Listed below is a summary of last month's home sales activity versus this time last year. This information was obtained from CTMLS. Any information critical to the buying or selling process should be independently verified.

MILFORD