There is some great news for home buyers (and sellers!) on it's way in.  On December 14, 2007 the Senate passed a new law - the FHA Modernization Act of 2007. 

What is this?

Essentially, this will help buyers by offering alternative ways of borrowing money that are much less risky than the sub-prime mess we saw.  There are a couple main features involved with this law.

Current Assistance.  It will assist homeowners who are in a current unfortunate situation of not being able to pay their mortgage payments as a direct result of being involved with the sub-prime Adjustable Rate Mortgages.

FHA Loan Increase.  The FHA will increase loan limits to help first-time home buyers, minority buyers and others who do not qualify for conventional mortgages.

Mortgage Insurance.  The FHA will make mortgage insurance much more widely available.

High Risk Borrowers.  The FHA will make it easier for high-risk, but credit worthy, buyers to obtain financing.

The FHA will also work directly with borrowers in default to help them restructure their loans.  The goal is to avoid foreclosure, the bank doesn't really want the house back. 

But, that is about buyers.  I'm a seller!  How does that affect me?  Well, look at it this way.  We can take it right back to supply and demand.  If there are more buyers out there buying homes, then more homes are selling. 

Let's start at the bottom of the food chain.  A first-time home buyer can now obtain financing that they previously could not.  They buy a nice entry level home.  Now, that entry-level home seller can afford to move up and buy a bigger home.  Then, the seller from the bigger home can afford their retirement, vacation or investment property.  See how that works?

Most people who are selling their homes are selling them to buy more real estate!  It's a continuous cycle, and one that I love.

Currently, this bill is on the way to the President to be signed into law.  This should happen rather quickly.  Once it does, I think that things will be changing for the better in real estate and I'm ready for a nice little burst this spring.  If you're thinking of buying, now might be the time while prices are still a little softer.

Looking for residential, investment property or land in Northern Snohomish County or Camano Island?  When it comes to real estate, my goals are simple.  Let me put your needs first.

Jen Hudson, GRI (360) 652-1200 or jen@jenhudsonhomes.com