Majority of Americans Say It’s a Good Time to Buy

Gallup.com (as in the Gallup Poll) has announced the results of a new poll which revealed that a majority of Americans (53%) and more than two-thirds of those making $75,000 or more a year (69%) say that now is a good time to buy a house.The poll results beg the question, when is the media going to catch on to the fact that consumer sentiment has changed and that it’s time to drop the negative sentiment that pervades almost every article or story about the real estate market in the country?Here is the complete article that appeared at Gallup.com:Given all the doom and gloom in today's housing market, it may seem surprising that 53% of Americans say now is a good time to buy a house. Still, it is hard to argue with the idea that it is now a "buyer's market" in most of the nation's residential real estate markets for consumers who can get the financing they need to close a deal–although this is way down from the housing boom days of 2003 and 2005, when 81% and 71% of Americans, respectively, thought it was a good time to buy. So on an overall basis, most Americans still back a home purchase, but on a relative basis, they do not think it is as good a bet as it was three to five years ago.While there are essentially no differences in how consumers view the opportunity to buy a house by region, there are differences by income. Only 34% of those making less than $30,000 a year see this as a good time to buy a house, compared with 56% of those making $30,000 but less than $75,000, and 69% of those making $75,000 or more. In part, this may be because lower-income households that once had access to housing financing using subprime loans are finding home loans harder to get.

Senate Passes Second Housing Stimulus Measure

By a vote of 84-12, the Senate last week passed a bill (H.R. 3221) that includes both FHA and tax measures and authorizes new spending to address the housing crisis. The bill includes a $7000 tax credit for homeowners who purchase homes at or near foreclosure; FHA modernization legislation that would raise the FHA loan limits to $550,000 (upon expiration of the temporary economic stimulus limits), streamline condominium purchases with FHA, and increase the downpayment for FHA loans to 3.5% (from 3%); and a provision to provide expanded mortgage revenue bond authority to refinance subprime mortgages. The House has prepared a different tax package (H.R. 5720) that includes a $7500 tax credit for first time homebuyers to buy any home (not just foreclosed homes), the same provision on mortgage revenue bonds as the Senate, increases funding allocations for the Low Income Housing Tax Credit program, and modifies FIRPTA reporting requirements to prevent identity theft. The House is also expected to offer a much expanded housing package. It is expected to include FHA reform as well as an expanded program to allow FHA to work with lenders to write down and refinance subprime mortgages. Both bills have received much attention. Both include some controversial provisions. NAR continues to work with staff in both the House and Senate on the details of the packages.

Bay-Area Firm Prepares for 'Buying Bonanza'

Shorenstein Co., a San Francisco commercial real estate management firm, is preparing for what CEO Doug Shorenstein says will be a great opportunity to buy property.Shorenstein says tight credit markets and a declining economy will drive down lease rates and sales values, which will create a buying opportunity for those investors, like Shorenstein, who have money to spend.Shorenstein has raised more than $2 billion in preparation for this buying bonanza. He argues: “When you look at the down cycles we've been in, the best time to be a buyer was in the early 1990s, when there was a deep recession plus a lot of oversupply of office buildings and the S&L crisis. Then again in 1998, when there was a credit crunch – that was another great time for us. And then in 2001, when there was a recession and a terrorist event, (that) froze the capital.“Those were historically the best times to buy. I think this period – we have a recession, a very significant credit crunch – and like other down cycles, I think there should surface some pretty good buying opportunities,” he says.

Down Payment Assistance for FHA programs.

Home prices have come down and now there seem to be more buyers in the market, taking their time, reviewing their options. Sellers want to attract these people to their places with options (outside of the Sub-Zero and Wolf Range). DPA's or DAP's as some people call them are the saving grace STILL AVAILABLE for FHA programs. DPA = Down Payment Assistance (DAP is the same thing but some people use this instead). The way they work is this: The seller lists their home with the with the program of their choice (Nehemiah and Ameridream are two of the biggest and nationwide). The cost to the seller is .75% of the loan or $500 whichever is greater. The Realtor can now advertise this property as true 100% financing (provided the price is within the FHA limits for the area) to the marketplace because the seller is in effect going to help with the down payment.The Seller may contribute anywhere from 1-6% to the DPA program they've enrolled in. This in turn allows the the DPA Program to contribute this same amount into Escrow prior to closing.The seller's Contribution comes out of the proceeds of the sale while the settlement statement is finalized and the transaction is seam-less.

Government loan programs

CLICK ON THE LINK ABOVE IF YOU WANT TO LEARN MORE ABOUT FHA AND VA LOANS.

Appraisals & how to deal with values today

OFHEO has acted on HUD's recommendations and posted their list of Increased Loan Limits. OFHEO guides FNMA/FHLMC in policy decisions so this was the next step.2. FNMA released their updated LFKAJ guides (that's Loans formerly known as jumbo). 2a. Funny: FNMA is calling these Jumbo Conforming! 2b. The Rate Sheet Fee adjustment is going to be ....25% (for Fixed Rates) .75 for ARMS! That's GREAT!

Bay Area Bank-Owned Homes

My current REO list. Will send updates upon request:
http://307241zi.topagentsites.com/all_listings.html