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What about the Jumbos?

Friday, January 30, 2009
by Liz Warren

Jumbo loans are for properties which have loans greater than $417,000 in Clackamas County. Over the last several years many homeowners have purchased homes in Government Camp, Welches and Rhododendron with these types of loans. Jumbo loans are huge in California and Washington where home values are substantially higher near metro areas and can go over $700,000.

According to Inside Mortgage Finance, a trade publication, between 2002 and 2006 banks originated $557 billion dollars a year in jumbo loans.  A mortgage data firm reports that 6.9% of prime jumbo loans were 90 days delinquent in December 2008. As we see continuing job losses across the board, savings continuing to get depleated, and continued softening of the real estate market, I suspect the tax payer will get stuck with these properties as they get foreclosed on. This in turn will push prices down further as the higher end price range dwindles lower.

Homes that may qualify for jumbo loans on the mountain (Homes priced over $450,000) are at 27% of the current inventory. In Sandy the homes for sale over $450,000 make up 18% of their inventory.

We will have to see how this story unfolds and if the Feds take any action to help these jumbo loan holders. Many who are trying to refinance are finding that their homes do not meet appraisal values or they do not qualify any longer with revised lending practices!

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Mt. Hood Foreclosures and Short Sales

Monday, January 12, 2009
by Liz Warren

What are predictions for the 2009 market on Mt. Hood? Well, it isn’t easy to come up with a steadfast answer on this one. Nationally many experts are predicting things will turn around in the second half of the year.

The Case-Shiller pricing index tells us that in at least 20 metro areas prices are currently at March 2004 levels- down about 18%. More foreclosures than 2008 will hit the market due to adjusting adjustable mortgages. We are seeing a few foreclosures and short sales hit our mountain market.

Here is a short sale that popped up today. Five acres of land, which typically can’t be found for under $200,000 with a large home for less than $500,000

 

The greatest percentage of sales in our local market is the second home sales. As discretionary income for this purchase, folks have the option to wait and buy at their leisure. Considering the limited amount of land the mountain has to offer for ownership, there couldn’t be a better time to take advantage of this inventory with future population impacts coming to the Portland metro area.

Historically we usually don’t see the unique combination of low home prices and low interest rates so this is an exceptional time to invest in the mountain. Typically interest rates are higher when home prices are low and some buyers are recognizing this fact.

Keep checking back to see how this year unfolds!

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Rates Under 5%

Friday, January 9, 2009
by Liz Warren

Looking to purchase homes near Mt. Hood? Rates are incredible right now. A 30 year fixed loan at under 5% interest! It's true. Investors, now is the time to act! Get your rental properties now in Rhododendron, Welches, Brightwood or Government Camp. If you need a lender, shoot me an email!

 

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Mt. Hood Manufactured Homeowners

Thursday, December 18, 2008
by Liz Warren

Attention manufactured homeowners in the Mt. Hood area from Rhododendron, Brightwood, and Welches! I have been notified from a mortgage broker that manufactured home financing may be going away because the secondary market investors are backing away from these loans even though they are FHA and VA approved.

If you currently own a manufactured home there could be serious consequences for you if you need to sell! I'll keep you posted if I hear any other additional information on this issue.

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What Today's Lower Rates Mean

Tuesday, December 9, 2008
by Liz Warren

Rates are incredible right now! If there ever was a time to take advantage of low interest rates, this is it. A 30 year fixed at under 5.5% is historic. Yes, this is incredibly GOOD NEWS!

Now we are somewhat lucky on the mountain because we don't have THAT many foreclosures and sub-prime loans. The larger picture in the country paints a different picture though. Tightening underwriting standards and a larger increase in homeowners who are "underwater" in their homes has presented a problem. About half of the people who need to take advantage of these low rates can't due to the standards and plummeting home values mostly in Arizona, California, Nevada and Florida.

How many are in this pickle? According to Zandi of Moody's Economy.com there are around 12 million homeowners in trouble. Step back to the end of 2007 and only 6.6 million were in trouble and at the end of 2006, only 3 million! Things happen quickly as we know.

To qualify for a $400,000 30 year fixed loan you would need a credit score of 680, a downpayment of 10% and a debt to income ratio of 45% or less. Jumbo rates are still high at around 8% interest per annum.

So, if your house hasn't dropped 40% in value recently and you have a good credit score and a job, you are in good shape and you may very well be able to take advantage of these incredible interest rates!

Price reductions on the mountain are coming in by the bushel full so call today to make that investment in rental property, primary homes or second homes!

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Saving 10% on a house in ONE WEEK!

Tuesday, December 2, 2008
by Liz Warren

How do you cash in on one of the best deals on the mountain right now? Looking for homes in Government Camp, Rhododendron, Brightwood or Welches? The current drop of around 1% in interest rates this week presents great opportunities. Rates went from 6.5% to around  5.5% and under.

TWO GREAT THINGS COME OUT OF THIS:

1. A buyer with borrowing power this week with a similar  payment as last week using their purchasing power to buy a house for 10% LESS with the rate decrease.

2. One other way to look at it is a buyer now can buy 11% MORE house than last week.

This has improved purchases in some areas but when will rates be this low again!

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UNBELIEVABLE RATES!!!

Tuesday, December 2, 2008
by Liz Warren

Investors! Take note, or first time home buyers, the rates have dropped substantially over the past couple of days. They haven't been this low in a long time!

 

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FICO Scores are VERY important these days!

Monday, November 24, 2008
by Liz Warren

How important are FICO scores these days? Extremely. If you are purchasing anything and need credit your FICO score will determine if you can get credit and what interest rate you'll pay. Credit scores range between 300 and 850.

Scores under 680 are on the fringe of scrutiny with lenders. Some will charge a much higher interest rate to borrow so it will cost you more in the end on your credit cards, your mortgage rate, and your car loan.

FICO scores come from a combination of your debt load, payment history, amount of credit you are using and other miscellaneous factors such as foreclosures or other debt defaults

A good resource to learn how to increase your FICO score and other questions about how this scoring works, go to www.myFICO.com

 

 

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New Restrictions on Condo Lending

Friday, October 10, 2008
by Liz Warren

If you are looking at condos in the Welches, Rhododendron, Brightwood and Government Camp areas you will need to know the new future lending requirements on Condo projects. This may affect Golden Poles, Thunderhead Lodge, Eidelweiss, Sno-Bird, Collins Lake and Grand Lodges, Fairway Estates, Clear Hills, and Shadow Hawk condo units.

Rules are coming down the pike that if investors own more than 49% of the units, in other words, if they are not owner occupied or second homes, the project may not qualify for convenetional financing.

I am not sure of trhe exact date this may happen but be advised that we may see many owner carried contract sales in the future.

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Even More HELOC issues

Wednesday, September 17, 2008
by Liz Warren

Many buyers of Mt. Hood properties in Welches, Government Camp and Rhododendron use HELOCS to obtain downpayments and purchases of second homes and investment properties. With a pinching off of HELOC funds, this could impact sales in our area.

Do you have a home equity line of credit? Well, be sure and check if you think you do because many banks are pulling these and notifying owners after the fact. Some homeowners are writing checks on these equity lines and finding their checks have bounced even before the notification.

Housing prices are adjusting downward all over the nation. Home Equity Lines of Credit are based on home valuations. Depending upon what state you live in, the amount of your total home debt can be 65% or 75% of your home value. The "home value" is determined by a computer model the banks use.

If you read the small print of your agreement the banks have a right to pull this at any time the home value reaches a certain amount and they can immediately freeze your ability to use this line of credit.

Turmoil in the banking industry will cause even further tightening of credit for Helocs over the next 24 months as they sort out the sub-prime mess and capital issues.  Just be aware that this instrument to gain funds may not be there for a while!

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Displaying blog entries 361-370 of 388

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