I thought this was an interesting video.  Ron Insana has been on Wall Street as an analyst with CNBC for years.  In fact, I used to watch him religiously.  I’ve always liked what he has had to say.  I don’t have a crystal ball, but I would agree with what he has said here.

Visit msnbc.com for breaking news, world news, and news about the economy

What say you?

Well everyone, there have been some significant changes with regard to FHA financing as of late. Effective April 5, 2010, FHA will collect an upfront mortgage insurance premium from 1.75% to 2.250% (financed) for all Purchases. Down payment remains at 3.5% and monthly mortgage insurance remains unchanged (.55).

Example:

OLD:
Sales price of $200,000, with 3.5% down payment, base loan $193,000 (upfront MIP $3377.5) total loan amount $196,377
Monthly principal & interest: $1054.19 with a 5% 30 Year Fixed Rate

NEW:
Sales price of $200,000, with 3.5% down payment, base loan $193,000 (upfront MIP $4342.50) total loan amount $197,342
Monthly principal & interest: $1059.37 with a 5% 30 Year Fixed Rate

It looks like FHA is trying to stave off some of the financial losses they have been incurring as of late with the large number of FHA loans that have defaulted.

NOW FOR THE GOOD NEWS… FHA is trying to allow for quick resale of foreclosed properties. Previously, properties that had been owned for less than 90 days by the current owner were not eligible for purchase with an FHA loan. However, with a large number of area homes being purchased, renovated and placed on the market for resale in under 90 days, FHA buyers were missing out on some real gems. This also adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

FHA has tempoarliy suspended this policy, effective February 1, 2010 for one year. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

YEAH!

If you’d like to discuss in detail, free free to IM me with the IM box up top, email me at justin@justindibbs.com or you can always call (703) 930-5800

Here is a funny look back at 2009 from the guys that bring you Elf Yourself (which my kids LOVE) every Christmas season

$8,000 Tax Credit Update – Arlington, VA

The $8,000 First Time Home Buyer Tax Credit was propsed to be extended to November of 2010 for active military personnel, intelligence officers and foreign service.  The House of Representatives voted unanimously in favor of this.  The bill, HR 3590 is also expected to pass through the Senate with no opposition as well.

This extension gives military personnel serving overseas the opportunity to take advantage of the home buyer tax credit that many stateside military and civilain residents were able to enjoy.  In order to qualify, 90 days from the current calendar year must have been spent overseas.

The real question is, will the $8,000 home buyer tax credit be extened for everyone else?  It seems to reason that this might be a test run to see whether on not the $8,000 will be extened to all buyers (not just first timers).  But I have to say, for Arlington area home buyers I don’t think it will make much difference.  My experience with many buyers looking for homes in Arlington and Alexandria has been one of indifference when it comes to getting their tax credit.  Most don’t seem to really care, even those that are buying homes below $300,000.  Heck, I’ll take their $8,000  In fact, I’ve had two buyers recently who could have really used the $8,000 but they just dragged their feet way too long and now they aren’t going to get the money.  In fact, one of these buyers was eligible for $18,000 and didn’t take advantage of it!

I’m not sure if extending the $8,000 tax credit will mean much in the suburbs of Arlington and Alexandria, but I’d like to see come spring of 2010.

If you or someone you know have questions about the $8,000 tax credit or are looking to buy a home in the Arlington or surrounding areas:

Call me directly at 703-930-5800 or contact me by email

Contact Justin Dibbs of Dibbs Realty Group of e Venture Real Estate, Arlington, VA.

Realtors®, call 703-930-5800 to list your property for sale or to purchase a property in Arlington, Alexandria, Old Town, Springfield, Falls Church, Vienna, Oakton and McLean areas.

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