The Real Estate Market Is Finally Coming Up to Speed Again

Watch on your mobile device >>

With the past several years of rocky news across the country, it’s finally a pleasure to be reporting some good news. For the first time in quite some time there is widespread improvement in many local real estate markets. The Wall Street Journal recently reported that up to 20 major metropolitan areas across the United States are enjoying increased home prices and a rise in home sales. At long last we can finally see the bottom starting to come back up.

What does mean to consumers?

Strong Buying Market Ahead

Well, for starters these improvements have the most impact on sellers. Those homeowners that have been on the fence for some time now can finally consider jumping off that fence and list their home for sale. The coming fall season going to be a strong buying market as the fall usually is – but things are going to be even better given the upcoming presidential election. As is usually the case, an economic upswing typically comes to be expected during an election year, particularly leading up to the big day.

Inventory Dwindles, Demand Continues to Rise

One of the greatest factors in our changing market is the shift in inventory patterns throughout the country. We are reporting inventory levels consistently dwindling, leading to increased demand as there are fewer homes to choose from. Furthermore, as foreclosures and other distressed sales come off the market, traditional home sales are once again more prevalent in many markets. This is yet another factor that helps increase home prices.

Market Conditions Are Ripe for Buyers and Sellers

Right now, we are seeing the best of both worlds, a rare occurrence in our real estate industry. Sellers are able to receive multiple offers, sometimes ensuing in bidding wars that end up in their getting top dollar for their home. Not only that, homes are not staying on the market for very long. Meanwhile, home prices are still affordable and combined with record setting low interest rates, buyers are eager to lock in low rates.

~

If all this makes you want to go ahead and jump off that fence, consider buying or selling and learn more about what mortgage options are out there – contact us today. There are many new programs right now designed to propel the housing market in an even better direction. And everyone knows that when the housing market thrives – so does our economy!

PFHA New Construction

Watch on your mobile device >>

If you are looking for a new construction home in the state of Pennsylvania, then we have some great news for you!  On July 16th, the PHFA (Pennsylvania Housing Finance Agency) unveiled a new program which allows for a $6,000 closing-cost assistance.  This incentive is just another factor in the make-up of one of the greatest housing markets in decades, in addition to low interest rates and high inventory.

What is this closing-cost credit?

This $6,000 closing-cost assistance is a loan.  Amortized over ten years at whatever the new construction loan rate is, which, as of August 1st, is 4.25%.  This new incentive follows the same guidelines of any other PHFA new construction loan and is tailored specifically for new construction homes in the state of Pennsylvania.

Why is this closing-cost credit “great news”?

The new $6,000 closing-cost credit is 50% higher than the standard $4,000 closing cost assistance loan offered by the PHFA for buyers of existing homes.  The additional closing cost assistance funds will not only ease the financial strain of consumers, but is expected to stimulate the state’s housing industry as well.

In addition to this newest program created by the PHFA, there are many other incentives offered by the Agency. So, if you are looking to buy a new construction home in the Keystone State, or any other property, make sure to contact me to see which incentives will best suit you!

Two New Products Offered by the PHFA for New and Existing Homeowners

Watch on your mobile device >>

Are you looking for a new home but having a difficult time coming up with a sizable down payment?  Have you been faced with a financial hardship forcing you into a refinance situation?  Are the current interest rates making you wish you could enjoy the same historic low rates as countless others?

For Pennsylvania residents, there is a new offering provided by the Pennsylvania Housing Finance Agency that is designed to help people in these situations and more. Working in conjunction with Fannie Mae, the PHFA has set up a program that would allow buyers to purchase a home either without any Private Insurance or at a lower monthly payment depending on the situation.

Mortgage Loan Risks Shared Jointly by Fannie Mae and PHFA

The program, announced in late April of this year, will allow consumers to reduce the financial burdens of paying for private mortgage insurance since Fannie Mae and PHFA will be bearing the risks associated with low down payment mortgages. Both agencies have partnered after signing off on an agreement that eliminates PMI entirely from borrowers’ responsibility. They will conduct an evaluation process for each application to ensure good lending decisions are made.

Lower Monthly Payments for Some Customers

The second product offered in this program will be given to customers that will be required to pay PMI each month. The benefit will be in the form of lower monthly payments, reducing financial stress on families looking to tap into today’s historic low interest rates.

Same Low Down Payment as Traditional FHA Loans

Borrowers will be required to pay only 3% down of which some or all of the down payment can be in the form of gifts from family member or the additional PHFA Access Down Payment and Closing Cost Assistance Loan. When combined with no PMI or lower monthly payments this eases the burden significantly for many families and homeowners. The products are ideal for those people that cannot afford large down payments that are typical for a home purchase and it works well for people with little to no equity in their homes when refinancing.

Advantages of the PHFA Program

• Up to 97 percent of home’s value can be financed
• Non first-time buyers also qualify for the program
• Down payment and closing cost assistance available for both products
• Existing homeowners seeking refinancing may also qualify
~
This factsheet provides a bird’s eye view of the new products. For more information about this or other loans that may be right for you, visit our website where we share a host of tools, resources and information that will help guide you to the right decision for you. We are also available on Facebook. We look forward to hearing from you if you have any questions of if you would like to learn how you can tap into these fantastic programs.