At Home- September
Fall is upon us and in just 30 days or so we will know who will be the next President of the United States. I hope once we are past all the politics home buyers will decide it's a good time to buy a house. There is so much negative news about housing, mortgages and the stock market; I think people are just delaying any major changes. If you watch HGTV, you know real estate values are so different all across the country. A modest home in California might be worth $500,000, compared to the same style of home in Nebraska for only $125,000. That's why it's frustrating when the national media says real estate is down or is a bad investment. Here in Nebraska, home prices have risen modestly over time and home prices are a good value compared to the median income in the area. Areas that saw double digit gains in home prices have much more potential depreciation than in Nebraska. Although the market is still a little soft in Omaha, it's also a great time to get a deal.
Mortgage update:
As some of you know, I started my career in real estate originating mortgages. Therefore, as REALTOR, I have a solid understanding of the mortgage loan process. Here are some things you might not know about FHA mortgages.
- FHA Mortgages are not for first time home buyers.
- There are not any income requirements for FHA Mortgages.
- FHA Mortgages can be used to purchase a home up to $271,000.
- FHA requires 3.5% down payment, so it's 96.5% financing. Most other conventional mortgages right now will require a 5% down payment.
- FHA requires an upfront mortgage insurance premium of 1.75%, which is added to your loan.
- FHA requires a monthly insurance premium (same as PMI), which costs about 46 cents per thousand borrowed. With conventional mortgages, this is half of what PMI would cost.
- FHA mortgages do not require perfect credit, someone with a 620 FICO might qualify.
Trivia Challenge Question:
Thanks to everyone that submitted guesses last month. The correct answer was "My Cousin Vinny" with Joe Pesci and Marisa Tomei.
Name that movie?
Recently, I came across this movie. Here is the quote, "Did you eat a lot of paint chips when you were a kid?" What's the name of the movie?
Thanks again for taking a few minutes out of your day to read my real estate newsletter. I appreciate it and welcome any suggestions!
Statistics show everyone knows of 3 - 6 people who will buy or sell a home each year. I would really appreciate your referral if you know anyone that will be buying or selling a home in the future. Please forward them my contact information, my website link, or this newsletter.
Finally, check out my website called http://www.omaharealtyblog.com/ for recent posts and statistics on the Omaha real estate market.
Steve