Utah Real Estate & Mortgage Blog

While 3.5% down is still available to home buyers who use FHA financing, the  Federal Housing Administration has announced changes to the popular home buying program.  The changes are being implemented to increase the FHA’s income and reduce the agency’s risk on these loans.   There was talk before this week’s announcement that the minimum down payment would be increased to 5% down.  For now, the minimum down payment will remain the same.

Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending.
Up Front Mortgage Insurance is currently 1.75% of the loan amount.   After April 5th 2010, this is going to increase to 2.25%.  For a $180,000 purchase, this would cost a home buyer about $900 more.  In addition, FHA may increase the monthly mortgage insurance premiums later in the year.

Reduce allowable seller concessions from 6% to 3%.
Buyers that want a seller to pay their closing costs will be limited to a maximum concession no greater than 3% of the sales price.  This change is expect to occur by Summer 2010.

Update the combination of FICO scores and down payments for new borrowers.
Home buyers that do not have the required minimum FICO score may increase their down payment to 10% to compensate for the lower score.

If you have questions please call 801-792-5040

Do you need to sell your home for less than the amount owed on the mortgage?  Have you heard of the “horror” stories regarding short sales?  Having the “right” Utah real estate agent represent you through the short sale process is critical to protecting your best interests.  What is a short sale?  Learn more about short sales by clicking here.

Zoom Real Estate has a Short Sale team that has experience in working with sellers who need to sell their home for less than the mortgage owed to the bank.  The short sale process is highly specialized.  It is very important to have a Realtor who is experienced in working with this type of sale.  Having the right contacts at the banks, knowing what paperwork to submit and how to market your home for a quick sale is important.   The right agent will know who to call at the bank, what paperwork to submit, proper timelines and how to negotiate with the bank.

zoomUTAH.com has partnered with a LOCAL law firm CC Brown Law to provide a FREE ATTORNEY CONSULTATION to any homeowner who is experiencing a financial hardship and considering a short sale.   There may be other legal options available to you other than a short sale.  Other options include loan modification, forbearance or other acceptable workout solutions.  Partnering with a local Utah law firm allows our clients the peace of mind that they are exploring all legal defenses.

Do you have questions such as:

What happens if I don’t sell our home through a short sale?

How will a short sale affect my credit?

Does the short sale process take one year or more?

Can the bank come after my assets or income after a short sale?

As a short sale specialist, I have have worked on over 300 files with the bank! If you need to speak to an expert that will give you straight answers on the tough questions, I am the agent you should call.  I would be happy to discuss your options in selling your home.   Call me direct at (801) 792-5040.

Home and condominium sales in Salt Lake County in the 4th quarter of 2009 came roaring back compared to the same quarter a year earlier, according to preliminary figures by the Wasatch Front Multiple Listing Service.

In the three months ended Dec. 31, there were 3,025 homes and condos sold in Salt Lake County, nearly a 40 percent increase compared to 2,184 sales in the fourth quarter of 2008.

The increase is welcome news after two very difficult years of sagging sales and dismal confidence. In fact, last year at this time the Board reported that fourth quarter (2008) sales were down 21 percent. Two years ago at this same time sales were down 36 percent.

Much of the sales increase is due to the $8,000 federal home buyer tax credit. However, the tax credit is not the only driver of increasing home sales. Single-family home prices have fallen 13 percent from their peak. Condo prices are also down. Mortgage interest rates remain at record low levels. In addition, new home building has slowed to a crawl, steering many buyers to existing inventory.

These factors put buyers in the driver’s seat. According to a recent study commissioned by the Board, home sales in 2010 could rise as much as 10 percent compared to 2009 sales. This is welcome news and evidence of the resilience of our economy and our market.

Source – Salt Lake Board of Realtors