Utah Real Estate & Mortgage Blog

Dear zoomUTAH.com Members,

I am compelled to alert you all that FHA is proposing some major changes concerning the dynamics of their Purchase loans. In their infinite wisdom, and contrary to any semblance of reason, they are shooting the Housing Market in the head (not the foot). Below, you will see the changes coming April 1st. You must have an FHA case number assigned to a home by April 1st to avoid the new guidelines:

1. The up front mortgage insurance premium (UFMIP) is the portion that gets added to the loan amount at closing. The current factor is 1.0%. The new factor will be 1.75%. On a $200,000 loan, the UFMIP would go from $2000 to $3500

2. The annual premium that gets paid monthly in your payment will be increased from 1.15% to 1.50%. On a $200,000 loan, the payment will increase by $58.33/mo.

3. Currently, FHA allows concessions of up to 6% so the Seller or Loan Officer can help pay for closing costs, home inspection, prepaid expenses, etc… It’s in discussion, though not yet definite, that FHA is lowering the maximum concessions to 3%. This will cause some Buyers to have to be out-of-pocket more than just paying their down payment. A home selling for approx. $225,000 breaks even on closing costs that equal 3%. Because of the nature of half of your closing costs being a fixed cost, the percentage rises the lower the purchase price gets below the $225,000 threshold. For instance, a purchase price of $125,000 requires approximately 4% concessions to pay for all the closing costs. The fact that 1% cannot be paid requires the Buyer to come in with $1250, in addition to their down payment.

It’s not all doom and gloom. I just get emotional when our Gov’t gets in the way of progress in a battered Housing Market. I have some solutions for this dilemma and I welcome your calls so we can address your individual needs and come to a solution to your financing plans. For anyone sitting on the fence, you may want to step things up in a big way. Keep in mind that, although you qualify for FHA Financing, you may not qualify for Conventional Financing and identifying a property now may be warranted.

Call me today at 801-949-4872 if you have any questions or would like to get pre-qualified before the new rates hit April 1st.

Sincerely,

Joel Ellowitz, CMPS NMLS #290849
SecurityNational Mortgage
6965 S. Union Park Center Ste.470
Midvale, Utah 84047
c 801-949-4872
w 801-545-7276

Davis County now has a Down Payment Assistance (DPA) Program for qualified first time home buyers. This is a federally funded program that will provide eligible home buyers with a grant of $5,000 to be used for closing costs or down payment with the purchase of the home.

The home must be a single-family dwelling; meaning a one family residence, condominium unit, cooperative unit, combination of manufactured housing and lot. The home must be located in Davis County. Applicants must be at or below the applicable income limits and be first time home buyers. Definition of a first time home buyer is an individual, and his or her spouse who have not owned a home during the 3-year period ending on the date of purchase of property. The term first-time home buyer also includes a displaced homemaker or a single parent who has only owned a home with a spouse.
Applicants who meet the necessary qualifications will receive their grant on a first come, first serve basis. There are limited funds available, and the Board reserves the right to expand or terminate the program depending on the availability of funds. The applicant must also provide a minimum of $1,500 of their own money toward the down payment or closing costs. An applicant must receive an approved FHA, VA, or conventional fixed rate mortgage loan. No variable rate, adjustable rate, interest only, balloon payment or 80/20 split will be allowed.

For further details and requirements please contact Amber Segura 801-815-9564 Security National Mortgage NMLS #253340

Other areas are also available, please inquire for more details.

Today we reached 40,000 registered zoomUTAH.com members! We want to thank all of our members for using Utah’s #1 Real Estate website and we constantly look to improve the site to meet the needs of Buyers and Sellers in the wonderful state of Utah.

We are just at the very beginning of a journey to provide the public with the most accurate and useful information on the Utah real estate market.

40,000 Strong and counting!

As most of you know the real estate market nationwide has seen better days. It has been and still is a buyers market with Utah house values plummeting over the past 6 years. Interest rates are in the 3′s and smart buyers are taking advantage of this once in a lifetime opportunity.

Well ladies and gentlemen, we are finally seeing measurable improvements in Utah. Here are some interesting statistics…

• There are 21,641 active listings in Utah right now. Just 6 months ago on July 1st, 2011 there was 27,823. That is a dramatic 23% decrease in inventory in just 6 months.

• Over 1,000 homes went under contract in January, a nearly 40% increase compared to a year ago.

• New listings in Salt Lake County in the fourth quarter (2011) fell to under 4,000, the lowest level in 14 years.

These positive signs point to a more balanced real estate market. Don’t anticipate house values increasing anytime soon, but as inventory shrinks, supply and demand will kick in and house values eventually will increase.

If you have been pondering Buying or Selling real estate in Utah, call us at 801-683-9666 and I’d be happy to assist you.