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Posts Tagged ‘Down Payment’

Drop in Down Payment Signals Uptick in First-time Home Buyers

June 5th, 2015 Comments off

apartment quest credit   apart for rentFalling to the lowest level since Q1 2012, the average down-payment for single-family homes, condos and townhouses purchased in the first quarter dropped to 14.8 percent of the purchase price, a slight decrease from 15.2 percent the previous quarter and 15.5 percent a year ago, according to what RealtyTrac tells MHProNews.

Down-payment trends in the first quarter indicate that first-time homebuyers are finally starting to come out of the woodwork, albeit it gradually,” says Daren Blomqist, vp at RealtyTrac.

The lower insurance premiums for FHA loans that took effect at the end of January and new low down-payment loan terms from Fannie Mae and Freddie Mac are contributing to the uptick. Typically, new homebuyers cannot afford the required down-payment when shopping for homes, keeping them in the rental market.

In addition, njrereport says down payments of three percent or lower comprised 27 percent of all purchase loans in Q1 2015, up from 26 percent in the last quarter of 2014. As translated into dollars, the average down payment in the first quarter was $57,710, up slightly from $57,618 in the previous quarter but down from $57,992 Q1 2014. ##

(Photo credit: housequest-first time homebuyers)

matthew-silver-daily-business-news-mhpronews-comArticle submitted by Matthew J. Silver to Daily Business News-MHProNews.

Lawsuit and BBB warning about modular home retailer

November 6th, 2014 Comments off

better-built-homes-sign-credit=action-news-jax-posted-daily-business-news-mhpronews-com-The Better Business Bureau (BBB) has issued a warning about modular home firm, Better Built Homes, based in St. Augustine, Florida. The BBB asserts that there have been 6 complaints since March 2014. The BBB says consumers are “alleging that they have signed a contract with the company and paid a substantial down payment without any work being completed or homes being left incomplete.” 

Officials said they have received six complaints against Better Built Homes, Inc., since March 2014.  

According to the BBB’s warning, consumers are “alleging that they have signed a contract with the company and paid a substantial down payment without any work being completed or homes being left incomplete.” 

Action News tells MHProNews that Suzanne Englen and her husband bought a modular home and garage in Fruit Cove. She said it was supposed to be finished back in February. Instead, she moved into the home in October. They are quick to take your money and sign contracts,” she said. “But to actually get the work done is near impossible.” Englen says she’s called the company many times with little or no response. Now she said the company’s voice mailbox is full. 

Based on complaints, the BBB has given the firm an “F” rating. A lawsuit is also pending in St. Johns County court against Better Built Homes, Inc. ##

(Photo credit: Action News, JAX)

CFPB: What’s the difference between being pre-qualified and pre-approved for a loan?

August 22nd, 2014 Comments off

amy-tierce-urges-caution-cfpb-daily-business-news-mhpronews-com-Amy Tierce, writing in the NationalMortgageNews, tells MHProNews that the CFPB’s website gives an answer to the question,

What’s the Difference between being pre-qualified and pre-approved for a mortgage?

but that the CFPB’s answer is not, Tierce says, “the full story.”

Some lenders have decided, she says, to “not issue pre-approval letters due to the cumbersome regulatory environment, so they may call their letter a pre-qualification. Lenders licensed as mortgage brokers can’t issue a pre-approval letter because they aren’t licensed to approve loans.” asserts Tierce, who elaborates as follows.

Here is what they say a seller should look for in a letter for a prospective borrower:

The purchase price

The loan amount

An expiration date

Names and addresses of all buyers

Percent of the down payment

Loan type (Conventional, USDA, FHA, VA, etc.)

Loan term (fixed, adjustable, step rate, 30 years, 20 years, 15 years, etc.)

Whether or not the transaction is dependent upon the sale of another property

Status of the property being sold (on market, under agreement)

Contact information for the loan officer and his or her NMLS (Nationwide Mortgage Licensing System) number

Lender name and licensing details

If the letter doesn’t state what documentation has been reviewed as a part of the process, then you should ask if the loan officer has reviewed the following:

Two years of federal tax returns

Two years of W-2’s

One month of pay stubs

Two months of asset statements checking, savings, investments to verify the source of down payment.

Credit report

Any additional documentation needs that arise out of the client interview

Her commentary closes with the advice that a seller shouldn’t take a letter from a lender they are not familiar with, regardless of what the letter is called, at face value. Researching with the lender the types of issues noted above can avoid embarrassing or costly delays. ##

(Image credits: Amy Tierce, InTouchToday, CFPB logo and MHProNews graphic additions)

 

Maine Offers Energy Star Manufactured Home replacement plan for pre-1976 Mobile Home owner/residents

August 26th, 2013 Comments off

maine-state-housing-authority-MaineHousing’s tells MHProNews about their pre-1976 Mobile Home Replacement Initiative, which provides income-eligible Maine residents with an opportunity to replace the pre-1976 mobile home they own and occupy as their primary residence with a new Energy Star-certified manufactured home. The initiative combines an amortizing, interest-bearing MaineHousing mortgage loan with a $30,000 MaineHousing grant to be used to help get residents into a new energy-efficient home in the same location where they currently live. Down payment and closing cost assistance is available through MaineHousing’s Advantage option. MaineHousing spokesperson Deborah Turcotte told Maine PBN that “Persons interested in this program may meet with one of our partners throughout the state – the list is on our Web site – to get the process rolling.” ##

(Image credit: MaineHousing logo)

Survey Provides Insight into Views on Homebuying

January 27th, 2012 Comments off

MetLife InterGenerational GraphicA recent survey from MetLife provides some insight into generational views on housing and finance. According to the survey, Multi-Generational Views on Family Financial Obligations, most do not believe parents have a fiscal responsibility to help their adult children buy a home. Just 12 percent of Baby Boomer parents say they have provided money to an adult child to help them buy a home. Americans also don’t see home ownership as a cross-generational family financial responsibility. Half of Americans in this survey (52 percent) suggest that a parent has no responsibility at all to help their children by contributing to the down payment on a house. Baby Boomers (56 percent) are especially likely to believe this, compared to Gen Yers (47 percent), who are more likely to be just entering the housing market (44 percent of Gen Yers rent, compared to 11 percent of Boomers). Less than 10 percent in each generation feel a strong or absolute responsibility to contribute to a down payment.

(Image Credit: MetLife)