FHA to Increase Loan Limits in 2018

FHA to Increase Loan Limits in 2018
FHA   article by Daily Real Estate News | December 11, 2017

handsFollowing on the heels of the Federal Housing Finance Agency, the Federal Housing Administration announced that it will increase its loan limits in most areas of the country in 2018. The FHFA had announced new limits for loans eligible for purchase or guarantee by Fannie Mae and Freddie Mac on Nov. 28.

In high-cost areas of the country, the FHA’s ceiling on loan limits will rise from $636,150 to $679,650, according to the Department of Housing and Urban Development. In addition, the national mortgage limit for FHA-insured reverse mortgages—known as home equity conversion mortgages—will rise from $636,150 to $679,650.

The FHFA calculates new limits each year based on median home prices.

The FHA loan limits will rise in 3,011 counties but will remain unchanged in 223. Fannie Mae and Freddie Mac’s new conforming loan limits for 2018 will be $453,100 for conforming loans and $679,650 for jumbo loans in some high-cost areas. The new limits for the FHA and the FHFA will take effect on Jan. 1.

Source: U.S. Department of Housing and Urban Development; REALTOR® Magazine Online, Daily Real Estate News 121117


Kenneth Bargers, REALTOR® License 318311 ♦ Pilkerton Realtors License 257352
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Consumers Are Super Confident About Housing

Consumers Are Super Confident About Housing
Article by Daily Real Estate News | March 8, 2017

HomeKeys 525wConsumer confidence in the housing market has hit a new all-time high, according to Fannie Mae’s Home Purchase Sentiment Index. The index rose 5.6 percentage points in February to 88.3, a record reading. Five of the six components measured by the survey hit record highs as well, including the share of Americans who say now is a good time to buy and those who are feeling more secure about their job.

Fannie Mae’s survey of 1,000 Americans showed a rosy backdrop for the housing market as it heads into the spring buying season.

“The latest post-election surge in optimism puts the HPSI at its highest level since its starting point in 2011,” says Doug Duncan, Fannie Mae’s chief economist. “Millennials showed especially strong increases in job confidence and income gains, a necessary precursor for increased housing demand from first-time home buyers. Preliminary research results from our team find that millennials are accelerating the rate at which they move out of their parents’ homes and form new households. However, continued slow supply growth implies continued strong price appreciation and affordability constraints facing millennials and first-time buyers in many markets.”

Here is a closer look at findings from Fannie Mae’s latest reading from its Home Purchase Sentiment Index:

  • The share of Americans who say now is a good time to purchase a home increased 11 percentage points to 40 percent, marking a strong rebound from last month’s survey low.
  • Twenty-two percent say now is a good time to sell, up 7 percentage points from last month, and a new survey high.
  • Forty-five percent of Americans believe that home prices will go up, increasing by 3 percentage points.
  • Seventy-eight percent of Americans say they are not concerned about losing their job, a 9 percentage point month-over-month increase, and a new a new survey high.
  • Nineteen percent of Americans say their household income is significantly higher than it was 12 months ago, also a new survey high.

Source: Fannie Mae; REALTOR® Magazine Online, Daily Real Estate News 030817

KENNETH BARGERS REALTOR® License 318311 | Pilkerton Realtors License 257352
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Sellers Happy, But Home Buyers Are Frustrated

Sellers Happy, But Home Buyers Are Frustrated
Article by Daily Real Estate News | May 10, 2016

FannieMaeLogo2016The number of home buyers who say now is a good time to buy dipped to an all-time survey low in Fannie Mae’s latest Home Purchase Sentiment Index. Meanwhile, home owners who say now is a good time to sell soared to an all-time survey high.

The disconnect in the market is likely partially due to the limited number of homes for sale in many markets, allowing sellers to face less competition and ask for higher home prices. On the other hand, home buyers are having fewer choices and stuck paying higher prices, sometimes in multiple-bid situations.

Indeed, “we can partially attribute the sizable gain in April in home selling optimism both to a correction for last month’s unexpected dip and to typical seasonal strength in housing activity in the spring and summer,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “Even after accounting for these factors, continued tight housing supply has led to renewed strength in home price appreciation, making selling a home a more attractive prospect this year in particular. This improved sentiment could provide an extra boost of much-needed supply for the spring selling season.”

Some highlights from Fannie Mae’s latest Home Purchase Sentiment Index:

  • 30% of Americans say now is a good time to purchase a home, a drop of 3 percentage points from the previous month and now at an all-time survey low.
  • 15% of Americans say now is a good time to sell a home, now at an all-time survey high.
  • More consumers think home prices will rise over the next 12 months compared to March, and slightly fewer consumers also expect mortgage rates to go up over the next year.
  • The percentage of respondents who say they are not concerned with losing their job increased 6 percentage points to 74%, nearly a 7 percentage point decrease in March.
  • The percentage of respondents who say their household income is significantly higher than it was 12 months ago held at 11%.

Source: Fannie Mae; REALTOR® Magazine Online, Daily Real Estate News 051016

Kenneth Bargers, REALTOR® | Pilkerton Realtors
(615) 512-9836 cellular (615) 371-2474 office kb@bargers-solutions.com email
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2 Cadillac Drive, Brentwood Tennessee address

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Fannie Debuts Loan Option for ‘Green’ Retrofits

Fannie Debuts Loan Option for ‘Green’ Retrofits
Daily Real Estate News | March 31, 2016

FannieMaeLogo2016Fannie Mae announced HomeStyle Energy mortgage, a program to help borrowers make energy and water energy efficient upgrades to their home.

With the new loan, home owners will be able to finance energy upgrades when purchasing or refinancing their home. The new mortgage will also be available to properties like condos.

Borrowers purchasing a home or wanting to improve their existing home will be able to receive up to 15 percent of the as-completed appraised value of the home to use for energy efficient upgrades. An energy report is required. Without a report, borrowers can still finance up to $3,500 in water efficiency upgrades.

“The National Association of Home Builders has found that energy efficient features are highly desired by home owners, and we are committed to helping lenders serve these customers,” says Carlos Perez, Fannie Mae senior vice president and chief credit officer for single-family. “HomeStyle Energy mortgage will be particularly helpful to borrowers who want to pay off debt for existing energy improvements. It will also benefit home owners who want to make their home more comfortable and efficient.”

The program applies to all Fannie Mae approved lenders.

Source: Fannie Mae; REALTOR® Magazine Online, Daily Real Estate News 033116

Kenneth Bargers, REALTOR® | Pilkerton Realtors
(615) 512-9836 cellular (615) 371-2474 office kb@bargers-solutions.com email
www.bargers-solutions.com web kennethbargers.com blog
2 Cadillac Drive, Brentwood Tennessee address

Need a home? visit Search for Properties
Do you need marketing assistance for special projects or contract assignments? visit the Marketing page of Bargers Solutions

Selling Concerns Grow Among Home Owners

Selling Concerns Grow Among Home Owners
Article by Daily Real Estate News | September 10, 2015

Fannie-Mae-Logo-200wConsumer attitudes toward the home selling climate are pulling back to their April 2015 level and receding from a four-year high in sentiment that was reached two months ago, according to a newly released index by Fannie Mae. The Home Purchase Sentiment Index pulls results from Fannie Mae’s consumer National Housing Survey in providing a monthly predictive indicator of how the overall housing market is performing.

“Expectations of rising mortgage rates and increasing concerns in the last six months about the direction of the economy seem to be weighing on consumers’ assessment of the housing market,” says Doug Duncan, Fannie Mae’s chief economist. “Those who think it’s a good time to buy or sell a home have consistently pointed to favorable mortgage rates as the primary reason for their optimism. Those who think it’s a bad time to buy or sell a home have consistently pointed to unfavorable economic conditions as the primary reason for their pessimism. Still, the four-year upward trend in the HPSI indicates that consumers remain fairly optimistic about the housing market.”

The index revealed the following:

  • The number of respondents who said that it’s a good time to purchase a home climbed to 63 percent, increasing 2 percentage points from last month’s all-time survey low.
  • The number of consumers who say now is a good time to sell rose 2 percentage points to 47 percent. The percent of respondents who say it is a bad time to sell also increased to 44 percent.
  • The number of consumers who believe home prices will rise over the next 12 months dropped to 47 percent.
  • The percentage of Americans who believe mortgage rates will rise in the next 12 months increased 3 percentage points to 54 percent.
  • The percentage of respondents who say their household income is significantly higher than it was a year ago dropped to 24 percent. Those who say it is significantly lower dropped to 12 percent.

Source: Fannie Mae; REALTOR® Magazine Online, Daily Real Estate News 091015
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3% Down Payments May Be Game Changer

3% Down Payments May Be Game Changer
Daily Real Estate News | December 9, 2014

FreddieMac-LogoMortgage giants Fannie Mae and Freddie Mac announced Monday that first-time home buyers can now qualify for loans with down payments as low as 3 percent. That will expand credit for qualified home shoppers who may have been sidelined the last few years because of higher down-payment requirements, housing analysts say.

Freddie Mac launched Home Possible Advantage, a conventional mortgage with a 3 percent down-payment requirement geared to low- and moderate-income borrowers. It’s a conforming conventional mortgage with a maximum loan-to-value ratio of 97 percent. To qualify, first-time home buyers are required to participate in a borrower education program.

With Fannie Mae’s 3 percent down-payment offering, borrowers must still meet standard eligibility requirements, including underwriting, income documentation, and risk management standards. Any buyer can take advantage of Fannie’s loans as long as at least one co-borrower is a first-time buyer. The loans will require private mortgage insurance.

“Our goal is to help additional qualified borrowers gain access to mortgages,” says Andrew Bon Salle, Fannie Mae executive vice president for single-family underwriting, pricing, and capital markets. “This option alone will not solve all the challenges around access to credit. Our new 97 percent LTV offering is simply one way we are working to remove barriers for creditworthy borrowers to get a mortgage.”

The National Association of REALTORS® applauds the move by the Federal Housing Finance Agency, which oversees Fannie and Freddie.

NAR said in a statement that the action by FHFA demonstrates its “commitment to home ownership by serving creditworthy borrowers who lack the resources for substantial down payments, plus closing costs, with a new 3 percent down-payment program that mitigates risk with strong underwriting. The new program ensures that responsible home buyers will have access to safe, affordable mortgage credit.”

Source: Fannie Mae and Freddie Mac; REALTOR® Magazine Online, Daily Real Estate News 120914

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Americans’ Attitudes Improve on Housing

Americans’ Attitudes Improve on Housing
Daily Real Estate News | October 08, 2014

Fannie-Mae-Logo-200wConsumers’ optimism toward the housing market showed a slight rebound last month, with more people now saying it’s a good time to buy or sell a home, according to Fannie Mae’s September 2014 National Housing Survey, based on about 1,000 Americans’ attitudes on the housing market.

The share of consumers who say now is a good time to purchase a home rose to 68 percent in September, a four percentage point increase from August. Also, the share of Americans who said they’d prefer to buy a home on their next move rose to 66 percent, following a three-point drop the previous month. The percentage of those who reported now is a good time to sell grew to 39 percent. Those surveyed also were more upbeat about home prices rising in the next 12 months, with expectations of price gains of 2.2 percent, on average.

Consumers also showed greater optimism toward the overall economy, with 40 percent now saying the economy is on the right track, posting a five percentage point gain from last month.

“The September National Housing Survey shows a slight recovery in consumer housing sentiment after a two-month setback, bringing us back to the modestly positive trend we’ve seen over the last year,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “It might be too late to save this year’s home sales from posting the first decline in five years. However, the return to an upward trend in housing sentiment, combined with this month’s positive news on the jobs front, suggests that a broad-based, albeit measured, housing recovery is on track to resume in 2015. The results of the past few months show that consumer optimism remains cautious and somewhat volatile, and we’ll likely continue to see bumps on the housing recovery path reflected in our survey results.”

Source: Fannie Mae; REALTOR® Magazine Online, Daily Real Estate News 100814

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