Skip Schenker’s HUD “Good Neighbor Next Door” Program “Success Story”: Moreno Valley Homebuyers Used FHA 203k Renovation Loan To Purchase And Remodel Home At A 50% Discount And 3.5% Down Payment (Hot Dog Of The Week Video)

31 05 2011

Learn how this young couple turned a HUD foreclosure from a dog into a dream home with an FHA 203k renovation home loan. They purchased and remodeled a home in Moreno Valley using the Good Neighbor Next Door 50% off program with just 3.5% down and included money for all fix up costs including a new kitchen, bathrooms, flooring, paint , carpet, windows, doors, new roof, HVAC system. Call Skip Schenker at 800-385-3503 to learn how you can get government insured money to remodel your current or next home. Visit http://www.RenovationLendingInstitute.com to learn more. Multi unit properties with a small down payment.





Freddie Mac Reports That 30-Year Fixed Mortgage Rates Average 4.60% For Week Ending May 26, A New Low For 2011

27 05 2011
  • 30-year fixed-rate mortgage (FRM) averaged 4.60 percent with an average 0.7 point for the week ending May 26, 2011, down from last week when it averaged 4.61 percent. Last year at this time, the 30-year FRM averaged 4.84 percent.  
  • 15-year FRM this week averaged 3.78 percent with an average 0.7 point, down from last week when it averaged 3.80 percent. A year ago at this time, the 15-year FRM averaged 4.21 percent.  
  • 5-year Treasury-indexed hybrid adjustable-rate mortgage(ARM) averaged 3.41 percent this week, with an average 0.5 point, down from last week when it averaged 3.48 percent. A year ago, the 5-year ARM averaged 3.97 percent.
  • 1-year Treasury-indexed ARM averaged 3.11 percent this week with an average 0.5 point, down from last week when it averaged 3.15 percent. At this time last year, the 1-year ARM averaged 3.95 percent.  

 Quotes

Attributed to Frank Nothaft, vice president and chief economist, Freddie Mac.

  • “Fixed mortgage rates eased slightly for the sixth consecutive week amid reports of slower economic activity. The index of leading indicators fell 0.3 percent in April and represented the first monthly decline since June 2010. In addition, the Federal Reserve banks reported less business and manufacturing activity in Philadelphia, Chicago and Richmond.
  • “U.S. house prices indexes may be nearing a bottom soon. On a national basis, prices fell 0.3 percent between February and March, which was the smallest decline since November 2009, according to the Federal Housing Finance Agency. In addition, four of the nine Census Regions exhibited positive growth, compared to none in February. Separately, the Mortgage Bankers Association reported a further reduction in the serious delinquency rate (90 or more days plus foreclosures) in the first quarter, which stood at the lowest reading since the second quarter of 2009.”

For more:  http://freddiemac.mediaroom.com/index.php?s=12329&item=40283





Green Home Renovation: Australian Home Builder Creates Water-Conserving House That Captures And Treats 100% Of Its Own Water

25 05 2011

 

  • Many areas of Australia are operating under severe water restrictions
  • Architects and builders throughout Australia are incorporating advanced water-efficient measures that U.S. water experts point to as practical solutions for our own looming crisis

    The collection tanks feed into the main 32,000-liter tank at the back of the house, where the water is filtered before use via the chemical-free Ecotrol-Radfire system from Australian manufacturer Puretec. The ultraviolet-light treatment destroys microorganisms found in unchlorinated water such as bacteria, viruses, mold, and fungal spores. It operates at a flow rate of 91 liters per minute.

  • Builder Joe Mercieca produced a user-friendly and extremely water-conserving house that won last year’s GreenSmart Award for Water Efficiency from the Australian Housing Industry Association
  • The house, completed last April, captures and treats 100% of its own water, making use of it twice inside the house before employing it for irrigation
  • The whole-house water processing system cost $54,000 (about $55,300 in U.S. dollars)
  • For emergency purposes, the house is tied in to the municipal water system
  • But the reservoir tanks hold a 250-day supply of water so that even with no rainfall his family of five could live in the home for more than six months without tapping into the town’s water supply
  • Rainwater collects on the 3,700-square-foot home’s four slanted and curved corrugated metal roofs and flows into three tanks
  • It is screened and gravity-fed into a 32,000-liter main tank at the rear of the house
  • There are four tanks are capable of holding 90,000 liters
  • The water in the main tank is pressurized and pumped into the house for showers, cooking, drinking, and dish washing
  • To bring it to drinking water standards, it is cartridge particle- and UV-filtered before entering the house
  • A compact greywater system re-treats wastewater from this first round of use and prepares it for washing laundry or cars, toilet flushing and above-ground garden watering
  • A 3,000-liter polyethylene tank at the back of the house holds the treated greywater
  • Once it is utilized a second time, the water diverts into the blackwater system’s 1,500-liter underground tank
  • This water undergoes a sanitizing process with the wastewater irrigating the site’s 5 acres of lawns and gardens
  • The house has no access to the municipal sewer system
  • The home is also miserly in how much it uses, with dual-flush toilets, low-flow faucets and showerheads, and an ultra-efficient washing machine and dishwasher
  • The fixtures are certified to a minimum 4-star rating out of 6 in the country’s Water Efficient Labelling and Standards (WELS) initiative, a joint program of federal, state, and local governments.

For more:  http://www.ecohomemagazine.com/water-conservation/self-sufficient-down-under.aspx





Combined REO Inventory Of Fannie Mae, Freddie Mac And FHA Declines Slightly To 287,184 Units At End Of March 2011 But Pace Of Foreclosuures AND REO Sales Is Accelerating

23 05 2011

The combined REO inventory for Fannie, Freddie and the FHA1 decreased to 287,184 at the end of Q1 2011, from a record 295,307 units at the end of Q4 as shown in the second graph. The pace of foreclosures is picking up, but so is the pace of REO sales. Freddie Mac noted REO sales were at record levels in Q1 where the pace of REO acquisitions will increase in the remainder of 2011, in part due to the resumption of foreclosure activity by servicers, as well as the transition of many seriously delinquent loans to REO. REO disposition reached record levels in 1Q 2011 with over 30,000 homes sold. Fannie Mae also sold a record 62,814 REO in Q1, up from 38,095 in Q1 2010 and 185,744 for all of 2010. So Fannie and Freddie sold over 90,000 REO in Q1, and their combined inventory only declined by 16,185. They are foreclosing at record levels, but they are finally selling REOs faster than they acquire them.





Freddie Mac Reports Average 30-Year Fixed Mortgage Rates Fall Slightly To 4.61% With 15-Year Fixed Rates At 3.80%; Uncertain Economic Strength Is Cited As Reason For Declines

21 05 2011

 

  • 30-year fixed rates averaged 4.61% with an average 0.7 point for the week ending May 19, 2011, down from 4.63% last week
  • One-year ago 30-year fixed rates averaged 4.84%
  • 15-year fixed rates averaged 3.80% with an average 0.7 point, down from 3.82% last week
  • One-year ago 15-year fixed rates averaged 4.24%
  • 5-year fixed rate ARM’s averaged 3.48% with an average 0.6 point, up from 3.41% last week
  • One-year ago 5-year ARMs averaged 3.91%
  • 1-year Treasury ARMs averaged 3.15% with an average 0.6 point, up from 3.11% last week
  • One-year ago the 1-year ARM averaged 4.00%
  • “Fixed mortgage rates inched down for the fifth consecutive week as financial markets try to ascertain the current strength of the economy
  • “Data on the housing market was also mixed. New construction on single-family homes fell 5.1 percent in April
  • Homebuilder confidence remained unchanged in May and near its January 2009 historical low

For more:  http://freddiemac.mediaroom.com/index.php?s=12329&item=39398





Buying Foreclosed Homes: FHA 203k Renovation Loans Are The Only Financing Option For Owner-Occupant Homebuyers Who Need To Make Repairs To A Distressed Property

20 05 2011

 

  • FORECLOSED homes have maintenance issues that have been ignored
  • Lenders turn off the water and power to cut the cost of letting the place sit
  • Most purchase loans cannot fund homes that need repairs or have major deferred maintenance
  • Distressed properties are sold at a discount and make up 40 percent of resales in currently
  • This is why “all-cash sales” are at their highest level ever — 35 percent of total sales, according to the Realtors
  • Most cash buyers are often investors who don’t plan to live in the home
  • For would-be owner-occupants without cash, the federally insured FHA 203k loan is the main loan
  • Borrowers can roll projected rehab costs into the loan
  • Most R.E.O.’s are as is, and the heat, plumbing and electric are turned off frequently, a 203(k) loan is necessary to cover the borrower and the lender
  • Buyers must use the services of an independent consultant certified by the Federal Housing Administration to review contractor cost estimates and architectural plans
  • The F.H.A. appraiser takes the consultant’s report into account when reviewing a property and determining how big the loan can be
  • Not all R.E.O. properties are eligible, such as a partially built house that has never had a certificate of occupancy
  • F.H.A-certified consultants cost $500 to $1,200, depending on the extent of the repairs and the number of units in a property
  • The interest rate on a 203(k) loan is about a quarter of a percentage point higher than on a standard F.H.A.-insured loan
  • The buyer also can expect to pay at least 1 point
  • The down payment may be as low as 3.5 percent, and loan limits apply
  • High-cost area F.H.A. loans limits are currently $729,750. (Energy-efficient rehabs may be eligible for more.)

For more:  http://www.nytimes.com/2011/05/15/realestate/financing-foreclosed-homes-mortgages.html?_r=1&ref=realestate





Freddie Mac Report On Home Mortgages Finds 95% Of Refinance Loans Are Fixed-Rate Loans With 34% Choosing 15- Or 20-Year Programs

18 05 2011

 

  • Fixed-rate loans accounted for more than 95 percent of refinance loans in 1st Quarter 2011
  • 34% chose a 15- or 20-year loan, the highest such share since the first quarter of 2004
  • 84% of borrowers who had a hybrid ARM chose to refinance into a fixed-rate product during the 1st Quarter
  • “Fixed mortgage rates averaged 4.85% for 30-year loans and 4.12% for 15-year loans, well below long-term averages
  • The Bureau of Economic Analysis has estimated that 6% was the average rate for SFR’s at the end of 2010

For more:  http://freddiemac.mediaroom.com/index.php?s=12329&item=39019