FHA Loans - Help for First-Time Buyers

If you have little or no money for a down payment, iffy credit and too many bills, an FHA loan could be what you need to buy a house.

The Federal Housing Administration, a part of the Department of Housing and Urban Development, was created 70 years ago to help first-time buyers, especially low-to-moderate income families and minorities, get the financing they need. 

You can apply for an FHA-backed loan from most banks and mortgage companies.

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Avoiding Foreclosure - What You Can Do

The rate of residential home foreclosure filings dropped dramatically in April, down 14.3% from the previous month, according to Foreclosures.com. Still, year-to-date the foreclosure-filings rate is higher than the same period a year earlier.

What to Do:  Depending on your lender, you may be able to restructure your mortgage if you're late in making monthly payments. The delinquent mortgage payments may be added to the mortgage balance, or the homeowner could be given additional time to make catch-up payments. If you can no longer afford your adjustable-loan rate, don't count on bankruptcy court to save your home.

Changes in the bankruptcy law in 2005 have made it harder for homeowners to qualify for a "fresh start" and prevent foreclosure. Instead, work with a qualified credit-counseling service to restructure your non-mortgage debt to free up cash-flow. Federal help may also soon be on the way: Mortgage-finance giants Fannie Mae and Freddie Mac are planning to introduce alternative financing to help homeowners with subprime loans avoid foreclosure.

Housing Starts Up, Permits Down

U.S. home construction unexpectedly rose in April but permits for future building sank to the lowest pace in nearly a decade according to a government report, pointing to extended troubles in the housing market.

The Commerce Department said housing starts hit a seasonally adjusted annual pace of 1.528 million units, a 2.5 percent increase from the prior month.  However, building permits, which signal future construction plans, dropped in April by 8.9 percent to a pace of 1.429 million units.

Even though housing starts increased in April to the highest pace since December 2006, they were down 16 percent from a year ago and, in a sign the troubled housing market may not be turning the corner as quickly as hoped, building permits were off 28.1 percent from a year ago.

All of this news about how bad the housing market is can actually make it a GREAT time to think about buying a home.  Builders are making more deals than ever to move homes, and it could be the best time in many years to get a great deal on a house.

Contact us to schedule a time to help you decide if now is the right time for you to think about buying real estate.

Home Renovations: Beware of Sneaky Contractors

Having a new home built or doing some renovation? Odds are, you're not getting everything you paid for.  With many home construction projects, a contractor or a subcontractor may be cutting corners at your expense.

There are honest building professionals, but many will play every angle to increase their profits.  They might use low-end building supplies instead of quality components… instruct workers to use one nail where two would be better… or inflate charges on invoices.

Strategy: To get the home materials and workmanship you've actually paid for, include specific details in the contract.  Spell out specific brands, model numbers and dimensions of each component.  (Some large home-building companies include such details in their contracts as a matter of course, but most contractors don't.)