Rumors are flying about the eligibility areas being changed. (specificially as it pertains to Lynden & Ferndale.  At this time, they are reviewing the eligiblity areas.  They cannot discuss any potential changes.  Any changes that may occur will be announced at least 30 days prior to the effective date.

So… if you're wanting or needing to use a zero down loan hurry up and get your offer on the table before it's too late!

USDA has made an announcement changing the areas that are eligible tentatively effective October 1, 2012. With a USDA loan, buyers are currently able to secure a loan with no money down.These areas are no longer eligible for USDA financing due to the 2010 census results.

The areas in Whatcom County that are affected by this change are:

Lynden
Ferndale

Loans in these areas need to have received a USDA reservation prior to October 1 to be eligible for funding

You don’t have to be a realtor to see that the market has shifted and there has been a lot of real estate activity lately both nationally and locally.  Multiple offers, full price offers, &  bidding wars have become increasingly more common just recently.  The great news is that it’s not only the less expensive homes experiencing traction like we saw during spring and early summer. While the more expensive homes of most areas may be short on buyers, the medium price range is definitely heating up. As inventory drops and the quantity of buyers remains high, we find ourselves reversing the market from a buyers market to a sellers market. What does all of that mean? Home values will begin or should continue to go up.  A national real estate website says asking prices for homes have been up for 7 months in a row and that puts them up 2.3%  vs a year ago. (the largest year over year gain since the housing downturn began).

How are we doing locally? Whatcom county pended 7% more homes during the summer months than the same period last year. That is significant but what’s more significant is that this happened while inventory levels dropped about 15%! If inventory drops and yet sales remain as high or higher than where they were a year ago we are definitely trending the right direction. This also means that if you are trying to make a move to take advantage of historically low interest rates I wouldn’t wait any longer.  The boat has already left the port!

With anticipation of the upcoming presidential election I predict rates will begin an upward trend relatively soon. Even if you’re not looking to purchase a new live-in home or investment property I would strongly consider refinancing. I just refinanced for 15 years and locked in at 2.875%. That’s a substantial savings! For every $100,000 of a loan you borrow a 1% increase equates to about $12,000 in cost over the life of the loan. So if you have a $300,000 mortgage and the rate increases by 1% (very likely it could be more) that would cost $36,000 over the life of the loan.  If you need some direction here give me a call and I can point you to a recommended loan officer to review your personal situation.

I need your help!…Would you consider pausing for just  30 seconds and ask yourself…”Who do I know that may be looking to make a move in the next 3-6 months?” Would you be willing to share with me that person(s) that comes to your mind? I will reward you handsomely!

Americans are now expanding their vision of how big a home they want to live in. The Census Bureau reports the average size of a newly built home in 2011 was 2480 square feet. That was 3.7% bigger than the average size in 2010 — and the first annual increase since 2007! Record-low interest rates are also allowing buyers to move up in size for virtually the same mortgage payments. The trend helped boost the average new home price in April to $282,600, up more than 5% over a year ago.

I just locked on an amazing interest rate and shaved off 13 yrs of my mortgage keeping the same payments. Only 2.875% for 15 years. That’s amazing. Don’t miss the boat!

Average 30-Year Fixed-Rate Mortgage Holds at All-Time Record Low
30-year fixed-rate mortgage (FRM) averaged 3.87 percent with an average 0.8 point for the week ending February 9, 2012, matching last week when it also averaged 3.87 percent. Last year at this time, the 30-year FRM averaged 5.05 percent.

Getting ready for a recovery could be the theme of last week’s housing reports. Pending Home Sales, after hitting a 19-month high in November, dipped a bit for December, yet came in 5.6% above where they were a year ago. The National Association of Realtors chief economist observed, “Even with a modest decline, the preceding two months of contract activity are the highest in the past four years outside of the homebuyer tax credit period.”

 Here’s some important news about interest rates that you really need to see:

As directed by the Federal Housing Finance Agency (FHFA), the mortgage agencies, Fannie Mae and Freddie Mac, are required to increase the guarantee fee charged for all new mortgages financed on or after April 1, 2012. What does this mean? Rates on all agency loans (Fannie Mae and Freddie Mac) will start to reflect the extra cost in higher interest rates as soon as February 1st. So if you’ve been waiting on lower rates, now is a great time to “get off the fence.” Waiting could cost you dearly!

The Census Bureau reported that although the median sale price of new homes in October was down 15% over the last five years, it’s actually up 26% over the last ten. Home ownership is still a great investment and it could easily be one of the best times to buy ever in our lifetime!