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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

Interesting reading. Hit the link to read the entire article.

With evidence that Swine Flu ran for the border this past weekend, mortgage rates are improving. Confirmed cases of H1N1 Swine Flu have spread to 5 continents and financial contagion has put markets in Safe Haven mode.

“Safe Haven buying” is a market jargon. It describes a common trading pattern during that emerges during times of uncertainty.

via The Mortgage Reports Blog: How Swine Flu Is Helping Mortgage Rates.

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

Facts on the Homebuyer Tax Credit – Updated December, 2009

In November 2009, the first-time homebuyer tax credit was expanded and extended. It could be the boost you’ve been waiting for to get you on the path to your new or next home. Here are some answers to questions and facts to consider.

First-time home buyers – 10% of the purchase price up to $8,000

This tax credit is available to buyers who have not owned a principal residence during the prior three year period, and
enter into a contract to purchase a new primary residence on or before April 30, 2010.

Current home owners – 10% of the purchase price up to $6,500

This tax credit is available to current home owners who have lived in their principal residence for at least five
consecutive years during the past eight years, and enter into a contract to purchase a new primary residence on
or before April 30, 2010.

What is a Homebuyer Tax Credit?*

It is a reduction in what a taxpayer owes in income taxes. To qualify, the homebuyer must meet the annual income
requirements and enter into a binding contract for a home purchase between November 7, 2009 and April 30, 2010,
and close on the purchase by June 30, 2010.

What are the income requirements?

For single tax payers, the income limit is $125,000 for married taxpayers filing a joint return, the limit is $225,000. Consult your tax professional to determine your eligibility.

Does the tax credit need to be repaid?

No. This is not a loan, but a tax reduction, provided you live in the home for a minimum of three years. Military families are exempt from this stipulation.

Are there other allowances available?

Yes. For some FHA-insured mortgages, the tax credit may be used as a down payment to offset closing costs. To learn more about this and other details, talk to a CENTURY 21® Agent.

Are there any caps on the value of the home?

Yes. The tax credit is only applicable to homes that are purchased at $800,000 or less. The extended tax credit program is designed to help make home buying possible for a wider number of buyers. CENTURY 21 Sales Professionals can help you understand how to take advantage of this temporary incentive. It’s important to also consult with a tax professional and a mortgage specialist. One of our agents will be glad to guide you through the process.

Contact us at 334-793-6990

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

FHA has been the most popular form of mortgage financing here in the Dothan real estate market for years. The reasons are many, but include the low down payment requirement, easier qualification, and down payment assistance programs (which are no longer available). With the tightening of credit standards and the raising of the maximum price level, FHA is now an even more attractive option for Dothan area home buyers.

Here’s three reasons why:

1. The FHA loan limit for the Dothan area currently stands at $271,000, which translates to almost 80% of all homes listed for sale in Dothan. This makes FHA mortgage financing an option for more home buyers than ever before.
2. Credit standards for conventional loans have tightened significantly in recent months, so much so that any credit score below 741 is going to result in a bump up in interest rate. The minimum credit score for FHA is considerably lower.
3. The down payment requirement has been raised to 3.5%, but it is still lower than the minumum 5% down on a conventional loan.

Truthfully, the only reasons to go with a conventional product right now are if you are buying a house priced over $271,000, or you have a significant down payment. As always, consult with your mortgage professional for the best choice to fit your needs.

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

The City of Dothan recently announced the creation of a down payment assistance program for low to moderate income first-time homebuyers. $5,000 can be given to these buyers to go toward the purchase of a home, although the plan is limited to 50% of the required down payment.

$5,000 is a fairly substantial amount given the median price here in Dothan. The average Dothan home sells for around $135,000, which would require a down payment (3% for FHA loans) of about $4,000. The established income limits for the program will probably preclude anyone from qualifying for a home priced that high, but you can get a lot of house for under $100,000 here in Dothan, plus have half your down payment covered.

The money comes from a Community Block Grant and must be partially repaid if the home is sold within the first five years.

Download complete information on the program by CLICKING HERE (link fixed) (PDF format), or get the application HERE (also PDF). Feel free to give us a call (334-793-6990) or drop us an email for the forms or more information.

Tags: Dothan+real+estate, Dothan+home+buyers

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

Our Federal government’s attempt to jump start the economy, more specifically the housing market, took hold on Tuesday as mortgage rates dropped by about a half a percent practically overnight. Interest rates that were over six percent a month ago are now below 5.5%. I get regular updates from several Dothan area mortgage lenders and some have rates even lower according to Tuesday’s email.

If you have been thinking about buying a home here in the Dothan area, most signs point to this being a great time to do so. You can keep an eye on the national average of mortgage rates by watching the current mortgage rates widget in our right sidebar, provided by Zillow Mortgage Marketplace.

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By: Steve Russell


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This week’s financial forecast is uncertain. The FOMC, the Federal Open Market Committee also known as The FED, meets this week for 2 days beginning tomorrow and concluding with their economic recommendations to be released at 2:15 ET on Wednesday. The markets are expecting the FED to stop its rate decreases amidst increasing inflationary pressures and the weak dollar.

The interesting and uncomfortable position policy makers are in (firmly lodged between a rock and a hard place) requires them to choose between loosening rates to try and stimulate economic activity, and tightening rates to help increase the value of the dollar and therefore decreasing the overall cost of oil (since the price of oil on the open market is based on the US Dollar).

Most analysts are expecting the FED to hold the course with no rate increase or decrease, and I tend to agree with them. With no other significant economic reports due out in the next few days, I don’t expect mortgage bond traders to get too aggressive buying or selling. I would expect the mortgage rates to remain relatively flat, at least until the results of the meeting after lunch on Wednesday. Enjoy your week, and check back for the economic news that affects you in the real estate industry.

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Steve Russell is a Mortgage Banker with Primary Residential Mortgage. Contact Steve with mortgage related questions at 888-257-8383, or visit his website at themortgageman.wordpress.com

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

I am pleased to welcome Steve Russell, Mortgage Banker with Primary Residential Mortgage, to Dothan Home Search as our resident mortgage expert. Steve writes on his own blog, themortgageman.wordpress.com, and we are excited to have him here sharing his mortgage market insights with home buyers and sellers in the Dothan area.

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By: Ann Bourland


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NOTE: I am pleased to introduce Ann Bourland with Lending Edge Mortgage as a guest here on Dothanhomesearch.com. Ann will be sharing information on the Dothan mortgage scene.

Charles Woodall

Last week as a rollercoaster ride for mortgage rates. Rates reached their highest level of the year early in the week, only to retreat late and end up almost back where they started. With the Fed cutting rates and pumping liquidity into the economy, and the government implementing fiscal stimulus programs, mortgage investors became increasingly worried that the stimulus would lead to higher inflation, which is negative for mortgage markets. This explains why 30-year mortgage rates have jumped 0.75% since the Fed’s aggressive January 22 rate cut.

Today, both conventional and FHA/VA rates are up to around 6.25%. Even though standards have been tightened in on some conventional products such as stated income, FHA loans still have relatively the same requirements. Remember, conventional loans are driven by your credit score, government backed (FHA and VA) are not.

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Contact Ann Bourland or Kim Kennedy at Lending Edge Mortgage at (334) 836?0963 or by email at aborland(at)edgeloans(dot)com

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

The Bush administration announced yesterday its latest attempt to help homeowners facing foreclosure. The plan, called Project Lifeline, involves six different mortgage companies offering to ?pause? the foreclosure process for their customers to allow time to seek a change in the terms or maybe the type of mortgage to something the homeowner can manage.

Here are the highlights from the Wall Street Journal article.

• Participating mortgage companies include Bank of America, Citigroup, Countrywide, JPMorgan Chase, Washington Mutual, and Wells Fargo. More mortgage companies may be added.
• The program will pause foreclosure proceedings for 30 days to give the mortgage company and the homeowner time to evaluate modifications to their mortgage or refinancing options that might save them from foreclosure.
• The mortgage companies involved have agreed to be proactive in contacting homeowners that are over 90 days behind and give them a step-for-step approach to taking advantage of the pause.

One thing the article mentions, but bears repeating, is that this or any other program will not help you if you don?t take advantage of it. Be proactive yourself by communicating with your mortgage company and trying to work something out!

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By: Charles Woodall
Managing Broker

http://www.dothanhomesearch.com

Karl Burger, fellow real estate blogger covering Pensacola, Florida real estate, has a great overview of the upcoming changes to FICO credit scores.

Well worth the read!

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