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Knox County Ohio Real Estate Information Archive

Sam Miller

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FHA Guidelines and Changes Coming

by Sam Miller

FHA is in the process of making some pretty big changes to their lending guidelines.  FHA mortgage specialist Bill Skerbetz of Equity Resources (740) 349-7082 shared a useful worksheet with me that highlights 5 of the more key changes that are in the works for an FHA loan.  This information is going to be very helpful for consumers thinking of buying or selling a home in the near future.

  1. FHA Financing Allowed for Properties Being Resold within 90-Days.  FHA is allowing the use of FHA financing for properties being resold within the 90-day period after the previous acquisition. This is not limited to foreclosed properties. The purpose is to encourage investors that specialize in property renovation to acquire foreclosed and abandoned homes in an effort to increase the availability of affordable homes for homebuyers. In effect for all sales contracts executed on or after February 1, 2010 and will remain in effect for one year unless extended or withdrawn by the commissioner.
  2. Maximum Seller Contributions Reduced to 3%.  Seller contributions to pay borrower closing costs is currently 6%, but will drop to 3%. Using $100,000 purchase price, that is $3,000 less the seller could contribute. This will go into effect this summer.
  3. Up-front Mortgage Insurance Increased to 2.25%.  The Up-front Mortgage Insurance that FHA requires on most of their loans will be increased from 1.75% to 2.25%. This amount is added to the final loan amount, so there will not be additional funds needed at closing from the borrower. Good news is they will continue to allow this to be financed! Effective for FHA case numbers assigned on or after April 5, 2010.
  4. Monthly Mortgage Insurance Premium (MIP).  They are pursuing legislative authority to allow flexibility to bring the annual MIP higher (currently capped at .55) so they can shift some of the premium increase from the up-front MIP to the annual MIP. The annual MIP is paid over the life of the loan instead of at the time of closing so this will reduce the impact to the borrower. This is still pending.
  5. Low Credit Scores.  Borrowers with credit scores below 580 will now be required to put a least 10% down. This is kind of a non-issue because few lenders that offer FHA loans will accept credit scores below 620 in today's market. This will go into effect this summer.
Watch our website and blog for future updates as these FHA changes take place.
Sam Miller

USDA Rural Development Out of Money by April 2010?

by Sam Miller

Serious homebuyers may have more than the First Time Homebuyer Tax Credit motivating them to buy a home before April 2010!  I just read an e-mail announcement from the United States Department of Agricultural announcing that it is very likely that the USDA will have exhausted all funds available for single family home loans by the end of April, 2010.  This creates additional urgency for homebuyers to get a home under contract and closed before these funds for these loans run out.

According to USDA they have stated that "Once funding is exhausted, the Agency will not issue Conditional Commitments subject to receipt of appropriate funds. This is because it is not certain when additional funding will be available."  What this means to many homeowners is that if they wait until the last minute to take advantage of the First Time Homebuyer Tax Credit and they intend to use the USDA loan program there is a VERY good chance there will not be money available to fund the loans.  The bottom line is that you could likely lose out on this super affordable loan program AND you will lose out on the opportunity to take advantage of the tax credit and the potential of getting your $8,000.

The solution is to act fast and get your new home under firm contract as quick as possible and get your loan application started.  If you wait to get a home under contract towards the end of the first time homebuyer tax credit you will likely miss out entirely.  If you would like us to get your home purchase on the fast track send us an e-mail right away or give us a call at (740) 397-7800.

Sam Miller

UPDATE on May 13th, 2010:  

We just received an e-mail from one of our lenders confirming that Rural Development / USDA has ran out of available funding.  I will update you once I hear anything new.

Knox County, Ohio February Home Sales

by Sam Miller

The February 2010 home sales totals are in for the Knox County, Ohio real estate market.  There were a total of 28 homes that sold during February for a combined total of $2,722,334 in dollar volume.  The average sales price according to the Knox County MLS for February 2010 was $97,226.

Knox County, Ohio February Home Sales By Price Range

Number of Homes

      Price Range               

Avg. Price

5

$25,001 - $50,000

$27,300

1

$50,001 - $75,000

$57,500

8

$75,001 - $100,000

$87,137

5

$100,001 - $125,000

$113,050

5

$125,001 - $150,000

$137,600

1

$150,001 - $175,000

$156,000

0

$175,001 - $200,000

       0

2

$200,001 - $225,000

$212,500

As of February 28, 2010 there are 292 homes listed in the Knox County MLS for sale . The average list price of these homes is $155,501 with a combined total dollar value of $45,406,353.

Watch for our regularly posted monthly statistics and if you would like to be kept up with the latest news on real estate listings in Knox County, Ohio, be sure to register for our automated Knox County, Ohio Listing Notification System at EmailKnoxCountyHomes.com.
 
View our Knox County Ohio Homes For Sale.

 

*All sales statistics are as reported to the Knox County MLS on March 1st, 2010.

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Sam Miller
RE/MAX Stars Realty
710 South Main Street
Mount Vernon OH 43050
740-397-7800
Fax: 740-399-3604