Fannie Mae makes Mobile Home Loans Cheaper

Boosting Affordable Housing, Fannie Mae is seeking to  

bridge the gap in affordable housing by making manufactured housing a more acceptable alternative to traditional built-on-site housing. It hopes to do that with its MH Advantage program, which is lowering down payment requirements and lender fees on manufactured housing loans. 

The new MH Advantage loans require a 3 percent down payment, which is down from 5 percent in Fannie’s existing manufactured housing loan. Also, Fannie is not charging the 50-basis-point loan level price adjustment that usually applies to manufactured housing loans, the National Mortgage News reports. 

To qualify, MH Advantage loan homes must meet specific construction, architectural design, and energy efficiency standards that compare to site-built housing. Eligible homes will be identified by a “Mortgage Financing Notice” or an “MH Advantage” sticker. The sticker means that the home meets the requirements and a borrower could qualify for the MH Advantage financing. But the borrower must still meet certain loan eligibility requirements to be approved. 

Government-sponsored enterprises Fannie Mae and Freddie Mac have both been expanding their support for manufactured housing in recent months under a directive issued by the Federal Housing Finance Agency, called Duty to Serve. 

Know the Features & Flexibilities
HomeReady mortgage addresses common financial challenges and offers expanded eligibility guidelines, such as:

• Offering a 3% down payment option. First-time and repeat homebuyers can purchase a home with a down payment as low as 3% of the purchase price.
• Allowing co-borrower flexibility. All borrowers do not have to reside in the property. For example, parents, who won’t be living in the home, can be co-borrowers on the loan to help their children qualify for a mortgage and purchase a home. Income limits may apply.
• Accepting additional income sources. Rental payments may be considered as another allowable income source to help qualify a buyer (i.e., rental payments from a basement apartment).

• Homeownership Education Requirement

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate

Source: National Mortgage News (June 6, 2018) and Fannie Mae (June 5, 2018)

Don’t Want to Buy a Home?

Concessions Becoming the Norm With Rentals, 

'Back With a Vengeance' Many markets are being saturated with new apartment buildings, and developers in some of the most popular markets are now finding they need to offer incentives to tenants in order to fill growing vacancies. 

After years of rental hikes, tenants are now finding themselves in the driver’s seat as more landlords look to aggressively court them.

Some developers reportedly are offering new residents a month or two of free rent or free parking, according to the CoStar Group.

For existing tenants who renew their leases, offers of a free month of rent, an apartment upgrade, or no increase to their rental payment are becoming common. 

The trend is not just centered in the high-end market, but rather in any area that has seen a wave of multifamily development over the past few years, the CoStar Group reports. For example, Nashville has recently boosted its supply of apartments by 30 percent.

Many developers there are reportedly offering one or two months free rent for lease signers in their new buildings. They’re also taking the added step to reduce rents for some existing tenants. Oversupplied markets will likely see more rent concessions and slower rent growth.

However, Companies notes that concessions have not yet forced them to decrease their asking rents in the long term. Property owners are seeking to stabilize their properties and meet occupancy levels, particularly in the face of more new buildings on the market. But as buildings fill up again, analysts expect rental costs to be back on the rise then. 

Nationwide rental growth has slowed to about 2 percent annually; it was averaging more than 5 percent. 'The data clearly shows that rent growth has slowed from the highs of 2015.'  'But 2015 was a rare year, when demand for housing, thanks to a healthy economy, far exceeded housing construction. 

Since then, developers have responded, and rent growth has fallen to long-term trends. But what we’re seeing is not a hard landing—it’s a return to normal.'

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate #Rentals

First-time home buyers are Flocking to the Real Estate Market

So why have they gone on a buying binge? 

First-time buyers accounted for 46 percent of new mortgages (excluding refinancing) that Freddie Mac backed in the first quarter, excluding refinancing—that were issued in the first quarter of this year. That marks the largest quarterly share that Freddie Mac has recorded, dating back to 2012. 

Meanwhile, the National Association of Realtors puts the median age of first-timers in the U.S. at 32.  

“This is a millennial-driven rise,” Khater said in a phone interview. “You’ve got a strong economy that’s helping, along with the appetite of the financial market to invest in mortgages.”

In other words, Younger buyers may be motivated to buy due to the easing of credit in recent months as well as an improving job market. They also may be motivated to buy as rents rise and as increasing home prices and mortgage costs threaten to price them out of home ownership if they don’t act soon, Bloomberg reports.


The sheer size of the generation means a lot of mortgages, Freddie Mac Chief Economist Sam Khater said. 

So while it’s a tricky time to be a young homebuyer, it might be a good one compared with next year.

So Lets Get Start! We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #Millennial

Latest Crop of Brand-New Homes

Home buyers hoping for new construction are in luck—

the most brand-new, single-family houses have hit the market since the Great Recession.

The number of these never-been-lived-in abodes, 795,000, jumped 7.7% from 2016 to 2017, according to the U.S. 

Census Bureau report on the 2017 Characteristics of New Housing. 
The median square footage was up ever so slightly as well, to 2,426 from 2,422 the year before

'Construction is slowly shifting back from the core of metro areas to the outer suburbs.

It’s because that's where your normal buyers look for houses,' an online homebuilding and remodeling marketplace. 'They're going to be larger than the homes you'll find in the center of town.'

These larger homes tend to be more expensive than older, existing residences, so they tend to attract older buyers who have owned a home before. For example, the median price of a new home was $312,400 in April—compared with $257,900 for an existing home. That's 21.1% more. That's typically because of high land, construction labor, and materials costs.

The overwhelming majority of these brand-new homes had multiple bedrooms: 45% had three beds, while 46% had four beds. That's the same as the previous year. About 37% of the houses had three or more bathrooms, while 29% had 2.5 bathrooms and 31% had two bathrooms. The rest had one and a half.

About 65% of these brand-new homes had two-car garages, and about a quarter of them had full or partial basements.

Newly built abodes were also more likely to be part of a homeowners association than not. About 487,000 of these new abodes were in HOAs—so good luck avoiding those fees. That may be because new construction is more likely to take place in the suburbs and beyond, where there is more land available and where costs are lower than in the suburbs

“It’s good that there’s more construction, but there’s still plenty of room for more building.' 'Builders are obviously catering more toward wealthier buyers. But we know that there’s plenty of housing demand on the more affordable end.”

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #Newconstruction

Reasons People Can't Sell a Home

Trying to sell your home, but no one's buying? 

Don't beat yourself up quite yet—there are lots of complex reasons why a home might not sell the instant it hits the market, many of which are beyond your control.

However, there are also a lot of (to put it bluntly) reasons a home won't sell, too—things that home sellers could have easily avoided had they made a minimal effort to do their homework and enter the fray prepared.

Hey, we get it: Home selling is one of those things you might do only once or twice in your life, so it's understandable if you don't know every nuance of how to do it right. So, no judgments! Still, in an effort to steer you away from these pitiful pitfalls, we thought we'd sit you down for a heart-to-heart and spell out a few no-no's to avoid before putting your house on the market.

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

Behold these seven reasons people can't sell their home—if you commit any of these blunders, that's on you.

1. Pricing a home based on feelings rather than data

'Oftentimes people who've lived in their house for a long time believe the property is worth more than what the market is dictating—and insist on listing it at above fair market value.'  'When sellers are too emotionally attached to the home, it inhibits their ability to sell it.'

Pricing a home right the first time is crucial, because if it's too high, no buyers will touch it—and the longer it sits on the market, the more it starts to look like damaged goods.

'Even those who lower the asking price at a later date do not have great success in selling their home.' 

So try to take your ego out of the equation and price with your head, not your heart. Research what comparable homes in your area have recently sold for, and build a pricing strategy around that.

2. Keeping all your stuff in the house

Sorry, but some of your stuff has got to go.
Remember, too much clutter can make a place seemed cramped; plus you never know what might offend a potential buyer.

'Start with removing all personal items, and anything political or religious.'
When selling a home, it's best to keep any strong opinions or eccentricities out of the picture.

3. Not bothering to spruce up your place

Many homeowners are reluctant to spend a little bit of money to make their home look nice before it goes to market. We get it—receiving a long punch list of fixes to do before you can list your home is not fun. But consider this: Certain small tweaks cost a pittance, yet can reap big returns. For example, a fresh coat of paint can boost your sale price by 15%.

Also keep in mind that other small 'flaws'—such as creaky floors or sticky doors—will be noticed by buyers and further drag down your sale price. So try to not be so shortsighted: Sometimes you have to spend money to make money.

'Even basic staging—paintings, hand towels, throw blankets, duvet covers, decorative pillows—is extremely helpful and should not be cost-prohibitive for any seller,' says Bauman.

4. Using lackluster listing photos

Professional photography is another thing it is just silly to be stubborn about paying for. Ideally, you or your real estate agent should bring in a photographer. Because relying on bad camera phone pictures is just going to hurt you.

'With the advent of the internet, a purchaser’s first impression of the home is gathered from their computer screen.'

'Always use a professional real estate photographer, because that is the big draw to lure in the buyers to come and physically view the home. I cannot tell you how many times we've seen cellphone photos on marketing materials—a huge disservice to any seller!'

5. Assuming if you just list it, they will come

It takes more to sell a home than just putting up a listing and waiting for the buyers to roll in. For sellers and their agents, getting the news out—through fliers, signs, word of mouth, and online promotion—is key.

Even in hot markets, 'it’s very important to market the home.'  Homes don't sell themselves—that takes you. 

6. Being inflexible with viewing times

You've spent the past however-many weeks cleaning, repairing, repainting, decluttering, and staging, and now you're supposed to just clear out of your house (including pets!) with no warning when buyers come calling? Yep, pretty much. Luckily, if you do it right, offers should come in quickly.

'In competitive real estate markets, if you are going to get an offer at all, it will likely be within the first two weeks of the home being listed.'  'It’s important to make sure the house is available to see in person, which means the sellers will have to keep the home tidy and allow their schedules to be flexible.'

Serious buyers are scouring the internet, waiting for promising new listings to pop up. You get only one chance to be that fresh, new listing. Just like it's important to get the pricing right the first time, you want to let excited buyers see your home right away. You never get another chance at those first few weeks, so it really is silly to shut them out, since they may not be back later.

7. Rejecting offers

Selling a home that you're emotionally attached to is tricky, and a low offer can feel like a slap in the face. But often, buyers don't mean it that way. So tempting as it may be, don't shut them down hard.

'A buyer may come in with a low price, but it’s best not to write them off completely.'  'If the offer is rejected in a rude way, those buyers may feel like they do not want to work with the sellers at all.'

Sometimes, a successful negotiation starts with a low offer, perhaps from a buyer who doesn't really have a good handle on the market. Other times, what you thought was a low offer might just be a more realistic view of what your home is really worth at the moment.

Bottom line: Until you're at the closing table, it's smart to keep your options open. Deals fall through, buyers walk away, financing gets mucked up at the last minute. 

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate 

Source: Realtor.com

Mortgage Rates Retreat

After climbing to their highest level in more than seven years, mortgage rates eased a bit this week. It was the first time they declined in four weeks, says Sam Khater, Freddie Mac’s chief economist.

The 30-year fixed-rate mortgage fell 10 basis points to a 4.56 percent average this week. 

“Meanwhile, confident American consumers shrugged off the market volatility, as purchase mortgage applications continue to trend higher from a year ago.” 

But even with higher rates this year, Khater believes demand from home buyers will stay elevated as long as job growth and other economic fundamentals stay strong. 

“Extremely low inventory conditions in most markets are preventing sales from breaking out while also keeping price growth elevated,” Khater says. “Even if rates climb closer to 5 percent, sales have room to grow more—but only if current supply levels start increasing more meaningfully.” 

Total existing-home sales—which are completed transactions that include single-family homes, townhomes, condos, and co-ops—decreased 2.5 percent to a seasonally adjusted annual rate of 5.46 million in April.

Sales are now 1.4 percent below a year ago. This also marks the second consecutive month sales have fallen on an annual basis. 

However, inventory shortages are even worse than in recent years, and home prices keep climbing above what many home shoppers are able to afford.” 

For the inventory that is out there, homes are selling fast. Strong buyer demand mixed with low inventory levels are prompting homes to sell at a record pace.

Freddie Mac reports the following national averages with mortgage rates for the week ending May 31: 

• 30-year fixed-rate mortgages: averaged 4.56 percent, with an average 0.4 point, down from last week’s 4.66 percent average. Last year at this time, 30-year rates averaged 3.94 percent.
• 15-year fixed-rate mortgages: averaged 4.06 percent, with an average 0.4 point, ping from last week’s 4.15 percent average. A year ago, 15-year rates averaged 3.19 percent. 
• 5-year hybrid adjustable-rate mortgages: averaged 3.80 percent, with an average 0.3 point, ping from last week’s 3.87 percent average. A year ago, 5-year ARMs averaged 3.11 percent. 

In this video, Doerner gives a breakdown of how prices performed across regions. 

Are you Ready to get Started? We have a wealth of information and 18 years of experience to help you get started. Visit us at WWW.PrecisionReal-T.com or if you prefer a more personal touch Call us today at 801 809-9866.

 #RealEstateForSale #Homeownership #UtahRealEstate #MortgageRates


Source: Freddie Mac

Understanding your Closing Process

Closing on Your Home:
What to Expect: When preparing to purchase a home  

you'll likely hear the term 'closing.' Closing, often referred to as settlement, is the completion of the real estate transaction between you as the buyer and the seller.

At the closing meeting, the buyer signs the mortgage documents and the closing costs are paid.

Closing is exciting because it's the final step in purchasing your home… 

Your real estate agent will be there to guide you, however, it's important to understand what the closing process entails so that you're prepared come settlement date.

Understanding the purpose and function of the primary documents used in your homebuying process will help you navigate more confidently, from application to closing. 

Forms You’ll See Prior to Closing

Buyer Representative Agreement:  When you engage a real estate agent to help you buy a home, they may ask you to sign a Buyer Representation Agreement.  This is a legal document that formalizes your working relationship with your agent.

Uniform Residential Loan Application: This is your mortgage loan application that captures information about you, your finances, and details of your potential mortgage. You’ll be required to provide information about your monthly income, combined household expenses, assets and liabilities, and personal information such as your social security number and marital status. This information will help your lender assess your ability to pay your mortgage. 

Purchase Agreement: Once your offer to purchase a home is accepted by the seller, a purchase agreement is drawn up. This agreement typically includes all details of the purchase, including the names of the buyers and sellers, total purchase price, commission payable to the real estate agent, and requested closing date. The purchase agreement is used to secure financing from the lender, and is submitted as part of the closing paperwork.

Loan Estimate: Within three business days after completing your loan application, your lender will give you a Loan Estimate that should reflect the particular loan you discussed – including all terms and associated costs due at closing. Consider exploring your loan options from several lenders and choose the loan that is best for you.

The Most Important Forms You'll Sign at Closing

Closing Disclosure: This form provides all of the actual fees, costs and credits associated with closing your loan. Your lender is required to provide you with the Closing Disclosure  3 business days before your scheduled closing to review and ensure that the loan terms and costs closely align with those provided in your Loan Estimate.

The Promissory Note: This is the legal document you sign agreeing to repay the loan according to the terms to which you agreed. It outlines the details of the loan, the dates when payments are to be made and where payments are to be sent.  It also explains what can happen if you fail to make a payment on time.

Deed of Trust: By signing this document, you are giving the lender the right to take back the property by foreclosure should you fail to repay your loan as agreed. This document also explains your rights and responsibilities as a borrower.

Deed:  The seller will sign the deed to transfer ownership over to you, and it will have the names of all the buyers on it. Your title will be held with a third-party trustee until you have paid for the house in full. You will receive a copy of the deed at closing.

Affidavits and Declarations:  These are statements declaring all the information you provide is true, including that the property will be your primary residence and all repairs needed on the property were made prior to closing.

You should feel free to ask questions and review the documents carefully. 

We realize the decision to Sell or Buy is a personal one that depends on your financial situation, future plans and lifestyle. If you’re interested in a wealth of information and 18 years of experience to help you get started visit us at Precision Realty & Assoc. LLC or if you prefer a more personal touch, CALL 801-809-9866 today.

#RealEstateForSale #Homeownership #UtahRealEstate #Closingonyourhome