The City of Fort Worth Hits a Home Run with it's Homebuyer's Assistance Program (HAP)
Program Objective: To provide low to moderate-income families affordable homeownership opportunities within the City of Fort Worth.
To qualify, the applicants must be first-time homebuyers or cannot have owned a home in the last three years.
Deferred Payment Loan (DPL) Maximum amount available is $ 14,999.00 anywhere within the City of Fort Worth. There are several recapture provisions, however according to program guidelines a homeowner will not have to pay back the loan if the terms of the program are followed and complied with.
For a copy of the (HAP) Homebuyer's Assistance Program (Program Guidelines) call Al Davis at 817-975-6607 or email Al at aldavisrealestate@gmail.com.
This appears to be an incredible program and should help many potential homebuyers who are sitting on the sidelines, get back into the game with personal home ownership.
Al Davis
Wednesday, June 22, 2011
Friday, February 11, 2011
HOUSING....THE HIGH COST OF WAITING!
The Cost of Waiting for Prices to Fall
Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.PRICESThe National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year:The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.INTEREST RATESThe Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said:“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year?The price is the same. It just costs more.Let’s show you what the news means:By sitting on the sidelines for the last 90 days a purchaser lost:$89.44 a month $1,073.28 a year $32,198.40 over the thirty year life of the mortgage If you buy a $340,000 home, double all these numbers.Bottom LineEven if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.
Many purchasers have been sitting on the sidelines waiting for home prices to hit bottom. They want to guarantee that they are purchasing at the best possible price. Like them, we also believe that prices still have some room to fall in most markets. However, we disagree that waiting is a good financial decision. The buyer should not be concerned about housing prices. They should be concerned about cost.The cost of a house is made up of the price AND THE INTEREST RATE they will be paying. Two different pieces of news released yesterday highlight this point.PRICESThe National Association of Realtors (NAR) released their 4th quarter housing research report. In the release, they reported that home sales rose 15.4% in the 4th quarter over the 3rd quarter. They also showed that prices remained stable during the year:The national median existing single-family price was $170,600 in the fourth quarter, up 0.2 percent from $170,300 in the fourth quarter of 2009.A buyer who delayed a purchase might find solace in the fact that prices have not increased. However, the other news released yesterday paints a different picture.INTEREST RATESThe Primary Mortgage Market Survey was released by Freddie Mac which showed that the 30 year fixed rate mortgage was at 5.05%. Frank Nothaft, vice president and chief economist of Freddie Mac said:“Long-term bond yields jumped on positive economic data reports, which placed upward pressure on mortgage rates this week…As a result, interest rates on a 30-year fixed-rate mortgage rose to the highest level since the last week in April 2010.”So prices have remained stable but interest rates have risen dramatically in the last 90 days. What does that mean to a buyer looking to purchase a home this year?The price is the same. It just costs more.Let’s show you what the news means:By sitting on the sidelines for the last 90 days a purchaser lost:$89.44 a month $1,073.28 a year $32,198.40 over the thirty year life of the mortgage If you buy a $340,000 home, double all these numbers.Bottom LineEven if prices fall another 10% this year, the cost of a home will increase if interest rates go up more than 1%. Buyers should not worry where prices are going. They should be concerned where costs will be later in the year.
Monday, January 17, 2011
Real Estate Recovery is on for 2011
Real estate recovery likely for 2011
12:00 AM CST on Sunday, January 9, 2011
Year 2011 will experience a gradual recovery for the housing and mortgage markets, according to analysts and researchers at Freddie Mac, the government-controlled buyer of existing home mortgages.
By last November, fixed-rate mortgage rates had drifted down to their lowest level since the early 1950s. This laid the foundation for a substantial refinance boom – with refinance accounting for four out of every five single-family loan applications, the Freddie report noted.
With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market.
While some rise in fixed-rates is expected, 30-year fixed-rate loans are likely to remain below or low 5 percent throughout the year, and initial rates on 5/1 hybrid ARMs will likely remain below 4 percent in 2011.
Regarding home prices, softness in prices generally occurs in the autumn and winter months, related to the seasonal slowdown in home purchases, and this season is little different from past ones in that respect. Those local markets that have relatively large inventories of for-sale homes and real-estate-owned (REO) dispositions will continue to see home value weakness in 2011.
However, U.S. price indexes as a whole are likely close to bottoming out. Most experts look for single-family U.S. indexes to bottom out in the first half of 2011, with a gradual (but sustained) recovery after that, Freddie Mac predicted.
Home affordability is already at record high levels. The three main ingredients that affect buyer affordability are mortgage rates, house prices and income.
With the first two at or near cyclic lows, buyer affordability is at the highest level in decades.
For the third quarter, the National Association of Realtors' Affordability Index reported one of the most affordable buying markets since the inception of the index in 1971. With affordability high, many first-time buyers will be attracted to the housing market in the new year, likely translating into more home sales in 2011 than in 2010.
Single-family mortgage delinquency rates remain high, but they have begun to decline in the aggregate. Based on the last several business cycles, the share of loans 90-or-more days delinquent or in foreclosure proceedings, known as the "seriously delinquent rate," generally crests within a year of the start of the recovery in payroll employment. The current economic recovery appears to fit well within that pattern.
Payrolls began to rise last January, and by the spring, the seriously delinquent rate had started to decline.
12:00 AM CST on Sunday, January 9, 2011
Year 2011 will experience a gradual recovery for the housing and mortgage markets, according to analysts and researchers at Freddie Mac, the government-controlled buyer of existing home mortgages.
By last November, fixed-rate mortgage rates had drifted down to their lowest level since the early 1950s. This laid the foundation for a substantial refinance boom – with refinance accounting for four out of every five single-family loan applications, the Freddie report noted.
With Fed observers expecting the central bank to keep the federal funds rate at its current target range of 0 percent to 0.25 percent for most (or all) of 2011, relatively low mortgage rates will be a feature of the 2011 mortgage market.
While some rise in fixed-rates is expected, 30-year fixed-rate loans are likely to remain below or low 5 percent throughout the year, and initial rates on 5/1 hybrid ARMs will likely remain below 4 percent in 2011.
Regarding home prices, softness in prices generally occurs in the autumn and winter months, related to the seasonal slowdown in home purchases, and this season is little different from past ones in that respect. Those local markets that have relatively large inventories of for-sale homes and real-estate-owned (REO) dispositions will continue to see home value weakness in 2011.
However, U.S. price indexes as a whole are likely close to bottoming out. Most experts look for single-family U.S. indexes to bottom out in the first half of 2011, with a gradual (but sustained) recovery after that, Freddie Mac predicted.
Home affordability is already at record high levels. The three main ingredients that affect buyer affordability are mortgage rates, house prices and income.
With the first two at or near cyclic lows, buyer affordability is at the highest level in decades.
For the third quarter, the National Association of Realtors' Affordability Index reported one of the most affordable buying markets since the inception of the index in 1971. With affordability high, many first-time buyers will be attracted to the housing market in the new year, likely translating into more home sales in 2011 than in 2010.
Single-family mortgage delinquency rates remain high, but they have begun to decline in the aggregate. Based on the last several business cycles, the share of loans 90-or-more days delinquent or in foreclosure proceedings, known as the "seriously delinquent rate," generally crests within a year of the start of the recovery in payroll employment. The current economic recovery appears to fit well within that pattern.
Payrolls began to rise last January, and by the spring, the seriously delinquent rate had started to decline.
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