Mortgage Discussion for the Panhandle area

As Mardi Gras is in full swing and 2010 purchase contracts begin to close, I wounder which is sweeter. A king cake (and finding the baby) or a real estate closing? I guess if you break it down a King cake adds calories and a choking risk and a closing adds money. That being the case I will for go the parades, beads and sweets.

Short sales seem to be one area that is bogging down the real estate market. Buyers think they can wait it out and get a great deal leaving homes stagnate on the market. In the end they normally do not get any better deal than a normal sale. Why do we not as an industry try and educate the buyer that the time to buy is now and you will loose the tax credit if you wait for that "pie in the sky" deal?

I tell my customers that between the tax credit and other government treats, that waiting on the best deal my very well cost them in the long run. Just think SHIPP, Neighbor Stabilization, and many other housing programs are currently funded but for how long? We got news today that the Federal Reserve will ease then stop helping the financial industry in the form of buying Treasuries. That will raise rates itself without the Fed raising rates boldly. If a customer signs a contract today for a short sale they will, more than likely, loose the tax credit, any down payment assistance and the lower rates. Is it really worth it?

The mortgage industry is moving and it is hard to get an idea what direction we are going. I alerted you last blog of the tightening for FHA loans coming. We also see more strength in jumbo lending and Beach (resort) lending which could be looked at as loosening of credit. We will have to watch over the next few months and see.

100% deals (USDA and VA) are still closing and FHA will not change until April. We are still closing FHA down to 580 credit score with good last twelve months. Jumbo are also picking up as those with higher incomes are getting restless now. Send me your deals and we will find a way to close them.