Friday Facts Aug. 13, 2010

August 13, 2010

FHA changes now and coming impact your clients. From RealTrends blog:
Increase in FHA up front mortgage insurance premium as of 4/1/10 from 1.75% of loan amount to 2.25%. Impact: Higher upfront and/or monthly expense if fee is financed.
The increase of FHA monthly insurance (not yet enacted) will increase monthly expense to consumers. Impact: Buyers with tight debt ratios will qualify for lower loan amounts.
The decrease in maximum seller contributions from 6% to 3% of contract price (not yet enacted) may negatively affect sales in some markets. Impact: those who are reliant on seller contributions will no longer be in a position to purchase.

§ Kevin Brass reports in the International Property Journal that the only home Marilyn Monroe ever owned, and where she was found dead, is on the market. This 2600 square foot Spanish Colonial is located on a secluded Brentwood cul-de-sac. The lot is a “whopping 23,300 square feet including a small pool and citrus grove”. The listing price is $3.595 million, a bargain compared to the burial plot beside Monroe in Westwood which sold for $4.6 million last year.

§ RISMedia notes that “the massive financial reform law that just passed Congress has two main components that could negatively impact homeowners and homebuyers: It will be harder to qualify for a mortgage … and, higher mortgage rates … The takeaway is that if you can qualify for a mortgage now, you should do so, and not gamble your homeownership goals on the future impact of the new law.”

§ Think Big Work Small give the following loan qualifying tip: Most, if not all lenders will not use the income of the mother is she’s actively on maternity leave, even if there is a letter from the employer guaranteeing future employment and income.

§ Kris Berg writes in Inman News: “Make no mistake, I am a big fan of social media. It has become essential for marketing our services and for connecting with customers, not to mention maintaining relationships with our past clients. It is the language the world speaks and we need to be part of that conversation if we are going to eat tomorrow.”