We’re from the Government, We’re Here to Help You
Fannie Mae, later this year, will be rolling out a new program called HomeReady to help lower- and moderate-income borrowers purchase homes. This will be integrated into their Desktop Underwriting program and will automatically flag potential borrowers for inclusion in the program by utilizing the DU findings. Here are some details:
• HomeReady will eliminate or cap certain loan level pricing adjustments (LLPAs) such as those associated with credit score, LTV, etc. – possibly translating to a low mortgage rate
• A non-borrower household member’s income can be considered when determining the borrower’s DTI ratio
• Will also allow income for non-occupant borrowers, such as parents of a borrower, to be used to supplement qualifying income
More details will be released soon – we’ll keep you updated. Stay tuned . . .
Gas: Unleaded, Diesel, or 3-Bedroom Colonial
According to a recent study from Florida Atlantic University and Longwood University, a strong indicator of home prices is what you pay at the pump. The study encompasses a 10-year span and reveals the following:
• For every $1 decrease in gas prices, the average selling price of a home CLIMBED by 2.4% (that’s about $4,000 more per sold property included in the study)
• Also, for that $1 per gallon decrease in gasoline price, the average time to sell a property falls by 25 days
• AND, that same $1 decrease was also shown to increase a seller’s chances of closing the sale by about 20 percent
The analysis of the results explained: When prices at the pump are lower, consumers have more disposable income, which equates to a larger pool of prospective home buyers. Food for thought: on the other side of the same coin, one might be able to pick up a relative bargain when gas prices are high.