LOANS FOR FIXER-UPPERS

After last week’s email I received many questions about the FHA Streamlined 203k Limited Repair loan. Here are some basics:

- Must be owner occupied home
- Maximum loan amount (including repair escrow) is $271,050 (in most New Mexico counties)
- Borrower must meet standard FHA credit and debt-to-income ratio guidelines
- No minimum amount for repairs; maximum repair amount is $35,000
- Can be used for purchase or refinance
- Home improvements are limited to those for which plans, engineers or architects are not needed (i.e., cannot be used to add rooms or move load bearing walls) and cannot be used for landscaping
- Can be used for things like roof repairs, upgrades of HVAC, plumbing or electrical systems, kitchen or bathroom remodeling, new flooring or windows, to purchase new appliances, painting, and weatherization
- Work must be completed within 90 days of closing

This is a great program for people who are buying a foreclosed property that is in disrepair or an older home that needs updating. Call me for more information.

Thanks for this summary goes to Heidi Snow, Perennial Mortgage.

ALBUQUERQUE, NM REAL ESTATE UPDATE

Our news isn't as bad as elsewhere in the US and that's the good news! If activity on our website is any indicator which it usually is, we are seeing up to 3-4 inquiries a day. Granted some are related to out-of-state investors wondering about selling their investment rental homes and others are looking for good deals on foreclosed properties. Our foreclosure rate is still very low at less than 5% although that may get worse.
What we do see are people moving here for one reason or another. HP is starting to ramp up in Rio Rancho in anticipation of their new site there so we are seeing some early movers. People are just wanting to move here and who can blame them.
Our housing market has seen some decline in listings to below 7000 at the end of October so that is increasing the activity on those that are still listed. We still have about a 10 month supply, but compare that to 2-3 years elsewhere. Our median home value has gone down about 6% year to day compared to over 25% elsewhere. What we do expect to decrease is the number of realtors who have to quit by year end or pay large association dues. Many thought real estate was an easy game and rushed in two years ago. Those of us who have been in the business awhile know better and we will still be here. Our business, in fact is up 5% since last year so guess we will be staying. Of course we will!