Archives for February 2013

Why hasn’t that home sold yet?

Have you wondered why great homes just stay on the market and don't seem to sell? Here are a few reasons why some homes in the Cedar Rapids and surrounding area may not be selling in today's market.   1.  The home is drawing fewer lookers. When the home is new on the market that is when it draws the most interest. If an agent is saying buyers aren’t showing interest in a home that could mean prospective buyers are waiting for the price to come down before viewing it. 2.  The home is drawing lookers but no offers. If a home has had many lookers come through a home but none have … [Read more...]

6 things you don’t want to do after you apply for a mortgage

Once your offer has been accepted and you are in the process of qualifying for your mortgage, there are things you don’t do.  Period. Nada. No. Nope. Never Never Ever EVER do.  Ever.  Doing these things could STOP you for buying a home: Don’t make large purchases.  When you are buying a home you are going to be bringing in new debt.  However, after applying for a home don’t go out and buy a new car or furniture, this could raise you debt ratio and make it riskier for the loan company to lend to you.  Sometimes after doing this, the previously qualified buyer is no longer able to … [Read more...]

Midwest Farmland Values Continue to Surge

In spite of the drought last year the annual increase for “good” agricultural farm land was up 16 percent in the fourth quarter of 2012, according the Seventh Federal Reserve District . That is just a step down from 2007 and 2011. They are also predicting that land values will rise further in January to March of 2013. Agricultural credit conditions have also improved in the fourth quarter of 2012 compared to the same time in 2011. This is due to non-real estate loan demand being lower, lower loan renewals, and extensions during the fourth quarter in 2012. Agricultural interest rates were … [Read more...]

FHA to hike premiums on mortgages

Recently the Federal Housing Administration has changed some of their loaning practices like insuring loans on condos, renovation loans and even jumbo loans. But we knew there would be more, didn’t we? According a recent article on CNN Money, the Federal Housing Administration, which is the largest insurer of low-down payment mortgages, announced last week that it will raise premiums by 10 basis points, or 0.1 to 1.35% percent, on most of the new mortgages it insures. The change goes into effect June 3, 2013 and according to Pat Zaby, “The staggering increase will occur on 6/3/2013 when … [Read more...]

FHA Renovation Loans are now Available

If you have been looking for homes lately in the Cedar Rapids area, I’m sure you have seen one with great structure, but is run down and out of date. You’d like to purchase it, but funds to rebuild are hard to find. What are your options? The Federal Housing Administration (FHA) now provides 203k Rehabilitation Mortgage Insurance loans which cover the purchase AND up to $35,000 renovation for single homes, multi-plexes up to 4 units AND condos. The total loan amount is based on the property’s appraised value once the repairs are completed. The down payment requirement is 3.5 … [Read more...]