Breaking Must Read News–You Will Love This!The most frequently asked questions we get at the University are about buyers..

You are in the market every day–you have heard your buyers saying things like:
“We’ll just wait til interest rates come down.”

Well, their wish is about to be answered.

How many of you were working with buyers who used to be qualified to purchase, but no longer qualify under the new, more strict lending practices? Anyone working with someone with only 5% down who can’t find a loan in today’s market? All of this is about to change, so get ready to rumble in this amazing Buyers Market!

Here’s why:

Part of the economic stimulus package is massive mortgage reform. Specifically, massive changes with FHA loan limits. This important move will directly effect both buyers and sellers, especially if the stimulus package is passed prior to the Spring selling market. FHA is stepping in with affordably priced mortgages, both in terms of money required down, and in interest rates.

Right now Freddie and Fannie only purchase mortgage loans up to $417,000.

This is also commonly referred to as the Jumbo Loan Limits.

Now, Those limits have now been set higher=85MUCH higher.

The good news is, that limit is about to be dramatically raised..all the way to as high as $729,750 in higher cost markets. You read that right..your buyers will now be able to get FHA loans for UP TO $729,750.

Why is this so amazing. Simple. FHA lending requirements are dramatically different (read: easier for buyer to qualify for). We were told that there will be a new FHA program coming out in the next 5-7 days that will  allow a borrower with only a high 500s credit score to buy a home with NO M=
ONEY DOWN for up to $729,750. The max limit depends on your local market.

This is a temporary change to the FHA loan limits. Its part of the economic stimulus package that is scheduled to last only 1 year.

Le ts be clear–price may still be dropping but now that the mortgages are easier to get buyers will return to the market. Its up to you to explain to them the benefits of acting now vs waiting. Call all of your buyers now.

The bottom line? It’s called a ‘Buyer’s Market’ for very good reasons. Here are some talking points for you as you gear up to make  your thousands=85or hundreds of thousands from helping as many buyers as you can this year:

*Non-Sub-Prime, Low interest rates: as low as 5% under some programs.

*Higher loan limits for low interest rates and low down payments.

*As little as 3% down for qualified buyers (and no, this doesn’t mean an 800 credit score. Some programs allow as low as a high 500’s score.

*Plenty of homes to choose from.
*Negotiating power.
*Sellers wil ling to pay closing costs.
*Sellers willing to make repairs.
*YOU hel ping them make the right decisions on the right home for them.

Now is the tim call all of your buyers. Return those sign call messages=
, have an Open House Palooza. And remember, all of those buyers will =
someday be your sellers, and when that happens, you’ll be glad to take the =
listing and help them out again!

–
To Your Success!
Tim Harris
www.HarrisRealEstateUniversity.com