Hello Again:
In my last post I informed you about down payment changes that are coming to the FHA program. I have now received the full changes, and when you thought it couldn't get any worse - think again: Here are the additional changes...
--> Raise the upfront premium from 1.75% to as much as 3%
--> Eliminate the ability to roll in to loans that don't charge up front premium
--> Increase monthly MIP from .55%
--> Reduce seller concessions from 6% to 3%
--> Raise minimum FICO score
--> Possible LTV maximums by FICO score
--> Increase accountability of FHA Lenders for fraud ( this is good!)
James Gage
Saturday, January 30, 2010
Saturday, January 23, 2010
Breaking Real Estate News: FHA Changes Guidelines.
Hello All:
I don't think the government can see past their own face! You would think with the housing inventory that's out there right know, that the last thing the government would do is make thinks harder for individuals to get FHA mortgages. But guess what? They have! As of Friday January 22, 2010, this is what they did in a nutshell...
-> To be able to make a down payment of just 3.5 percent on an FHA-insured loan, homebuyers would have to have a minimum FICO credit score of 580, rather than the current 500 FICO outlined in FHA guidelines. New borrowers with less than a 580 score would have to put down 10 percent on a home purchase.
Thanks Washington for making a tough environment even tougher.
James Gage
I don't think the government can see past their own face! You would think with the housing inventory that's out there right know, that the last thing the government would do is make thinks harder for individuals to get FHA mortgages. But guess what? They have! As of Friday January 22, 2010, this is what they did in a nutshell...
-> To be able to make a down payment of just 3.5 percent on an FHA-insured loan, homebuyers would have to have a minimum FICO credit score of 580, rather than the current 500 FICO outlined in FHA guidelines. New borrowers with less than a 580 score would have to put down 10 percent on a home purchase.
Thanks Washington for making a tough environment even tougher.
James Gage
Monday, January 18, 2010
Foreclosure News
Hello All:
I just got off the phone with a real estate attorney friend of mine that confirmed what I have been telling you, my faithful readers for the past 3 months! What's that you say? That the 3rd wave of foreclosures has begun to raise its ugly head. He said he can't handle the amount of individuals coming to him seeking loan modification/foreclosure help on properties that have first and second mortgages on them (AKA Prime loans). Also, individuals with home equity loans that are in default are starting to become more numerous!
Most individuals have been living off their credit cards hoping to trend water until a turnaround in the economy; but most have run out of time. My attorney friend said the average credit card debt he is seeing is between $50K - $200K; that means we will also see an uptick in bankruptcies!
If this trend continues, which I don't see any evidence it won't, we will see commercial foreclosures sky rocket! Fasten your seatbelts; this is going to be a bumpy ride…
Remember, those who can recognize trends and patterns, and act on them quickly will always make money in any economy.
Until next time be well.
James Gage
I just got off the phone with a real estate attorney friend of mine that confirmed what I have been telling you, my faithful readers for the past 3 months! What's that you say? That the 3rd wave of foreclosures has begun to raise its ugly head. He said he can't handle the amount of individuals coming to him seeking loan modification/foreclosure help on properties that have first and second mortgages on them (AKA Prime loans). Also, individuals with home equity loans that are in default are starting to become more numerous!
Most individuals have been living off their credit cards hoping to trend water until a turnaround in the economy; but most have run out of time. My attorney friend said the average credit card debt he is seeing is between $50K - $200K; that means we will also see an uptick in bankruptcies!
If this trend continues, which I don't see any evidence it won't, we will see commercial foreclosures sky rocket! Fasten your seatbelts; this is going to be a bumpy ride…
Remember, those who can recognize trends and patterns, and act on them quickly will always make money in any economy.
Until next time be well.
James Gage
Monday, January 11, 2010
Real Estate Investing: Don't forget to apply for your Abatement !
Hello All:
Don't forget to apply for your real estate abatement's before the end of the month! January is usually the month that cities and towns allow owner's of real estate to apply for a reduction/abatement of their real estate property taxes. On real estate have owned or presently own I apply every year. The procedure is simple, go or call your local tax assessors office and request an Abatement form, fill it out in detail and send it in. In about 30 - 60 days you will receive an answer on how much you were given off your tax bill.
The key to getting your request for abatement accepted is how good your reason for abatement is; you just can't say I want a reduction because...
Rather, you have to make an argument for them in order for acceptance, such as :
-> The value of your property has dropped dramatically
-> You purchased the property for less then assessed value
-> The property is not worth what the town or city has assessed
-> The property hasn't been physically assessed for greater then 3 years
-> Use category has changed or is no longer valid
and so on, you get my point.
You may also want to note that you recognize that the assessment is based on the previous year (they always are 1 year behind ), but your argument still holds true.
For more great tips and real estate strategies click here to sign up for our Free Newsletter.
Until next time -be well.
James Gage
Don't forget to apply for your real estate abatement's before the end of the month! January is usually the month that cities and towns allow owner's of real estate to apply for a reduction/abatement of their real estate property taxes. On real estate have owned or presently own I apply every year. The procedure is simple, go or call your local tax assessors office and request an Abatement form, fill it out in detail and send it in. In about 30 - 60 days you will receive an answer on how much you were given off your tax bill.
The key to getting your request for abatement accepted is how good your reason for abatement is; you just can't say I want a reduction because...
Rather, you have to make an argument for them in order for acceptance, such as :
-> The value of your property has dropped dramatically
-> You purchased the property for less then assessed value
-> The property is not worth what the town or city has assessed
-> The property hasn't been physically assessed for greater then 3 years
-> Use category has changed or is no longer valid
and so on, you get my point.
You may also want to note that you recognize that the assessment is based on the previous year (they always are 1 year behind ), but your argument still holds true.
For more great tips and real estate strategies click here to sign up for our Free Newsletter.
Until next time -be well.
James Gage
Friday, January 8, 2010
Real Estate Investing: Why People Are Not Successful
Hello Everyone:
Here we are beginning another year of real estate, so this month's real estate article will be devoted to starting off on the right foot. We will examine exactly what causes people not to be successful in real estate investing - enjoy and be well.
Why People Are Not Successful In Real Estate
By James A. Gage
Have you ever wondered why most people are not successful in Real Estate or achieve very limited results? All Real Estate techniques and strategies have a learning curve, even Lease Purchasing, AKA Rent to Own which I believe is the only way to control Real Estate. That being said, after you have grasped the strategy or the technique you want to implement - what now! The easy part was learning about the strategy, now comes the hard part which is Negotiating the deal. You can go to all the seminars, buy all the books and tapes on Real Estate investing and still fall flat on your face or come out on the short end of the stick - costing you time and money.
OK, OK if rah rah seminars, boot camps and positive thinking don’t work, what does? What's the SOLUTION?
To read the rest of this article click here
Here we are beginning another year of real estate, so this month's real estate article will be devoted to starting off on the right foot. We will examine exactly what causes people not to be successful in real estate investing - enjoy and be well.
Why People Are Not Successful In Real Estate
By James A. Gage
Have you ever wondered why most people are not successful in Real Estate or achieve very limited results? All Real Estate techniques and strategies have a learning curve, even Lease Purchasing, AKA Rent to Own which I believe is the only way to control Real Estate. That being said, after you have grasped the strategy or the technique you want to implement - what now! The easy part was learning about the strategy, now comes the hard part which is Negotiating the deal. You can go to all the seminars, buy all the books and tapes on Real Estate investing and still fall flat on your face or come out on the short end of the stick - costing you time and money.
OK, OK if rah rah seminars, boot camps and positive thinking don’t work, what does? What's the SOLUTION?
To read the rest of this article click here
Friday, January 1, 2010
Real Estate 2010
Hello All:
Well, here we are 2010! The past year was a great and profitable year for those of us who have taken our real estate investing and negotiating skills to the next level. In the coming year I will share with you, my faithful subscribers, some new strategies and tactics I'm currently using to bring in consistent cash flow in a down economy.
That being said, on behalf of myself and everyone here at Gage Consulting Group may the New Year bring you and yours many blessings and success in all your endeavors.
Happy New Year.
James A. Gage
Well, here we are 2010! The past year was a great and profitable year for those of us who have taken our real estate investing and negotiating skills to the next level. In the coming year I will share with you, my faithful subscribers, some new strategies and tactics I'm currently using to bring in consistent cash flow in a down economy.
That being said, on behalf of myself and everyone here at Gage Consulting Group may the New Year bring you and yours many blessings and success in all your endeavors.
Happy New Year.
James A. Gage
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