Financial stocks can’t seem to hold onto gains made earlier. Indeed, today, the stock market opened higher. However, early gains have been erased as concerns about the health of financial companies continue to loom large. Right now, these financial companies rely a great deal on a housing market recovery. While the first time home buyer tax credit was a major player in the housing market recovery, confidence in financial companies was higher.
However, now that it appears that things are snagging with regard to an extension of the first time home buyer tax credit, there are concerns about the cash flow …read more

One of the things that struck me a couple of years ago when I was buying a home, was that different mortgage brokers and lenders told me how much I could afford. After looking at my income and my debt load, they came up with a number that would get me into a bigger (and presumably better) home. This number was invariably between 30% and 36% of my monthly income. One broker came back and told me I qualified for a mortgage payment of 40% of my monthly income!
Clearly, this is not something I was comfortable with. In fact, you …read more

Despite the fact that the Federal Housing Administration is, by all accounts, having a difficult time holding onto its monetary reserves, the agency still maintains that it will not need to ask for any federal bailout money. This decision has been thoroughly questioned by many of the FHA’s longtime critics, many of whom wonder if the FHA is financially healthy enough to make such claims.
 
According to FHA Commissioner David H. Stevens, the surplus fund set aside to account for any unexpected mortgage losses backed by the FHA will dwindle below the stipulated amount required by Congress as early as October. …read more

Now is actually a pretty good time to buy a home. If you can afford a home, here are 3 reasons that now is a good time to buy:

Government tax credit: If you are a first-time home buyer, then you are likely eligible for a tax credit of $8,000 when you buy. This is a tax credit that can actually be applied now, and used as part of your down payment. You may be too late to get the tax credit, though: Your home has to close by November 30, 2009. However, Congress is considering extending the tax credit …read more

This just in: Congress is thinking about extending the first time home buyer tax credit. The program has proved rather successful in terms of encouraging home purchases, and now Congress is interested in possibly extending the program for another six months in order to give more people the chance to buy, and to further prop up the housing market.
Right now, the expiration date for the $8,000 first time home buyer tax credit is November 30, 2009. For most people, it’s reached a point where if you haven’t already submitted your mortgage application, you won’t make the deadline. However, if the …read more

Fannie and Freddie may see some changes.

Banks are concerned about prime foreclosures.

If you owe more money to your mortgage lender than your home is worth, you are “underwater,” a term used to describe your unfortunate situation. President Obama has announced the expansion of a program that aims to help underwater homeowners refinance their mortgages to lower rates so that homeowners who owe more than 25 percent of the value of their home are eligible.
The program is called the Making Home Affordable plan and the change comes after a report revealing that the program has not yet reached enough of the people that it was trying to help in the first place. …read more

Relief is on the way for the victims of Beazer Homes USA Inc.’s alleged mortgage fraud against those who had federally-insured mortgage loans for its homes. According to the Justice Department’s announcement today, Beazer will pay $53 million as part of the settlement, with $5 million going to the federal government and $48 million to victimized homeowners.
 
Atlanta-based Beazer made the settlement with North Carolina prosecutors so that it would not be held otherwise accountable for mortgage and accounting fraud, including the manipulation of company earnings. Prosecutors argued that Beazer made loans to buyers despite income requirements and then tried to …read more

Consider affordability when buying a home.