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Get involved, let Congress & the President know how you feel. Contact your Local Repesentative or Federal....
Buying real estate a better deal than rentingin 74% of major US citiesBuying real estate continues to be cheaper than renting in the vast majority of major U.S. cities, according to a quarterly rent vs. buy index from real estate search and marketing site Trulia. The index compared the median list price and the median annualized rent on a two-bedroom apartment, condominium or townhouse in the country's 50 most populous cities. According to the index, the cost of buying was less than renting in 37 of the 50 cities (74 percent) as of July 1, 2011. About the same share, 78 percent, favored buying over renting in Trulia's last index report, released in April. Trulia defines total costs of homeownership to include "mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase and ongoing (homeowners association) dues and private mortgage insurance, where applicable. It also includes an offset for the tax advantages of homeownership, including mortgage interest, property tax and closing cost deductions." "Many aspiring homeowners are on the fence about renting and buying in today's market. Should they take advantage of falling home prices and low borrowing costs, or should they continue to rent until the economy stabilizes?" said Ken Shuman, spokesman for Trulia, in a statement. "Price alone should never be the sole factor in deciding to purchase a home. Instead, buyers should first ask themselves if they plan to live in the home for at least seven to 10 years, could make monthly payments on the house, and have enough cash in the bank for a down payment and an additional six to eight months worth of mortgage payments. "If you can answer 'yes' to each of these questions, then the cost of buying a home definitely outweighs renting in most cities." A price-to-rent ratio of 1 to 15 means that it's much cheaper to buy than to rent in a particular city. Las Vegas, Detroit, and Mesa, Ariz., most favored buying among major cities. Top 10 cities to buy vs. rent:
Source: Trulia A ratio between 16 and 20 means that it's more expensive to rent than to buy, but buying may be better than renting "depending on personal circumstances, such as one's tax bracket," Trulia said. Any ratio above 20 indicates that owning is much more costly than renting in a city. According to the index, renting was much cheaper than buying in six cities: New York; Fort Worth, Texas; Omaha, Neb.; Seattle; San Francisco; and Kansas City. Top 10 cities to rent vs. buy:
Source: Trulia Most foreclosure hot spots saw their price-to-rent ratios drop in the first half of this year, with Detroit seeing the biggest decline, at 39 percent. Miami, however, was an exception. "A mini buying boom created by foreign investors and foreclosure freezes have caused (Miami's) price-to-rent ratio to jump by 112 percent: from 6 in January to 13 in July," Trulia said.
Here's an interactive graph from Trulia that illustrates how cities compare on the rent vs. buy index over the last six months and includes foreclosure and job market data: By Inman News, Tuesday, August 16, 2011. MILITARY HOUSING ASSISTANCE PROGRAM Background(Conventional HAP - For BRAC where the announcement causes a market decline)The Homeowners Assistance Program (HAP) is authorized in Section 1013 of the Demonstration Cities and Metropolitan Development Act of 1966, as amended. The law provides some monetary relief to eligible service member (including Coast Guard) and federal employee (including non-appropriated fund) homeowners who suffer financial loss on the sale of their primary residences when a base closure or realignment announcement causes a decline in the residential real estate market and they are not able to sell their homes under reasonable terms or conditions. The US Army Corps of Engineers will analyze your community’s real estate market, conduct market impact studies, and make a recommendation to the Deputy Assistant Secretary of the Army for Installations and Housing for a final determination. If it is found and proven that an announcement caused a significant decline in a residential real estate market, a HAP may be approved. If the two basic conditions are met, a HAP program will be established. This will be administered by real estate personnel of The Corps of Engineers District Office in coordination with the Installation Commander. Contact HAPHAP Field OfficesFor questions, more information or correct mailing address to expedite your application, please use the below map to find the correct HAP Field Office that covers the territory in which your property resides. ApplicationAdditional InformationThe basic application is made on DD Form 1607, Application for Homeowners Assistance Program. Part III, Section IV of the form must be completed by your personnel officer. In addition, you must submit a variety of documents to show evidence of your ownership of the property, your occupancy dates, your assignment orders, your efforts to sell the home (whether it was sold), and mortgage details. For questions regarding these forms and the application process, please click here or on the map below to find contact information for the correct HAP Field Office that covers the territory in which your property resides.
Daily Real Estate News | August 14, 2009 |
10 Cities Leading the Market Recovery New Fannie Mae Guidelines for Second and Investment Homes July 14th, 2008 categories: Buying Real Estate, Market Trends, Mortgage Help, Real Estate News It seems that Fannie Mae, the private, shareholder-owned, NYSE-listed financial services company that serves the American home mortgage industry, has recommended new guidelines for lenders. These guidelines deal with buyers who are seeking to purchase a new primary residence while converting their old one into a second home or an investment property. While this is only from one investor and not an official publication from Fannie Mae, he said that most other investors will fall in line or close to it on these new guidelines because they come from Fannie Mae. These guidelines are meant to ensure a borrower’s financial stability and help prevent future mortgage default and foreclosure. While these new guidelines are not yet in effect, they could go into effect at any time. At issue is how mortgage lenders qualify borrowers for mortgages when they already have an existing mortgage on a primary residence. Borrowers who currently own a home typically have three options when they decide to purchase a new principal residence. They can:
These policies and guidelines are in place to ensure that borrowers have sufficient equity and/or reserves to support the existing financing and the new mortgage being originated. However, Fannie Mae is updating the policies for qualifying borrowers purchasing a new principal residence and converting their existing principal residence to a second home or investment property to better ensure that borrowers will be able to support both financial obligations. |