Are you looking to purchase property with your VA loan benefit?

Although condos are a good alternative to single family homes, buyers should be aware that to get a VA loan on a condo there are more requirements than a single family home.

So what are they?

• At least 50 percent building occupation
• No more than 15 percent of owners can be behind in HOA fees
• 75 percent of the units in a new construction must be sold prior to getting VA approval

If you have a condo in mind, you can check the database to see if it’s approved. Or, you can work with a real estate agent or lender to see if it can be approved.

If you’re looking for a VA loan in Michigan, get pre-approved today by visiting our website at johnadamsmortgage.com!

Original article here.

Can’t meet the minimum repair amount for an FHA 203(k)?

The JAMCO 7 can help your buyers! John Adams Mortgage will allow your buyer to close on the purchase of their home that is in need of minor repair.
A repair escrow of up to 1.5x the repair amount is required.

Repairs and final inspection must be completed no more than 7 days after closing.

RESTRICTIONS INCLUDE:

• Bank owned properties only
• Underwriter has final determination for borrower’s eligibility
• Repairs not eligible for JAMCO 7:
  - Mold Remediation
  - Lead Paint
  - VA Loans
  - Foundation repair

With new-home sales down drastically the last few years, builders are scrambling to re-evaluate what buyers today want in new homes. Changing demographics and tighter lending standards are influencing buyers’ purchasing decisions when home-shopping and changing their priorities, industry experts say. “There is a lot of pressure today to retool,” says Steve Brooks, CEO of Grand Homes. “We have to redesign houses and figure out what kind of product people would want to buy.” For example, more younger buyers are bypassing the typical suburban tract of homes and showing a stronger preference for urban-style homes closer to the city. “Trying to keep doing the same cookie-cutter houses is going to be increasingly difficult,” says James Gaines, an economist at the Real Estate Center at Texas A&M University. “Home builders worry that the demand pool for the suburban home with the quarter-acre lot and the fenced back yard will be shrinking.” Younger buyers also are saying they don’t need a ton of extra space in a home and that they want spaces configured differently in homes, builders say. For example, the living room is on its way “out,” builders say, as more home owners instead show a preference toward a game room or media room. Plus, more home owners are finding they don’t need a fourth bedroom, which was once in high demand. However, not all builders believe the “buying small” trend will last. “With our typical single-family buyers, we’re not seeing them willing to give up much room,” says Bill Darling, a builder in Plano, Texas. Source: RIS Media

A new survey from the National Association of Home Builders finds that Americans continue to embrace home ownership. The results show that 75 percent of 2,000 people polled agree home ownership is worth the risk of fluctuations in the market and that 73 percent of renters want to own someday. With more than 70 percent saying the U.S. government should offer tax incentives to promote ownership and oppose proposals to end the mortgage interest deduction, NAHB CEO Jerry Howard says Washington should think twice about dropping policies, like the deduction, that have long supported ownership. Source: Washington Post

This statement was recently released by the Department of Veterans Affairs: “The maximum guaranty for VA guaranteed loans closed October 1, 2011 through December 31, 2011 will remain unchanged. The Veterans’ Benefits Improvement Act of 2008 provided a temporary increase in VA loan limits for loans closed January 1, 2009 through December 31, 2011. Because of this legislation, VA loan limits will remain the same for the remainder of the calendar year. Please note that VA does not have a maximum loan amount. Loan limit refers to the maximum loan a lender could make and still receive a 25% guaranty from VA, assuming the veteran has full entitlement.”

Investors grew a little less concerned about Europe during the week, which was favorable for the stock market but negative for mortgage rates. This week’s inflation data also was unfavorable for mortgage rates, and rates ended the week a little higher. This movement differs from Freddie Mac‘s highly publicized weekly average rate which reported that a new low was reached for the week ending September 15. The reason is simply that the Freddie Mac survey is conducted early in the week and does not reflect the change in rates which takes place later in the week.

On Thursday, five major central banks, including the European Central Bank (ECB) and the US Fed, announced that they will offer a lending facility for European banks seeking short-term liquidity. This aid reduced concerns about the region and encouraged investors to shift to riskier assets. In typical fashion, the stock market was a major beneficiary, while bonds markets suffered losses.

Inflation is on the rise. The August Consumer Price Index (CPI) rose more than expected from July and was 3.8% higher than one year ago. Core CPI, which excludes food and energy, was up 2.0% from one year ago. Late in 2010, Core CPI was increasing at just a 0.8% annual rate. The August Core Producer Price Index (PPI) was up an even higher 2.5% from one year ago. With a highly anticipated FOMC meeting next week, Fed officials must factor in higher inflation levels as they consider additional stimulus measures.

Week Ahead

The biggest economic news next week will be Wednesday’s Fed announcement. Fed officials are divided about whether to ease monetary policy further and investors will be very eager to hear the decision. The Economic Calendar will be light. Housing Starts will be released on Tuesday. Existing Home Sales will come out on Wednesday. Leading Indicators will be released on Thursday.

Read what we are talking about in the office. Take a look at our top five topics:

1. New-home sales decline 1% in June to an annual rate of 312,000, government says. http://t.co/Rhu5g23 via @CNNMoney

2. Fannie Pushes Implementation of New Delinquency Management Rules http://bit.ly/mQfyBg

3. FHA gives jobless homeowners one-year break http://on.msnbc.com/qpbwqJ

4. @USATodaymoney Housing sales fall as fewer first-time buyers go shopping http://t.co/70AShi7

5. Top 10 iPhone apps to stay fit financially http://t.co/sCJebz9

Remember to join the discussion on Twitter via #MortgageTalk and follow us @JohnAdamsMoCo.