To help you determine whether you might qualify for this HARP refinancing program, here is a direct link that will give you all the details of the plan:

FHFA HARP News Release: (Note: It’s a pdf file, so it will download to your computer!)
http://www.fhfa.gov/webfiles/22721/HARP_release_102411_Final.pdf

Please note that you must have Adobe Reader installed on your computer to read this announcement.

Also note that if you do not qualify, you are not alone.  Pundits have stated, and the government actually acknowledges in the announcement, that no one knows exactly how many homeowners may qualify.  In fact, this may just be a politically motivated move by the Administration to garner support.  However, there will be some people who actually do qualify, and as a result, you should at least read the document to see if that someone is YOU!

We’ve also updated the current Market Minute reports, which may be directly accessed here.  Once you arrive, you’ll be able to “drill down” into the data by county, town, zipcode, etc.

If you need to obtain an in-depth, personal analysis of specific real estate market data, you can always contact Art via email: associatebroker “at” home-sweet-home.us or call him directly at 443-812-2604.

PLEASE NOTE: you must have Adobe Reader installed on your computer in order to view the graph.

If you need to obtain an in-depth, personal analysis of specific real estate market data, you can always contact Art via email: associatebroker “at” home-sweet-home.us or call him directly at 443-812-2604.

PLEASE NOTE: you must have Adobe Reader installed on your computer in order to view the graph.

PLEASE NOTE: you must have Adobe Reader installed on your computer in order to view the graph.

While I am in no way, shape or form a proponent of legislation to solve our free market woes, I think many other players in the real estate industry are sounding an overly alarmist siren.

For example, I received this “run for the hills” email today from Harris Real Estate University, entitled:

“20% Down Payment Rule Starts April 2011 | Mortgages for the Few, Renting for the Many”

The article goes on to state:

“Agents, are you aware of the fact that new lending requirements (Starting NEXT MONTH)  will require 20% down payments on mortgages. Yes, you read that correctly…20% down will be the new minimum requirement thanks to the new QRW Lending Rules.

Welcome to the new world of QRM: Qualified Residential Mortgage

The new QRM requirements exclude FHA mortgages. However, as you will learn in this video the NAR believes that higher downpayment loan requirements will trickle down to FHA loans as well.  With non-FHA mortgages putting less than 20% down will require a very nasty interest rate and other added fees. Bottom line agents, unless something dramatic changes in the next 12 months you will see the mortgage products requiring less than 20% down disappearing.

In this housing market…the worst ever…does it make sense to require substantially higher down payments?

Bottom line, the new QRW rules may become the new rule April 2011 and be in full effect April 2012.”

Many Realtors are copying this text and inserting it into their blogs verbatim, and in doing so are causing what I believe is unnecessary alarm.

In reality, although Congress is currently reviewing the legislation and comments on the proposal are due June 10, 2011, there is NO 20% down rule starting this month, as clearly depicted in the article’s title.  In fact, even if enacted, the ruling would not take effect until the abolishment of Freddie Mac and Fannie Mae, something that isn’t going to happen any time soon.

For an more in-depth discussion of where this legislation actually stands, please go to:

http://www.complinet.com/dodd-frank/

PLEASE NOTE: you must have Adobe Reader installed on your computer in order to view the graph.

1. What is your employment situation? Is it stable, or is there a reasonable chance of a lay-off?  If the latter, renting is probably the way to go for the foreseeable future.

2. What is your horizon? If you are sure that you’ll be in the same property for at least 7-10 years, then buying a home might be a good consideration.  Over the short term, prices may fall, especially if there’s a general, nationwide double dip.  With a longer time horizon, you’ll be better positioned to weather the storm.

3. Are your finances truly in order? Do you have the cash reserves and required credit rating to secure a decent loan? Be honest in your assessment, because mortgage lending continues to be a hoop that everyone must jump through.

4. What is your local market factor? Ask your Realtor for the median sold price point for the type of property you’re anticipating to purchase.  Then, ask them for the median leased price point for similar properties.  By dividing the sold price by the annualized (monthly rent x 12) price, you’ll obtain a factor.  For example, if the median sold price is $360,000 and the annualized leased price for a comparable home is $20,000, the factor is 18.  Statisticians and industry experts are currently identifying a factor of 15 as the break point.  In other words, if the factor is below 15, then strongly consider buying; if the factor is above 15, then lean toward renting.

Ultimately, there may be additional considerations.  Reflect carefully.  Only you can make a responsible decision.