Soft Market = Buyer Market

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Deaf Mortgage

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Soft Market = A market which has more sellers than buyers. Low prices result from this excess of supply over demand. also called buyer's market. opposite of seller's market. (Source soft market Definition )

Right now we are looking at Soft Market as meaning a lot of houses being on market and not enough buyer. Its now call a Buyer Market.

Please check the Countrywide's Soft Market Category to determine if your house is in the declining Market. https://www.cwbc.com/ContentManaged/files/SoftMarkets.pdf

Category 5 = 10% Down payment because lenders only accept minimum of 5% down payment plus 5% down payment for declining market.

Category 4 = 10% Down payment because lenders only accept minimum of 5% down payment plus 5% down payment for declining market.

Category 3 = 5% Down payment will be required for declining market and supporting information as Oversupply and been in Marketing time over 6 months

Category 2 = 5% Down payment will be required for declining market and supporting information as Oversupply and been in Marketing time over 6 months

Category 1= 5% Down payment will be required for declining market and supporting information as Oversupply and been in Marketing time over 6 months

Not on the list = 5% down payment required. No other requirements foreseen.

These are determined by Mortgage Insurance. They decided that 0% down payment is a huge risk in long run and cut off that program. Means they required 5% down payment on any loan.

On top of it, if declining market, we must add 5% down payment along with supporting documents.

Now down payment is required. Housing market is declining, means more house are in affordable range now. Many houses are in foreclosure/short sales and procedure is long messy process. Some bank accept Down Payment Assistant, depending on what program in order to avoid finance hardship.

Soft Market = Buyer Market.

Stay tune for next topic regard of foreclosure and short sales. Tips how to avoid foreclosure and what is short sales.
 
I bought my house last August at 0% down payment and the sellers paid 100% for closing costs. Also, our loan has no mortage insurance..so we got VERY lucky!!!

The reasons for our good deal was our income and high credit scores.

U are right, it is a buyer's market so it is a good time to buy a house but important that you CAN afford the monthly mortage bill. Too many people got themselves into a financial mess cuz they didnt consider all the other costs they would have to pay for the house and ended up not being able to afford the mortage.
 
shel90 said:
I bought my house last August at 0% down payment and the sellers paid 100% for closing costs. Also, our loan has no mortage insurance..so we got VERY lucky!!!

The reasons for our good deal was our income and high credit scores.

U are right, it is a buyer's market so it is a good time to buy a house but important that you CAN afford the monthly mortage bill. Too many people got themselves into a financial mess cuz they didnt consider all the other costs they would have to pay for the house and ended up not being able to afford the mortage.
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Indeed you are fortunate to get that progress. But how did you not get Mortgage Insurance or PMI? Nobody can avoid PMI unless they have 20% down payment.
 
Deaf Mortgage said:
Indeed you are fortunate to get that progress. But how did you not get Mortgage Insurance or PMI? Nobody can avoid PMI unless they have 20% down payment.
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My husband got a VA loan.
 
Deaf Mortgage said:
Yup... VA loan have no PMI. That only one. I just check and its true.
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I just asked my hubby to make sure..LOL!

Yea, we got very very lucky but our mortgage is a little bit on the high side. Just have to grin and bear with it for a while until things get better financially. The gas prices sure arent helping at all!
 
shel90 said:
I just asked my hubby to make sure..LOL!

Yea, we got very very lucky but our mortgage is a little bit on the high side. Just have to grin and bear with it for a while until things get better financially. The gas prices sure arent helping at all!
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I am wondering... which service did your husband served?
 
Shel, ooooo lucky! I'm soooo glad for you because I know VA loans goes to veterans and no PMI! You are seriously saving a lot of moolah!!!!!!!!!

No veterans here, but I know what I can try to do. Split it up and make a go at first time homebuyer program twice. Hope we can do that. We'll see.

I was approved three years ago but didn't take the bait. Townhouse was not in a great shape upon inspection. Renting is a little more in vogue now depsite the tax deductions from owning. Just none of the Florida insurance and PMI problems for now. (whew)
 
IslandBreeze07 said:
Shel, ooooo lucky! I'm soooo glad for you because I know VA loans goes to veterans and no PMI! You are seriously saving a lot of moolah!!!!!!!!!

No veterans here, but I know what I can try to do. Split it up and make a go at first time homebuyer program twice. Hope we can do that. We'll see.

I was approved three years ago but didn't take the bait. Townhouse was not in a great shape upon inspection. Renting is a little more in vogue now depsite the tax deductions from owning. Just none of the Florida insurance and PMI problems for now. (whew)
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Thanks!

Yea, we got very very lucky and I appreciate that everyday. :)

I heard that Florida's homeowners' insurance is very high. That true?

Seems like u made a smart move 3 years ago. I know so many people who got stuck with crappy deals. Ouch!
 
I do use a Mortgage Insurance calculator to figure out each state's PMI. It appears to be same through out USA.

It depends on criteria.

Credit Score
Loan amount vs house value in %
What kind of loan
How long the loan
Primary or investment property
Fixed or ARM loan

Again... its depends on what you are qualified for.

FHA has high PMI for sure compared to regular loan. VA waives the PMI.

FHA do have nice programs for low credit score and also rehabilitation loans. Very strict on guidelines requirements. But lower interest and lower credit score requirement.
 
My husband and I bought a house in 2002 with no down payment. but We lost it. Long story
 
Deaf Mortgage said:
Sorry to hear that. It can take up to 3 years to get back on your feet and buy a house with correct loan that meet your qualification.
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Well honest with you, I cannot get a house in 7 years because We had to file our bankrupcty. Our bankrcupty was final last Aug.
 
lilylover72 said:
Well honest with you, I cannot get a house in 7 years because We had to file our bankrupcty. Our bankrcupty was final last Aug.
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Wells Fargo allows people one year after bankruptcy.

Its Wells Fargo insider that has that program. Its just a FYI. Brokers will not get that loan for you. Only Retail of Wells Fargo can give you that loan. Again... I can't promise from us.

Most lenders requires 2 or 3 years after bankruptcy. We never require full 7 years before buying another house. Its stay on your record for 7 years then on the file for up to 10 years.
 
Deaf Mortgage said:
Wells Fargo allows people one year after bankruptcy.

Its Wells Fargo insider that has that program. Its just a FYI. Brokers will not get that loan for you. Only Retail of Wells Fargo can give you that loan. Again... I can't promise from us.

Most lenders requires 2 or 3 years after bankruptcy. We never require full 7 years before buying another house. Its stay on your record for 7 years then on the file for up to 10 years.
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Really, I didnt know that. We realized that house marketing are very bad in Colorado because many houses been not sold. There have too much new build homes. We are glad that we didnt own a house because many used homes are so hard to sell. If We own our old house, we might want a new build home then will be stuck with two house. Forget it. That why we are glad that we dont own a house.
 
lilylover72 said:
Really, I didnt know that. We realized that house marketing are very bad in Colorado because many houses been not sold. There have too much new build homes. We are glad that we didnt own a house because many used homes are so hard to sell. If We own our old house, we might want a new build home then will be stuck with two house. Forget it. That why we are glad that we dont own a house.
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Good... that is excellent decision now. Make sure you get 5-10% down payment ready for next house. Just be ready and be solidify your grounds before purchase new home. Take your time and build your foundation in finance and work hard.

Right now interest rates are hovering 5.75% and it showing possible drop. We do not know how market is recovering or declining
 
Shel,

Yes, Fla homeowners insurance is excessive. That's why the new governor has been cracking down on Allstate and other insurance companies. I can tell you that I've been anxiously hoping to start owning a house but in the past years, it's not such a hot deal. Money's so tight for nearly everyone, including us. We've been putting most money into our business where we could put into a decent mortgage but no way can we do both.

Deaf Mortgage's right---bankruptcy stays on record for ten years. When you file a bankruptcy, your credit score plummets to 300-400. Lenders don't like it but if you do good with bills after few years, they are happy to take a look.

And let's not forget the property taxes. It's obscene! In Florida, something changed in a way that when homeowners sell their homes to move up to a bigger house, or a nicer house (whatever), they get the tax sticker shock when the property taxes come out. Taxes is the reason why my family left Long Island, NY and I see the same thing happening in Florida. It's probably a good thing I am not in Miami!!!

Renting isn't that bad these days. I got lucky with this house. I had planned to leave after five months. No rent increases in the past 3 and half years.
 
Deaf Mortgage said:
Good... that is excellent decision now. Make sure you get 5-10% down payment ready for next house. Just be ready and be solidify your grounds before purchase new home. Take your time and build your foundation in finance and work hard.

Right now interest rates are hovering 5.75% and it showing possible drop. We do not know how market is recovering or declining
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Yesssssssssss! Tough to do but working on that. They could drop. It does not look like RE people can clear out the houses completely until late 2009? I am thinking we are lucky because we can try striking while the iron is hot. So until then, we're doing all we can to make sure we are :bowdown: when it comes to getting a decent mortgage. :cool:
 
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