New FHA Rule for Buyers with Credit Dispute

A new rule has been announced by the FHA. Applicants with a credit dispute of $1000 or more will no longer be eligible for an insured loan unless the amount is repaid or a plan is developed to repay it. With the repayment plan, a record of three payments must be demonstrated.

This rule is intended to protect the ability of the FHA to insure mortgage loans.

Bank rules continue to tighten. Interested buyers may want to consider purchasing sooner rather than later...

Orlando Inventory of Homes Way Down

The availability of homes for sale is measured in "months of inventory". In other words, at the current level of sales in an area, it would take that many months to sell each and every home that is available for sale (most homes sell in an average of 2-3 months).

Currently the inventory of available homes in Orlando is slightly under 5 months. The last time inventory was at this level was in 2005. In 2009, it was 17 months and has been decreasing ever since.

How does this affect the prospective buyer? Competition for well-priced homes in good condition is high right now. Many homes are selling in less than one week on the market. Prices are likely to increase.

Will this historic market come to an end soon? Hard to tell, since reports are that banks still have a large inventory of homes going into foreclosure. But all good things come to an end.....

Why Buy of Sell Real Estate Now?

1. Mortgage rates are at lowest levels in years.
2. There are more buyers out there than ever before in the past year.
3. Homes are selling faster.
4. The inventory of available homes is steadily decreasing.
5. Fewer new homes are being built.
6. There is a lot of TV advertising encouraging home buying.
7. Buying a home is becoming a better option than renting.
8. Bank are increasing lending for mortgages.

Watch "This Month in Real Estate" for more information.