Blog

Low Housing Inventory: Why Is It Happening?

Low Housing Inventory: Why Is It Happening?

The housing market has recently seen startlingly low housing inventory. According to data from Altos Research, the number of homes currently on sale has dropped by about half from last winter. The drop is seen most prominently in metropolitan areas such as Atlanta, New York, Austin, and Chicago. Data from the National Association of Realtors shows that total housing inventory fell 29.5% from February 2020. The ongoing COVID-19 pandemic is to blame for much of the low housing inventory - low interest rates and the generalized need for larger housing and the subsequent…continue reading →

How to Calculate Your Profit in 2021 When Selling Your Rental Property

If your rental property investment goal is to reap a big profit when you sell, then understanding your potential taxes upfront is critical. Just knowing you'll pay a tax on any gain you earn and the general tax rate is not enough preparation. You need to look at capital gains, depreciation recapture, net investment income tax, and short versus long-term gain tax rates to get to your real net profit number. The details can be found in the Internal Revenue Service (IRS) Publication 550, Section 4. For starters - if you sell a…continue reading →
Mortgage Rates Climb to Highest Levels in Almost a Year; 30-Year Fixed Above 3%

Mortgage Rates Climb to Highest Levels in Almost a Year; 30-Year Fixed Above 3%

Mortgage rates have now increased in six of the last eight weeks. According to Mortgage Bankers Association (MBA) latest weekly survey, average 30 Year Fixed mortgage rates climbed above 3%. The higher rates resulted in refinance activity falling 11% to its lowest levels since December 2020. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($548,250 or less) increased to 3.08 percent, with points increasing to 0.46. The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $548,250) increased to 3.23 percent with points…continue reading →
Mortgage Loans for Dreamers (DACA)

Mortgage Loans for Dreamers (DACA)

Options for mortgage loans for Dreamers have increased. When the Federal Housing Administration (FHA) announced that it would permit individuals protected under the DACA (Deferred Action for Childhood Arrivals) program to apply for FHA mortgages, the dream of homeownership became that much more accessible to countless around the country.  FHA-backed mortgages join the list of mortgage loans for Dreamers, as they are commonly known. Dreamers are also eligible for conventional loans, or mortgages acquired by Fannie Mae and Freddie Mac. Conventional loans bring the benefit of being widespread - almost all lenders offer…continue reading →
FHA Loans for DACA Recipients Now Available

FHA Loans for DACA Recipients Now Available

In a new move, the Federal Housing Administration (FHA) announced that it will permit individuals protected under the DACA (Deferred Action for Childhood Arrivals) program to apply for mortgages backed by the FHA, effective January 19th, 2021. The FHA permits DACA recipients to apply in a move that reverses the previous stipulation that barred “non-US citizens without lawful residency” from applying for FHA-insured mortgages.  DACA recipients, or “Dreamers” as they are commonly known, will now be able to realize their dreams of homeownership. FHA-backed loans are hugely popular because they carry a multitude…continue reading →
Housing Affordability Drops As Home Prices Rise

Housing Affordability Drops As Home Prices Rise

Median home prices rose at least 10% in the fourth quarter of 2020,  significantly impacting housing affordability for many prospective homebuyers. Of the 499 counties surveyed in Attom Data Solutions’ Home Affordability Index, 275 (55%) experienced this increase in prices. By comparison, home prices were up 43% in the fourth quarter of 2019. Home prices for single-family homes have experienced steady increases over the past few quarters. According to the National Association of Realtors, in the penultimate quarter of 2020, the median price for an existing single-family home was $313,500. This was up…continue reading →
2021 VA and USDA Loan Limits

2021 VA and USDA Loan Limits

As we enter 2021, loan limits for different types of loans have changed. Veterans Affairs (VA) loans closing on or after Jan. 1st, 2021 will be subject to the same loan limits announced by the Federal Housing Finance Agency (FHFA). The 2021 VA loan limit will therefore increase to $548,250 for one-unit properties. This is a 7.42% increase from the 2020 limit. The ceiling loan limit for one-unit properties in most high-cost areas will be $822,375.  Here is the limit breakdown by property size: VA loans are loans backed by the Department of…continue reading →
2021 CONFORMING LOAN LIMITS FOR WASHINGTON (WA)

2021 CONFORMING LOAN LIMITS FOR WASHINGTON (WA)

2021 Conforming Limit Washington is $548,250 and goes up to $776,250 for high-cost counties for one-unit properties. 2021 Conforming Limit Washington for 2-unit properties is $702,000 and goes up to $993,750 for high-cost counties. 2021 FHA Mortgage Loan Limits for Adams County 1 Unit – $548,250 2 Unit – $702,000 3 Unit – $848,500 4 Unit – $1,054,500 2021 FHA Mortgage Loan Limits for Asotin County 1 Unit – $548,250 2 Unit – $702,000 3 Unit – $848,500 4 Unit – $1,054,500 2021 FHA Mortgage Loan Limits for Benton County 1 Unit – $548,250…continue reading →
2021 Conforming and FHA Loan Limits

2021 Conforming and FHA Loan Limits

2021 will see an increase in both the Conforming and FHA loan limits. Increases in home prices across the U.S. have led to an increase in conforming loan limits. The Federal Housing Finance Agency (FHFA) has announced the maximum conforming loan limits (CLLs) for mortgages acquired by Fannie Mae and Freddie Mac in 2021. The 2021 conforming loan limit will increase to $548,250 for one-unit properties. This will be applicable to most of the United States and constitutes a 7.42% increase from 2020’s limit.  High-cost counties like San Francisco, CA will see the…continue reading →
2021 FHA LOAN LIMITS FOR WASHINGTON (WA)

2021 FHA LOAN LIMITS FOR WASHINGTON (WA)

2021 FHA Limit Washington is $331,760 and goes up to $741,750 for high-cost counties for one-unit properties. 2021 FHA Limit Washington for 2-unit properties is $424,800 and goes up to $949,600 for high-cost counties. 2021 FHA Mortgage Loan Limits for Adams County 1 Unit – $331,760 2 Unit – $424,800 3 Unit – $513,450 4 Unit – $638,100 2021 FHA Mortgage Loan Limits for Asotin County 1 Unit – $331,760 2 Unit – $424,800 3 Unit – $513,450 4 Unit – $638,100 2021 FHA Mortgage Loan Limits for Benton County 1 Unit – $331,760…continue reading →