Terry Sprouse

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With all the bad news about Wall Street and the credit market, with banks unwilling to loan money even to each other, what hope is there for the average fixer upper house investor? The situation may not be as bad as you may think!

Here’s why:

1. There is plenty of money available for home mortgage loans, either to purchase or refinance a house. This is because the American home mortgage market has been federalized. Ninety percent of all loans are being made through the Federal Housing Administration (FHA), plus Fannie Mae and Freddie Mac. FHA is owned by the federal government and Fannie and Freddie are operating under federal conservatorship, so all three have complete access to global capital at low rates because their borrowings are guaranteed by the Treasury Department.

2. Despite tougher credit standards, you can still get a loan for 3 percent down
with FHA, or 5 percent down on Fannie Mae and Freddie Mac programs.

3. Interest rates are still at historic lows.

4. Home prices, dragged down by foreclosures and short sales, are at 2003 and 2004
prices.

For more details see Kenneth Harney’s article Crises Aside, Would-be Buyers Can Still Get Reasonably Price Loans.

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Tags: Fix em Up Rent em Out, fixer upper houses, loan money, loans for fixer upper houses

This entry was posted on Monday, October 27th, 2008 at 12:51 pm and is filed under fix up houses, fixing rental houses, home loans, housing market, investing in real estate, investment house, investment property, investments, investmet properties, loan documentation, loans, mortgage rates, mortgages, mortgages and real estate, new purchase, real estate principles, refinance, refinancing, rental properties, rental property, rentals, renting. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.