The Fugate Blog

You’ve watched the news and read about it in the papers. You know, the “credit crisis” and how buyers need 20 percent down in order to buy a home? And even if you found a buyer with 20 percent down, lenders aren’t making loans anyway. So, why bother, right? Wrong!

We’re right smack in the middle of what just might be the biggest disservice ever perpetrated on potential home buyers.  It seems the press just can’t get enough of all the gloom and doom in the housing industry.  The fact is that mortgage money is as available today as it was a year ago and loans are being made this very moment with little or no money down. And, no, platinum credit isn’t required.  You just need to know where to look.  Who are these lenders? They’re right down the street.

Federal Housing Administration (FHA) loans are exploding onto the mortgage scene; recent estimates are that one out of five mortgages are FHA loans. FHA loans never went away, their reemergence is a result of the collapse of the sub-prime market. FHA doesn’t technically have a minimum credit score, although, in practice, lenders won’t approve an FHA loan with a credit score below 500. But that’s a far cry from the notion that an 800 score is the only thing lenders care about.

The best part?  FHA only requires 3 percent down. 3 percent. And that 3 percent can come in the form of a gift or grant.  FHA borrowers only need to have $500 in a transaction.  All the while, FHA mortgage rates are as good or better than their conventional counterparts.

Low or no down payment, extremely competitive rates and easier qualifying.  No wonder FHA is moving up the charts!

Please contact me if you would like more information about FHA loans or help getting into your first home.

In today’s tight money market, one way to get into a home may be to ask the seller to provide financing. Often times sellers are more willing to negotiate on financing if it means they’ll get their home sold - a good thing in today’s market. Usually, a seller lists the type of financing they will accept on their property listing. Often, they do not list “contract” or “seller financing” as an option, but I find that it’s always worth asking.

I currently have a very unusual property listed that seller financing may be available for. This is a magnificent home listed for $1,599,000 and the seller is willing to offer a generous financing package to the right buyer. Check out www.19002swsalmonberrydrive.com to see a listing of the home and its features.  It’s a rare opportunity to be able to purchase a home of this caliber with seller financing.

If you’re a buyer, and not working with an agent, you need to change that. An agent will be best positioned to negotiate on your behalf and broach the financing question with the seller. A savvy agent can not only get you a good deal on the home, but also facilitate a great financing package for your purchase.  Happy house hunting!

Check out this new Land property that I just posted on my Web site. It is at Worden Hill Road in Newberg. A lovely opportunity to own small buildable acreage in the heart of Oregons wine country. 1.9 acres with a view of the valley and 30K worth of marketable timber on the property (has been appraised). Septic is approved and driveway is cut in (not rocked or paved.) This is a great opportunity at this price!.

I watch the Today Show in the morning. I get up, work out, have my breakfast and watch the show as I move through my morning. They always seem to have a lot of fun on that show. They seem to genuinely enjoy working with each other. Often, I find their guests informative and entertaining.

 However, Jim Cramer was on this morning. You know the guy - short, balding and very, very loud. He has his own show about the stock market - I think it’s called Mad Money (because he screams so much?). At any rate, he’s a regular contributor on the Today show. The past couple of times he’s been on, he’s had some pretty harsh things to say about the Real Estate market. Now, I don’t know much about the stock market, but I do know something about Real Estate and Jim, you really miss the point about it. 

Real Estate is local.  If you live in Detroit or Miami or Dallas, you don’t care what’s going on in the Real Estate market in New York - or DC - or anywhere else for that matter, because what you really care about is “what is MY house worth?”, “can I get a loan?”, or “how much will I have to pay for a home?”.  Lets face it, yes, there are some really bad market areas out there. Many people got into loans they can’t afford and are losing their homes. And yes, the argument can be made that lending is more a national market and lenders decisions can affect everyone. But Jim, when you make general statements about how bad the market is, or when things might recover, you’re misleading a lot of people who don’t put together that where they are may or may not be in the type of market you’re talking about. And, when you make general statements about Real Estate, you can cause concern (or lack thereof) with people who don’t need to worry.

Home values are local. Housing markets are local. I live in the Portland metropolitan area. Our market isn’t bad at all. Yes, time on market is a bit longer and inventories are up, but overall the Portland market is pretty good. Homes are selling - when priced right (sellers - are you listening?) And, there are buyers out there. Generally speaking, our area has been fairly insulated from the major downturn many other areas are experiencing. In fact, properties are still appreciating in our area.

So, when I watch the Today Show and Jim Cramer comes on to rant about the terrible housing market, I add a grain of salt - and keep in mind that Real Estate is local - and Jim is talking about a national market that simply doesn’t exist. My heart goes out to those who are suffering in their local real estate market, and I remind my clients and friends to remember that our local market remains strong.

Check out this new Farm or Ranch property that I just posted on my Web site. It is at St. Paul Highway in Newberg. This Farm or Ranch property has 3 bedrooms and 1 baths. The property is slated to come into Newbergs new URA and UGB - potentially to be zoned for commercial development. However, the county (please verify) says a new home may be permitted at the back of the property - providing a very private and lovely home site and location.

Check out this new Single-family property that I just posted on my Web site. It is at Salmonberry Dr. in Sherwood. This Single-family property has 4 bedrooms and 3 baths.

Welcome to Julie Fugate’s Blog! This blog will provide you with valuable information, tips, and general insight into the real estate market in Sherwood, Newberg and beyond.