Attitudes are Improving

I just came from the Hutchinson Home Landscape and Garden  show that is being held at the McLeod County Fairgrounds here in Hutchinson, MN. The show ends at 4:00 p.m. on Sunday, February 21, 2010.

It was encouraging to visit with all the people who came to the show this year. Almost everyone that I visited with seemed to be much more upbeat about our economy. This is completely different than it was a year ago at the same show.

In talking to many of the vendors who have booths there this year, almost all of them told me that they had done a lot more business this year than in the past.

All of these things are good signs that people are beginning to regain confidence in our economy.

At Hometown Realty our first two months of 2010 has shown good improvement over 2009 for the real estate market here in Hutchinson, MN.

All of this seems to tell me that things are getting better and let’s hope that this momentum will continue throughout 2010!

New FHA Guidelines

The new rules — which are temporary and take effect this summer — come after more than a year of stringent standards from lenders. Among them:

•Better Credit Score — New borrowers will have to have a minimum credit score of 580 to qualify for a 3.5 percent down payment. Previously, there was no minimum score. Those with lower scores will have to make at least a 10 percent down payment. The average credit score of FHA-insured borrowers is 693.

•Higher Insurance Premiums — Buyers who get an FHA-insured loan will soon have to pay a higher initial insurance premium. The new premium will be 2.25 percent of the value of total loan amount, up from 1.75 percent now. A $100,000 mortgage would require a payment of $2,250, or $500 more. But buyers can roll the added cost into the loan amount.

•Reduction in Seller Concessions — Starting this summer, sellers will not be able to offer as much help to buyers to pay their closing costs. The maximum amount of assistance will drop to 3 percent of the value of the property, from the current 6 percent.

2009 Profile of Home Buyers and Sellers

According to the National Association of Realtors “Profile of Home Buyers and Sellers 2009″, 90 percent of buyers used the Internet as an information source in their home search, up 30 percentage points during the past six years. First-time buyers were even more likely to use the internet.

Also reported was that 47% of recent buyers were first-time buyers, 21% of recent home buyers were single females, and 10% were single males.

The housing market in Hutchinson, MN would be in line with these findings.