The following was sent to me by Brandon Fischer of VA Benefit Blog .com

Choosing the Right Home Loan Program

The average price of a home in Oklahoma ranges from $150,000 to $200,000 and varies in type from highly urban to rural, and for those seeking to purchase a home in Oklahoma there are a variety of government lending options available. The most popular government lending programs include the FHA, VA, and USDA loan programs and all three offer flexible loan terms and eligibility requirements with each program offering their own unique set of advantages and disadvantages.

The VA Home Loan

The VA home loan has helped over 18 million active duty and veteran service members achieve homeownership. Because the VA home loan program is partially backed by the Department of Veteran Affairs, the VA home loan program is able to offer flexible and competitive loan terms to eligible veterans and active duty service members regardless of credit history. Other benefits of the VA loan program include:

• No down payment required
• Mortgage insurance not required
• flexible debt-to-income ratios

In order to apply for a VA home loan, potential borrowers should meet one of the following initial requirements:

• Have served 181 days on active duty or 3 months during war time
• Or have served 6 years in the National Guard or Reserves
• Or be the spouse of a service member killed in action
• Have a Certificate of Eligibility

The FHA Loan

For first time homebuyers in Oklahoma, the FHA home loan program is available, and additionally contains multiple financing options for borrowers in different phases of the homeownership process. Borrowers can buy their first home, renovate a fixer-upper, or update their current home to meet energy efficient standards with an FHA home loan, and can even purchase manufactured housing or a mobile home. In addition to multiple financing options, FHA loans offer benefits such as:

• 3.5% down payment
• low closing costs
• down payments can be made in the form of a gift

To be eligible for an FHA loan, potential borrowers should meet most of the following:

• two years of consistent employment and steady or increasing income
• a minimum credit score of 620
• a clean credit history after filing for foreclosure or bankruptcy

The USDA Loan

For homebuyers more interested in the rural real estate areas of Oklahoma, the USDA loan home loan  is generally the most beneficial. The USDA’s Department of Rural Development offers two types of home loans to potential borrowers:  a Guaranteed Housing Loan and the Direct Housing loan for lower income households, and both are designed to optimize rural living. USDA home loan benefits include:

• Zero down payment required
• No loan limit
• No mortgage insurance required

In order to be considered eligible for a USDA home loan, potential borrowers should meet the following requirements:

• have a consistent income
• be a U.S citizen
• have an income that is within the median household income for the area

The VA, FHA, and USDA home loan programs do have flexible eligibility requirements, however most approved lenders will usually require a credit score of at least 620 to secure financing. Those with an imperfect credit history who are interested in a home loan are still encouraged to apply as each program has approved even those with a history of bankruptcy and foreclosure in the past.



Based on information provided to and compiled by MLSGateway.com, Inc. covering a period 2004 through 2010 MLSGateway.com, Inc. does not guarantee or is in any way responsible for its accuracy.

 There is a growing trend for home builders to build green home plans or at least implement green home design in their new home plans.  They are doing this because their is a growing demand for green homes.  So, what is a green home?  A Green Home is a home that is usually certified based on criteria set up by a third party program such as ENERGY STAR or the NAHB NATIONAL GREEN BUILDING PROGRAM.

Why would someone want a green home?  The answer to this question falls into two camps depending on what you want to save.  Some want to save the planet while others just want to save money.  During our current recessionary times I think most are focused on the latter while saving the planet is just a perk.

Currently I am marketing a green home for sale at 8604 SW 57th ST.  (embarrassing plug I know OPEN HOUSE SAT & SUN 12-5 PM).  This home is being certified by both of the aforementioned programs.  Some of the money saving features are low-E windows, Energy Star appliances, energy efficient HVAC, and energy efficient tankless hot water heaters. Some of the planet saving features are the use of indigenous materials and low VOC carpet.   It gives the best of both worlds. Save the planet and save money.  The save the planet push is important to many people and may and should endure but I think we can agree that all people are interested in saving money and that the desire to save money will definitely endure.  This is an idea that is definitely here to stay.  As an example the green home mentioned above was designed to cut utility bills by one half of what they would be on a non-green home.  At 3300 SF it is assumed the bills would be about $500.  If you save half of that you would be saving $250 a month.  The additional cost to make this home green is about $9,000 which financed in the purchase would equal about $50 a month.  So you are spending $50 a month to save $250 a month plus you are helping your environment and your health.  Not a bad deal at all. 

I believe this trend will endure and at some point will become the standard.  If you are buying a new home you should definitely consider buying a green home.  Else, you may find yourself spending money to update your home to green just to be able to sell it.

Right now the Oklahoma City real estate market is the Tale of Two Markets.

We have simultaneously a Buyer’s Market and a Seller’s Market.

How can this be you might ask?  Well let’s take a look at the dynamics.

First we have the clock ticking on the first time home buyer tax credit.  For those of you that don’t know, it is an $8,000.00 Tax Credit for first time home buyers that purchase before December 1, 2009.  There are many Buyers looking to take advantage of this who have procrastinated and will now find themselves competing for these first time home buyers houses that are typically around $100,000.  As we close in on the end of the Tax Credit this market is going to start looking like the chaos surrounding a blue light special at K-Mart.  This all adds up to a Seller’s Market for the Move Up Buyer who is selling to the first time home buyer.

The typical Move Up Buyer will be purchasing a home between $150,000 and $300,000.  In this price range you can definitely hear the crickets chirping through the silence.   What does this mean?  Deep Discounts.  Lower listing prices.  And Sellers that are willing to take offers considerably less than the already discounted listing price.  In short a Buyer’s Market.

So, if you are a Move Up Buyer, you are Selling in a Seller’s Market and Buying in a Buyer’s Market.  It doesn’t get any better than this.  And if you think you are missing out on the Tax Credit you just aren’t doing the math.  Tax Credit = Seller’s Market on First Time Home Buyer houses.  Seller’s Market=Premium Price on the Move Up Buyers Sale.  Thus a percentage of the Tax Credit is being passed through to you.

Do the math and then go find that Dream Home that is only attainable in this unique set of circumstances. 

New Down Payment Assistance money should be available at the end of this month.  It seems that there are two components of the new issue.  One will be the normal issue which gives first time home buyers the down payment needed with an FHA Loan.  The other will be for first time home buyers too, but will be an advance of the Tax Credit.

Much like the Cash for Clunkers program this money will go fast.  Once the money is gone this program will no longer be available until the next issue which will probably be next year.  First time home buyers that qualify may receive both the Down Payment Assistance and the $8,000.00 Tax Credit. 

If you are looking for the deal of the century then the time to buy would be between 8/25/2009 and the time the bond money runs out which will be about 30 days later(based on the time it took the last issue to be used up).  In order to reserve this money you must be in a contract to purchase on a specific property, which means if you are looking to take advantage of the double benefit then you should contact a Realtor and begin looking at houses immediately.

According to OHFA:

Projected opening of 08/25/09 at 10:00 am.  $32.8 million bond
       issue with 6.10% interest rate. 1st Gold and OHFA Shield/4Teachers funds with
       3.5% DPA or Oklahoma Tax Advance Credit funds will be available.

Everybody and their dog from TV and Radio is going to be advising you to go out and buy a house.  If you are smart and in the know you will hear it first here at the Oklahoma City Real Estate Blog. 

The Fed said Wednesday that it would put over a Trillion Dollars into the economy.

$300 Billion Dollars of Long Term Treasuries.

Another $750 Billion Dollars of Mortgage Backed Securities.

Purchase of Freddie and Fannie debt of up to $200 Billion Dollars.

Keep the Fed Fund Rates between 0 and .25 for a long time.

What does this all mean?  It means interest rates are going down and the Fed has got your back.

How do you take advantage of this.  Buy a house and find it quick.  The ridiculously low interest rates along with the First Time Home Buyer’s Tax Credit is going to heat up the market.  The builders have quit building.  There is over three years of pent up demand for housing and when they come flooding back in the supply will not be there.  I know there is a lot of supply but when you subtract all the busted up foreclosure that most do not want or can’t get financing for you have very few houses.  I will say it again there are very few good houses on the market for serious buyers and as the army of sideline buyers enter the game, prices on good homes are going to go up.  So in short, if you do not move quickly you will pay more for your house and you will be talking about the chance that you missed.  If you wait for the statistics to show this or you are waiting for all the reporters to tell you now is the time to buy a house you are going to miss the boat.  If you want to hear someone call a bottom to the housing market.  Here it goes. 

 This is the bottom of the housing market. 

If you buy a house now you will be rewarded.  There you  have it.

Total closed in February 2009 was 997 down ↓21.1% from the 1264 closed in February 2008.

The average price was $139,632 down ↓6.4 % from the February 2008 price of $149,107.

The median price was $123,500 down ↓1.2% from the February 2008 price of $125,000.

The average Days On Market for February 2008 was 94 down from 95 in 2008.

 Based on information provided to and compiled by MLSGateway.com, Inc. covering a period 2008 through 2009MLSGateway.com, Inc. does not guarantee or is in any way responsible for its accuracy.

Find out How Much Your Home is worth Today!

The number closed is sharply down indicating a slowing real estate market in Oklahoma City.  Often a sharp drop in the numbers sold will precede a corresponding sharp drop in prices.  Let’s hope this phenomena does not prove to be true in this case.

Total closed in January 2009 was 741 down ↓36.7 % from the 1170 closed in January 2008.

The average price was $146,837 down ↓5.9 % from the January 2008 price of $156,089.

The median price was $125,000 down ↓6.7% from the January 2008 price of $134,000.

The average Days On Market for November 2008 was 95 up from 92 in 2008.

 Based on information provided to and compiled by MLSGateway.com, Inc. covering a period 2008 through 2009MLSGateway.com, Inc. does not guarantee or is in any way responsible for its accuracy.

Find out How Much Your Home is worth Today!