New Construction is on the Rise

Some new figures were released which make me feel good; the figures on new construction. This is not necessarily in regards to construction loans, but in regards to new homes being built all around. Some of these numbers may be a big developer and others might be from homes built on spec by contractors. There hasn’t been a lot of building going on, and for some time things were just dragging along. Building a home was more costly because it could be custom, unless of course it was part of a development and was already done.

The number of new homes being built went up 7.2% in the month of March, and the number of units that went up was around 540,000. This is significant in a time when housing prices have dropped. There are different dynamics when it comes to determining the number of new homes being built, because there are some people who believe that is the only way to get a home they love. There are plenty of homes in the inventory to choose from now, and it gives homebuyers the chance to find a majority of the features they love, while having some room to customize their home or add on later.

There was also an increase in the number of permits that went out; an increase of 11% from February to March. That is significant and show progress from last year as well. Builders were folding, and everything was getting stagnant, but look how far it has come. This should be a sign of better things to come. We remain hopeful-always.

-Mayer Dallal

Is All Well That Ends With Wells Fargo?

Wells Fargo decided it might be best to take a closer look at its foreclosure process which was a smart move. Banks are being examined closely in the wake of a time when no one is able to make ends meet, or is struggling too. Banks are also just filing papers quickly without much review. So, with all the review Wells Fargo thought it was a good idea to go ahead and analyze their processes a little bit further.


Affidavits must be signed and finalized by someone before the foreclosure becomes official. Many large companies pay someone a nice salary to do this job and review the papers before they are signed. With this being said, Wells Fargo states that they have the proper processes in place to make sure that the right papers are signed by the right people and that no stones goes unturned.

This process can only be run from the company’s data, meaning the figures on the mortgages and the database showing who is on the list to be processed etc. This is simply a part of quality control, and is done to ensure the accuracy of all paperwork. The story of a man getting his home foreclosed on when he didn’t owe the bank anything is down- right hideous. Think about it; no matter how much you were being paid to sign off on foreclosure documents, would you not review those things to make sure they are correct? Would you want to be out on the street?

-Mayer Dallal

Is There Hope for Underwater Homeowners?

If you have never heard of the Value Gap Refinance, you probably will. The Value Gap Refinance program means that there is a guarantor making up the difference between the existing mortgage and the present value of the home. Sound like a dream come true? It will help those who are underwater but it certainly doesn’t change the economy….at least not at this moment.


The difference would need to be established by getting an appraisal of course, that way it is clear what the value is based on the current market. The homeowner would then obtain a new loan at 100 percent of the property’s value and at the current rates.

The homeowner is responsible for paying off the balance, but not the dollar figure that creates that gap. When the home is eventually resold to another buyer down the road, the government will pay the difference between the final selling price and the original loan balance. It’s a program that has been a long time coming, and helping people is what it’s all about.

-Mayer Dallal

FHA Energy Efficient Home Loans

Not many people are aware of the financing available for FHA energy efficient financing. While it is not common in many areas, there are families that will opt for it. Part of the battle is just having a professional that will make you aware of all of your options.




FHA’s energy efficient financing can be worked into the loan whether it’s a purchase or a refinance. The key here is determine to what extent you need the work done. The FHA energy efficient financing can be used in conjunction with the 203b program. This program is what allows you to get repairs done on the home when you purchase, or get them done during a refinance. Even with a purchase, it is worked into the loan, and if it isn’t and your improvements are minimal, then at some point you can do a Title I HUD loan.



Title I HUD loans can only be done by a bank that is approved to do them, and they are usually smaller loan amounts of $5-$8,000. These can be done at anytime, and are a good idea for those who might end up with some expenditures they weren’t expecting.



I know families that have used FHA Energy Efficient financing in the past for solar panels, energy efficient appliances and more. You might want to check it out if you are looking at buying a home that needs a little work.

For more information on FHA guidelines and products, you can visit my website at: www.fhaloansnow.net.



-Mayer Dallal