Conventional versus Government Mortgage Loans | Tristan and his WHITEBOARD - LIVE!

Conventional versus Government Loans

Tristan and his WHITEBOARD - LIVE!

Conventional Versus Government Mortgage Loans

Hi everybody. This is Tristan Emond with Mindful Living Realty. Welcome back to Tristan and his WHITEBOARD - LIVE!

Today I'm with Angelia Dale with Gateway Mortgage.

And today we're going to talk about the difference between conventional and government loans.

Downpayment

So first of all, Angelia, give us a quick synopsis of what each one is. Okay so your conventional loans - they require a down payment. You know, anywhere between 5% and however much you want to put down. They're more your traditional loans that we do.

Our government loans are FHA VA and Rural Development. Some of them require 0% down up to 3 1/2% down for the FHA loans.

Okay so biggest difference at this point is down payment. So Conventional is 5% I'm sure plus, right? Government is zero to three and a half.

Okay so that's the main, obviously, money thing. So, if you have don't have as much money down, you're going to be with an FHA, VA or RD type of loan. If you've got a bigger percentage down, conventional is probably the way to go. Yes.

So, what's next on these?

Rules and Regs

Conventional loans have less rules regarding the appraisals, what you can do with the house, things like that. Where the government loans some of those loans require - you can't rent out your house, you have some different mortgage insurance requirements, that kind of thing.

Okay so conventional - less rules. Government - more rules.

But that's because I assume that the government is financing it, so they're going to say "Hey if we're gonna give you the money, you're going to follow our guidelines" correct? Yeah you are getting into a program that has zero to three and a half percent down, so there are some regulations required like that.

Very good. Okay next up?

Income and Assets

Our next step on conventional - they are not as particular on income, on assets, that stuff.  Your government programs - most of them have income requirements or asset requirements. So, they're a little bit tighter on the government programs regarding what they're looking for.

Okay so loose-er income regs (right?) on conventional.  And government has more income regs over here. 'Cause, again, you're basically buying into a program that allows you to have a lower percent down, right? Therefore, they're going to have more rules.

Home Condition

Okay last step. What about - I know with some of these government loans...you go into the property and there's the peeling paint outside or you've got a cracked window that has an issue.

The government programs are a lot tighter regarding health and safety issues. So, when you have peeling paint, broken screens or broken windows, things like that, that becomes an issue. The government programs want to make sure that you don't have a lot to fix when you go into a home, because you're going in with zero or three and a half percent down. So, you don't have a lot of assets to fix that property. They are a bit tighter on their appraisal requirements.

Where a conventional - they don't care so much if there's peeling paint on the house, because you don't have to go in and fix that.

Right - so we've got less conditions on the home (conventional) and then we've got more conditions over here (government).

Cool! Yep.

All right, well if that kind of wraps it up for us.

Thanks so much for coming on today and hopefully you can see or got some information here. I'll see you next time on Tristan and his WHITEBOARD!

Thank you!


Angelia's legal info:

Angelia Dale, Loan Originator, NMLS #175544

Gateway Mortgage Group

Rapid City, SD

605-490-2246

angelia.dale@gatewayloan.com

Gateway Mortgage Group is a registered service mark of Gateway Mortgage Group, LLC NMLS 7233. All loans subject to program guidelines and final underwriting approval. Contact local branch for details. 1301 W Omaha St #118, Rapid City, SD 57701. South Dakota Mortgage Lender License #ML.05071.

The Dream Came True for Our Rapid City Homebuyer - An Emond Team Client Story

Dreams do come true.

On December 1, 2011, Jessica posted on her Facebook status:

“Someday I aspire to own a home on the Boulevard.”

Someone should have warned her about putting things out there…  😊

In the fall of 2014, we listed a historical home on 11^th street.  The owners had bought it as a complete fixer-upper.  They had worked to make it a cute space while retaining as many of the historical pieces as possible.

The open houses on this property were phenomenal!  But…the comments were the same.  People loved the idea of an old home, but they really didn’t want to live in one.

The following Spring was the beginning of Jessica’s dream.  She called me to view the home.  As she walked through the living room, the floors creaked.  Her eyes lit up. 

I knew she was a buyer that would appreciate all this home had to offer.  She loved the history.  She loved the original woodworking, the staircase, the front porch.  She loved the potential of what she could do to make it her own.

AND….it was in her price range.

She quickly had her parents check it out (it turns out I knew her dad…), and excitedly put in an offer.

The sellers accepted and we were off to the races.

This picture of her on the front porch, arms raised in victory – is one of my favorites.

She was ecstatic.

She was realizing her dream of homeownership from 4 years earlier.

And we were along for the ride.

Another reason we do what we do  Helping others experience the dream of owning their own home.

In this case, her FIRST home.

You deserve a place to call home and an awesome real estate transaction to boot.  Call us.  We are here to help.

Your Family.  Your Home.

https://rapidcityhomes.net/emond-team/

Rapid City Real Estate Market in 2018 | Tristan and his WHITEBOARD LIVE!

2018 Rapid City Real Estate Market

Tristan and his WHITEBOARD - LIVE!

Rapid City Real Estate Market in 2018.

Hi everybody - happy 2019 and welcome back to Tristan and his WHITEBOARD LIVE!

So... of course we need to check out the 2018 Rapid City residential real estate numbers. See what happened last year.

So, you can see up here I've got a bunch of numbers. We're gonna go over a few things - we'll look at how things went.

We see the last year we were up 6 and 1/2 percent on our average sold price from 2017. What was really interesting to me was that in 2012 - since 2012 we're up 21%.  So steady growth - consistently - in our market as far as sold price is concerned.

I like to look at the price points that are selling the most to kind of give you an idea of where all the action is going at.  We can see in 2016 in the $150.000 to $200,000 price range, we had about 513 sell.  And in the $200,000 to 250,000 range...365.  So quite a difference.

However, this year are 2018, the $200,000 to $250,000 is taking the lead.  Of course, that does make sense as the prices go up, we're seeing more sold in this area as more of those homes become mainstream.

Used to be, you could buy quite a bit of home for $150,000.  Now, you know, you almost need $200,000 to get into something that's really nice, right?

Of course, the above would also reflect days on market.  The more action we have, the lower days of market.  In 2016 we had 47 days on the market and we're down about 10 days here in 2018.
A very strong market if things continue to click.

This red number down here is the number I want to drive some attention to.

That is how many homes are on the market as of January 1.  That's low.  That's not that many homes on the market at all…compared to where we usually are. We're usually in the 500 range about this time.

I see a lot of buyer pent-up demand.  We could be seeing an early spring season this year - you never know, but I think I can say we might have some of that coming here.

We'll see what happens!

Glad you're around for this 2019!   Hope to see you next time on Tristan and his WHITEBOARD! Have a great day!

- Tristan