Wednesday, September 16, 2009
The $8000 tax credit opportunity is nearing the end.
The 1st time buyer tax credit must be used on homes that close on or before November 30,2009. Although there is talk of extending this credit deadline, nothing is a guarantee other than closing on time. In most cases, that would mean a buyer has about another month to find a home.
Tuesday, August 4, 2009
Pending home sales rises again in June for 5th Consecutive Month
Pending U.S. home sales rose in June for the fifth straight month, another encouraging sign of life for the embattled U.S. housing market, the National Association of Realtors reported Tuesday.
For June, the Realtors group said its pending home sales index rose 3.6 percent to 94.6, from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was July 2003.
The results were far better than analysts expected. Economists surveyed by Thomson Reuters expected the index to come in at 91.2.
The report tracks signed contracts to purchase previously owned homes and is considered a barometer for future home sales. Typically there is a one- to two- month lag between a sales contract and a completed transaction.
The jump in pending home sales coincides with other positive trends in the residential real estate market.
For the first time in five years, home resales have risen for three months in a row, increasing almost 4 percent in June. Low prices, attractive mortgage rates and a first-time homebuyers tax credit of up to $8,000 have kick-started sales.
"Because housing is so affordable in today's market, job security and the first-time buyer tax credit are bigger factors in influencing home sales," said Lawrence Yun, the Realtors group's chief economist, in a statement.
Yun said he expects existing home sales to gradually rise over the balance of the year, with conditions varying around the country.
"It appears home sales are on a sounder footing and inventory is gradually being absorbed," he said.
Regionally, the pending home sales index jumped 7.1 percent to 100.7 in the South and 2.9 percent to 100.4 in the West. The index inched up 0.4 percent to 81.2 in the Northeast, and up 0.8 percent to 89.9 in the Midwest.
For June, the Realtors group said its pending home sales index rose 3.6 percent to 94.6, from an upwardly revised reading of 91.3 in May. The last time there were five consecutive monthly gains was July 2003.
The results were far better than analysts expected. Economists surveyed by Thomson Reuters expected the index to come in at 91.2.
The report tracks signed contracts to purchase previously owned homes and is considered a barometer for future home sales. Typically there is a one- to two- month lag between a sales contract and a completed transaction.
The jump in pending home sales coincides with other positive trends in the residential real estate market.
For the first time in five years, home resales have risen for three months in a row, increasing almost 4 percent in June. Low prices, attractive mortgage rates and a first-time homebuyers tax credit of up to $8,000 have kick-started sales.
"Because housing is so affordable in today's market, job security and the first-time buyer tax credit are bigger factors in influencing home sales," said Lawrence Yun, the Realtors group's chief economist, in a statement.
Yun said he expects existing home sales to gradually rise over the balance of the year, with conditions varying around the country.
"It appears home sales are on a sounder footing and inventory is gradually being absorbed," he said.
Regionally, the pending home sales index jumped 7.1 percent to 100.7 in the South and 2.9 percent to 100.4 in the West. The index inched up 0.4 percent to 81.2 in the Northeast, and up 0.8 percent to 89.9 in the Midwest.
Sunday, July 26, 2009
7 Reasons to own your own home
1. Tax Breaks: Deduct the interest you pay on your mortgage, proprty taxes, and other costs.
2. Gains: A study by the National Association of Realtors found that a typical homeowner has approximately $50,000 of unrealized gain in a home.
3. Equity: Money paid for rent is money you will never see again, mortgage payments let you build equity ownership interest in your home.
4. Savings: Building equity in your home is a ready made savings plan.
5. Predictability: Fixed rate mortgages do not go up over the years.
6. Freedom: The home is yours and you are able to benefit from your investment.
7. Stability: Participate in community activities, establish lasting friendships, and offers your children the benefit of educational continuity.
2. Gains: A study by the National Association of Realtors found that a typical homeowner has approximately $50,000 of unrealized gain in a home.
3. Equity: Money paid for rent is money you will never see again, mortgage payments let you build equity ownership interest in your home.
4. Savings: Building equity in your home is a ready made savings plan.
5. Predictability: Fixed rate mortgages do not go up over the years.
6. Freedom: The home is yours and you are able to benefit from your investment.
7. Stability: Participate in community activities, establish lasting friendships, and offers your children the benefit of educational continuity.
Thursday, July 16, 2009
New Program for Using $8K Tax Credit for Downpayments
How the New MassHousing Program Works
1. Homebuyers who are using a MassHousing loan to purchase their first home apply for the loan program through their lender
2. The loan is used to cover closing costs or as part of the downpayment
3. In 2010, the homebuyer claims the $8,000 tax credit on their 2009 federal tax return
4. The homebuyer then repays the MassHousing tax credit loan
* No interest is charged if the loan is repaid by June 1, 2010
* Otherwise, the loan is amortized over the next 10 years, at the same interest rate as the first mortgage
1. Homebuyers who are using a MassHousing loan to purchase their first home apply for the loan program through their lender
2. The loan is used to cover closing costs or as part of the downpayment
3. In 2010, the homebuyer claims the $8,000 tax credit on their 2009 federal tax return
4. The homebuyer then repays the MassHousing tax credit loan
* No interest is charged if the loan is repaid by June 1, 2010
* Otherwise, the loan is amortized over the next 10 years, at the same interest rate as the first mortgage
Tuesday, March 10, 2009
The Real Estate Market Today
Just curious, whether you are a potential buyer or seller. Do you think its a buyer's market? Seller's? Somewhere in between? If you are a potential buyer. Do you have concerns? What might be holding you back from buying a home? How about if you are a possible seller? Do you have concerns? Are you wondering if the timing is right?
I would like to share your thoughts and and answer any questions.
I would like to share your thoughts and and answer any questions.
Thursday, January 22, 2009
Bank owned, Foreclosure, and Short Sales
Many buyer's have asked me about purchasing properties that are foreclosure, bank owned, or short sales thinking they can get a great "deal". Although these types of properties may be enticing to a buyer and yes, possibly they can get a property at a very good price, each of these properties have their challenges as well.
Tuesday, January 13, 2009
Consider a Fixer Upper
Prices of new construction and newer existing homes have been going up fast over the last several years and first time home buyers may want to consider buying a fixer upper. The FHA Streamline 203k Renovation Loan allows you to finance up to $30,000 repairs and remodeling costs into the mortgage.
Some Advantages of FHA 203k Renovation Loan are:
Must have minimum $5,000 repairs and remodeling costs and the maximum renovations are $30,000.
Loans can go up to 110% of the after-improved appraised value!
There is no 203(k) consultant involved. Repairs are usually based on contractor bids.
Down Payment Assistance is allowed and the seller can pay up to 6% of the purchase price in closing costs which means you may be able to buy a home and fix it up with no money out of your pocket!
Use your Streamline loan to make any of these repairs:
Remodel-update bathroom and kitchen
Repair-replace floors
Upgrade roof, gutters, and downspouts
Fix existing HVAC systems
Update plumbing and electrical systems
Paint-interior and exterior
Weatherization-insulation, weather stripping, etc.
Replacement Windows and Doors
Upgrade appliances which may include ranges, refrigerators, washers/dryers, dishwashers, and microwaves.
Rehab-replace decks, patios, and porches
Basement finishing, remodeling, waterproofing which does not require structural repairs.
Improve accessibility for disabled persons
Some Advantages of FHA 203k Renovation Loan are:
Must have minimum $5,000 repairs and remodeling costs and the maximum renovations are $30,000.
Loans can go up to 110% of the after-improved appraised value!
There is no 203(k) consultant involved. Repairs are usually based on contractor bids.
Down Payment Assistance is allowed and the seller can pay up to 6% of the purchase price in closing costs which means you may be able to buy a home and fix it up with no money out of your pocket!
Use your Streamline loan to make any of these repairs:
Remodel-update bathroom and kitchen
Repair-replace floors
Upgrade roof, gutters, and downspouts
Fix existing HVAC systems
Update plumbing and electrical systems
Paint-interior and exterior
Weatherization-insulation, weather stripping, etc.
Replacement Windows and Doors
Upgrade appliances which may include ranges, refrigerators, washers/dryers, dishwashers, and microwaves.
Rehab-replace decks, patios, and porches
Basement finishing, remodeling, waterproofing which does not require structural repairs.
Improve accessibility for disabled persons
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