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Archive for the ‘First Time Home Buyers’ Category

Central Coast has Least Affordable Homes in the State!

Sunday, May 31st, 2009

The California Central Coast’s homes are the least affordable based on first quarter 2009 data according to the California Association of Realtors (C.A.R).   Even less affordable than San Francisco or San Diego….

Now while that may sound ominous, don’t get too stressed out just yet … because the Central Coast rate is at 49% affordability.  Not as good as some other areas but I’m thinking 49% is pretty darn great to live in one of the most amazing, beautiful and wonderful places in the world.  I would rather pay a little more for my home to be able to live here than one of the other areas in California that don’t even compare.

If you want to read more about affordability in Californa you can go to the car website or read my article on huliq.com  http://www.huliq.com/4745/81600/california-homes-affordable-most-buyers

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Mortgage Protection Plan - First Time Buyers - It’s TIME!!!

Thursday, April 2nd, 2009

I wish I was a first time home buyer!  I really do!  There are so many programs out there to help first time home buyers that are just sooooo sweet.  $8,000 for this, $10,000 for that, special low down loans…  it is just so amazing especiallyat this time when interest rates are so low and house prices are even lower.  Yeah, the economy is not so good right now but guess what?  California Association of Realtors (CAR) now has a program to help you through that!!!

California Association of Realtors (CAR) announced today (April 2, 2009) a new First-Time Home Buyer program  designed to help the ailing housing market, ease worries over the uncertain economic times, and encourage first time home buyers to purchase a home this year.   This new program- CAR Housing Affordability Fund Mortgage Protection Plan, can be used with all the other First-Time Home Buyer programs as long as ALL qualifications are met.

The CAR Mortgage Protection Program offers First-Time Home Buyers mortgage payment ‘insurance’ against the loss of a job or disability.  Under this program, a First Time Home Buyer who loses their job or becomes accidentally disabled can receive a maximum of $1,500 per month for up to six months or for a co-buyer, the maximum is $750.  The program also includes an accidental death benefit of $10,000 of which CAR Housing Affordability Fund pays the premium for the first year. The First-Time Home Buyer does not have to pay anything to take advantage of this program (now you know why I wish I was a first time home buyer huh?).

Certain criteria must be met for a person to qualify for the CAR Mortgage Protection Program.  The criteria includes: 1) a First Time Home Buyer cannot have owned a home in the last three (3) years; 2) must buy a home in California before December 31, 2009; 3) must use a California licensed REALTOR; 4) must work for someone else (be a W-2 employee); 5) can make any amount of money (no income caps); and 6) can buy any home (no price caps).    The California REALTOR® will obtain the application form from CAR Housing Affordability form.  The First-Time Home Buyer will complete it, and the REALTOR® will submit it to CAR’s Housing Affordability Fund for review.  C.A.R estimates that about 3,000 First-Time Home Buyers will be assisted with this program this year.  The program works on a first come, first served basis and includes additional requirement and restrictions.

The CAR Mortgage Protection Program is funded through C.A.R.’s Housing Affordability Fund.  The CAR Housing Affordability Fund is a non-profit 501 (C) (3) which was specifically established to provide options for First Time Home Buyers.  It is funded through donations from members, affiliates, and other institutions.  HAF is dedicating $1 million of these funds to the Mortgage Protection program this year.  With the limited resources and the high number of First-Time Home Buyers expected to take advantage of the program, it would be prudent to move quickly.  To make a tax deductible charitable donation contact the California Association of Realtors at www.car.org or call 213-739-8352.

 

 For more information on the CAR Mortgage Protection Program, the Federal or State Tax Program; contact your California REALTOR® directly.  If you are not currently working with a California REALTOR® live  or want to buy in Los Osos, Morro Bay, Cayucos, Atascadero, etc. contact me at andeen@charter.net or 1-800-694-2265 X15 and I will either find one for you in your area or help you myself.

 

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Get Off the Fence!! Get in the Game!

Tuesday, March 3rd, 2009

More people can afford to buy a home today than at any time for the past 20 some odd years.  HOLY MOLY!  Not only are home prices down but interest rates are still at all time lows which means that the monthly mortgage payment could be less than existing rents.

In California (typically one of the least affordable states) the percentage of households that could afford to buy an entry-level home rose to 59 percent in the fourth quarter of 2008, compared with 33 percent for the same period a year ago. 

The minimum household income needed to purchase an entry-level home in California in the fourth quarter of 2008 was only $48,900, based on an interest rate of 6.02 percent and assuming a 10 percent down payment.  Considering that the median price is $248,000 - that is AMAZING.  Over half the population that lives here can now afford to buy.

If you are an investor, many of these properties will now show a positive cash flow - that is something we haven’t seen in a VERY, VERY long time.  If you are a first time home buyer, you can get security and tax breaks of owning your own home.

My advise:

GET OFF THE FENCE and GET IN THE GAME NOW! 

Quit trying to time the market (that’s almost completely impossible because the only way you will know you are buying at the bottom is when house prices start going back up and by then it is too late!)  Go find a property or properties that you like and start making offers.

 

If you need help finding a realtor in your area, call me - I’ll find you one!

If you want to live in Morro Bay, Cayucos, or even Atascadero, call me - I’ll find you a home!

If you want to start investing, call me and I’ll mentor you!

Whatever you do, pick up the phone and just CALL!! (emails work too).

If you wait too long, you will be kicking yourself saying - “I shoulda bought”.  That’s probably exatly what you did a couple of years ago isn’t it?  Let’s make 2009 the start of your real estate prosperity!!!  LIVE THE DREAM!


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Credit Scores - So What?

Friday, February 27th, 2009

Credit scores have a huge impact on the cost of money that is available to you for not only home buying but for just about everything you may want to borrow money for.  The higher your score, the more money and the better interest rate you will get.   For a home mortgage, the median score provided by the three big credit repositories (Esperian, Trans Union, and Equifax) is typically used.

Items that have a critically negative impact on your credit scores are bankruptcy, foreclosure, high credit card debt, slow or late payment history, tax liens, judgements, and a large number of inquires.  Lenders each have their own requirements in regards to these items.  But in general here are what the various numbers mean to you in your quest to get a home loan:

  • Over 700 - qualifies for most programs including state income, no doc, high loan to value cash out, non-owner occupied, and second homes. 
  • 660-699 - often qualifies for many of the programs above but usually with LTV (loan to value) restrictions.
  • 620-659 - Normally require full income documentation.
  • 585-619 - May need to be underwritten as a sub-prime loans with tighter standards.
  • Under 584 - Sub-prime loan - much more difficult to get or qualify.

Generally as scores go down, so do the loan-to-value limits and the interest rates go up.  What this means to you is that you will have to have more money for a down payment and your monthly payments will be higher.

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Show me the money ???

Friday, February 27th, 2009

If you are like most people who have been listening/watching the news day in and day out, you are probably under the impression that all the home loans have dried up or that you have to have 30% down and perfect credit to get a loan.  Well, guess what - sometimes you shouldn’t believe everything that you hear.

Now don’t get me wrong, money is definetly tighter than it has been BUT (notice that is a big but) there is still money out there and it isn’t as hard to get it as the media sometimes makes it sound.   There are still loans available that require very little down, stated income loans, FHA, VA, conventional, adjustable, and jumbo loans.   All with different criteria.   But all that means is that you do need to be prepared. 

So if you are thinking about buying or upgrading your Central Coast home, I recommend that talk to a lender now.  The lender can help you get all your ducks in a row before you actually borrow money so that you:

  1. Clean up any potential credit issues
  2. Get the best interest rate possible for your circumstance
  3. Know what documentation you will need to provide
  4. Know how much money you will need for a down payment
  5. Know how much money you can qualify for.

Your lender can be your best friend when buying a home so the earlier you get them engaged, the better the chance you have of getting a great loan at a great rate. 

In any business there are very good people and some not so good people.  If you want a couple of recommendations for lenders in the Morro Bay, Cayucos, Atascadero, or Los Osos area, shoot me an email.

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California Budget for Home Owners

Monday, February 23rd, 2009

Believe it or not but Sacramento finally delivered the 2009 - 2010 California budget to Governor Schwarzenegger.   It’s pretty detailed and I am in no way, shape or form able to decifer all the details of it so I will just focus on the parts that will affect you as a homeowner or a potential homeowner…

The budget includes a tax credit (equal to the lesser of 5 percent of the purchase price, or $10,000) for the purchase of a single-family residence that has never been occupied, as a principal residence, between March 1, 2009, and March 1, 2010.  Guess they are trying to get rid of the all the new home inventory… So what do you suppose that means will happen to the existing home inventory?  For the life of me, considering the current state of real estate in California, why don’t they offer it on all home purchases?   Guess you had to be there to hear the debates to truly understand.  But hey, $10,000 is nothing to sneeze at (of course you better be prepared to get an IOU if this tax credit means you have money coming back at the end of the year).   Might be a good time to check out the new homes in Atascadero, Morro Bay and Templeton.  There are probably some screaming deals from the developers that would put you in a brand new dream home before the end of the year…

The California legislature is also imposing a 90-day additional delay in foreclosure sales in an attempt to force lenders to implement a proactive system to help homeowners with homes in default.  Sometimes, I wonder why I am paying my mortgage payments.   I could be living mortgage payment free right now… (ok, I know why I’m paying - I am being facetious). 

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Improved First Time Home Buyer $8,000 Tax Credit.

Friday, February 20th, 2009

Wouldn’t you know it - as soon as I post something, the government changes it.  I’m talking about the First Time Home Buyer’s Tax Credit.  And just when you were starting to think I knew what I was talking about…  Thank goodness it is the new and improved tax credit!  So here’s the new deal (or the amended American Recovery and Reinvestment Act of 2009 as it is formally known):

DISCLAIMER:  Please consult your tax advisor / accountant to determine whether you are eligible for this tax credit before making any decisions or changes to your tax status.   

 Tax credit has been increased from $7,500 to $8,000.


Homes have to be purchased before December 31, 2009


If you occupy and hold the home for 36 months, you do not hava to repay the credit (this time it is a true loan!) 
  1.  The Tax Credit is for home buyers who have NOT owned a principle residence during the three-year period prior to the purchase.  
  2. The maximum credit is $8,000 or 10% of the home purchase, whichever is less.
  3. The credit is available for homes purchased between  January 1, 2009 and before December 31, 2009. 
  4. To qualify for the full tax credit, married couples’ modified adjusted gross income should be under $150,000 and single filers’  should be less than $75,000. Partial tax credits may be available for married couples with incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000.  If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.
  5. Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment.  However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.
  6. There is no recapture or repayment clause IF the home is owned for at least 36 months. 
  7. The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.
  8. The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.

 

Buying real estate in San Luis Obispo County just got better!! 

 

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$7,500 First Time Home Buyer Tax Credit

Thursday, February 12th, 2009

I’m sure that by now you have heard of the $7,500 First Time Home Buyers Tax Credit.   If you are not aware of it, the details follow.  It is one of those government ‘deals’ where you really NEED to read the fine print so that you know what you are getting into.  Now, I’m not saying that it is not a good deal, because it is.   It’s just that ‘tax credit’ in this instance actually means interest free loan that has to be paid back over 15 years. 

Here’s how it works:

Who:  Purchaser (and purchaser’s spouse) may not have owned a principal residence three years prior to this purchase.

What: Any single-family residence, including condos, that will be used as the purchaser’s primary residence

Income Limit:  Individuals whose IRS Form 1040 filing status is single or head of household are eligible for the tax credit if their income is $75,000 or less.  If their income is between 75,001 and $94,999 they are eligible for a partial tax credit.    Joint returns may have no more than $150,000 in income for the full amount or up to $169,999 for a partial amount. 

Amount:  10% of the cost of the home, up to a maximum of $7,500.

Recapture (Pay Back):  A portion is to be repaid each year for 15 years (6.67% or approximately $500).  If a home is sold before 15 years, then the remainder is due the year of the sale.  If the homeowner dies, the heirs do not have to pay the balance.   If the home is sold before 15 years have passed and the appreciation is less than the amount needed, the balance of the loan is forgiven.  If the home is turned into a rental or investment property, the pay back is due in that year.

First time home buyers who purchase a home before July 1st, 2009 can get up to $7,500 tax credit on their 2008 taxes which means they could use that money for a down payment.   Since I am not a CPA or account, nor do I know your particular circumstance, talk to your tax professional to get all the details of how it may apply to you.

Also, Congress is in discussions about upping the amout to $15,000 and taking out the payback.  I’ll add more as the final details come out.

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Top 10 Reason’s to Buy a Home Today

Thursday, February 12th, 2009

1.      You can afford to buy a home since prices are lower.

2.      You can often get sellers to work with you and help with some of your costs or financing.

3.      You can get a GREAT low interest rate.

4.      You can have your choice of multiple houses since there are so many to choose from.

5.      You can quit throwing money away on rent.

6.      You can get a larger house for less money than you could have a couple of years ago.

7.      You can save money on your taxes by deducting mortgage interest paid and property taxes.

8.      You get pride of ownership and the security of owning.

9.      You create wealth for your future and your children’s future.

10.  You help out the economy!

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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