Wednesday, February 25, 2009
Perfect Storm for First-time Homebuyers!
Dear Sue,
I graduated with a master’s degree in business administration a couple of years ago. I was lucky to land a great job with a wholesale grocery outlet and I have been able to develop and maintain excellent credit.
My financial advisor said that I could repay my student loans and buy a house. He said that I needed to take advantage of the great incentives that the state and federal governments have just put into place.
As a first time buyer what would you suggest that I do? What incentives are available?
First Timer Casey
Dear Casey,
I wish that I were a first time homebuyer today. The market conditions are incredible. The perfect storm for a financial crisis has turned into a perfect storm for first time homebuyers!
First, according to statistics provided by the California Association of Realtors, the median home prices in California have declined by 41 percent in the last year alone! Nearly 6 in 10 California households can now afford an entry level home. The affordability level has nearly doubled to 59 percent since last year.
Sacramento, Fresno and Merced markets have declined to such a degree that 70 percent of households can now afford entry-level homes. Southern California’s Riverside and San Bernardino counties experienced similar declines. By contrast, the San Francisco Bay area’s distressed sales were less prevalent. The affordability factor improved by only 10 percent.
Secondly, the interest rates today are at historical lows. They are hovering in the low 5 percent range. Believe it or not there are still 100 percent loan programs available! Some of these loans don’t even require private mortgage insurance. This is huge!
Third, the sellers today are highly motivated to work with buyers. They are primarily banks, distressed home sellers or struggling homebuilders.
Fourth, the state will now give any buyer of a new home (never been lived in before) a $10,000.00 tax credit! The catch? One must live in their new purchase for 3 years. The tax credit is paid in thirds: 1/3 after year one, 1/3 after year two and the balance after year three.
That’s not all! If you are a first time buyer you get up to $8000.00 from the Federal Government and, unlike the previous $7500.00 credit, you are not required to pay it back!
As a first time homebuyer, your best bet would be to combine the Federal and state tax credit incentives and buy a new home for a combined total of $18,000.00 in tax credits! It’s a matter of Good Home $$’s and Sense!
I graduated with a master’s degree in business administration a couple of years ago. I was lucky to land a great job with a wholesale grocery outlet and I have been able to develop and maintain excellent credit.
My financial advisor said that I could repay my student loans and buy a house. He said that I needed to take advantage of the great incentives that the state and federal governments have just put into place.
As a first time buyer what would you suggest that I do? What incentives are available?
First Timer Casey
Dear Casey,
I wish that I were a first time homebuyer today. The market conditions are incredible. The perfect storm for a financial crisis has turned into a perfect storm for first time homebuyers!
First, according to statistics provided by the California Association of Realtors, the median home prices in California have declined by 41 percent in the last year alone! Nearly 6 in 10 California households can now afford an entry level home. The affordability level has nearly doubled to 59 percent since last year.
Sacramento, Fresno and Merced markets have declined to such a degree that 70 percent of households can now afford entry-level homes. Southern California’s Riverside and San Bernardino counties experienced similar declines. By contrast, the San Francisco Bay area’s distressed sales were less prevalent. The affordability factor improved by only 10 percent.
Secondly, the interest rates today are at historical lows. They are hovering in the low 5 percent range. Believe it or not there are still 100 percent loan programs available! Some of these loans don’t even require private mortgage insurance. This is huge!
Third, the sellers today are highly motivated to work with buyers. They are primarily banks, distressed home sellers or struggling homebuilders.
Fourth, the state will now give any buyer of a new home (never been lived in before) a $10,000.00 tax credit! The catch? One must live in their new purchase for 3 years. The tax credit is paid in thirds: 1/3 after year one, 1/3 after year two and the balance after year three.
That’s not all! If you are a first time buyer you get up to $8000.00 from the Federal Government and, unlike the previous $7500.00 credit, you are not required to pay it back!
As a first time homebuyer, your best bet would be to combine the Federal and state tax credit incentives and buy a new home for a combined total of $18,000.00 in tax credits! It’s a matter of Good Home $$’s and Sense!
Thursday, February 19, 2009
Everyone Wins When You Help a Veteran
Dear Sue,
As a veteran of the armed forces I have certain benefits available to me. One of which is the VA loan program. I recently completed a successful home purchase utilizing a VA loan.
I must admit that I had difficulty finding a real estate agent that was willing to work with me. Most of the agents I spoke to were discouraging. Not Carol Strahle of Remax of Auburn. She took me under her wing and brought in a loan agent who specialized in VA loans, Mary Brinkman of Pacific States Mortgage.
Ms Brinkman coached me. Through a new streamlined process the two of us were able to quickly obtain my entitlement certificate and other necessary paper work. After my eligibility was verified I needed to take the next step, which was to find a property that I liked with a seller willing to participate.
A VA seller must agree to pay certain loan fees that the veteran is not allowed to pay. We did find such a seller. Joan Bifulco of Applegate. Mrs. Bifulco agreed to pay up to $3000.00 in loan fees. Our escrow closed in less than 45 days.
I want to salute Mrs. Joan Bifulco for her patriotism. A VA loan is not possible without the willingness and participation of a seller.
Grateful Vet
Mike Myers
Dear Mike,
Thank you for reminding us about the VA loan program. Many agents and homeowners are under the impression that the VA loan process is lengthy, cumbersome and expensive.
As your story illustrates, a VA loan can result in a win-win transaction for everyone.
Mary Brinkman is very excited about the VA loan program. She said that the veteran’s administration has streamlined their eligibility process thereby cutting weeks off of the previous time line. The appraisal process has been reformed as well. The appraisals are now completed in 10 days or less! She said that it is one of the few programs with 100% financing and no private mortgage insurance is required.
The interest rate varies but as of today it is around 5%.
For loan limits and other details I would recommend giving Mary Brinkman a call! It could be a matter of patriotism and good home $$’s and Sense.
As a veteran of the armed forces I have certain benefits available to me. One of which is the VA loan program. I recently completed a successful home purchase utilizing a VA loan.
I must admit that I had difficulty finding a real estate agent that was willing to work with me. Most of the agents I spoke to were discouraging. Not Carol Strahle of Remax of Auburn. She took me under her wing and brought in a loan agent who specialized in VA loans, Mary Brinkman of Pacific States Mortgage.
Ms Brinkman coached me. Through a new streamlined process the two of us were able to quickly obtain my entitlement certificate and other necessary paper work. After my eligibility was verified I needed to take the next step, which was to find a property that I liked with a seller willing to participate.
A VA seller must agree to pay certain loan fees that the veteran is not allowed to pay. We did find such a seller. Joan Bifulco of Applegate. Mrs. Bifulco agreed to pay up to $3000.00 in loan fees. Our escrow closed in less than 45 days.
I want to salute Mrs. Joan Bifulco for her patriotism. A VA loan is not possible without the willingness and participation of a seller.
Grateful Vet
Mike Myers
Dear Mike,
Thank you for reminding us about the VA loan program. Many agents and homeowners are under the impression that the VA loan process is lengthy, cumbersome and expensive.
As your story illustrates, a VA loan can result in a win-win transaction for everyone.
Mary Brinkman is very excited about the VA loan program. She said that the veteran’s administration has streamlined their eligibility process thereby cutting weeks off of the previous time line. The appraisal process has been reformed as well. The appraisals are now completed in 10 days or less! She said that it is one of the few programs with 100% financing and no private mortgage insurance is required.
The interest rate varies but as of today it is around 5%.
For loan limits and other details I would recommend giving Mary Brinkman a call! It could be a matter of patriotism and good home $$’s and Sense.
Wednesday, February 4, 2009
Why Can I Afford More House?
Dear Sue
My agent suggested that my husband and I get preapproved for a loan so we could purchase our first home around September of last year.
The lender we contacted told us we qualified for an FHA loan in the amount of $200,000. After getting prequalified and writing several offers that were not accepted, we decided to take a break during the holidays.
In the meantime, our loan preapproval expired so we decided to re-up our loan approval in January 2009.
After the process we have now been approved for $265,000.
What’s the deal? We are happy that we have been approved for the higher amount, but we thought it might be a scam even though we aren’t using any “fly by night” company. The lender is Wells Fargo!
What’s the deal?
Mr. & Mrs. Preapproved
Dear Mr. & Mrs. Preapproved
I think that one of the main reasons was that the interest rates were higher in September. Other reasons could be an increase in your income or a reduction of your debt. Maybe there was some positive factor in your application that your first lender missed.
I have found that many buyers are surprised by what they can buy today.
The buyers that are not afraid by what they see and hear on the news every day are in for a sweet surprise when they pay a visit to their lender.
They are amazed at how much home they can buy.
Many buyers are discovering that their payment is almost equal to their rent.
Today’s low prices and low interest rates are a historical phenomenon. I applaud you for taking advantage of some of the best buying conditions of the last eighty years and taking the step toward your first home.
Dear Sue
I built a home for resale in 2005. When I started my construction little did I know that we were at the top of the market.
I was unable to sell for over a year. After many months, I gave up and took my home off the market.
I have been very lucky to have had a good tenant.
Now he has given notice. I cannot carry two mortgages. I am afraid that I owe more than my home is worth. I don’t know where to begin.
Signed
Sad Seller
Dear Sad Seller
You are not the only one is this situation. Many people were taken by surprise when the market began tumbling. In fact, he depth and the duration have surprised us all.
Anyone who leveraged his or her purchases or refied until all the equity was gone from 2003 to present, has the potential to be in trouble.
My number one suggestion would be to call your lender and request a work out package, loan modification or short sale. Do this immediately! The sooner the better!
Working directly with your lender can be a Matter of Good Home $$s and Sense.
My agent suggested that my husband and I get preapproved for a loan so we could purchase our first home around September of last year.
The lender we contacted told us we qualified for an FHA loan in the amount of $200,000. After getting prequalified and writing several offers that were not accepted, we decided to take a break during the holidays.
In the meantime, our loan preapproval expired so we decided to re-up our loan approval in January 2009.
After the process we have now been approved for $265,000.
What’s the deal? We are happy that we have been approved for the higher amount, but we thought it might be a scam even though we aren’t using any “fly by night” company. The lender is Wells Fargo!
What’s the deal?
Mr. & Mrs. Preapproved
Dear Mr. & Mrs. Preapproved
I think that one of the main reasons was that the interest rates were higher in September. Other reasons could be an increase in your income or a reduction of your debt. Maybe there was some positive factor in your application that your first lender missed.
I have found that many buyers are surprised by what they can buy today.
The buyers that are not afraid by what they see and hear on the news every day are in for a sweet surprise when they pay a visit to their lender.
They are amazed at how much home they can buy.
Many buyers are discovering that their payment is almost equal to their rent.
Today’s low prices and low interest rates are a historical phenomenon. I applaud you for taking advantage of some of the best buying conditions of the last eighty years and taking the step toward your first home.
Dear Sue
I built a home for resale in 2005. When I started my construction little did I know that we were at the top of the market.
I was unable to sell for over a year. After many months, I gave up and took my home off the market.
I have been very lucky to have had a good tenant.
Now he has given notice. I cannot carry two mortgages. I am afraid that I owe more than my home is worth. I don’t know where to begin.
Signed
Sad Seller
Dear Sad Seller
You are not the only one is this situation. Many people were taken by surprise when the market began tumbling. In fact, he depth and the duration have surprised us all.
Anyone who leveraged his or her purchases or refied until all the equity was gone from 2003 to present, has the potential to be in trouble.
My number one suggestion would be to call your lender and request a work out package, loan modification or short sale. Do this immediately! The sooner the better!
Working directly with your lender can be a Matter of Good Home $$s and Sense.
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