Introduction to Hartland Homes
View more documents from Lea Barker.
Friday, June 26, 2009
Tuesday, June 16, 2009
Lincoln 3rd most affordable for first-time homebuyers!
"Lincoln ranks high for first-time homebuyers" is the headline for an article in the Lincoln Journal Star today. According to a study done of median incomes versus home prices, a Lincoln zip code ranks 3rd in the U.S. This is no surprise to me. Lincoln's prices were never too far out of whack. One of the main reasons for the housing market crashing was prices being so inflated in places such as California, Arizona, Las Vegas and Florida. 5 years ago, you could not get a reasonable price for a home in these areas. Why? Lots of demand (high population), very little supply and in some areas this supply was due to land shortage.
My friends moved to California several years ago. In order to get a new home, they had to put their name into a lottery system and see if they were drawn. Then they had to take the home that was available... no choosing your lot, your style or colors. You were just lucky to get a new home. In addition to that, these homes were all over 1/2 million! Seems outrageous here in Lincoln, NE, doesn't it? That is exactly my point. Even when home sales where at their strongest, our prices still didn't sky rocket out of control. This is one reason why Nebraska is #50 in foreclosures (at the bottom). Another reason is our good old fashioned common sense about spending.
Yes, Lincoln is a very affordable place to buy your first home. Today, it is even more affordable with the $8000 tax credit and NIFA's ABC loan which covers your down payment until you get your $8000 from Uncle Sam. Hartland Homes has been and still is Lincoln's mos affordable builder, we also give you the most value for your money. If you are thinking about buying a home, you owe it to yourself to check us out before you buy! http://www.hartlandhomes.com/
Monday, June 8, 2009
New NIFA program lets you use your $8000 tax credit for down payment!
Finally! The Nebraska Investment Finance Authority (NIFA) has announced a program called the Advanced Buyer Credit (ABC) to allow first time home buyers who meet NIFA guidelines to use up to $6,800 of their future $8,000 tax credit for down payment, closing costs and other prepaid expenses.
Here's how it works: The buyer must invest a minimum of $1000. This includes earnest deposit, application deposit and costs paid outside of closing by the borrower. You may "borrow" up to $6,800 and this will be a second mortgage. There will be one payment at one interest rate for the both the first and second mortgage. The interest rate is 6.25%. However, when you pay off the second mortgage within 120 days after the closing date, the rate is reduced to 5.75% for the remainder of the loan. NIFA is not charging their standard 1% + .75% . This ABC loan is 0 + 0! (On a standard NIFA loan you would be charged 1.75% of the loan in fees ($1750 on a $100,000 loan) to get that loan. NIFA is making this loan very affordable!)
How will you pay off the second mortgage in 120 days? At closing, you will be required to file an amended 2008 federal tax return. Your lender will have the required documents to assist you. Once you receive your tax credit, generally it takes about 12 weeks to receive your check, you pay off the second loan.
Other requirements:
Your home loan must be an FHA or RD loan. (RD = rural developement - available in our Eagle community)
You must be a first time home buyer or not have owned a home in the last 3 years.
Meet NIFA qualifications: Maximum purchase price for a new home in a non-targeted area is $200,000. Maximum income limit in Lancaster County for 1-2 family members is $68,300 or $78,545 if there are 3 or more in your family.
Time is running out! Don't wait any longer. In order to take advantage of the $8000 tax credit you must close by November 30, 2009. It takes about 90 days to build a home. Check out Hartland Homes today for more information! Email (sales@hartlandhomes.com) or call us! (402-477-6668)
Here's how it works: The buyer must invest a minimum of $1000. This includes earnest deposit, application deposit and costs paid outside of closing by the borrower. You may "borrow" up to $6,800 and this will be a second mortgage. There will be one payment at one interest rate for the both the first and second mortgage. The interest rate is 6.25%. However, when you pay off the second mortgage within 120 days after the closing date, the rate is reduced to 5.75% for the remainder of the loan. NIFA is not charging their standard 1% + .75% . This ABC loan is 0 + 0! (On a standard NIFA loan you would be charged 1.75% of the loan in fees ($1750 on a $100,000 loan) to get that loan. NIFA is making this loan very affordable!)
How will you pay off the second mortgage in 120 days? At closing, you will be required to file an amended 2008 federal tax return. Your lender will have the required documents to assist you. Once you receive your tax credit, generally it takes about 12 weeks to receive your check, you pay off the second loan.
Other requirements:
Your home loan must be an FHA or RD loan. (RD = rural developement - available in our Eagle community)
You must be a first time home buyer or not have owned a home in the last 3 years.
Meet NIFA qualifications: Maximum purchase price for a new home in a non-targeted area is $200,000. Maximum income limit in Lancaster County for 1-2 family members is $68,300 or $78,545 if there are 3 or more in your family.
Time is running out! Don't wait any longer. In order to take advantage of the $8000 tax credit you must close by November 30, 2009. It takes about 90 days to build a home. Check out Hartland Homes today for more information! Email (sales@hartlandhomes.com) or call us! (402-477-6668)
Thursday, June 4, 2009
Everyone Wants a Lower Price, But What About the Impact of Interest Rates?
When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It's important to keep in mind, however, that the sales price is not the only factor that determines what the monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.
Why Should I Rush to Buy?
While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing. That being said, it would not be unreasonable for buyers to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.
Interest Rate Complacency
The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan. But buyers shouldn't be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!
Markets are Unforgiving
The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money. For anyone who was waiting for prices to drop even more, a 1.00% increase in interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value. If ...(you) are waiting for prices to fall even lower, be aware that while holding out for a lower price may help.. win the battle, ..(you) could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.
Clock is Ticking on Free Money
If you have clients who are planning on purchasing their first home this year, be sure to let them know that they need to take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace.
Article courtesy of Luke Mitchell
Cornhusker Bank
(402) 434-2224
luke.mitchell@cornhuskerbank.com
Why Should I Rush to Buy?
While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing. That being said, it would not be unreasonable for buyers to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.
Interest Rate Complacency
The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan. But buyers shouldn't be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!
Markets are Unforgiving
The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money. For anyone who was waiting for prices to drop even more, a 1.00% increase in interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value. If ...(you) are waiting for prices to fall even lower, be aware that while holding out for a lower price may help.. win the battle, ..(you) could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.
Clock is Ticking on Free Money
If you have clients who are planning on purchasing their first home this year, be sure to let them know that they need to take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace.
Article courtesy of Luke Mitchell
Cornhusker Bank
(402) 434-2224
luke.mitchell@cornhuskerbank.com
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