New NIFA Rates! 3.25%

On September 20, 2011,  NIFA lowered their interest rate to 3.25%.  This is the lowest it has ever been!  NIFA is an acronym for Nebraska Investment Finance Authority.  These loans are for first time home buyers or buyers who have not owned a home in the last 3 years.  If you are a first time home buyer or you know someone who is looking to buy, this is an incredible rate.

WHAT ARE THE REQUIREMENTS TO GET A NIFA LOAN?  You must be a first time home buyer or have not owned a home in the last three years.  Also, there is an income limit based on the county you are purchasing in and the number of family members in your household.  For example, if you live in Lancaster county and there are 2 family members in the household, you cannot make more than $69,500.  Finally, there is a purchase price limit for the home.  For a single family home in a non-target area, you can not purchase a home over $200,000.

WHAT TYPE OF LOAN DO I GET?  NIFA’s low interest rate attaches to FHA, VA and CONV loans.  If you are using an FHA or VA loan, the interest rate is 3.25%.  If you are using a conventional loan, the interest rate is 3.75%.  You must qualify for this loan and meet the NIFA requirements in order to use the NIFA funding. 

DO I NEED A DOWN PAYMENT?  That depends on what type of loan you are using.  VA and USDA loans do not require a down payment.  Also, NIFA has a special program call Homebuyer Assistance whereby you can borrow your down payment and pay a slightly higher interest rate.  Keep in mind that all of these no down payment loan options require a minimum amount of investment from the buyer.  Usually $500 to $1000.

For more information on how you can get a NIFA loan, what a possible payment would be and more, call me today at 402-419-6589.

Also see NIFA’s website at www.NIFA.org

7 Reasons to Own Your Home

courtesy of Realtor Magazine

1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.

2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.

3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.

4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.

5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.

6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.

7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Online resources: To calculate whether buying is the best financial option for you, use the “Buy vs. Rent” calculator at www.GinnieMae.gov.

100% Loan Programs

Many buyers that I talk to want to buy a home with as little initial investment as possible.  When you buy a home the initial investment consists of earnest deposit, down payment, closing costs and pre-paids.

One way to lower these cost is to utilize loan programs which require little or no down payment.  There are several options for a 100% loan.  Keep in mind, you must qualify for these programs.

1) VA  If you are a veteran, you may qualify for this loan.  This is an excellent benefit!  There is 0 down payment required!  There is an up front funding fee but no monthly mortgage insurance so your payment is fairly equivalent to an FHA loan with 3.5% down!

2)  NIFA HBA  (Nebraska Investment Finance Authority - Home Buyer’s Assistance)  This is for a first time home buyer or someone who has not owned a home in the last 3 years.  There are purchase price and income maximums as well.  This loan pairs with an FHA or CONV loan.  The down payment is covered by a 2nd loan which is at a very low rate amortized over 7 years.  You must have a minimum investment of $500 for an FHA loan and $1000 for a CONV loan.  See www.nifa.org for more information.

3)  USDA  This is a 100% loan program for homes in rural areas.  There are income maximums.  The buyer must take a home buyer’s education course.   This is a great fit for those who want to live in a smaller town and don’t have a down payment.  Our Eagle area qualifies for this type of financing. See www.rurdev.usda.gov/ne

4)  We don’t have a 100% loan, but when you buy a Hartland Home, you can save a lot on your initial costs!  We pay up to 2% of your closing costs (ave. of $2500).  Also, when you purchase a new home, if you don’t make too much money, you may qualify for an impact fee rebate.  This rebate is credited directly towards your down payment reducing the amount of money you need at closing!  Maximum rebate at this time is approximately $4600!

Is now the right time for you to buy?

The Lincoln market has really started to move since January 2011.  Buyers are tired of waiting.  Home owners are ready to move up.  Homeowners selling their homes and buying bigger homes is creating housing for mid-range and first time homebuyers. 

Interest rates and prices are still low.  Rates are still at 5% and below!  It is safe to assume that interest rates will start to rise this year.  As the demand increases, prices of homes will start to rise as well.  Economically, it is a great time to buy.  Interest rates and prices will probably not get any lower.

So, is now the right time for you to buy?    There are a few questions you should ask before starting the home buying process. 

1) Do you plan on staying in your home for at least 3 years?  If the answer is no, then make sure you will be able to sell your home for a price that will not require additional funds. Or you may want to consider renting out the home when you leave. 

2) How stable is your job?  If there are impending layoffs or you are seriously thinking about quitting, you should probably wait until things are more stable.  On a positive note, there is a special program out there that if you get laid off in the first 12 months of your home loan, the company will pay 4 of your house payments.  Make sure you ask for this program if you are concerned about losing your job.

If you are planning on staying put for a couple of years and your job is fairly stable, then now could be the right time for you to buy!  For more information, call us today.  402-419-6589