Hartland Homes

New NIFA Rates! 3.25%

2011-09-21T09:56:00.001-05:00

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

2011-06-23T15:02:00.000-05:00

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

2011-04-28T09:01:00.000-05:00

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?

2011-04-27T14:38:00.001-05:00

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

Best Friend’s Advice

2010-11-04T10:51:00.001-05:00

Recently, my friend called me to ask for my advice. She lives several states away and wants to purchase a brand new home. I was excited that she thought enough of me to ask. (I haven’t spoke to her in over a year, so it isn’t like we talk all the time) It got me thinking…. that would be a great topic for my blog.

Today I will share with you the advice I gave my friend on selecting a builder.

1) Are you purchasing a brand new home that is already built or or you going to have the home built for you?

Either way, check out the builder’s reputation. Are they a member of the BBB, their local Home Builders Association (HBA) and/or the local chamber of commerce? Call these organizations to find out if they are reputable. How many homes a year do they build? If it is just a couple, you may want to check out their qualifications. If the builder belongs to their local HBA, that is a good sign that they are a professional, reputable builder.

2) Determine your top priorities: Lowest price? Highest Quality? Green Features? Location? Floor Plan? Reputation? Once you have narrowed down your search, if you are considering more than one builder be sure to compare apples to apples. The lowest price may NOT be the best value.

For example: If you have two homes that you love, location is equally good, builders are both professional, but one has a lower price, it may not be the best value. Consider these factors:

Warranty: Does the home come with a standard one year warranty or more? What is included in that warranty? Are there extra fees for particular services?

Ex. We provide a 10 year warranty on all of our homes backed by RWC.

Product quality: Consider the quality of the items in the home which will be very expensive to replace; siding and windows. Do they have a warranty? What is the average lifespan of the product? How energy efficient are the windows?

Foundations/basements: The foundation is extremely important. You shouldn’t have to worry about this element too much with a new home. Just be sure to check out examples of your builder’s work for your own piece of mind. What is the system used to build the foundation? Is it poured, block, or something else? (If you are looking at existing it is vital you check the foundation. It is very expensive to fix. ) Is there a drainage system in place in case of excess water runoff? (Look for drain tile, sump pits and other dry basement systems) Is the yard and the neighbors’ yard graded to allow for water runoff?

(Continued in my next blog article )

Being Green

2010-08-30T15:05:00.000-05:00

Green is all the rage! You hear it in reference to just about every marketed product. Just what does it mean to be “green”? According to Wikipedia: Green, along with environmentally friendly, eco-friendly and nature friendly, are synonyms used to refer to goods and services, laws, guidelines and policies considered to inflict minimal or no harm on the environment.^[1] "

Did you know there is no single international standard for environmentally friendly goods and services? Beware when something is labeled as such, it could mean something different than what you think it should.

So what is a green home? According to the U.S. Green Building Council’s Green Home guide there are many factors that make up a green home. Some items to consider are: location, size of home, building design, building materials, energy efficiency and landscaping.

Let’s take a look at each of these measures. Location: the development should not be located on an environmentally sensitive site like wetlands or endangered species habitat. The development should be compact: at least 6 homes per acre.

Size of Home: The smaller the home is the less resources it will use. In the case of green, smaller is better.

Building Design and Materials: Is the home designed to use natural light sources? Does the outside have natural shading? Are the materials recycled or environmentally friendly?

Energy Efficiency: This covers everything from lighting to heating and cooling and appliances.

Landscaping: You should choose drought resistant plants for your yard as well as place shade trees strategically to provide cover for the concrete (driveways and patios) and for the windows.

These are just a few of the factors to look at when considering if a home is “green”. The biggest consideration, however, should be what features are important to you? Are you more concerned with saving money monthly with energy costs? Or is it more important that that the materials are recycled and environmentally friendly?

Are you willing to pay more for these products just to know you have a “green” product? If you are concerned about the overall price tag of your home, make sure to compare upfront cost vs. monthly savings to make sure it makes financial sense.

Hartland Homes’ homes meet many of these “green” standards. All of our homes meet the energy star guidelines,

our developments meet the 6 per acre standard, and our homes are smaller and efficient by design. However, if we do not currently employ the “green” factor that is most important to you, don’t worry, we will be glad to make the adjustment. Call us today. We can help you determine what green features you want in your new home and how to make it a reality. 402-477-6668

Home Buyers To Be Charged More By FHA After September 7th

2010-08-10T11:00:00.002-05:00

FHA is raising its Mortgage Insurance Premium rates after September 7th, 2010. What does that mean to you? If you are planning on buying a home and do not qualify for VA (military) or have 5 to10% to put down so you can go conventional… you will pay more. About 99% of our customers buy their home with an FHA loan. It requires only 3.5% down, it has the highest income to debt ratios and is more lenient with credit history.

What is the Mortgage Insurance Premium (MIP)? MIP is what FHA charges the buyer in order to have a loan that is less than80% loan to value. This fee should cover FHA’s losses should the buyer default. (Not sure it was enough considering all the foreclosures) FHA is increasing their fees to cover their rising costs (defaults).

How it works: FHA charges an upfront MIP and a monthly MIP. Currently, the upfront premium is 2.25% of the loan amount. For example, on a $150,000 loan, the upfront fee is $3,375. This is added right into the loan (financed) so the buyer doesn’t have to come to the table with extra money. The monthly fee is .55% of the total financed amount. On an $150,000 loan, the monthly fee would be $70.00.

The new amounts will have a lower up front MIP but a higher monthly MIP resulting in a higher house payment. See table below:

Loan Amount	$150,000 today	$150,000 after 9/7/10
Up front MIP	2.25% = $3,375	1% = $1,500
Monthly MIP	.55% = $70	.90% = $114
Principal at 5.5%	$871	$860
Total Principal and MIP	$941	$974

I have not included real estate taxes and home owners insurance as these are not determined by FHA and won’t be affected. The difference is $33 more a month that the home buyer will be paying for the same loan. If you get a case number before September 7th, over 5 years you will save $1,980.00 (using this scenario).

So what can you do about it? Nothing if you wait until September 7th to purchase your home. You must have an FHA case number assigned to the property you are buying before September 7th. So, make sure you write a contract on a home and get into the loan company before September 7th. You do not have to close by that date. Call Hartland Homes today for more information. 402-477-6668

8/12/10 UPDATE **FHA has decided to postpone this change until October 4th!

Click here for more information on FHA.

Examples of payments and premiums are for illustration purposes only and are subject to human error.

Sizzling Summer Interest Rates!!!

2010-07-13T14:44:00.001-05:00

4.5% for excellent credit scores.

What does this mean???? Interest rates should not be this low. Ask a financial planner or a banker and you will see...these rates are being artificially held low. What that means to you is that it WILL NOT LAST! These interest rates will be going up soon. You will probably never have another chance (for 20-30 years) to enjoy such cheap financing.

Did you know that on a $150,000 home, the difference between 4.5% and 5.5% interest is a whopping $91.50 more a month?

If you are serious about buying a home, please do not wait until next year unless you want to pay $100 + a month more for the same home. (prices of homes will rise too)

30-year mortgage rate drops to 39-year low

2010-06-25T09:50:00.001-05:00

(Reuters) - Mortgage rates dropped in the past week, with 30-year fixed-rate loans tumbling to their lowest level in 39 years, according to a survey released on Thursday by Freddie Mac, the second-largest U.S. mortgage finance company.

Click here to read the rest of the story: Reuters article

YOU Magazine - June 2010 - Great Deals in Housing But Also Potential Speed Bumps Ahead

2010-06-04T08:34:00.000-05:00

"If you were offered the chance to buy dollars for a $.70 a piece, how many would you buy? When you compare today's home loan rates to the average in effect for the last 10 years, that is approximately what you are paying. And given lower home prices, there has never been a better opportunity to buy a home than today."

To read more from this month's YOU Magazine click on the link below:

YOU Magazine - June 2010 - Great Deals in Housing But Also Potential Speed Bumps Ahead

Remembering D-day this Memorial Weekend

2010-05-27T08:44:00.001-05:00

Recently I had the privilege to visit America's cemetery in Normandy, France honoring those who died on D-Day. Thousands of American soldiers gave their lives that day. Did you know that many drowned in the rough waters before they even made it to the beach? Seeing the area where the Americans stormed the beaches of Normandy both inspired and horrified me. It horrified me to think how awful it must have been for the soldiers knowing they most likely would not come home. It inspired me to see how these great Americans sacrificed so that we might have freedom.

How did they find the courage to leave the boat that day and every day after that? The people who have given their lives for America’s freedom represent the incredible American spirit. This spirit defines our country.

Americans, along with the British, Canadians and some French, freed the French in World War II. Our soldiers don’t just protect Americans, they protect the world against tyranny, dictatorships and help fight for human rights.

Please take time this weekend to thank a veteran.

Thank you veterans!!!!!

The pictures featured in this story are of the actual American cemetery at Omaha beach in France.

Lincoln Ne is #5 on Forbes list!

2010-05-14T09:30:00.000-05:00

Check it out!
The Best Places For Business And Careers - Forbes.com

Armed Service Members Have Extra Year for Home Buyer Tax Credit

2010-05-13T11:30:00.001-05:00

Story courtesy of the NAHB

The National Association of Home Builders (NAHB) wants members of the military, foreign service, and intelligence communities to know that they may have an additional year to buy a home and claim the home buyer tax credit, which expired for most Americans on April 30.

The law provides qualified service members who served on official extended duty outside of the United States for 90 days or more at any time between January 1, 2009, to April 30, 2010, another year to buy a home and claim the credit. They have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. Both the $8,000 first-time and $6,500 repeat home buyer tax credits are included in the rule.

“Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Michigan. “It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country.”

“Qualified service members” are defined as a member of the uniformed services of the United States military, a member of the Foreign Service of the United States, or an employee of the intelligence community.

The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they have to sell their home due to receiving government orders for extended duty service.

NAHB provides information on the home buyer tax credit, including eligibility requirements and links to home buying resources, on its consumer website www.FederalHousingTaxCredit.com.

For more information, please talk to a Hartland Homes agent today. 402-477-6668

Goodbye $8,000 Tax Credit! Now what?

2010-05-05T08:14:00.001-05:00

So the $8,000 Tax Credit has expired and you didn’t find a home. The good news is that now you can choose the perfect home for you with no time limitations!

It is still a great time to buy a home!

1) Low interest rates

2) Low prices

3) Save money annually on your income taxes (itemize your tax return using property tax and mortgage interest paid)

Additional Reasons to buy a brand new Hartland Home:

4) You may qualify for an Impact Fee Rebate =that is a credit of up to $4,685 towards your down payment!!!

5) We pay your closing costs = average savings of $2,500!

6) Energy Efficient = saves you $$ every month on lower utility bills

7) Lower house payment the first year because property taxes haven’t been fully assessed = saves you over $100 per month!

8) 10 year structural warranty, 20 year dry basement guarantee and the best warranty in town!

9) It only takes 90 days to build a home built just for you.

10) You haven’t found what you wanted in the existing market, why not build and get what you want?

www.hartlandhomes.com

402-477-6668

How Long Will it Last? From Roof to Paint, The Life Expectancy of Your Home’s Components

2010-04-23T14:02:00.001-05:00

Just like the human body, your home is made of parts, all working in unison, many unseen and unthought-of during the course of your daily life. From the roof to the foundation, and from the front door to the back, a home consists of literally thousands of components.

Ideally, these components might all have an unlimited life expectancy. But given the realities of day-to-day use, how long can a home owner reasonably expect a home component such as a window or roof to last?

A study conducted by the National Association of Home Builders (NAHB) and sponsored by Bank of America Home Equity provides insight into the life expectancies of a number of products in the home. The study intentionally overlooked consumer preferences, acknowledging that if they were considered, kitchen counters would be replaced long before the end of their useful life, and rooms may be repainted only once in 50 years. Other factors that can have a significant effect on life expectancy include maintenance, proper installation, the level of use and the quality of the materials. And some components, while remaining functional, become obsolete due to changing technology or improvements.

Insulation

According to the study, all types of insulation can be expected to last a lifetime if they are properly installed and are not punctured, cut, burned or exposed to ultraviolet rays and are kept dry. Proper installation not only extends the lifetime of your insulation, it also ensures that it will perform properly, resulting in reduced energy use and expenses, as well as increased home comfort.

Windows

Windows, because they can be exposed to extreme weather conditions, have a much shorter life expectancy. The study, which polled experts in the various fields, found that aluminum windows can reasonably be expected to last 15 to 20 years and wooden windows can last upwards of 30 years. An important element of maintaining your windows is the window glazing — the putty that secures the glass to the sash. Over time, this glazing can crack, resulting in drafty and loose panes. Available at any hardware store, glazing can be replaced by simply chipping or scrapping off the old putty, cleaning the window thoroughly and installing new glazing with a putty knife or caulking gun. Some types of glazing require a coat of latex paint for weatherproofing.

Roofs

Like windows, the life expectancy of a roof depends on local weather conditions as well as appropriate maintenance and quality of the materials. Slate, copper and clay/concrete roofs can be expected to last more than 50 years. Roofs made of asphalt shingles should last for about 20 years; fiber cement shingles should last about 25 years; and wood shakes for about 30 years. In regards to roof maintenance, it’s important to be proactive to prevent emergency and expensive repairs. Look for include damaged or loose shingles; gaps in the flashing where the roofing and siding meet vents and flues; and damaged mortar around the chimney (especially at the joints, caps and washes). If you see any signs of damage, call a professional to repair it.

Paint

Although some avid decorators may repaint every six months, homes usually need to be painted every five to 10 years depending on the content of the paint (its glossiness), its exposure to moisture and traffic. Quality paints are expected to last upwards of 20 years. Exterior paint conditions should be regularly monitored in order to catch problems early on. Assessing paint for dirt, mold, cracking, peeling, fading and rusting — and repairing immediately, usually through simple cleaning methods such as scrubbing or power washing — can end up saving home owners much more costly repainting jobs in the long term.

Remember, these numbers are averages, with usage, weather, maintenance and a number of other factors influencing life expectancy. Chances are, changing trends will dictate a shorter life span, as home owners update and remodel their homes. For more information on home maintenance, visit the National Association of Home Builders online at www.nahb.org/forconsumers.

New Homes Built to Fit New Priorities

2010-04-02T09:23:00.001-05:00

Article courtesy of National Association of Home Builders

Can you imagine living in a 175,000 square foot home? That’s how large George Vanderbilt built his North Carolina home, the Biltmore, in 1895.

With 250 rooms and 43 bathrooms, the home had more space than his family, or quite possibly anyone’s family, could ever hope to use.

Even though the average home in the United States is far smaller than the Biltmore, it is a fact that Americans have tended to build larger and larger homes over the years. In 1973, the typical newly-built home was 1,660 square feet. Near the end of 2008, the average size had grown to more than 2,500 square feet.

But lately, that trend has changed. Builders are now seeing demand for smaller homes. By early 2009, according to federal government data on new housing starts, the average size of homes had decreased to 2,400 square feet.

Jerry Howard, president and CEO of the National Association of Home Builders, said, “Our latest surveys show nearly 60 percent of our members are building smaller homes and a similar number are putting more emphasis on lower-priced models.”

A number of factors are most likely the reason for this new trend.

First, Americans are becoming more focused on energy conservation. A smaller new home will cost less to heat and cool than a larger home with similar energy-efficient features, and will leave a smaller carbon footprint on the environment.

In addition, family size has been decreasing over the years. The average household in 1960 had 3.3 people, while in 2008 it is 2.5. Families don’t need to build homes with a lot of bedrooms if they aren’t planning to have as many kids as previous generations.

The economy is also impacting new home buyers’ decisions. Cost-conscious home buyers are choosing to include more and higher-quality features in their new homes rather than add square footage. For example, a family may prefer to have high-end appliances and granite countertops in their kitchen rather than larger rooms.

Finally, around a third of new homes are typically purchased by first-time buyers, who can often only afford smaller homes.

The picture below is an example of our smallest home, the Bold Beginning. With a price tag of under $115,000 including lot, it truly does make building new affordable!

So the “perfect” home for your family may be a showstopper such as the 2009 New American Home, a nearly 9,000 square foot contemporary home in Las Vegas that incorporates the latest in sustainable design, or it may be something very different.

Whatever your preference—size, features, price, or something else—new home builders today are providing homes that will appeal to a wide range of tastes and budgets, with more customization choices for your lifestyle than ever before.

Find your new home at www.hartlandhomes.com or call Hartland Homes today 402-477-6668.

The “Not-So-Obvious” Benefits of Buying New

2010-03-25T09:23:00.001-05:00

Article courtesy of the National Association of Home Builders

Prospective home buyers have the choice of two types of houses on the market: resale or new.

Home buyers planning to buy a brand-new house or condominium often cite energy-efficiency, open layout, a warranty, and being able to select appliances, flooring, paint colors and other design elements as factors driving their choice.

But builders say that buyers can be drawn to a new house for reasons that aren’t so obvious. Below are a few more benefits of a brand-new home that you may not see in the sales brochure.

Building a Community Together

A brand-new community is one of the built-in benefits of many new homes. When families move in to a subdivision at the same time, often lasting bonds of friendship and neighborliness are formed right away. Nobody is the “new kid on the block,” and many home builders host community block parties in new developments to help owners meet and connect. Popular amenities like pools, walking trails and courts for tennis and basketball offer additional opportunities for interaction among neighbors of all ages. Often new communities are comprised of home owners in the same stage of life, such as young families or active retirees, so neighbors can get to know each other through carpools, PTA meetings, tennis matches or golf games.

Entertaining

Throwing a party in an older home can be a challenge because smaller, distinct rooms make it difficult to entertain guests in one large space. Builders are responding to today’s home buyer preferences with layouts featuring more open spaces and rooms that flow into each other more easily, like the popular great room. While you are in the kitchen preparing dinner, you can still interact with guests enjoying conversation in the family room without feeling closed off. The feeling of spaciousness in today’s new-home layouts often is enhanced the higher ceilings and additional windows that bringing in more light than you would find in an older home.

A Clean Slate

For some buyers, parking the car in a sparkling-clean garage or being the first to cook a dinner in a brand-new kitchen is part of the appeal of new construction. In addition, you won’t have to spend time stripping dated wallpaper or repainting to suit your own sense of style. You can create your own home décor from the get-go!

The advantages of being the first owner of a home extend to the outdoors. Instead of inheriting inconveniently or precariously placed trees, or having to tear up overgrown shrubs, you can design and plant the lawn and garden you want.

Outlets, Outlets Everywhere!

Homes built in the 1960’s and earlier were wired much differently than houses today. Builders had no way of anticipating the invention of high-definition televisions, DVRs and computers that we enjoy today—and the very different electrical requirements they would introduce. New homes can accommodate advanced technologies like structured wiring, security systems and sophisticated lighting plans, and can be tailored to meet the individual home owner’s needs.

Anyone who has ever lived in an older home can also attest to the fact that there are never enough outlets, inside or out! New-home builders plan for the increased number and type of electronics and appliances used by today’s families, so you can safely operate a wine cooler, Christmas lights or your computer.

For more information on the benefits of a new home, contact one of Hartland Homes’ new home specialists at 402-477-6668 or visit the National Association of Home Builders online at www.nahb.org/forconsumers.

The Tax Advantages of Homeownership

2010-03-17T08:46:00.001-05:00

Article courtesy of National Association of Home Builders (NAHB)

Owning your own home can be a very rewarding experience — especially when tax time rolls around. Three tax items in particular — the mortgage interest deduction, the property tax deduction and the capital gains exclusion — can provide significant financial benefits to home owners when the time comes to settle up with Uncle Sam.

Mortgage Interest Deduction

The interest you pay as part of your mortgage payment is deductible on your federal tax return and may also be on your state income tax return depending on where you live.

This deduction applies to first and second mortgages, up $1 million of mortgage debt. Your lender should provide you with one or more IRS Form 1098s, which will provide the amount you may claim on your tax return. To benefit from this deduction you must itemize your deductions using a Schedule A Form.

You may also deduct the interest on money you borrow against your home to finance housing or non housing-related expenses. An example is a home equity loan, which many home owners use to remodel their home, pay off credit card bills, buy a car, finance a vacation or pay for educational expenses.

Property Tax Deduction

State and local taxes paid on the assessed value of the home are also deductible on your federal return. Like the mortgage interest deduction, itemizing is necessary if you wish to deduct property tax payments.

Notably, for many home owners the combined deductions for mortgage interest and property taxes exceed the standard deduction — currently between $5,700 and $11,400, depending on filing status. When this is the case, home owners are able to deduct or “write-off” many other items including charitable contributions, state income or sales taxes, medical and dental expenses, tax preparation fees and other miscellaneous allowable deductions, which collectively can reduce your federal and state income tax liabilities dramatically. Research by economists at the National Association of Home Builders indicates that for the typical home owner, these savings can exceed $5,000 in the first year of homeownership.

Capital Gains Exclusion

Perhaps the biggest advantage to owning a home is the ability to avoid paying capital gains when it is sold. Under current law, married home owners filing jointly may exclude up to $500,000 of capital gains and single tax filers may exclude $250,000 from taxation. This exclusion applies only if you have lived in your primary residence for two years or more. But the exemption may be used repeatedly as long as the residency rules are met.

The tax benefits conferred on home owners by the federal government are substantial. Annual benefits, such as the mortgage interest deduction and the property tax deduction, along with the less frequently used benefit of the capital gains exclusion, make homeownership more tax advantageous than almost any other investment. Take advantage of it!

Be sure to consult your tax advisor about the deductions you may be eligible to claim.

To see the many more reasons homeownership benefits you, visit www.nahb.org/forconsumers.

Positive Reasons to Buy a Home NOW

2010-03-01T16:08:00.001-06:00

The economic recession has helped to create the best buyer’s market we have seen ever! There are many factors that are contributing to make this not only a great time to buy, but one of the best in history.

1) LOW interest rates. The last recession was in the 80’s but the interest rates were between 14% and 21%!!!! Can you imagine? Today the rates are fluctuating between 4.5% and 6%. This makes owning a home incredibly affordable.

Example:

$150,000 home, 3.5% down payment

Principal and Interest at 14% $1745. Income to qualify for this loan would be approximately $81,000.

Principal and interest at 5.5% $836. Income to qualify for this loan would be approximately $46,000.

That is a difference of over $900 in monthly payment and $35,000 in annual income for the same price home!!

All indications are that these LOW interest rates can not last. You may never be able to purchase a home so cheaply in your lifetime.

2) Do you really need more reasons?? If so, this one will soon be gone so act fast. $8,000 new homebuyer tax credit or the $6,500 repeat buyer tax credit. You must enter into a contract to purchase this home by April 30th, 2010 and close by June 30th, 2010. (If you want to build, you must purchase your home from Hartland Homes by March 15th! Other builders are not able to build and close by June 30th! )

All sources indicate this will NOT be extended.

3) The last few years the housing market has been going through a market correction. What this means to you is that home prices are the lowest they have been in years. Once demand picks up, these prices will rise quickly. Once again, you may never be able to purchase a home at these prices in your lifetime.

Lincoln Ne has 2nd lowest unemployment rate!

2010-02-22T10:01:00.000-06:00

Recession sometimes takes uneven toll - USATODAY.com

Is NOW Really the Best Time to Buy a Home?

2010-02-15T11:45:00.001-06:00

There are many positive reasons (low interest rates and prices) to buy a home right now and one huge one ($8,000 tax credit) that will go away soon! However, as with any purchase, these positive factors and incentives only matter if it is the right time for you to buy. So let’s take a look at what makes it the right time for you.

First, I’d like to point out that marital status and gender are NOT indicators of the right time to buy a home. Did you know that the largest growing demographic for home ownership is single women? A home is a sound investment whether you are single, married, female, male, childless or have a big family! The question of homeownership being right for you should instead be based on the following: financial ability, staying in town, and improvement of your life.

Probably the biggest indicator for home ownership is financial ability. Financial ability actually encompasses many different subjects.

1) Job. Do you have a stable job? Is it full time? Have you been in the field for 2 years or did you go to school to learn the trade?

2) Credit. Do you have good credit? Have you paid all your bills on time? Do you have any collections or judgments? Do you have a bankruptcy, foreclosure or repossession? Do you have any credit at all?

3) Savings. Banks like to see that you have some “reserves”. Savings accounts, 401Ks, mutual funds, retirement funds all count towards savings. Savings provides you with a source of down payment and a “back up” for when times are tough.

What if I don’t have any savings? Fear not, there may still be a way. If you have good credit and job stability, the bank will overlook savings. NIFA has a program where y0u can borrow against your future $8,000 tax credit. All you need is $1000.00 of your own money! Also, Hartland Homes pays your points and closing costs saving you approximately $2,400!!

Do you plan on moving in the next 2 years? If you do, home ownership may not be right for you. To take full advantage of home ownership, you really need to live in your home at least 3 years. This allows for appreciation (prices in the market increase, thereby increasing what your home is worth). When you sell your home, you can take that extra equity to move up or cash out! If you move within a couple of years of purchasing, the home may not have appreciated enough to pay a real estate agent to sell your home and the other closing fees associated with selling your home.

Are you ready to improve your life? Homeownership can improve your life in so many ways. Here are just a few:

1) Owning a home is a great investment. It is a great way to improve your wealth and save money using the concept of leverage. For example: If you put $5,000 in any kind of savings, mutual fund or bond the $5,000 grows at x%. When you invest $5,000 into a $120,000 home, it appreciates at x% based on the $120,000, so your money grows quicker!

2) Freedom to live how you want! You can have a backyard, a garage and a basement, decorate and hang pictures, plant a garden, have a pet, install a play set…. whatever your heart desires.

3) Lower Utility Bills! Hartland Homes are built so energy efficient that they meet the Energy Star guidelines. What that means to you is savings every month on your utility bills.

4) Tax Break. No one likes to pay Uncle Sam their hard earned money. When you own a home you can deduct the interest paid on your mortgage and the property taxes paid, lowering the amount you owe the IRS! Check with an accountant to see just how much you would save!

For those of you who think that if you rent you don’t pay property taxes… think again. When you pay rent you are paying the mortgage payment and taxes for the landlord. Wouldn’t it be nice to get that deduction for yourself?

5) Your wants, needs, dreams can come true! Everybody needs something different: more bedrooms, larger living space, a garage, a basement, an office, a play room, better schools, better neighborhood, closer to work….. I could go on forever, but you get the idea. In the end, this is really why you buy a home. Envision how your life would improve! When you build a new home, you can select those items which you need or desire the most instead of settling for what is available!

If you think it may be the right time to own a home, give Hartland Homes a call. Our new home specialists can walk you through every step of the process. Not sure if your credit is good enough? No problem, our specialists can help you with that too!

Want to know more about the positive reasons to buy a home now? I will be posting another story on it soon. Or just ask our new home specialists. 402-477-6668

Need a Down Payment? Eligible for the $8,000 Tax Credit?

2010-01-19T10:28:00.001-06:00

Nebraska Investment Finance Authority (NIFA) has a program for you!

The Advance Buyer Credit 2 (ABC-2) Loan program through NIFA allows a first time home buyer to harness their tax credit for down payment BEFORE they actually receive the money. Here are the nuts and bolts of the program:

1) Must be a first time home buyer and qualify for the $8,000 tax credit and must meet NIFA’s income and purchase price guidelines.

2) Must invest $1000 of your own money.

3) May borrow up to $6,800 for down payment.

4) The amount you borrow is a 2nd loan that will be paid off in 10 years. You may pay off the 2nd loan at any time. However, if you pay it off within 180 days after the loan closing then you will receive a $500 incentive check from NIFA .

5) NIFA rate for the 1st loan is 5.30%, 2nd loan is 7.30%. Remember, if you use your tax credit money and pay off the loan right away, you will pay only pennies to “borrow” it for less than 6 months.

For more information, call a Hartland Homes agent today: 477-6668 or visit the NIFA website.

Snow and Winter Maintenance Tips

2009-12-29T12:13:00.001-06:00

As Nebraska welcomes back the days of old with numerous inches of snow and wind, here are some maintenance tips:

Snow blowing in the roof vents.

Snow blowing in through the roof vents can happen anytime there is snow and wind. Snow can sift in through your roof vents and then it is in your attic. As the temperatures warm up and the snow starts to melt, the water will condense and drip through the drywall.

Snow blowing through back vents and plumbing stacks.

Keep in mind that whenever something is vented to the outside, air and snow can get to the inside of your home. This happens in the same manner as the roof vent situation.

High efficiency furnace vents.

The vent to your high efficiency furnace must be kept open and clear of snow so that your furnace can breathe and operate smoothly. If snow covers this, your furnace can stop working. If this happens, remove the snow or obstacle from in front of the vent. (This can also happen with the dryer vent as well.) Also, please remember to continue to change your filter every month.

Snow Pile or drifts around windows and doors.

You should clear snow from windows and doors because when the snow melts it can leak into areas around these openings.

Ice Dams on Eves and Gutters

Snow and Ice should be removed from roof edges and gutters. If this is not done ice dams can occur. Ice dams can cause leaks not only into soffit areas but also into the roof . It is not recommended that you get on the roof to remove snow and ice. Instead remove snow and ice while standing on the ground or safely from a ladder using a snow rake. See picture below for further explanation of ice dams.

-Mark Reinke Warranty Manager

If you have any topics you would like to see covered, please let us know! Email us.

Hartland Homes’ 10th Annual Chili Feed

2009-12-18T15:18:00.001-06:00

I just posted pictures from our Chili Feed. We fed over 130 subs, suppliers and business partners! This is an awesome Christmastime tradition. To see the pictures click on the link!

Hartland Homes' Chili Feed

Don't wait until after the holidays....

2009-12-15T16:10:00.001-06:00

There has never been a better time to buy a home! I know it sounds cliché, but it is so true. Allow me to explain...

1) Prices will be going up! For the past couple of years demand has been pent up due to the negative media and concerns about the economy. Because of this, prices have stayed low! However, home sales have been increasing steadily and the prime home buying season is after January 1. The law of supply and demand tells us that as demand goes up, prices will too! As the prime home buying season starts, demand increases, supply decreases and prices will go up! Buying now ensures lowest price.

2) Interest rates are at an all time low! (NOW) Rates change daily and they really only have one way to go - UP! Did you know you can get a rate of 3.50% that is fixed for 5 years??? (APR 3.025%) That is incredible!

3) $8,000 or $6,500 tax credit. They won't be extending this. This is a once in a lifetime offer of FREE money! If you can buy now, you should take advantage of this tax credit. For more information on this see the link above on the Homebuyer Tax Credit.

4) Through December, Hartland Homes is offering $2,500 off of options and upgrades. This will end December 31, 2009.

5) Do you really need another reason? Give us a call and we will help guide you through the home buying process. Can you buy now? How much home can you afford? What are your options? Hartland Homes can help make your home buying dreams come true!

25 Years Ago

2009-12-08T11:58:00.001-06:00

A 25th Anniversary Memory

Here are some fun facts about 1984:

Michael Jackson was at the top with his album “Thriller”
Popular movies: Terms of Endearment and Ghostbusters
Popular TV shows: Dynasty and Magnum PI
Vanessa Williams wins then looses the title of Miss America
Apple introduced the Macintosh
The Soviets boycotted the Los Angeles Olympics
The Space Shuttle Discovery had its maiden voyage
$.20 was the price of a first class stamp

Our Beginning: In 1984, Duane Hartman started Hartland Homes with just 3 employees, including himself. Duane was the salesperson, Jim Kuper was in charge of construction and the 3rd employee was an administrative person.

Our Employees: Our construction and office staff have a combined 166 years working at Hartland Homes. That is an average of 15 years per employee! The experience and loyalty of our employees has made Hartland Homes successful. Thank you employees!

Our Locations: The office for the company was in the model home on Briar Rosa Drive. Eventually, Hartland Homes moved out of the model home and into an office. This office was located at 10th and Van Dorn right next to Oak Creek flowers. Both have been torn down and now that area is slated for commercial development. Hartland Homes moved to its current location in May 1992.

Our improvements:

Central Air, dishwashers and space saver microwaves weren’t always standard
We switched to cement board siding around 1997 because of all the class action suits on the old siding. We love the cement board siding.
Started out with one framing crew and at our peak we had 9 framing crews!
upgraded to 92% efficient furnaces (from 80%) , saving our buyers money on utility bills!
Added the 20 year dry basement guarantee in the last 2 years. This system works!!
Computerized
- - blue prints (we used to draw them ….it took a long time to make changes!
- Sales contracts (used to write these by hand and some people’s handwriting made it difficult to interpret what the customer wanted!)
- Scheduling and Warranty (our Builder Trend program makes it easy for customers to see what phase their home is scheduled for next, see current pictures of the home and also. after closing, allows the customer to input warranty requests and let us know when the work is done and if the work is satisfactory.
- 15 years ago we started using oak woodwork standard in all our homes. Prior to that we used a softer wood like pine and poplar. The oak is beautiful and it holds up much better to kids, pets and other abuses.
- We have updated all our fronts… the homes used to have vertical siding and trim boards. See picture:

Here is the updated look: Notice this one has lap siding and no trim boards giving it a cleaner more modern look.

Every year we add new designs and improve our homes, above is just a few of those ways. We are constantly striving to improve our homes either by updating the plans, inventing new plans or upgrading products that don’t meet our standards. This is one of the many reasons we are Lincoln’s Largest Home Builder and plan to be around for another 25 years serving the Lincoln community.

Hartland Homes Raises Money for March of Dimes

2009-11-23T08:51:00.001-06:00

25th Anniversary Series Memory

In 1997, Hartland Homes built and raffled off a home raising $100,000.00 for the March of Dimes, “Building for Babies” campaign. The 3 bedroom home, located at 5641 S. 80th street, was valued at over $134,000.

The donated home had 1290 square feet, 3 bedrooms, 1 and 3/4 baths, a fireplace and underground sprinklers. It was featured in the Fall Parade of Homes. Each raffle ticket was $25.00. On October 12, 1997 the drawing was held and Angela and Jeff Keogh were the lucky winners.

“I agreed to donate the home because I wanted to give back to the community and I wanted to help out March of Dimes,” said Duane Hartman, President of Hartland Homes.

Hartland Homes is grateful for the generosity of its suppliers and subcontractors, who made this donation possible. The numerous donors are listed on the poster pictured below.

10th Annual Chili Feed

2009-11-20T09:25:00.001-06:00

25th Anniversary Series Memory

December 22, 1999 Hartland Homes held its first Chili Feed, (pictured above). According to Mark Reinke, Warranty Manager for Hartland Homes, it all started after the construction guys made chili for the rest of the employees one year. It went so well, that they decided to expand the chili feed to include subcontractors and suppliers to show our appreciation.

90 people joined us for that first chili feed. Since then, it has grown to 180!!! We invite our subs, suppliers, employees and their families, and our other business partners such as lenders, bankers and title insurance specialists.

We fill our garage full of rented tables and chairs. The construction crew does all the cooking! They make 3 kinds of chili and brats. In 2007 we added chicken noodle soup as an alternative for those who don’t like chili or chili doesn’t like them! It was a big hit so we’ve kept it on the menu.

If you have been to the chili feed, we’d love your comments and memories on this!!

Everyone enjoys the socializing that accompanies the yearly chili feed!

2000th Closing on 20th Anniversary!

2009-11-19T16:31:00.001-06:00

25th Anniversary Series Memory

On November 1, 2004, Hartland Homes celebrated their 2000th closing on their 20th Anniversary. The happy homebuyers, pictured above with their daughter, Nicholas and Jamie allowed us to host a small party in their brand new home. Members of the Home Builders Association of Lincoln, as well as, Wells Fargo, the lender, joined us in our celebration.

It was appropriate, that our 2000th home was our most affordable model, the Bold Beginning. (Pictured below)

Hartland Homes pioneered the concept of creating home plans that were about 20 feet skinnier than the traditional home. This plan could then be built on lots that were also one-third as wide. WHY???

According to Duane Hartman, President of Hartland Homes and creator of this concept, “ There were a number of potential customers who couldn’t afford our homes with the traditional larger lot price. Instead of $30,000 for the traditional lot, we could offer the smaller lot for $20,000 enabling our customer to afford a new home or even get more home for their money.”

“I developed this concept so my customer who wanted to get into a starter home like I did, could afford a new home instead of an older one which requires repair and larger utility bills.”

Today, the Bold Beginning can be built in Hartland Homes Southwest starting at $113,000 including the lot!!!

Fall of 2006- Lincoln’s 1st Fiber Optic Neighborhood

2009-11-19T07:59:00.001-06:00

25th Anniversary Series Memory

In September 2006, Hartland’s Garden Valley was the first community in Lincoln to have “fully fiber optic to the home.” All Hartland Homes in this area will be built with fiber optics to the home providing the means for blazing-fast internet connection without the need of a modem, crystal clear telephone audio and digital television.

Hartland Homes consulted with Windstream, the Fiber Optic provider, and Vianet, a telecom infrastructure company, to ensure that all their homes in this area would be built to take advantage of the new fiber optic technology.

Representatives from Windstream and the Lincoln Chamber of Commerce joined Hartland Homes, Inc. for a ribbon cutting celebrating the the first fiber optic neighborhood and the opening of Hartland’s newest model home in Hartland's Garden Valley.

Garden Valley, located at North 13th Street and Humphrey Avenue, is one of Hartland Homes’ most desired communities. We recently opened another addition, Hartland’s Garden Valley 1st, in which another 23 homes will be built.

$8,000 Tax Credit Extended

2009-11-11T09:32:00.005-06:00

$6,500 Tax Credit Now Available for Repeat Buyers!

If you haven't bought a home yet, you are in luck! The $8,000 tax credit for first time home buyers has been extended. Along with the extension of the first time home buyer tax credit, a $6,500 tax credit is now available for repeat home buyers!

Here are some quick facts about these Tax Credits:

$8,000 Tax Credit
-You must be a first time home buyer or have not owned a home for the last three years.
-You must purchase your home between January 1, 2009 and April 30, 2010. However, if you sign a binding sales contract by April 30, 2010, you have until June 30, 2010 to complete the purchase.

$6,500 Tax Credit
- You must have owned and resided in your home for 5 of the last 8 years.
-The home you purchase does NOT have to be more expensive than the one you are currently in.
-You must purchase the home between November 6, 2009 and April 30, 2010. However, if you sign a binding sales contract by April 30, 2010, you have until June 30, 2010 to complete the purchase.
-The home purchase must be a principal residence. Translation: this home must be where you are going to live full time. No vacation homes or rentals!

For more details check out the National Association of Home Builder's FAQ page or talk to a Hartland Homes sales representative (402-477-6668).

Testimonial from our most famous customers!

2009-11-04T10:32:00.001-06:00

Many of you may remember that Hartland Homes was the builder for the Extreme Makeover: Home Edition house in Lincoln, Ne in 2006. Here is a letter from the recipients of that home:

“Rock solid from the foundation to the shingle at the highest peak; that’s what our Hartland home is, and remember, our home was built in just over 100 hours, not months, but hours. The key to this unbelievable build is the ability of Hartland Homes to assemble the finest contractors in the Lincoln and surrounding areas and coordinate all their responsibilities to complete this build under record time restrictions. Not to mention having to comply with the needs of the filming crew from ABC. Our home has all the quality construction of a home that would have taken months to build. We daily pause and reflect on what an incredible experience this was for us, Hartland Homes and the Lincoln community. We are the lucky ones and are grateful that we have met so many wonderful people along the way in this past year, many of which who are with Hartland Homes. Out of 91 homes built by Extreme Makeover Home Edition to date, our build had the 4th shortest "punch list". Hartland Homes responded quickly to complete our list. We know that our home is built with the highest of quality materials and labor both. We are proud to live in such a beautiful home. “

Duane & Betty-Thank you so much for everything
Kenny & Teresa Fullerton/Machacek family

Celebrating 25 years!

2009-11-02T14:51:00.008-06:00

Hartland Homes announces their 25th Anniversary!

Help us celebrate by sharing your fun and happy memories. Please post a comment. Also know if you post a comment, it may be used other places like our website, facebook, etc. Thanks!!!!

The Importance of Acting Now

2009-10-02T08:30:00.002-05:00

Waiting Really Could Cost You

An article from YOU Magazine,

compliments of Luke Mitchell

Cornhusker Bank

Low interest rates this year have lulled many people into believing that home loan rates in the 5.00% and lower range are "normal". This is not the case and if you are in the position where you could refinance or are considering buying a home, complacency is not your friend.

Stimulus provided by the Obama administration has been instrumental in creating the environment that has lowered rates, increased home sales and assisted distressed homeowners.

Uncle Sam Lends a Temporary Hand

Tick tock, tick tock. Just as summer turned to fall on September 22nd, deadlines await two programs that supplied the heat directed at the housing markets.

Government programs in the housing and interest rate arenas are slated to end in coming months. The time to take advantage of these programs is now. Stimulus programs from Washington have led to incentives for first time home buyers (FTHB), artificially low interest rates, and typically unallowable refinance transactions.

Infinite stimulus for the housing sector is not in the cards nor is it reasonable to expect. Deadlines are approaching. Whether you want to buy a home or need to refinance one, do not procrastinate. The best path is to investigate options now before you may find that none are available to you.

First Time Home buyer Alert

If you are a FTHB who wants to take advantage of the tax credit, think two words. GET BUSY. The tax credit of up to $8,000 is set to expire November 30th. While there is talk that this program may be extended, nothing is certain and millions of FTHBs have already taken advantage of the credit. With real estate closings taking as long as 60-90 days, according the National Association of Realtors, you need to get under contract shortly if you want to take advantage of the tax credit.

Home prices are down significantly across the country from their high points the past few years. However, median home prices in August were up 7.8% from their low point earlier this year. If you have been waiting for home prices to decline further, perhaps you should not. Great opportunities are available but many real estate agents report multiple contracts being offered on hot properties. If you wait, you may be disappointed.

Check with your mortgage professional to see if he or she can accommodate you if you go under contract in the next two weeks. Many lenders will still be able to help you but only if you have all your paperwork in order.

Rates Are Great – NOW!

Interest rates dipped in late September to near the lowest points ever recorded. As reported by Freddie Mac, rates for conforming loans approached 5.00% for a 30 year fixed rate and below 4.50% for a 15 year fixed rate with additional fees paid to obtain these rates. Rates for FHA, VA, and USDA Guaranteed loans typically offer slightly higher rates.

There is one reason that home loan rates are as low as they are. Last November the Federal Reserve announced a program to purchase up to $1.25 Trillion in mortgage backed securities. This effort lowered rates to the lowest level of all time and has kept rates, according to Freddie Mac, below 5.50% this year compared to rates as high as 6.48% last year for a 30 year fixed rate.

This program was slated to end December 31st of this year but in September's Federal Open Market Committee meeting, it was announced that the program will be extended to the end of the first quarter of 2010. However, the amount the Fed will purchase will not change.
Peter Hooper, chief economist at Deutsche Bank, told Bloomberg that a sudden end to the Fed purchases could cause rates to rise by a half to one percentage point. If you delay your financing, you could well see rates that are significantly higher than what is available today.

Upside Down – Refinance to 125% of Value

Even if you owe up to 125% more on your mortgage than your home is worth, you may be able to refinance. For example, if your home is worth $200,000 but you owe more than that, qualifying homeowners can now refinance up to $250,000.

The Making Home Affordable program was initially structured to accommodate homeowners with a new loan to 105% of their home's value. This has recently been increased to 125%. There are requirements to qualify including whether your loan is currently owned by either Fannie Mae or Freddie Mac. You can find out if your loan is held by either agency by going to the Loan Lookup section of the Making Home Affordable web site.

According to First American Core Logic, more than 15.2 million homes had negative equity in June of this year. This represents nearly 33% of all mortgaged properties across the country. Where in the past, being upside down on your loan would have precluded your ability to seek relief, you now may have an opportunity.

What Now?

With incredibly low interest rates and current stimulus programs available to help many, explore the options that may best suit you but do so quickly. However, just as you wouldn't go out Trick or Treating on November 1st, options that exist today may not be available to you should you wait.
Contact your mortgage professional today to explore the best path to take. You may find that the best "treat" available is one that puts thousands of dollars in your pocket.

The Housing Recession is Over!!

2009-10-01T16:35:00.004-05:00

Let's make October 8th, 2009, the official end of the housing recession.

On September 17, 2009, a group of business people in Phoenix, AZ declared the economic recession to be over. We'd like to take that one step further.

We, the Builders, Realtors and New Home Salespeople of America are hereby declaring that, as of Thursday, October 8th, 2009 "The Housing Recession" is officially over. The media critics and the forecasters of doom have been silenced, and one single fact has emerged crystal clear - there has never been a better time to buy a new home or existing home, than right now!

Let's say goodbye to what has been the longest recession since the Great Depression.

We Need your Help! Spread the news! Get on the Internet; send out e-mails to your entire database; post notes on your social networking sites; use your blogs; send a notice on your twitter account; text your friends asking everyone to get the word out. Let's get together as a team and let's make a positive impact. Let’s get consumers feeling good about buying a home.

Together, as a team, we have the power to remove any doubt
from the marketplace and get things moving again in the right direction.

Thank you in advance for spreading the good news!

$8,000 For All

2009-10-01T09:30:00.002-05:00

Time is running out to get the $8,000 tax credit for buying a home....but with Hartland Homes' promotion $8,000 For All you can still cash in! Contract to build a new Hartland Home during the month of October and receive $8,000 towards new home upgrades and points and closing costs. You don't have to be a first time home buyer or close by November 30, 2009! Call a Hartland Homes agent today to learn more about this incredible promotion. (402-477-6668)

*completed homes are not eligible

Time is Running Out for $8,000 Tax Credit

2009-09-17T13:35:00.008-05:00

$8,000 Tax Credit Quick Facts:

* Must Close by November 30, 2009

*Need to write an offer to purchase, have an accepted purchase agreement, and loan paperwork started by October 15th. (It is taking 4-6 weeks to get all the lending paperwork, underwriting of loan, etc completed)

*Title companies are requesting you schedule a closing date almost a month in advance in anticipation of a heavy schedule.

Time is quickly running out to take advantage of the $8000 tax credit.

Don't forget to check out a Brand New Hartland Home! You can get brand new and close by November 30th when you choose one of our completed homes!

Ranch, Split, Two-story, Townhome or single family we have a home for you! Completed Homes

Check out the website or call us today at 477-6668.

What to do on Labor Day Weekend

2009-09-03T15:53:00.002-05:00

You may wonder why we celebrate Labor Day. Many think that Labor Day is just a holiday to end the summer. Originally, Labor Day was made a holiday by President Grover Cleveland to appease the labor unions’ unrest.

The holiday is “dedicated to the social and economic achievements of American workers…. The vital force of labor added materially to the highest standard of living and the greatest production the world has ever known and has brought us closer to the realization of our traditional ideals of economic and political democracy. It is appropriate, therefore, that the nation pay tribute on Labor Day to the creator of so much of the nation's strength, freedom, and leadership — the American worker.” (US Department of Labor website)

How we celebrate:

When the holiday was first instituted, it was determined it would be celebrated by a parade followed by political speakers. As the years have passed by, parades and political speakers have mostly fallen by the wayside and the American people just enjoy having a day off from their toils.
What to do in Lincoln, NE on Labor Day Weekend:

Labor Day weekend snuck up on me! I can’t believe it is here already! A 3-day holiday weekend screams “do something special!!” So, I have compiled a list of things to do this weekend.

1) Go to the last Nebraska State Fair in Lincoln!
There are numerous activities ranging from concerts, parades, high diving, animals, rides and everyone’s favorite…FOOD! To see a detailed schedule for each day check out their website: http://www.statefair.org/fair/
2) Sports
Nebraska Football’s season opener against Florida Atlantic – Saturday at 6:00 pm
Nebraska’s Soccer team vs. Lamar – Friday
3) Sports Car Club of America in Lincoln Airpark
4) Labor Day Quarter Horse show at Lancaster Event Center – Saturday through Monday
5) Movies: There are lots of new movies out this weekend! According to my Flixster IPhone app the following movies open Friday: All About Steve, Gamer, and Extract. (Whether they are in Lincoln yet, I don’t know!)
6) Parks and Lakes: There are so many great parks around Lincoln. A family favorite of mine is to pack a picnic and go to the park for a couple of hours. Just getting away from the hustle and bustle is a vacation in itself!

I know there are many more great activities… I apologize if I did not mention your favorite. Have a great weekend and Happy Labor Day!!!

Today’s Trend: Smaller Homes

2009-08-11T13:04:00.003-05:00

According to articles by the National Association of Home Builders and Realty Times, smaller homes are becoming more popular. This reverses the trend of just 2 years ago.
“The median size of new single-family houses sold in the U.S. has increased 42% during the past 20 years - from 1,650 square feet in 1978 to 2,335 square feet in 2007,” according to the article, Is the Next Big Thing Really Smaller Houses? by James Wentling.
Wentling goes on to say, “But a closer look at the data shows that this trend has not held steady throughout from year to year. Decreases occurred in 1981-1982, 1995, 2003 and 2007-2008, and I expect house sizes to decrease even further this year and next while the economy remains sluggish. In addition, with the $8,000 first-time home buyer federal tax credit stimulus bringing more first-time home buyers to the market, the trend toward smaller houses will probably continue.”
Jerry Howard, president and CEO of the National Association of Home Builders, (NAHB) said, “Our latest surveys show nearly 60 percent of our members are building smaller homes and a similar number are putting more emphasis on lower-priced models.”

NAHB cited a couple of reasons they believe for this trend. First, a smaller home is naturally a little more “green.” It is more energy efficient and therefore costs less to heat and cool and requires less materials to build, leaving a smaller carbon foot print.

Second, family sizes are decreasing. According to NAHB, the average household in 1960 had 3.3 people, while in 2008 it is 2.5.

Finally, there is a demand for workforce housing. These buyers have been waiting for the economy and housing market to pick up. After several years of waiting, they are ready to move on - - to home ownership.

Builders across the nation are decreasing their plan sizes and lot sizes and reinventing the wheel just for this trend. Hartland Homes has been providing smaller, workforce housing for 25 years now. We are experts in smaller homes on smaller lots. Did you know Hartland Homes was the first builder in town to develop smaller lots with narrower homes on them (about 10 years ago)? Our homes start at 800 square feet! When I’ve told people, out-of-state, what size home we build they are astounded. If you want a home for less than $200,000 or even less than $130,000, you can have new! Hartland Homes can build your new home starting at $113,000 including lot!!!

Can't Buy Now - RENT TO OWN!

2009-08-05T10:10:00.011-05:00

1500 SW 32nd $149,000

FOR SALE or RENT TO OWN

3 bedrooms, 3 baths, finished basement,

2 car garage, fenced yard.

RENT TO OWN is a special program for this property. You may be interested in RENT TO OWN if you cannot buy now, but will be able to in the next year or so.

How it works:

Lease Option: Potential buyer enters into a lease option agreement. (buyer is now renter)

Option and Deposit: An "option" means the owner is giving you the option to buy the home within a specified time period. The renter deposits a non-refundable option fee for this opportunity to buy. If you buy the home within the specified time period, the option fee is credited towards your down payment. If you do not buy within the specified time period, you forfeit the option fee.

Rent Credits: Rent is determined by normal market rent + a small fee. Each month when you pay your rent on time, you are credited a small amount (for example $300) towards future down payment. If your rent is late, you forfeit the rent credit for that month. If you do not buy the home within the specified time, you forfeit all rent credit.

EX. You deposit $5000 in option fee. You get a $300 rent credit per month. You rent for 18 months and pay on time each month. You purchase the home within the allowed time frame after 18 months. Your credit towards your down payment at that time would be $10,400. ($5000 option + $300 x 18 months)

Interested in buying or rent to own this home? Call us today at 402-477-6668 or email at sales@hartlandhomes.com.

Hartland Homes' Sales Outshine 2008!

2009-07-21T14:48:00.010-05:00

Did you read the article in Sunday's Lincoln Journal Star, "Local home sales roar back to life"
By MATT OLBERDING? http://journalstar.com/articles/2009/07/19/news/local/doc4a62869a5dd2a822051719.txt

Here are a few quotes from the article: "Local homes are selling at a torrid pace.
Fueled by low interest rates and an $8,000 tax credit for first-time buyers, the local real estate market roared back to life in the second quarter of 2009."

(Lincoln's home sales are up slightly over 2008) "..that makes Lincoln’s market better off than those in Omaha, Des Moines, Iowa, or Sioux Falls, S.D., where home sale totals continue to be lower than last year’s."

Further down in the article it states, "Sales of new homes continue to lag, down more than 20 percent for the year compared with 2008, and down more than 15 percent year-over-year in the second quarter."

Not so for Hartland Homes! New home sales in the city of Lincoln may be down by 20% but Hartland Homes sales for 2009 exceed all of 2008!

Why are new homes sales down and Hartland Homes sales up?

Lots of reasons come to mind...
For the last 25 years, Hartland Homes' mission has been to serve first time homebuyers. We are the only builder in town that builds a single family home for under $130,000. The homes we have sold this year range from $113,000 to $189,000. We are able to offer many diverse plans and allow all of them to be customized.

Our real estate agents are trained to be current on all different types of financing and what will work best for the customer. We pay points and closing costs, saving our customers a minimum of $2500!

Many of our customers qualify for the impact fee rebate which lowers their down payment.

All our homes include superior products, (many equal to what the $350,000 builder would use), the best warranties and are still quite affordable. You owe it to yourself to check out Hartland Homes if you are in the market for a new home! Check out our website, email (sales @hartlandhomes.com) or call us today! 402-477-6668

The Clock Is Ticking...Important Dates Home Buyers Need to Know About

2009-07-10T11:17:00.002-05:00

Story courtesy of Luke Mitchell, Mortgage Lender, Cornhusker Bank, luke.mitchell@cornhuskerbank.com, and YOU magazine.

"There's no place like home," so the famous saying from The Wizard of Oz goes. And this year, that saying applies to many new home owners, as first-time home buyers (FTHBs) have accounted for 53% of total residential real estate purchases during parts of 2009. For those of you who have already bought a home, congratulations. For those of you still waiting, this is a call to action: It's time to get moving.
While it's true that the best environment home buyers have ever seen may have been from January to late May of this year, outstanding opportunities still exist for those who act soon. If you are planning to buy a home, there are important dates on the calendar that you need to take note of so you can act accordingly. These dates represent money-saving opportunities for consumers.
We May Never See Rates This Low Again Beginning in late November last year, 30-year fixed rates plunged into the mid 4.0% range. So what prompted this precipitous decline? The Federal Reserve announced that they would start purchasing mortgage backed securities (MBS) issued by Fannie Mae, Freddie Mac and Ginnie Mae. The Fed made this decision because there was a lack of liquidity and buyers in the fixed income securities market. By becoming a buyer for the securities that determine interest rates, the Fed helped lower rates to stimulate the economy by absorbing supply not picked up by others in the markets.
Following the announcement by the Federal Reserve, home loan rates immediately responded, falling a full percentage point. When the buying started, home loan rates fell even more, sparking a frenzy in refinancing and buyers seeking financing.
However...and here's what you need to note...this program implemented by the Federal Reserve has a deadline! That deadline is December 31, 2009. And as the Federal Reserve has been the primary buyer for MBS, purchasing up to 85% of all MBS since March, the impact to rates when the program ends could be as dramatic as when the program was announced. This means that interest rates could conceivably rise to well above 6.00%.
In the month leading up to the announcement, interest rates had been exceptionally volatile, peaking on some days near 7.00% for a 30-year fixed rate loan with no points and fees. This kind of volatility often happens when investors are reluctant to purchase MBS and trading volumes in securities are light, causing rates to rise quickly if investors demand a higher return for their investment.
While the final impact to interest rates will have to play itself out, one thing is certain: without the Federal Reserve as a primary buyer of MBS, home loan rates could be primed for a spike if other investors do not pick up the slack that could result in 2010.
It is unlikely that interest rates will return to the sub-5.0% range again this year. Why? The purchase and refinance mortgages that have already occurred this year were packaged into Mortgage Backed Securities after they closed and were sold on the secondary markets. This added supply to the markets and the new Bonds simply outweighed what the Fed had allocated to buy. Still, the Fed's program is helping slow down the rate increases we are seeing...but remember; their program is due to end on December 31. That's why now could mark the lowest rates that will be seen for some time to come.
Would You Like $8,000? Buy a Home. Soon! To stimulate the economy, Washington juiced up the stimulus plan passed last year in February. Two benefits for FTHBs were that the amount of the tax credit was increased from up to $7,500 to $8,000. And, more importantly, the amount of the credit does not have to be repaid!
To qualify for the credit the individuals buying a home cannot have owned a home in the last three years. So, while the credit is discussed as a credit for first-time buyers, anyone who has not owned a home in the last three years is eligible.
There are income limitations to fully qualify but they are quite liberal. Single tax filers earning up to $75,000 and joint filers earning up to $150,000 based on modified adjusted gross income can earn the full credit. A partial credit is available for those earning up to $95,000 and $170,000 respectively.
The amount of the tax credit is based on a percentage of the price of the home, specifically 10% of the purchase price, up to $8,000. This means if someone purchases a home for $70,000 their credit would be $7,000 and if the amount of the home purchased is $100,000, the credit would max out at $8,000.
Note! The deadline to take advantage of this opportunity is November 30, 2009. Close in December, and you just lost $8,000.
Homes Have Never Been More Affordable FTHBs are leading the way, taking advantage of one of the best home buying opportunities ever, providing support for the real estate market. As indicated earlier, FTHBs have accounted for as much as 53% of purchases for any month this year.
Who can blame them? In short, no one. Home prices have fallen to levels not seen in years and interest rates hit their lowest point ever. This combination led to the highest home affordability ever recorded.
The National Association of Realtors® tracks what is known as the Home Affordability Index. The Home Affordability Index is arrived at as a function of both median home prices, available interest rates, and median family income.
The index represents the amount of monthly income that is required to pay a mortgage payment. In 2005, approximately 23.3% of a family's monthly income was required to carry a mortgage payment. With falling home prices and interest rates, the percentage of monthly income required to pay a mortgage payment is now approximately 15%.
This means that for a family at the median income level purchasing a home priced at the median income level, the monthly mortgage payment has declined nearly 36%! This is great news for anyone shopping for a home today.
Get Busy, Time is Short! In order to take advantage of both the available tax credit and low interest rates, anyone going into contract should strive to have their purchase agreement not later than mid-October. This will allow some time cushion in the event anything pops up in the purchase process and still allow for closing in time to take advantage of the available tax credit.
Home prices have fallen to levels not seen since the start of the decade in many parts of the country, interest rates are still near all time lows, and the availability of free money from the IRS all mean that the time to act is now. It is always easy to look back and identify times people should have acted, and this could well be one of those times people will look back and say, "Wow, I should have bought a home in 2009!"
The following link allows people to sign up for You Magazine online: http://www.dbnurture.com/optin.php?u=lmitchell.

Introduction to Hartland Homes

2009-06-26T15:22:00.001-05:00

Check out this SlideShare Presentation:

Introduction to Hartland Homes

View more documents from Lea Barker.

Lincoln 3rd most affordable for first-time homebuyers!

2009-06-16T11:39:00.003-05:00

"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/

New NIFA program lets you use your $8000 tax credit for down payment!

2009-06-08T09:23:00.002-05:00

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)

Everyone Wants a Lower Price, But What About the Impact of Interest Rates?

2009-06-04T09:31:00.001-05:00

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

First-Time Home Buyers Can Turn Tax Credit Into Cash

2009-05-27T08:23:00.002-05:00

Readers: Here is yet another article detailing HUD's decision to let first-time home buyers to use the $8000 tax credit for down payment. It is coming soon!

Story courtesy of:
Nation's Building News Online for May 25, 2009

First-time buyers eligible for the $8,000 federal tax credit who apply for mortgages insured by the Federal Housing Administration may soon also be eligible for bridge loans or cash advances that they can use for the downpayment, closing costs or other loan expenses pending receipt of their tax credit check from the IRS.
The FHA change was announced this month by Housing and Urban Development Secretary Shaun Donovan. As many as half of all would-be first-time buyers do not have enough cash on hand for a downpayment and closing costs, according to building and real estate industry estimates. By advancing these buyers as much as $8,000 at closing, many more would be able to afford the purchase.
Officials at NAHB say the bridge loan feature could double the total number of home purchases stimulated by the 2009 tax credit program to more than 300,000, depending on how many private lenders and state housing agencies participate.
The new bridge loans and cash-advance features of the federal credit may not be available immediately through private lenders, mortgage industry leaders say. Among the key questions to be answered: Where will non-depository mortgage companies get the $8,000 in advance money to provide upfront to buyers? Although most major banks offer second-mortgage programs, the FHA guidelines stipulate that the tax credit advances cannot be secured by a lien on the property, but only by the tax credit to be received by the purchaser.

In the meantime, would-be buyers who believe they’re eligible for the credit should shift into high gear shopping for a house — the Cinderella closing date of Nov. 30 is looming — even if they will need a bridge loan or a cash advance to complete the deal. The odds are good that by the time they’re ready to get a mortgage and go to closing, at least some local FHA-approved lenders will be actively in the market with bridge loans.

(www.washingtonpost.com) Washington Post (5/23/09); Kenneth R. Harney

Home buyers may soon be able to use $8000 for down payment!

2009-05-26T09:20:00.003-05:00

(Yeah, it looks like home buyers may soon be able to use the $8000 tax credit as down payment! HUD has been flip flopping on this issue recently....Read the story below for details)

Feds offer more help with down payments
By Greta Guest/Detroit Free Press (Courtesy of Lincoln Journal Star)
Saturday, May 23, 2009
With bargain prices, low interest rates and an $8,000 federal tax credit for first-time homebuyers, it seems like the perfect time to buy a first home.
But apparently, many potential first-time homebuyers aren’t getting the idea — and federal and state officials are looking to sweeten incentives.
The word from Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development, is that the Federal Housing Administration will allow its lenders to let first-time homebuyers use the recently enacted $8,000 tax credit as a down payment.
Details are expected in the coming weeks.Going back to last year, the first enticement was a $7,500 tax credit that had to be repaid.
That didn’t inspire too many buyers.Then earlier this year, the $8,000 federal tax credit for first-time buyers was rolled out, a huge help for people who want to take advantage of local home prices at pre-2000 levels.
But the down-payment help is even better news. For buyers, it makes it easier to finance the home. For the housing market, it could get the ball rolling.
This represents an about-face from last fall’s decision under President George W. Bush to cut off down-payment assistance because these loans tended to default more than ones where the buyer put money into the deal.More buyers are using FHA loans as lending has tightened for conventional loans, so the impact could be wide. FHA requires a down payment of 3.5 percent.
FHA-insured loans make up more than 17 percent, according to its most recent market share report.It could take up to two months for the down-payment assistance plan to be available.
It would work by giving buyers short-term bridge loans, effectively fronting the tax credit at the closing table, Donovan said.

Memorial Day

2009-05-22T14:16:00.002-05:00

Memorial Weekend comes early this year. It just doesn't seem right! I am not ready yet for Memorial Weekend! For the last couple of weeks I've been confusing my dates. It seems like every one I've talked to has had the same experience. Isn't it funny how a holiday can affect us so much.

What are you doing for the holiday? Camping? Bar-b-queing? Going to a baseball game? The only peson I know that actually celebrates the true holiday is my grandfather. He is a Pearl Harbor survivor. He celebrates by going to his small town cemetary and participating in a ceremony. I am honored that there are men and women out there that have given their life so that the rest of us can live with the freedom that only we Americans have known. I urge each of you to find a way to pay tribute to a soldier this weekend!

God Bless America!

We cherish too, the Poppy red

That grows on fields where valor led,

It seems to signal to the skies

That blood of heroes never dies.

-Moina Michael

If you like history, I found a cool website about Memorial Day called Memorial Day History. Enjoy!

$8,000 credit for first-time home buyers driving local market

2009-05-19T15:55:00.001-05:00

BY MATT OLBERDING/Lincoln Journal Star
Sunday, May 10, 2009 - 12:11:13 am CDT
You wouldn’t know it by looking at the latest statistics, but things seem to be looking up in the local real estate market.

Realtors say there’s lots of activity in the market, especially among first-time homebuyers. That interest is encouraged somewhat by historically low interest rates and home prices that in many cases are lower than they were a couple of years ago.

But the big driver seems to be the $8,000 federal tax credit for new buyers or people who haven’t owned a home for a couple of years.

“The $8,000 tax credit has been the stimulus it was intended to be, really,” said Andrea Schneider, a Realtor with Woods Bros Realty.

Schneider said she has been concentrating her efforts on the first-time homebuyer market, because, “that’s really the market that’s hot right now.”

Larry Zitek, owner of Coldwell Banker BancWise Realty, said he, too, has seen a pickup in first-time homebuyers.

Zitek, who is also vice president of Geneva State Bank, said he’s seen parents and other relatives “stepping up” to help with down payments so people can buy a house and take advantage of the federal tax credit.

For Fredrick Brewer, it was the economy, rather than the tax credit, that led him and his wife, Shari, to become homebuyers.

“We just knew with the economy that we might be able to get a fairly decent deal,” said the 23-year-old Brewer.

The Brewers bought a two-bedroom, two-bath house in southwest Lincoln in February for $102,000 — $5,000 less than the assessed value and only $6,000 more than the home sold for in 2004.

Brewer said the $8,000 tax credit hadn’t even been approved yet when he and his wife started looking for a home, so that was a bonus.

Another bonus: with interest rates so low, the Brewers are paying less in monthly mortgage payments than they did for rent for a town home.

Renewed interest among first-time buyers like the Brewers failed to move the local real estate market out of its funk in the first quarter, though.

Through March 31, there were 616 closed home sales through the local Multiple Listing System, which covers all of Lancaster County and parts of surrounding counties. That’s down more than 8 percent drop from the first quarter of 2008.

Still, there were some encouraging signs, said Doug Rotthaus, executive vice president of the Realtors Association of Lincoln.

“Definitely, January and February pulled the quarter down,” Rotthaus said. But he called March numbers “encouraging.”

Pending sales —sales with a signed purchase agreement but not yet finalized — were up more than 10 percent in March compared with March 2008.

“That’s encouraging,” said Rotthaus.

What’s not encouraging, though, is the market for sales of new homes, which continues to plunge to levels not seen in more than a decade.

There were only 64 new homes sold in the first three months of the year, down more than 35 percent from the same period last year, according to data from the Realtors Association.

“We’re still seeing (new home sales) lag behind,” Rotthaus said.

Schneider, who with her husband, Scott, owns Schneider Custom Homes, said she doesn’t expect any improvement in sales of new homes this year.

“Certainly our sales are going to be down this year, and they were down last year as well,” she said.

But even in the new home market, there was one bright spot: There were 21 sales of new homes priced at $159,000 or less, the same number as last year.

Duane Hartman, who owns Hartland Homes, which builds mostly affordable homes for first-time buyers, said his business is up through the first four months of the year compared with 2008.

“It’s not healthy, it’s not fantastic,” Hartman said. “But it’s better than it was, and that’s great news.”

Hartman said the fall and winter of 2008 were “about as bad as it’s ever been” for the new home market in Lincoln.

While the signs are encouraging that things are picking up, Hartman said he’s not yet ready to declare a recovery.

“I’m kind of holding my breath,” he said. Let’s just say I’m ‘cautiously optimistic.’”

Reach Matt Olberding at 473-2647 or molberding@journalstar.com

Great Industry News you Won't read about in the papers!

2009-04-28T16:18:00.005-05:00

Judging by all the news stories covering foreclosures and the tanking housing market you would think that 50% of homes are in foreclosure. AHHHH, but we all know that bad news sells.... does any one want to read that less than 4% of all mortgages in the US are in foreclosure? BORING! Who Cares? I believe that people want to hear the good news. They want to know that the biggest investment of their lifetime is still a secure, sound investment. If you want to know the truth...keep reading!

30% of all homes in the US are free and clear. That means that 30% of all homes in the US do not have a mortgage, they are totally paid for! Of the remaining 70% of homes that have a mortgage, 96.7% are NOT in foreclosure. This is astounding! Less than 4% of home owners who have a mortgage are having trouble paying. The news companies would have you believe that most Americans are in default. The truth is just the opposite.

Did you know that most of the foreclosures are in 3 states and two cities? California, Michigan and Florida, Las Vegas and Phoenix are where the bulk of foreclosures are happening. Nebraska's foreclosure rate is ranked near the bottom of the states...meaning we have one of the lowest foreclosure rates in the US.

Let's recap the good news: 30% of home owners own their home free and clear, of the remaining 70% of homeowners, 96.7% of mortgages are NOT in foreclosure. The majority of homeowners are paying their mortgage or do not owe on their home. Most of the foreclosures are in 3 states and 2 cities and Nebraska's foreclosure rate is one of the lowest in the US. :)

Looking at foreclosures? Read this first.

2009-04-24T12:56:00.005-05:00

Are you considering a foreclosure? Their rock bottom prices may be enticing but watch out for the hidden costs hassles. The true sales price may be much higher than you thought! When you compare the foreclosed home to a brand new Hartland Home, it is easy to see why a brand new home just makes more sense.

Consider these items when looking at a foreclosed home:

Cost: The foreclosed home’s purchase price may be less in the beginning, but consider all the repairs and fix-up costs. Add the repair costs to the purchase price for the true price of the home.
Warranty: This home will have no warranties, you get it AS IS. Generally, a home that has gone into foreclosure wasn’t taken care of properly. The former residents knew they were moving and not going to pay for it, nor sell it, so they had no reason to properly care for it. TIP: Make sure you get a whole house inspection on any used home you buy.
*Hartland Homes provides a 10 year warranty on all their homes and that is just 1 of many warranties we provide!
Health: Health hazards such as mold, pet dander, bug infestations or other items may be present in the foreclosed home.
Style: A foreclosed home comes AS IS; it may have out-dated styles, layout and colors.
Repairs: Repair costs cannot be rolled into your mortgage and must be paid for in addition to your house payment, utility bills and insurance.
Taxes: Just because you paid below market price doesn’t mean your property taxes will reflect that. Most likely you will be paying taxes, which are fully assessed, on the amount the home is worth, not the price you paid.
*Did you know that when you build and purchase a Hartland Home, your taxes won’t be fully assessed for at least a year? That could save you over $1,800 your first year!
Choices: There are limited homes available for below market price and a complex bidding process which makes them hard to buy if you do find one you like!
*Hartland Homes has over 25 different floor plans in 5 different communities and you get to choose your options and colors.

New Home Sales Sizzles!

2009-04-01T15:59:00.007-05:00

March came in and went out like a LION and so did the new home sales for Hartland Homes. We have not had a month this strong since the Spring of 2006! What does this mean? People are tired of sitting on the fence and waiting for the "right time to buy". First-time homebuyers have discovered and are taking advantage of the $8000 tax credit. Home buyers recognize the incredible value Hartland Homes has to offer them.

Are you in the market to purchase a home? Are you a first-time home buyer? Then you are incredibly lucky! This year, when you purchase a home before December 1, 2009 you can claim an $8000 tax credit. If you have no tax liability, you will receive $8000 to spend or save however you please. What is not to love?

If you are looking for a home in the price range of $113,000 up to $250,000 that has a 10 year structural warranty, is energy efficient and built with high quality products, look no further than Hartland Homes.

What is holding you back? Are you worried about credit or down payment? Perhaps you are just worried about the whole process? At Hartland Homes we walk you through the entire process. We make it fun and easy to build a new home. We can help you get your credit up if it is too low and help you determine the best loan for you. There are several options to help with down payment, including a 100% rural loan option, a $15,000 down payment assistance program, and the impact fee rebate. (*must qualify for programs) Hartland Homes also pays your closing costs which saves you a minimum of $2500!

Call a Hartland Homes agent today for more information. 402-477-6668.

Opportunity Knocks for Home Buyers

2009-03-12T15:26:00.003-05:00

Courtesy of National Association of Home Builders

For those whose homeownership hopes have been dampened or temporarily derailed by the housing downturn and economic recession - the people wondering if this is a good time to buy - the answer is simple: Yes. It's a very good time to buy.
Today's market, coupled with a tax credit of up to $8,000 for first-time home buyers, near-record low mortgage interest rates and ample inventory, provides an unprecendented window of opportunity for qualified prospective home buyers. In fact, there may never be another buyer's market as good as today's.

In landmark economic stimulus legislation, Congress has provided an outstanding opportunity for first-time home buyers with enactment of an $8,000 tax credit for single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000. Partial credits of less than $8,000 are available for individual taxpayers with incomes up to $95,000 and for married taxpayers with incomes up to $170,000.
But time is of the essence to take advantage of this once-in-a-lifetime opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible for the tax credit.

For more information check out the official website: http:\\www.federalhousingtaxcredit.com or call Hartland Homes 477-6668.

Worried About Your Credit?

2009-03-09T08:57:00.002-05:00

Are you worried about your credit history? Just about everyone has something in their past credit that is less than perfect. The most important thing is to learn what is on your report, determine what impact that information has on your credit rating, and work on repairing and restoring any damage that may have been done.
Mortgage loan options are rated by credit, labeled like school grades - "A" credit is the best, then down to A-, B, C, etc. Even if you do not have an A credit rating, I can let you know what your options are if you fall into an A- or lower category. The rates are generally going to be higher, and may require a down payment. If you determine that you are not satisfied with this type of financing, then together we can map out what you need to do with your credit and finances for the next six to twelve months in order to qualify for an A credit loan.
There are three main credit bureaus that most creditors (such as credit card companies, banks, leasing companies, etc) provide information to on a monthly basis. Each month, your credit holders report information to the credit bureaus about your current balance, minimum payment requirements, and credit history. If you need specific information from one of the major credit bureaus, following is the contact information for each of them:

Experian Information Service (XPN)PO Box 2002Allen, TX 75013(888) 397-3742

TransUnion (TUC)PO Box 1000Chester, PA 79022(800) 916-8800

Equifax Information Services (EFX)PO Box 740243Atlanta, GA 30374(800) 685-1111

For a credit report and analysis, please call Deb Melichar at 420-2380, Hamilton Lending, Lincoln, NE Or a Hartland Homes representative today! 477-6668

US housing crisis 'exaggerated', focused on only four states

2009-03-06T11:03:00.002-06:00

US housing crisis 'exaggerated', focused on only four states

Geoff Elliott, Washington correspondent March 05, 2009
Article from: The Australian
THE breadth of the US housing crisis for the average American is being overstated, according to a study released yesterday.
While foreclosures have booted millions of Americans from their homes, the study from the University of Virginia shows the trouble is mostly focused on four states -- California, Florida, Arizona and Nevada -- where home prices were the most overheated in the US housing boom.
Although there are pockets of substantial declines, claims that overall housing values have plummeted nationwide are exaggerated, they say. "In the Washington, DC metropolitan area, for example, prices have barely changed," the authors wrote.
In the University of Virginia study of 50 states, 35 metropolitan areas and 236 counties, the analysis indicated that "66 per cent of potential housing value losses in 2008 and subsequent years may be in California".
Then there was another 21 per cent in Florida, Nevada and Arizona -- meaning those four states made up about 87 per cent of national declines.
"California had only 10 per cent of the nation's housing units, but it had 34 per cent of foreclosures in 2008," say the report's authors, William Lucy and Jeff Herlitz. They say California was vulnerable to foreclosures because the median value of owner-occupied housing in 2007 was 8.3 times the median family income, while the 2007 national average was only 3.2 times higher than median family income.
Another vulnerability to foreclosures was seen in the Los Angeles metropolitan area, where over 20 per cent of mortgage-holders in each county were paying at least 50 per cent of their income in housing-related costs.
They add that the number of foreclosures usually were lower in central cities than in some suburban counties, probably due to less demand in those suburbs.
The study notes the huge run-up in housing prices in California created opportunities for large gains for home buyers if price increases continued. "Thus, more households may have been attracted to potential gains, worried, perhaps, that they would be priced out of the home buying market if they did not act quickly," they said of the speculative bubble that emerged. They added that lenders such as former US mortgage giant Countrywide, which specialised in no-principal, interest-only and no-income check loans, got their start in California and focused there.
"But even in California, enormous variations existed among jurisdictions, such as in the San Francisco area, where (the outlying) Solano County had 3.69 per cent of housing units in foreclosure in November 2008, while only 0.24 per cent of housing units were in foreclosure in the City of San Francisco -- a 15 to 1 difference," Lucy and Herlitz say.
And of the financial crisis, the authors note that potential losses in housing values from 2008 foreclosures in all 50 states -- if values decline to 2000 levels -- were less than one-third of the $US350 billion provided to banks and insurance companies to cope with losses in mortgage-backed securities, Lucy and Herlitz add.
"Damage to the balance sheets of large banks and (insurer) AIG occurred not mainly from losses on foreclosed residential mortgages, but because of borrowing short-range to buy long-range derivatives and from selling credit default swaps insuring derivatives backed by mortgage payments," they write. "These financial manipulations had high-speed forward gears, but when the housing bubble burst, the banks and AIG discovered they had neglected to create a reverse gear with which they could separate foreclosed properties from some forms of mortgage-backed securities."

Renting is NOT Your Only Option!

2009-02-19T12:15:00.000-06:00

I know you are worried that your credit isn't good enough or you don't have enough money to buy a home...however, at Hartland Homes we can show you how to overcome these issues, stop renting and own a brand new home of your very own!
HOW??
1) Credit issues: We have a credit repair program that is helping people improve their credit within just 30 days! Did you know that only 35% of your credit score is based on payment history? That means you can improve your score by concentrating on the other 65% of how your credit is scored. This is great news!
2) Need money for down payment? There are several ways to solve this issue.
First, some of our homeowners have been able to file their tax returns early and use the federal housing tax credit for a down payment. NIFA lets you actually borrow the money until you receive your credit! $8000 is more than enough for a down payment!
Second, in certain areas, there is a $15,000 down payment assistance option.
Third, if you qualify, you may receive an impact fee rebate which can be used towards your down payment. This could be as much as $4600!
Finally, there are 100% loan options out there.
Don't forget that Hartland Homes pays your points and closing costs saving you thousands of dollars!
Call us today for a free consultation...You CAN own a brand new home and we will show you how! Email us or call us at 402-477-6668!

First Time Homebuyers, It Is Time to Celebrate!

2009-02-19T12:14:00.001-06:00

The federal housing tax credit is now $8000 AND if you live in your home for more than 3 years, you don't have to pay any of it back. That is right, the federal government is giving you $8000 just for buying a home!
The following is an excerpt from the website: http://www.federalhousingtaxcredit.com,
"In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers. But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible."
There is still time to build a brand new Hartland Home and take advantage of the $8000 federal housing tax credit.
For more information call Hartland Homes at 402-477-6668

Nation's Building News Online for February 16, 2009

2009-02-18T08:19:00.000-06:00

Nation's Building News Online for February 16, 2009: "From Fannie and Freddie, Here Come the Fee Increases
As of April 1, Fannie Mae and Freddie Mac are increasing the delivery fees they charge lenders based on FICO scores, downpayment amounts and other loan characteristics. Most major lenders already are pricing in these higher fees, effectively raising costs to borrowers immediately. Lenders can pass these fees on to the consumer in the form of higher interest rates rather than as an upfront charge. Under the new guidelines, even applicants who assumed that their FICO credit scores would get them favorable rates will be charged more unless they can come up with downpayments of 30% or more. For example, a buyer with a 699 FICO score who brings a sizable downpayment of about 25% to the table will be hit with a 1.5% delivery fee at closing under the new guidelines. A buyer with a FICO score between 700 and 720 will pay an extra three-quarters of a point. Even someone with a 739 FICO — once considered a platinum guarantee of the best rates available — will get dinged with a quarter-point add-on. Condominium buyers who cannot come up with a 25% downpayment will be hit with a three-quarter point add-on penalty, no matter how high their credit score — simply because they are not purchasing a traditional detached, stand-alone house. Without congressional intervention or new marching orders from the companies’ regulator, the add-on fees are here to stay. But there’s an alternative available for just about anyone who wants to avoid the fees: Federal Housing Administration mortgages, where downpayments go as low as 3.5% and credit scores are not an issue for most applicants. (www.washingtonpost.com)
Washington Post (2/14/09); Kenneth R. Harney
[Return to top]"

Why to Buy a Home Now

2009-02-16T09:54:00.002-06:00

by Phoebe Chongchua

If you're renting and wondering if you should buy a home, consider what bestselling author, David Bach, says, "The average homeowner is worth 35 times more than the average renter."

He advises renters to take action immediately and start saving part of their paycheck every month to help accumulate a down payment. He also encourages renters to borrow 10-20 percent less than what the bank is willing to lend; that way they're only buying as much home as they can afford.

The longer you rent, the longer it may take you to eventually get into homeownership. If the market conditions have scared you, perhaps you're not looking at the other side of the coin. Owning a home becomes part of your investment portfolio, provides tax benefits, allows you to build equity (it still exists), and, if you buy now, you may get an excellent deal. "People can get a lot of what they need and almost all of what they want today," said Jay Papasan, one of the authors of "Your First Home".

While poor market conditions have created a troubling situation for some homeowners, the downturn has made the buying market ripe for others. The affordability of homes is better than ever. The National Association of Realtors' housing affordability index concluded that homes in December of 2008 were more affordable than at any other point since 1970 (the start of the index). And with numerous foreclosures on the market and prices dropping in many areas, now is a good time to buy. But in order to make your purchase profitable, here are some things you should consider:

How much you can afford. Don't let tighter lending regulations scare you off from making a purchase. Instead, understand what you truly can afford. Don't get caught up in buying too much home. In fact, these days, the trend is moving toward smaller homes -- simpler living.

Mortgage rates drop to historical low. How much home you can afford is affected by mortgage interest rates that, right now, are highly appealing. Good credit, documenting your income, and a substantial down payment will make you a better candidate for the better mortgage rates.

Freedom to choose. Now, unlike several years ago, the market has a large inventory in many areas. The market time to sell a home has increased which creates a large inventory of homes, everything including new, existing, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.

Quality of life. Buying a home can create a higher quality of life, giving you pride of homeownership, and something to enjoy improving and developing over the years.

Tax credit benefit.

Real Estate Outlook: Encouraging Signs

2009-02-10T13:50:00.000-06:00

by Kenneth R. Harney

Could the tide be turning for real estate?

It's probably premature to make that call, but you can't ignore the encouraging signs -- especially when they come in multiples.
First we saw a surprising 6.5 percent jump in home sales for December. Now we've just gotten the latest Pending Home Sales Index, and it's up 6.3 percent, thanks to double digit gains of 13 percent in the Midwest and the South.
The index is based on signed contracts for home sales that haven't gone to closing, but that are scheduled to settle in the coming two or three months.
The National Association of Realtors collects the data from Multiple Listing Services around the country, and most economists accept the index as a reliable gauge of where we're headed in housing activity.
Dr. Lawrence Yun, chief economist for the National Association of Realtors, attributed the upward movement to "buyers responding to lower home prices and interest rates" that have improved the affordability equation to its most favorable level in 39 years.
Sales in the coming months might also be powered by something no index can measure: Congress is likely to improve last year's $7,500 home buyer tax credit by turning it into a nonrepayable incentive for new sales this year -- all as part of the stimulus package on Capitol Hill.
Though it's impossible to predict how many more home sales a true credit might stimulate -- one that doesn't have to be paid back to the government like the 2008 version -- industry estimates range anywhere from several hundred thousand upward, provided the expiration date runs through this coming December.
On other economic fronts last week, reports of tens of thousands of industry layoffs definitely won't help housing, but new numbers on inventories of unsold homes just might be a plus. Total homes for sale on the market nationwide dropped nearly 18 percent last month to the lowest level since May of 2007.
Mortgage rates inched up slightly last week, according to the Mortgage Bankers Association, with thirty year fixed rate loans averaging 5.3 percent compared to 5.2 percent the week before. That's up a notch, but it's still close to 40 year historic lows.
As we've said before on this program: Keep your eyes open for the little statistical improvements in the market that often get ignored by the media: Once they start mounting up, month after month, you'll know we're in turnaround mode.
We're not there yet, but we're headed in a promising direction.

Real Estate Outlook: Sales Up in December

2009-02-03T20:23:00.000-06:00

by Kenneth R. Harney

Mass layoffs by major employers continue to generate scary headlines, but last week housing got a long-awaited dose of good news.

After months of declining sales of existing homes -- and dire predictions by economists of more drops to come -- sales in December jumped by a surprising six point five percent.
Equally important, inventory levels of unsold housing plummeted by twelve percent, and have fallen below six months in several large metropolitan markets. Sales in the western states increased nearly fourteen percent last month and were thirty-two percent higher than the year before. In the south, sales were up by seven percent, and in the midwest by four percent. Only the northeast states saw a decline in December a little over one percent.

Dr. Lawrence Yun, chief economist for the National Association of Realtors, attributed much of the boost in sales to sharply lower prices in many markets, combined with near record low mortgage rates. "It appears that buyers are taking advantage of lower prices," he said, adding that the median existing home price hit one hundred seventy five thousand in December which was fifteen percent below year earlier levels.

Yun said key factors in the median national sales price drop were the high percentages of distressed sales in a number of markets. Nationwide, foreclosures and short sales accounted for about forty-five percent of December's transactions, but in some parts of California and Florida the percentage was much higher.

A Wall Street Journal quarterly survey of twenty-eight of the largest metropolitan real estate markets also turned up positive news: Unsold inventories in Washington, D.C., Houston, Denver, Boston and Dallas fell below six months, which is the level at which economists describe supply and demand as relatively balanced.

Besides the good news on the housing front last week, mortgage rates continued to hover in the five percent range -- five point two percent for thirty year loans on average, according to the Mortgage Bankers Association. Low interest rates also contributed to a slight upward tick in the Leading Economic Indicators Index from the Conference Board. Four of the ten key indicators that make up the index -- which forecasts the direction of the overall economy in the months ahead - were positive.

So is all this a prelude to an economic bottoming out and turnaround? It could be, but it's too early to say for sure. What we can conclude though, is that when we begin to see positive numbers like these for two and three months in a row, we'll know we are past the bottom and we're on a recovery track.

Real Estate Outlook: Obama Effect

2009-01-29T18:45:00.000-06:00

by Kenneth R. Harney

Will there be an "Obama effect" on the housing and real estate markets? Barely days after his inauguration, it's obviously premature to make any forecasts.

But there's a case to be made that a quickly-enacted economic stimulus package, continued rock-bottom mortgage interest rates, low inflation and improving consumer sentiment could begin to have that effect -- at least in small measure. For example, the bellwether poll of consumer confidence -- conducted by the University of Michigan -- has just come out and it found consumer sentiment up by two percent in January over December. The component of the index that's based on "expectations" -- do you expect the economy will start improving? -- was up by three percent.

Now you can argue that January's bounce had nothing to do with the arrival of a new president and economic team in Washington, and was barely a notch over December's number. But the fact is: the arrow pointed up not down. Given the country's high expectations about the new administration, documented in every major poll on the subject, higher consumer confidence shouldn't be all that surprising.

Also, the massive economic relief package coming from Capitol Hill within weeks is virtually guaranteed to create jobs, and put more money into millions of households' pockets through tax breaks. You can argue that the stimulus package cannot possibly work its magic quickly enough to alter the course of the recession.

That's debatable and the full story won't be known for a year or more. But for housing, there's no question that a tax credit with teeth, nonrepayable and with a use-it-or-lose-it deadline, can only spur additional sales, maybe several hundred thousand over the course of the coming 12 months, according to some housing group estimates.

Meanwhile mortgage rates remain under five percent -- at least for applicants with solid credit and a downpayment. Inflation is close to zero: the CPI urban index dropped by seven tenths of a percent in December, and the energy index was down by eight point three percent.

Doomsayers may not be impressed by sales turnarounds, but anyone who sells -- or buys real estate and is looking for a great price -- can't afford to ignore positive signs

Your House Payments Could Be Lower Than Your Rent Payments!

2009-01-18T21:23:00.000-06:00

With every rent check you write, you're helping to build equity in your landlord's property. That money could be going toward building equity in a home of your own. Today's rates are low enough that your house payment could be lower than your rent payment!

There are many advantages to owning a home, including:
Security - A feeling of security that comes from owning a home and the knowledge that your home is a safeguard against inflation.

Investment - Payments on your mortgage loan mean you are acquiring a major possession; instead of rent, you own more and more. The garden you plant, the permanent improvements you make - all enhance your way of living as well as the value of your home.

Tax Advantage - Your real estate taxes and the interest on your mortgage are deductible from your income tax.

Financial Independence - Most people start on the road to financial independence through home ownership. Your principal and interest payments remain the same for the full term of your mortgage while your rent usually goes up as the cost of living increases.

Environment - Your children grow up in the neighborhood of your choice.

Cash Equity - Better than a savings account, your home can appreciate to keep pace with inflation.

Satisfaction - Home ownership offers special advantages that make life more enjoyable - backyard barbecues, large family gatherings during holidays, a home workshop, a chance to enjoy your family's companionship in the privacy of your own home.

Call Jake @ 402-429-3946 for more information

Real Estate Outlook: What's in Store for 2009?

2009-01-07T21:19:00.000-06:00

by Kenneth R. Harney
What will the new year bring for housing and real estate? It's easy to look at all the negative economic news in the headlines and say - there's no sign that 2009 is going to be any better than 2008.

But here's a different perspective to consider from one of the country's veteran financial analysts -- Richard Bove of Ladenburg Thalmann, the investment banking company.
In a research report issued late in December, Bove said he sees a positive dynamic taking shape in the current cycle. The government has intervened aggressively in the markets to push interest rates down -- most notably in the home mortgage sector.
Though it takes awhile for low-cost money to begin having its effect, Bove said he expects “housing prices to stabilize and/or rise (in 2009) after a likely boom in mortgage refinancings as rates fall and loan applications increase.”
Add in the expected massive economic stimulus package being put together on Capitol Hill with the incoming Obama administration -- and there's a good chance we're going to see a gradual transformation of the downward cycle into a slow rebound over the coming several quarters.
Already there are positive signs of the turnaround Bove predicts:
Mortgage applications are off the charts, mainly for refis but also to buy houses at affordable prices.
Rates continue to hover at 50-year lows - five percent and even four and three quarters percent for 30-year mortgages, and still lower for 15 and 20 year mortgage terms.
Plus we're all paying a lot less at the gas pump, and sharply discounted prices for retail goods and autos.
And guess what? Americans are actually SAVING again, the national savings rate took a nearly three percent jump last month. That might sound small, but it's hugely important if it is the start of a trend.
There are also some signs that housing prices are stabilizing in some parts of the country. The latest monthly Federal Housing Finance Agency index found home prices UP by six-tenths of a percent in the Mountain states and UP by two tenths of a percent in New England.
You can ridicule small regional gains as statistically irrelevant, but here's Realty Times's economic proposal to you for the New Year: Keep your eyes open for the small positive signs that are accumulating out there … because all downcycles tail off and come to an end.
We think the smartest players in real estate -- consumers and the industry - will make the most of the positives -- low-cost money, low prices, stabilizing local markets -- and thrive in the new year.

US rates slashed to nearly zero

2008-12-16T16:02:00.000-06:00

The US Federal Reserve has slashed its key interest rate from 1% to a range of between zero and 0.25% as it battles the country's recession.
In its statement, the Federal Reserve warned that "the outlook for economic activity has weakened further".
It predicted that rates would stay at the current exceptionally low levels "for some time".
It added that it was considering ways it could spend money on supporting the economy and credit markets.
Analysts said that the key rate is now virtually zero.
"Whether it's zero or 0.25% actually does not make a huge difference," said Holger Schmieding at Bank of America.
He added that the more important factor is what policymakers plan to do now that they cannot cut interest rates any further.
The Federal Reserve is already injecting billions of dollars into the banking system as well as buying debt based on home loans.
Postpone purchases
The Federal Reserve stressed that it was already planning to buy large quantities of additional debt based on mortgages and is considering whether it would be a good idea to buy long-term US government bonds.
The strategy of a central bank buying government bonds mirrors the so-called quantitative easing carried out by the Japanese government when it was fighting deflation in the late 1990s and early 2000s.

The Federal Reserve promised to use "all available tools"
Deflation becomes more of a risk as interest rates approach zero.
It is a serious problem for an economy because people postpone making any large purchases as they believe prices are going to fall, which stifles economic activity even further.
Quantitative easing is, "just another word fr the central bank injecting so much money into the system that a good deal of it is passed onto households and businesses at a reasonably low interest rate," Mr Schmieding explained.
The rate has been cut drastically by the Federal Reserve from the 5.25% where it stood in September 2007.
Market response
It is the lowest the central bank's key rate - the target rate for banks to charge to lend to each other overnight - has been since records began in 1954.
The decision received a luke-warm initial reception from the stock market, with the Dow Jones Industrial Average rising from 8,684 just before the decision to 8,740 about half an hour after it, which is a rise of just 56 points.
But once the news had been digested, the Dow Jones closed up 360.4 points, or 4.2% at 8,924.9.
"You've seen the dollar weaken because it was a larger than expected cut - the dollar is falling against all major currencies," said Matt Esteve at Tempus Consulting in Washington.
"On one side, we effectively have a zero interest rate in the US - on the other side, the Fed has sent a sign that they are ready to use all tools to help the US economy out of recession."
Earlier in the day, official data confirmed that the threat of inflation is receding, as consumer prices fell a record 1.7% in November.
Government help
President-elect Barack Obama said in a speech on Tuesday that his administration would also be doing its bit to stimulate the economy because the central bank could no longer use its main tool.
"We are running out of the traditional ammunition that is used in a recession, which is to lower interest rates," he said.
"That's why the economic recovery plan is so absolutely critical."
He has undertaken to create at least 2.5 million jobs by 2011 as well as launching a programme of improvements to the country's infrastructure.

story courtesy of BBC news

Lessons Learned: Low-cost mortgage could be a big gift

2008-12-15T16:31:00.002-06:00

By GENE KELLY/Personal Finance ColumnistFriday, Dec 12, 2008 - 12:17:17 pm CST

December is dwindling down to a precious few days. Yet, there may still be time to power shop for a major family gift — a low-cost home mortgage.Fixed rates available on 30-year and 15-year loans are the lowest in a half century. This appears to be a major inflection point for long-term interest rates.A few days ago, a Lincoln friend called to share good news: Instead of making payments on both a first and second mortgage, she had just locked in a 30-year mortgage that will carry a bargain fixed rate of 5.25 percent.“We knew rates had been dropping,” she explained, amidst all the upheaval in the credit markets and loan foreclosures. Their old “piggyback” loan package consisted of a larger 30-year fixed loan with an interest rate of 5.75 percent, and a 10-year second mortgage that had a 7 percent interest rate.“Since mortgage rates change daily, we asked our mortgage broker about refinancing,” she said. “He found us a low-cost mortgage, with no origination fee or discount points.“One Lincoln-area lender has even advertised a 30-year fixed rate of 5.125 percent. The rate can be dropped to 5 percent by paying a 0.25 percent discount fee, or to 4.875 percent by paying a 0.50 percent discount.Moreover, the Treasury Department is considering ways to encourage banks to offer rates as low as 4.5 percent for newly-issued 30-year fixed mortgages.Of course, to get a low-cost mortgage, you’ll need a good credit history. Banks have tightened lending standards. Having a credit score of 740 or more should put you in the catbird seat.So before you shop for a new mortgage, check your credit scores and request your credit reports at http://www.annualcreditreport.com/.Declining mortgage rates mean the next few months could be a terrific time to trade up to a bigger house or buy a first home.A home is more a shelter than an investment: Over the long run, home prices tend to increase at an inflation-adjusted rate of 3 to 4 percent a year, roughly in line with household income.Everything seems to be on sale. Since I’m a card-carrying contrarian, you’ll find me shopping for short-sleeved shirts when the winter merchandise cubicles are being stocked. I’m the type who would look for a new umbrella only on a sunny day.Nearly all assets have been repriced. Double-digit markdowns have affected investments ranging from the big dividend-paying growth companies to gold and other commodities, and from high-yield junk bonds to aggressive small-cap stocks.I was as puzzled as anybody by the dramatic global collapse of bond and equity investments. But why are so many long-term investers running away from the resulting bargains? Provided you don’t need your savings in the near future, this could be a phenomenal opportunity to accumulate cheap shares. Readers tell me all their savings are going to be moved into bank accounts, Treasury notes or money-market funds.True, you can get a seemingly-decent yield on certificates of deposit. But after subtracting inflation and taxes, this approach is guaranteed to shrink your purchasing power over the coming decades.Looking into 2009: While volatility will continue, I believe the bear market in stocks has bottomed. If the bear cycle and the recession play out as they have historically, the economy should begin to grow again in the second half. U.S. stocks would then end the year in the black.Early filers: Extra real-estate standard deduction now available. If you usually bulk up your itemized deductions by accelerating payment of charitable donations or state and local taxes into the current year, a change in the Internal Revenue Code might mean a change in strategy:For 2008, you could be better off claiming the standard deduction. For the first time, you can take a new, additional standard deduction to reflect real-estate taxes — up to $1,000 for married folks who file jointly and $500 for singles.A 65-year-old married couple who file jointly could get a standard deduction that totals $14,000 for 2008, if they paid at least $1,000 in state and local real-estate taxes. To do the math, both husband and wife get a basic standard deduction of $5,450. There are additional amounts for those 65 or older add $1,050 for the wife and $1,050 for the husband). Finally, add $1,000 for the new real-estate standard deduction.This change in the tax code will be available again for 2009.

Investor Report: Rethinking Controversial Limits

2008-12-13T15:31:00.000-06:00

Here's some potentially good news for investors from the Federal Housing Finance Agency, which oversees Fannie Mae and Freddie Mac.

James Lockhart, who runs the agency, says there's been some "re-thinking" underway on the controversial limits on the numbers of rental properties investors can own if they're seeking new financing.
Both Fannie Mae and Freddie Mac have imposed a four-unit limit, reversing their previous investor maximum of ten units.
The rationale for the change, according to the agencies, was their belief that investors who own higher numbers of rental condos and houses pose a greater risk of default, foreclosure and loss for the companies.
The restriction effectively shut out many small investors from Fannie's and Freddie's standard programs -- and pushed them into much higher-cost financing from so-called "hard money" lenders.
In a letter to Charles McMillan, president of the National Association of Realtors, Lockhart said, "While no final decisions have been made, I can share with you the fact that the issue of raising the selling guide ceiling on investors loans is under active consideration at one of the (corporations), and reflects an appreciation of the role for investors in the housing recovery."
Realty Times obtained a copy of Lockhart's letter to McMillan, which was intended to respond to issues raised at the Realtors' annual convention in Orlando in November, where Lockhart spoke to two sessions. Lockhart did not disclose which company may soften its rule, but when one changes its standards, the other typically follows suit.
Lockhart addressed another issue of concern to investors and other buyers of condo units: The negative impacts of growing numbers of foreclosed units and bank-owned REO in condo projects.
Under current rules, Fannie and Freddie generally avoid loans in condominium developments where less than 51 percent of the units are owner-occupied. The problem is that both companies define REO and foreclosed units as non-owner-occupied, even though they are temporarily vacant and not owned by investors.
Lockhart said in his letter that "at least one" of the two corporations -- either Fannie or Freddie -- "is considering a clarification of the 51 percent (rule) that would exclude REO units from being counted as investor units … in the owner-occupancy ratio."
Lockhart offered no timetables for either of these key potential policy improvements, but investors may well see one or both changes within weeks.
At the very least, it's good news that the top executive regulating Fannie and Freddie recognizes the significant roles investors can play in helping the industry dig out of the current mortgage mess.

2008-12-08T19:43:00.000-06:00

Six Signs That You're Ready To Buy!

2008-12-06T13:57:00.003-06:00

By Michele Dawson
Figuring out whether you're ready to buy a house -- whether you're a renter or are aiming to move up or size down -- can be a daunting task. But there are signs that will indicate whether you're ready to take the buying plunge.
If you are thinking about buying, you're not alone.
David Lereah, the National Association of Realtor's chief economist, said the housing market has reached a new plateau. "Over the last few years, it's become apparent that the level of home sales will generally remain at higher levels than what was common in the mid-1990s," he said. "The fundamental change is a growing population with a rising number of households entering the age in which people typically buy their first home. In short, we have the need, desire and ability for people to buy homes."

So are you ready to make the move? You might be if you:
Are familiar with the market. If you've been paying attention to how much houses are listed for in the neighborhoods you're eyeing and have a realistic view of how much a house will cost you, you're in good shape. But if you're dreaming about that big corner house with no clue about it's asking price, you may want to spend some more time becoming familiar with the market and how much houses are going for.

Have the money for a down payment and closing costs (paid for by Hartland Homes). The down payment is a percentage of the value of the property. Freddie Mac says the percentage will be determined by the type of mortgage you select. Down payments usually range from 3 to 20 percent of the property value. Also, you may be required to have Private Mortgage Insurance (PMI or MI) if your down payment is less than 20 percent. Freddie Mac says that as a general guide, your monthly mortgage payment should be less than or equal to a percentage of your income, usually about a quarter of your gross monthly income. Also, your income, debt and credit history go into determining how much you can borrow. As a general rule, your debt -credit card bills, car loans, housing expenses, alimony and child support -- should not be more than about 30 to 40 percent of your gross income.

Know what additional expenses will come with owning a home. This includes homeowners insurance, utility bills, maintenance costs -- roofing, plumbing, heating and cooling.
Have your credit in good shape and make sure your credit report is accurate. Potential lenders will view your credit history -- how much debt you've accrued, how many accounts you have open, whether your payments are made on time, etc. -- to determine whether they'll give you a loan. You should get a report from each of the three credit reporting companies: Equifax, Experian, and Trans Union.

You haven't made any recent major purchases, particularly a vehicle. If you do, you may have a harder time getting a loan -- or it could potentially lower the amount you'll be approved for.
Once you decide you're ready, you'll need to be prepared to move quickly if you're aiming to buy in a sellers' market.

The next steps involve calling a Hartland Homes agent and getting prequalified for a mortgage loan. This way you'll know if you can get approved and how much you can spend on a house. It also puts you in a stronger position when you ultimately make an offer on a house.

Planning For Your Future

2008-12-01T19:23:00.002-06:00

What you need to know about real-estate investing

By Dave Kansas

Investing in real estate is a key part of any investor's financial planning. For most of us, our homes are a big part of our net worth. And as we grow older, we build equity in our homes that can help fund our children's college or our own retirement. Here, we'll take a look at investing in our private residences, in vacation houses and in income or rental properties.

Our Homes
Owning a home comes with tax advantages. For instance, interest paid on mortgage is tax-deductible. And in some cases, home improvements can provide tax advantages. Selling a home also has some tax advantages. If you are single and have lived in your primary residence for two years, the first $250,000 of profits from the sale of the house are tax-free. If you're married, the exemption is $500,000. And you can take that tax advantage once every five years.

Second Homes
Investors have some options about optimizing the purchase of a second home. They can use the residence as a personal property, in which case the interest payments are tax deductible. Under the tax code, taxpayers itemizing deductions can claim mortgage interest payment deductions on the first $1 million of debt incurred for the purchase of a first or second home. To qualify as a second home, an owner must use the residence for more than 14 days per year.

The other option is to rent the property when you're not using it. If you rent for fewer than 14 days, you can still qualify for the personal home deduction. If you rent for more than 14 days, the tax treatments change, because now your second home is considered an investment property. Expenses such as mortgage interest and maintenance are divided between personal and investment use, proportional to the number of days of rental use and actual use. The expenses counted as investment are deductible; the portion allocated for personal use, including mortgage interest, is not deductible, because an investment property is not considered a personal second home.

Income Properties
Investing in income property is riskier than buying a second home, because rather than having a place to visit on the weekends, an income property is purchased to deliver, well, income. A two-family home, called a "duplex" in some parts of the country, may sound easy to rent and maintain. But if one unit is empty, 50% of your rental income isn't coming in that month. And that rental income is usually aimed at paying off a mortgage used to purchase the income property. Having a 100-unit building makes it less likely that you'll face a 50% vacancy rate, but even a 10% vacancy rate means you are trying to rent out 10 units, which can take a lot of time. Investing in income property sounds glamorous, especially when you run the numbers with full vacancy rates and no turnover. But pipes break, people move out and the roof sometimes needs replacing. The landlord of an income property has to deal with all these headaches. Landlords who have a lot of money can hire other people to handle these things, but most of us investing in real estate don't start with such full pockets.

Valuing an income property is more complex than valuing a residence. When you buy a residence, you are calculating your ability to pay a mortgage out of your own earnings. When you buy an income property, you're calculating how the income (rents) will help pay the mortgage.

So how to value an income property? An income property has an annual net operating income, or NOI. This is a figure of rental income less anticipated vacancies, maintenance and other expenses, not including interest payments or other debt related to the property. Most investors divide the NOI by something called the "cap rate" to come up with the proper value for one apartment in a complex. The cap rate relates to the expected annual rate of return on the property, and most income property buyers recommend using a cap rate of 9% (0.09) or 10% (0.10) when evaluating a property. So a property with an NOI of $100,000 and a cap rate of 9% would have a value of $1.1 million. This kind of simple calculation isn't perfect, but in a real-estate market that is increasingly frantic, doing even simple math can help you understand if you're overpaying for a property. Like investing in stocks, investing in real estate works best when you don't overpay. Cap rates vary depending on all kinds of local variants, such as the proximity of good schools, safety and local economic growth.

Trouble pulling the trigger on your first home?

2008-11-29T19:08:00.001-06:00

Tips on making the move to homeowner By Melissa Paul

You’ve made up your mind to buy a place of your own. You’ve saved a hefty down payment. You’ve poured over the daily downloads for months on end. You’ve made open house tours part of your weekend ritual. But months, perhaps years, have passed and you find yourself still in your rental, no closer to being a homeowner than when you started. But why?

Perhaps, because your current home is familiar. You know exactly what to expect. You’ve come to accept its shortcomings whether they are loud neighbors, a leaky ceiling or scant street parking. There are few surprises.

For many first-time homebuyers, pulling the trigger can be a frightening experience. Will you be happy there? Will you like your neighbors? Will you be tied down, house rich and cash poor? What if you lose your job? Will you hate your commute? In short, your fears stem from the unknown.

Paolo Forte is the eternal condo-shopper. “I’ve been looking for four years," says the 35-year-old Boston resident. "I have actually seen condos come on the market, sell, and then be resold a second time. While I’ve been waiting, condo prices continue to rise, and I keep spending more money on rent.”

In Betsy Townsend’s 10 years as a Realtor® in Boston’s pricey Beacon Hill, she’s seen everything. “I find that people often hesitate to make the ‘biggest purchase of their life’ because they fear they will make a ‘bad investment’ and pay too much,” she said. “Sometimes people lose site of the fact that they are looking for a place to live instead of just an investment.”

Still, there is hope anyone like Forte who have hesitated when they should have been bidding. You are surrounded by family, friends and co-workers who took the leap and are reaping the benefits. Give these steps a try and you could be among them:

Get comfortable with your finances: Anticipate the new costs that you will incur such as taxes, homeowners insurance, utility bills, and commuting costs. This will help you determine the maximum price you can spend on a house. Enlist the help of a financial expert if you need help. Remember, the first year is the hardest; you will start to receive tax benefits in year two.
Partner with a Realtor: Even though the internet gives you access to endless amounts of market information, don’t be fooled into going it alone. Instead, try out a few realtors and when you find one you like who listens to you, stick with him. He or she can line up properties to view, answer many of your questions, and make connections for you in your new community. Best of all, Realtors often have the inside track on a new properties just coming on the market.
Accept some risk: Realize that there is uncertainty in everything, but no matter what happens, you will deal with it. Ask family and friends about their experiences and learn from them. Be sure to keep some cash reserves in the bank as a safety net. And remember, you have home owners insurance for a reason.
Fine tune your “must-haves”: Is there a community that you absolutely want to live in? Are you adamant about wanting a garage, a fireplace or a finished basement? Make your list of what’s important to you and look for it. You may find that you are willing to sacrifice one feature, if the rest is fabulous. If you are not crazy about the house, don’t bid. It’s important that you love it at the outset.
Be ready to bid: Great houses don’t stay on the market long. Sometimes one open house leads to three offers. If you love it, be ready to make your best offer. If you are wavering, ask yourself, “How will I feel if I don’t get this house?” You might just get it, and if not, at least you’ll you know you tried.
Reap the reward: Owning a home can be one of the most exciting and satisfying things you’ll ever do in your life. It’s an investment that can pay you personal dividends as well as financial.

For Forte, his 2007 new year’s resolution is to pull the trigger on a new home. “I’m finally ready to take the step. I’m tired of standing on the sidelines. I’ve set a deadline and I am ready to bid when I see it. It’s been a long time coming, but I know I am on my way to being a homeowner.”

10 benefits of buying at the end of the year

2008-11-24T17:51:00.002-06:00

By Michele Dawson

With interest rates for 30-year fixed mortgages still hovering at around 6 percent, the end of the year is a great time for renters to become homeowners, growing families to move to more accommodating homes, and Baby Boomers to find houses that fit their evolving lifestyles.

In addition to low interest rates, there are other benefits to buying at the end of the year, including:

Tax savings. Closing on your new home by Dec. 31 means you can deduct mortgage interest, property taxes and points on your loan on your income tax return. You can also deduct the interest costs associated with a home equity loan. These deductions are significant, especially in the early years of your loan when you are paying off so much interest.

Sellers might be more motivated. Many sellers will also be anxious to sell by the end of the year so that they, too, can enjoy tax savings on the next home they purchase. That means you may have more leverage during negotiations and they may be willing to accept lower than their listing price. However, if you're in a strong seller's market, you'll want to be conservative -- and always heed the advice of your real estate professional.

If you're buying a new house, there's a good chance builders will be offering incentives. Many builders will throw in nice little extras to sell as many houses as they can by the end of the year.

Generally speaking, your housing choices during the fall are still healthy. By December there are traditionally fewer houses on the market. October and November are great months to go house hunting.

It's easier to move. Many moving companies are booked six or so weeks in advance during the busy summer months. In the fall and winter it's normally easier to secure the services of a moving company or rental equipment on shorter notice.

A new home for the holidays. The holiday season is a great time to celebrate your new home with family and friends.

In addition, you'll enjoy the many benefits that come with homeownership, regardless of what time of year you buy, including:

Paying toward something you own. If you're renting, your rent payment goes toward something that will last you a month -- a place to live for 30 or so days. When you buy a house, your monthly mortgage payment goes toward something you own.

Consistent payments. Landlords have the discretion to increase your rent, plus it's exposed to inflation. Once you secure a mortgage, you can rely on consistent payments (if you have a fixed-rate mortgage).

A place to make your own. When you own your house, you can update your kitchen, paint your home's exterior in any color you choose, change your fixtures, and replace your carpeting -- all with the knowledge that the changes you make are your own.

Gaining equity. In the beginning, most of your payment goes toward interest. But gradually more will go toward paying off your principal, meaning you build up equity -- or savings -- in your home. Another factor in equity is appreciation. As home values go up in your area, so too does your rate of equity.

Number of first-time home buyers is increasing

2008-11-21T00:04:00.001-06:00

Survey shows they are taking advantage of falling prices, interest rates

The Associated Press

Low home prices and excess supply helped drive a rise in first-time U.S. home buyers and reduce excess inventory, according to a study released Saturday by The National Association of Realtors.

According to the survey, which was released at the 2008 Realtors Conference & Expo, the number of first-time buyers rose to 41 percent from 39 percent of all transactions in 2007.

"First-time buyers are much more flexible in entering the market because they aren't concerned about selling an existing home," National Association of Realtors Chief Economist Lawrence Yun said in a statement.

Yun attributed the increase to low home prices, "plentiful" supply and affordable interest rates. Looking ahead, Yun expects further increases in first-time home buyers because of a temporary first-time buyer tax credit and improvements to the FHA loan program.

"It's been an optimal time for entry-level buyers with a long-term view," Yun said.

According to the study, the median age of first-time buyers was 30, down from 31 in 2007.

The median income for a first-time buyer was $60,600 and typical first-time buyers bought homes costing $165,000.

Of first-time buyers who made a down payment, 69 percent used savings and 26 percent used money from a friend or relative. Another 7 percent received a loan from a relative or friend, while 16 percent used funds from their investments. A fixed-rate mortgage was chosen by 92 percent of those surveyed.

Looking at home sellers, the median age was 47 with income of $91,000. Three-quarters of respondents were married, lived in their home for six years and had their home on the market for eight weeks.

Results from the survey come from a questionnaire that NAR mailed to 133,000 home buyers and sellers nationwide who bought their homes between July 2007 and June.

Educated Homeowners Surviving Housing Crisis

2008-11-20T17:46:00.002-06:00

by Broderick Perkins

If the experts have said it once, they've said it a thousand times, but they can't say it enough.

Homeownership doesn't come with a manual.

It's up to you to learn what you are getting into before you embark on what's likely the most valuable acquisition you'll ever complete.

It's no surprise new mortgage modification programs, foreclosure assistance and bankruptcy laws come with mandated homeownership counseling.

When you get schooled on the issues of homeownership, you have much greater chance to continue as a homeowner -- even when the economy crashes down around you.

The foreclosure rate for low-income homeowners who attended homeownership education programs had a foreclosure rate that was 20 times less severe than that for subprime borrowers and three times better than that found in the prime mortgage market during the second quarter of 2008, according to data from NeighborWorks America, a staunch non-profit advocate for healthy communities.

"The facts tell the real story," says Kenneth D. Wade, CEO of NeighborWorks.

"The vast majority of mortgages facilitated by NeighborWorks organizations are to buyers with low and moderate incomes and less than perfect credit scores, yet by obtaining quality mortgage advice these homeowners have been able to sustain homeownership during the most severe housing crisis since the Great Depression," Wade added.

Long before homeownership counseling was de rigueur, South County Housing, a chartered NeighborWorks member in Gilroy, CA, was doling out a heavy curriculum of homeownership studies along with sweat-equity programs and loans that look a lot like subprime mortgages.

However, thanks to smarts the group gave its largely Latino buyers, South County's portfolio foreclosure rates today hover around zero, belying rates in the rest of foreclosure-hammered California.

There's more.

When NeighborWorks compared its total loan portfolio's foreclosure start rate of 0.21 percent in the second quarter of 2008, it found the overall nationwide homeowner market had a foreclosure rate more than five times as much, 1.08 percent.

Nationwide, the foreclosure start rate for only conventional conforming loans was 0.61 percent, compared to NeighborWorks' portfolio rate of 0.21 percent.

Buying a home today without learning what it takes to keep it, is like a trip to a Vegas -- for insights on both the money-losing potential in the casinos and the kind of widespread homeownership devastation that comes with ignorance.

Learned homeowners consistently out perform those without the lessons.

Says Wade, "The idea that some observers now are pointing to low-income people as the cause of the financial crisis we’re facing today is just wrong. NeighborWorks organizations have a track record of providing one-on-one mortgage advice, encouraging homebuyers to avoid loans that they can not afford for the long term."

The message is brutally simple. Seek accredited homeownership counseling now and prepare in advance for your own home. Even if you already own your home, enroll in a counseling session.

There's plenty of counseling available. In October, the U.S. Department of Housing and Urban Development (HUD) doled out, to more than 2,300 local housing counseling agencies, $50 million in housing counseling training and housing counseling grants for first-time home buyers.

It's your tax money. Use it. Get home schooled.

Real Estate Outlook: Housing in Recovery

2008-11-18T21:27:00.002-06:00

by Kenneth R. Harney

With all the turbulence and losses in stocks and bad economic news in the headlines lately, you can easily lose perspective on what's really going on in the real estate sector.

For example, new mortgage applications increased last week by 12 percent, according to the Mortgage Bankers Association. Applications from people looking to buy houses with FHA loans were up by 15.3 percent, while applications from purchasers seeking conventional mortgages rose by six and a half percent.

How could that be, with all the grim economic news? Well, remember that there is a huge pent-up demand simmering away out there for housing -- especially from first-time buyers who want to scoop up low-priced deals.

When fixed interest rates drop -- and last week they were down by a quarter of a percentage point -- those buyers start doing the math and getting into the market with offers.

Fixed thirty year rates fell from six and a half percent to 6.24 percent during the week. Fifteen year rates broke below six percent to 5.9 percent, down from 6.14 percent.

Another piece of positive news you may not have noticed: Pending home sales were higher than year-earlier levels for the second straight month -- 1.6 percent higher than September 2007 .

Although pending sales contracts were down slightly for the month, in the western states they wee up by 3.7 percent, and now stand at an extraordinary 39.7 percent higher than they were at the same time in 2007.

At the National Association of Realtors' convention in Orlando, chief economist Lawrence Yun, warned the delegates not to expect a housing recovery overnight, certainly not with unemployment on the rise. But he projected a slow, steady, multi-year upward trend, with 5.02 million total sales this year, 5.3 million for 2009, and 5.6 million for 2010.

Already sales are up significantly in major markets in many parts of the U.S. Yun specifically mentioned the west coast of Florida, the Phoenix area, Virginia, Long Island New York, Kansas City, Minnesota and Idaho.

So here's the key point to keep in mind as you try to make sense of the headlines: The stock market is NOT the housing market. It's on a whole different set of tracks. And it's been in a highly volatile state for more than a month.

Housing, on the other hand, has already endured its painful correction for two and a half years … is now pretty much stabilized … and is slowing moving toward its cyclical recovery.

Can I qualify for a home loan?

2008-11-18T08:35:00.001-06:00

You may have heard some ads on the radio about how the market here in Nebraska is good and you can get a loan. This is very true. While there are far less options out there today for people with poor credit there are still plenty of options for people with good credit. In general, good credit would be defined by little or no late payments in the last year, no judgments or collections and at least 2 years after a bankruptcy. If you have had a bankruptcy, it is important that you establish positive credit. Assuming you have a stable job and your ratios are in line you can get a loan. What types of loans are available? The most common loan we are seeing right now are FHA. An FHA loan has more lenient income to debt ratios and require only 3% down. (Starting January 1 the down payment minimum increases to 3.5%) If you have served in the military, you may be eligible for a VA loan. This is a 100% loan. Since it is a government backed loan, the ratios are also more lenient.Finally, there is the Conventional loan. A conventional loan would be used if you have 20% down and excellent credit. Finally, if you are a first time homebuyer and don't make too much money, there is a 100% loan (USDA) and a $15,000 down payment assistance program, both are only available in rural areas. Both of these programs are available in our Eagle area. Don't forget, if you purchase a home before July 1, 2009, and you are a first time homebuyer, you are eliglible for a $7,500 federal tax credit. There has never been a better time to buy a new home!!!! Call Hartland Homes today to find out more or email us!

Nebraska Ranks 49th in Foreclosures!

2008-11-18T08:34:00.000-06:00

Nebraska Ranks 49th in Foreclosures! So what does this mean? Our foreclosure rate is the 2nd lowest in the US! That is good news. As I said in my last post, Nebraska isn't really experiencing the "foreclosure crisis" and our banks are in good shape too. Are we experiencing more foreclosures than 3-4 years ago? Yes. However, you need to keep in mind that our foreclosure rate is very low when compared to the rest of the nation. The following statistics are courtesy of RealtyTrac : For the month of October, in Lancaster county there were 8 foreclosures filed, that is 1 in every 14,413 housing units. Now, compare that to Riverside county in California: 6,897 foreclosures filed, that is 1 in every 106 housing units. Or even worse in Clark county, Nevada: 12,1550 foreclosures filed which is 1 in every 62 housing units! As you can see, what is happening in Lincoln is realitively minor.

2008-11-12T23:05:00.000-06:00

It seems lately all we hear about is the looming financial crisis and the bail out. I was very happy to read the Journal Star’s article on Nebraska banks being ok.
It is important for Nebraskans to know that, as with the Real Estate foreclosure mess, this financial crisis is national, NOT local! The media is largely national. And although what happens on a national level does affect us to a certain degree, the biggest factor in our economy right now is the negative media!!!
Did you know that the Real Estate foreclosure mess is primarily in Nevada, California, Arizona and Florida? These are places where prices rose exorbitantly and risky loans with adjustable rate mortgages were offered. Investors were buying like crazy to flip for a profit, counting on the increasing prices and incredible demand. When they got scared and pulled out, it caused a glut of supply and prices started falling. Regular people wanting to own but not able to afford these pricy homes took advantage of loose mortgage requirements and loans with lower starting interest rates. Then, when the rates began to rise, and prices began to fall, these homeowners (who were already stretched beyond their means and a credit risk too boot) could not make their payments or refinance to get extra money!
From 2004 to 2006, subprime loans, as a percentage of all mortgages, doubled. It is only reasonable to assume that default rate on these loans would be higher than on standard loans with more conservative requirements. However, keep in mind that over 95% of these loans are not in default! You would never know!

What does all this mean for Nebraskan’s who want to get a loan to buy a home? There are still lots of options available. What is not available is “no document loans”, 80/20 (100%) loans with less than stellar credit, or loans for 125% of the purchase price. What is available? FHA loans with 3% down and reasonable credit. (this will increase to 3.5% down on 1/1/09) There is also the VA 100% loan for veterans, 100% loan available in rural areas, $15,000 down payment assistance in rural areas, and don’t forget the $7,500 tax credit!