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
Tuesday, July 21, 2009
Friday, July 10, 2009
The Clock Is Ticking...Important Dates Home Buyers Need to Know About
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.
"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.
Friday, June 26, 2009
Introduction to Hartland Homes
Check out this SlideShare Presentation:
Introduction to Hartland Homes
View more documents from Lea Barker.
Tuesday, June 16, 2009
Lincoln 3rd most affordable for first-time homebuyers!
"Lincoln ranks high for first-time homebuyers" is the headline for an article in the Lincoln Journal Star today. According to a study done of median incomes versus home prices, a Lincoln zip code ranks 3rd in the U.S. This is no surprise to me. Lincoln's prices were never too far out of whack. One of the main reasons for the housing market crashing was prices being so inflated in places such as California, Arizona, Las Vegas and Florida. 5 years ago, you could not get a reasonable price for a home in these areas. Why? Lots of demand (high population), very little supply and in some areas this supply was due to land shortage.
My friends moved to California several years ago. In order to get a new home, they had to put their name into a lottery system and see if they were drawn. Then they had to take the home that was available... no choosing your lot, your style or colors. You were just lucky to get a new home. In addition to that, these homes were all over 1/2 million! Seems outrageous here in Lincoln, NE, doesn't it? That is exactly my point. Even when home sales where at their strongest, our prices still didn't sky rocket out of control. This is one reason why Nebraska is #50 in foreclosures (at the bottom). Another reason is our good old fashioned common sense about spending.
Yes, Lincoln is a very affordable place to buy your first home. Today, it is even more affordable with the $8000 tax credit and NIFA's ABC loan which covers your down payment until you get your $8000 from Uncle Sam. Hartland Homes has been and still is Lincoln's mos affordable builder, we also give you the most value for your money. If you are thinking about buying a home, you owe it to yourself to check us out before you buy! http://www.hartlandhomes.com/
Monday, June 8, 2009
New NIFA program lets you use your $8000 tax credit for down payment!
Finally! The Nebraska Investment Finance Authority (NIFA) has announced a program called the Advanced Buyer Credit (ABC) to allow first time home buyers who meet NIFA guidelines to use up to $6,800 of their future $8,000 tax credit for down payment, closing costs and other prepaid expenses.
Here's how it works: The buyer must invest a minimum of $1000. This includes earnest deposit, application deposit and costs paid outside of closing by the borrower. You may "borrow" up to $6,800 and this will be a second mortgage. There will be one payment at one interest rate for the both the first and second mortgage. The interest rate is 6.25%. However, when you pay off the second mortgage within 120 days after the closing date, the rate is reduced to 5.75% for the remainder of the loan. NIFA is not charging their standard 1% + .75% . This ABC loan is 0 + 0! (On a standard NIFA loan you would be charged 1.75% of the loan in fees ($1750 on a $100,000 loan) to get that loan. NIFA is making this loan very affordable!)
How will you pay off the second mortgage in 120 days? At closing, you will be required to file an amended 2008 federal tax return. Your lender will have the required documents to assist you. Once you receive your tax credit, generally it takes about 12 weeks to receive your check, you pay off the second loan.
Other requirements:
Your home loan must be an FHA or RD loan. (RD = rural developement - available in our Eagle community)
You must be a first time home buyer or not have owned a home in the last 3 years.
Meet NIFA qualifications: Maximum purchase price for a new home in a non-targeted area is $200,000. Maximum income limit in Lancaster County for 1-2 family members is $68,300 or $78,545 if there are 3 or more in your family.
Time is running out! Don't wait any longer. In order to take advantage of the $8000 tax credit you must close by November 30, 2009. It takes about 90 days to build a home. Check out Hartland Homes today for more information! Email (sales@hartlandhomes.com) or call us! (402-477-6668)
Here's how it works: The buyer must invest a minimum of $1000. This includes earnest deposit, application deposit and costs paid outside of closing by the borrower. You may "borrow" up to $6,800 and this will be a second mortgage. There will be one payment at one interest rate for the both the first and second mortgage. The interest rate is 6.25%. However, when you pay off the second mortgage within 120 days after the closing date, the rate is reduced to 5.75% for the remainder of the loan. NIFA is not charging their standard 1% + .75% . This ABC loan is 0 + 0! (On a standard NIFA loan you would be charged 1.75% of the loan in fees ($1750 on a $100,000 loan) to get that loan. NIFA is making this loan very affordable!)
How will you pay off the second mortgage in 120 days? At closing, you will be required to file an amended 2008 federal tax return. Your lender will have the required documents to assist you. Once you receive your tax credit, generally it takes about 12 weeks to receive your check, you pay off the second loan.
Other requirements:
Your home loan must be an FHA or RD loan. (RD = rural developement - available in our Eagle community)
You must be a first time home buyer or not have owned a home in the last 3 years.
Meet NIFA qualifications: Maximum purchase price for a new home in a non-targeted area is $200,000. Maximum income limit in Lancaster County for 1-2 family members is $68,300 or $78,545 if there are 3 or more in your family.
Time is running out! Don't wait any longer. In order to take advantage of the $8000 tax credit you must close by November 30, 2009. It takes about 90 days to build a home. Check out Hartland Homes today for more information! Email (sales@hartlandhomes.com) or call us! (402-477-6668)
Thursday, June 4, 2009
Everyone Wants a Lower Price, But What About the Impact of Interest Rates?
When shopping for a home, the natural tendency of any buyer is to want to pay the lowest price possible. It's important to keep in mind, however, that the sales price is not the only factor that determines what the monthly payment will be. In fact, the impact of higher interest rates can easily nullify any benefit of waiting for a lower price.
Why Should I Rush to Buy?
While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing. That being said, it would not be unreasonable for buyers to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.
Interest Rate Complacency
The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan. But buyers shouldn't be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!
Markets are Unforgiving
The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money. For anyone who was waiting for prices to drop even more, a 1.00% increase in interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value. If ...(you) are waiting for prices to fall even lower, be aware that while holding out for a lower price may help.. win the battle, ..(you) could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.
Clock is Ticking on Free Money
If you have clients who are planning on purchasing their first home this year, be sure to let them know that they need to take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace.
Article courtesy of Luke Mitchell
Cornhusker Bank
(402) 434-2224
luke.mitchell@cornhuskerbank.com
Why Should I Rush to Buy?
While you may have heard discussions in the media about the decline of property values in many markets, the rate of decline appears to be stabilizing. That being said, it would not be unreasonable for buyers to want to hold out for an additional decline of 10%, hoping to capture the best possible price. However, as property values have declined in many areas to 2003 levels or lower, waiting longer to pull the trigger could be a mistake. Many markets are reporting that lower property values have been bringing out investors and the result has been multiple offers on many properties. Properties priced correctly are not declining and, in fact, are creating a lot of interest.
Interest Rate Complacency
The problem is that many home buyers have been lulled into a sense of complacency because of extremely low interest rates. Since the Federal Reserve initiated its program of buying mortgage-backed securities, which control the rates people pay for their home loans, rates had been range bound, bouncing between 4.50% to 5.00% for a 30-year fixed-rate loan. But buyers shouldn't be confused by this. These rates are artificially low! Historically, interest rates have been above 6.00%. And any rate obtained below this number is a great deal, especially on homes with price tags from 2003!
Markets are Unforgiving
The last two weeks of May showed just how unforgiving the markets can be for people who choose to procrastinate. In just five days, interest rates from many lenders increased anywhere from .50% to 1.00% as fixed-income investors demanded more for their money. For anyone who was waiting for prices to drop even more, a 1.00% increase in interest rate would bring a higher monthly principal and interest payment on a home, even if the price of that same home had fallen an additional 10% in value. If ...(you) are waiting for prices to fall even lower, be aware that while holding out for a lower price may help.. win the battle, ..(you) could lose the war in terms of monthly payments and overall affordability. With the Federal Reserve scheduled to end its buying of mortgage-backed securities this year, rates only stand to go higher for those that wait. In fact, interest rates are already on the rise and could go higher from here.
Clock is Ticking on Free Money
If you have clients who are planning on purchasing their first home this year, be sure to let them know that they need to take possession before 12/01/2009 to be eligible for a tax credit of up to $8,000. In a survey conducted in March by Move.com, nearly 50% of home buyers are currently unaware that this free money exists in the marketplace.
Article courtesy of Luke Mitchell
Cornhusker Bank
(402) 434-2224
luke.mitchell@cornhuskerbank.com
Wednesday, May 27, 2009
First-Time Home Buyers Can Turn Tax Credit Into Cash
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
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
Tuesday, May 26, 2009
Home buyers may soon be able to use $8000 for down payment!
(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.
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.
Friday, May 22, 2009
Memorial Day
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!
Tuesday, May 19, 2009
$8,000 credit for first-time home buyers driving local market
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
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
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