The Federal Housing Administration will raise prices and it will cost more money to get an FHA loan in 2010.
- The upfront increase will mean an extra $500 per $100,000 borrowed.
- Congress must still OK an increase in the annual premium.
- Premiums are going up to offset FHA losses on the housing market.
It's bad news for the 30 percent of borrowers who get FHA-insured mortgages. The FHA loan is popular because its minimum down payment is 3.5 percent, whereas most conventional loans require a down payment of at least 10 percent.
The FHA isn't a lender. Instead, it insures mortgages. If you get an FHA-insured mortgage and then default on it, the FHA reimburses the lender for financial losses. As the borrower, you pay for the insurance, even though the lender is the beneficiary. You pay for FHA insurance in two pieces: an upfront premium and an annual premium. The FHA will raise the upfront premium this spring, and will ask Congress for permission to raise the annual premium later.
And the agency will require a credit score of at least 580 to qualify for the FHA's 3.5 percent down payment program. A borrower with a lower credit score would have to come up with a down payment of at least 10 percent. This change won't have much effect, because most lenders require a credit score of 620 or 640 for FHA borrowers, anyway.
By Holden Lewis - Bank Rate
Monday, January 25, 2010
Tuesday, November 24, 2009
First-Time Homebuyer Credit Extended
The Homeownership and Business Assistance Act of 2009; which was signed into law on Nov. 6, 2009, extends and expands the first-time homebuyer credit allowed by previous Acts.
The New Law:
> Extends deadlines for purchasing and closing on a home.
> Authorizes the credit for long-time homeowners buying a replacement principal residence.
> Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
This extension is a huge incentive to get first time home buyers into properties that are priced just right, due to the pre-foreclosure and foreclosure issues that California is facing right now. Jeff Kaut and Associates has the ability to work with anyone looking to either list a property, or buy a home that is suitable for their needs. We have a full staff that has numerous years of experience in the short sale division, and with bank owned homes. We look forward to speaking with you today! Visit Jeff Kaut and Assoicates.
The New Law:
> Extends deadlines for purchasing and closing on a home.
> Authorizes the credit for long-time homeowners buying a replacement principal residence.
> Raises the income limitations for homeowners claiming the credit.
Under the new law, an eligible taxpayer must buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return.
For the first time, long-time homeowners who buy a replacement principal residence may also claim a homebuyer credit of up to $6,500 (up to $3,250 for a married individual filing separately). They must have lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the replacement home is purchased.
People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after Nov. 6, 2009. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers. The existing MAGI phase-outs of $75,000 to $95,000 or $150,000 to $170,000 for joint filers still apply to purchases on or before Nov. 6, 2009.
This extension is a huge incentive to get first time home buyers into properties that are priced just right, due to the pre-foreclosure and foreclosure issues that California is facing right now. Jeff Kaut and Associates has the ability to work with anyone looking to either list a property, or buy a home that is suitable for their needs. We have a full staff that has numerous years of experience in the short sale division, and with bank owned homes. We look forward to speaking with you today! Visit Jeff Kaut and Assoicates.
Thursday, October 29, 2009
Tax Credit Extended!!
A Senate committee reached a compromise yesterday to extend the $8,000 tax credit for first-time home buyers, a boost the housing industry expects will help it pull out of its two-year-old downturn. Under the Senate panel compromise, buyers must have sales agreements in hand by April 30, 2010. But they will have until June 30 to go to settlement. This is a huge relief to many prospective home buyers. Especially with the massive amount of homes that are in preforeclosure, this gives extra incentive to people who fit into this category. The experience that Jeff Kaut and Associates have with short sales and bank owned homes, can get you; the new home buyer, the house you desire with the $8,000 tax credit. Nowadays with the economy reaching an all time low, this extra money is a huge help.
Call us today so we can get you the best deal, and make YOU money in the long run!
Call us today so we can get you the best deal, and make YOU money in the long run!
Wednesday, October 21, 2009
Hop on The House Wagon
We cannot stress this enough! Although the housing market has been extremely unpredictable within the last year, there is hope that we can regain control! The current market trend in El Dorado Hills has been a positive one. As of the month of October, there are a total of 330 active listings available, which is not even including the short sale demographic. Of that 330, 140 of the listings are priced under $500,000. This is a huge inspiration to many people who have been waiting for the right time to buy. 62% of the houses under that $500,00 mark are actually pending which shows an increase of buyer confidence as well as many new happy homeowners. Not to mention the average days on market (DOM) for sold properties are a mere 63 days! That is an incredible jump from last years market trends! Not only are buyers recieving great deals, sellers also have an advantage of being able to put up that listing sign and have prospects within a matter of months. Now is the time to contact Jeff Kaut and Associates to either list your house, or actively search for a home that suits your personal needs. Remember, we have Real Estate Experience You Can Count On!
Thursday, October 1, 2009
Federal tax credit for 1st time homebuyer's soon to expire
Buyers should commit soon if they want to get that federal's $8,000 first-time homebuyer tax credit.November 30 is the scheduled date that this tax credit is due to expire. Since the majority of escrows are taking 45 to 60 days to complete, the window of opportunity is narrowing down fast.
Although the real estate industry is trying to get the tax credit extended, we do not know if his will happen.
The California Association of Realtors issued survey results stating that 40 percent of first-time buyers would have sat it out this year if they hadn't been promised the $8,000 credit.
So if you are one of the many who are debating whether now is a good time to buy your first home, the answer is YES!
With our teams's combined knowledge, experience and perserverance, Jeff Kaut & Associates team can find the perfect home for you.
Contact us today, jeffkautreteam@yahoo.com or
916-505-7355
DRE #01086297
Wednesday, September 30, 2009
Sacramento CA vs Folsom CA Real Estate Stats
The median sales price in Sacramento CA for June 09 to August 09 was $142,000 compared to Folsom CA at $314,662. This represents an increase of 9.2%, or $12,000 for Sacramento and an increase of 30%, or $104,374 for Folsom compared to the prior quarter and a decrease of 13.9% for Sacramento and an increase of 19.1% for Folsom compared to the prior year. Over the last 5 years sales prices have depreciated 50.3% in Sacramento and appreciated 8.1% in Folsom.
(Information provided by Trulia.com)
It's a perfect time to buy wherever you are looking!! Contact Jeff Kaut & Associates, jeffkautreteam@yahoo.com or 916-505-7355, to help you find the perfect home for you.
DRE #01086297
Wednesday, September 23, 2009
Homeownership Myths
Myths About Homeownership
How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:
Myth: It’s a bad time to buy a house. Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.
Buying a house is just too risky; I'll end up in foreclosure.Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!
Myth: You can't buy a home in the U.S. if you're not a citizen. Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.
Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage. Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.
Myth: Lenders share your personal financial information with other companies. Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.
Myth: If you're late on your monthly mortgage payments, you'll lose your house. Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).
If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.
Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.
Myth: You can't get a mortgage if you've changed jobs several times in the last few years. Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit. (http://www.freddiemac.com/)
The Kaut & Associates Team have the knowledge, experience and perserverance to find the perfect home for you.
Contact us at jeffkautreteam@yahoo.com
DRE#01086297
How lenders assess mortgage applications has changed a lot since 2007. What was acceptable a few years ago may not be so today. The following are some common homeownership myths:Myth: It’s a bad time to buy a house. Fact: Mortgage rates for fixed-rate mortgages are at historical lows, creating stable payments and long-term savings for today's homebuyers and house prices have fallen at a record pace. Additionally, there is some financial relief for first-time homebuyers through the recently enacted Housing and Economic Recovery Act of 2008 and foreclosures have increased to record levels, leaving lots of housing supply on the market with unequalled demand. The combination of these factors generally equals greater affordability, and makes now a good time for many to consider homeownership.
Buying a house is just too risky; I'll end up in foreclosure.Fact:The recent news on foreclosures is understandably frightening. Certainly if you lose your job, go through a divorce, or suffer an illness, you could have real trouble paying your mortgage, or rent for that matter. In recent years, we've even seen an increase in excessive obligation–just too many bills–as a reason for delinquency. While you can't always solve for the unexpected twists and turns of life, good budgeting and responsible credit practices can decrease the likelihood of a foreclosure. Also if you have trouble paying the mortgage, contact your lender immediately!
Myth: You can't buy a home in the U.S. if you're not a citizen. Fact:If you're a permanent or non-permanent resident alien, you can purchase a home in the U.S. In order to qualify for a loan you typically need to be a permanent resident alien with a valid USCIS card or, a "Green Card" and Social Security number. If you are a temporary resident alien with a valid work permit and Social Security number and have been in the United States continuously for the last 2 years, with steady employment and good credit history you may also qualify for a loan.
Myth: If you don't have a bank account or credit cards, you can't qualify for a mortgage. Fact: Having a bank account is always a good idea and helps you establish credit. However, lenders can approve you for a mortgage even if you don't have a bank account or credit cards. You'll likely need to keep records showing a history of payments you've made for items such as rent, utilities, and car payments.
Myth: Lenders share your personal financial information with other companies. Fact: By law, banks and other financial institutions are restricted in their uses and disclosures of information about you. In some situations, you may choose to restrict the disclosure of your information if you don't want it to be shared. If you are unsure how your information will be used, don't be afraid to ask – it's your right to know.
Myth: If you're late on your monthly mortgage payments, you'll lose your house. Fact: If you have a financial hardship, like the death of your spouse or a medical emergency, and fall behind, it's possible to keep your home and get back on track if you contact your lender early (the organization to whom you make your monthly mortgage payments, sometimes also referred to as your mortgage servicer).
If you experience a change in your financial situation and think that you will fall behind or have fallen behind on your mortgage payment, call your lender immediately.
Despite popular belief, lenders do not want to foreclose on homes. They want to keep you as a customer for life. In fact, lenders typically lose money in the foreclosure process, so they are always looking for ways to help you make ends meet.
Myth: You can't get a mortgage if you've changed jobs several times in the last few years. Fact: Not true. You can change jobs several times and still get a loan to buy a home. Lenders understand that people change jobs. The important thing is to show that you've had a stable income and good credit. (http://www.freddiemac.com/)
The Kaut & Associates Team have the knowledge, experience and perserverance to find the perfect home for you.
Contact us at jeffkautreteam@yahoo.com
DRE#01086297
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