Register Real Estate Advisors

Not everyone can qualify for a VA Loan.  You must have served in the military.  Also, not every lender is VA Direct Endorsed.  A direct endorsed
lender can process and approve a VA loan in-house, without sending the file to
the VA for approval.  The only thing that they will need to go through VA for is the
appraisal.  This makes the loan process as fast as FHA and Conventional Loans.  So if you use a VA Direct Endorsed Lender you could close on your new home in thirty days.

Helpful Information About V.A. Loans:

1. VA loans do not require down payments.
2. A clear Wood Destroying Insect Report is
   required at closing. The report must also not have any conducive conditions- so
   be sure and check for that when you get the report. If there are conducive
   conditions, they must be corrected and a new report produced showing no
   evidence of infestation or conducive conditions. The buyer is not allowed to
   pay for the termite report, seller must pay for it at closing or reimburse the
   buyer, so be sure the invoice as well as the report get to lender prior to closing.
3. If the property has well or septic system, an
   inspection is always required by a licensed inspector.
4. The seller can pay up to 4% of sales price
   towards borrowers closing costs in addition to points for the borrower.
5. The maximum loan amount for VA loan is $417,000.
6. If a borrower has used their VA eligibility
   before, they may still use it again if it has been restored (they may even have
   a second VA loan if they have not used all their eligibility on the first
   loan).
7. VA loans must be owner occupied loans only- they
   cannot be used for  second homes or investment property.
8. There is no Mortgage insurance on a VA loan, but
   there is a Funding Fee which can be rolled into the note or paid by the seller or
   buyer upfront.

The $8,000 First Time Home Buyer Tax Credit will be ending soon.  You must be under contract by the end of April to qualify for the tax credit and must close on your home by the end of June.  To qualify, the purchaser(s) may not have owned a primary residence in the last three years.  It does not have to be a resale home, you may purchase from a builder.  You should use a Realtor even when you purchase from a builder.  It’s free for buyer’s to use Realtors and your Realtor will be representing you and looking out for your best interest.  You can receive the maximum $8,000 tax credit if you are single with an income up to $125,000 or married with an income up to $225,000.  The amount of the tax credit decreases as home buyers income approaches the maximum limit.  Homebuyers earning more than the maximum qualifying income are not eligible for the credit. 

There is an existing home buyer tax credit currently in place for $6,500.  To use this tax credit you must sell your current primary residence that you have lived in for atleast five consecutive years and purchase another primary residence.  If you don’t want to sell your current home, but have lived there for five years and now want to move to a new primary residence, you can still qualify for the tax credit.  There are some income requirements, so check with your accountant to be sure you qualify. 

 Neither of these credits have to be repaid as long as you live in the new primary residence for atleast three years. 

 For Active Duty Military personnel living overseas during any part of this tax credit are still eligible to take advantage of the tax credits until April 30, 2011. 

 To take advantage of these tax credits call me today because time is running out to qualify.  For additional questions about the tax credit you can contact a tax professional or the IRS at 800.829.1040.

As a member of USAA, my husband and I receive their USAA Mailer, the Member’s Guide to Financial Security. In our latest issue, there was a wonderful article about the different metro areas in the United States and the best places to move right now based on the housing market. Although it’s a great article, I am just summing up the information below from the article written by Kerry Hannon.

There were three areas that were indicated as the median home price projected to increase in 2010 and they were Tacoma, Washington, Pittsburg, Pennsylvania, and Memphis, Tennessee. The areas where the median home price is projected to decrease in 2010 were Las Vegas, Phoenix, Amarillo, Denver, Chicago, Detroit, and Orlando. Job loss is a major factor. Though unemployment were seems to be leveling off, many borrowers who have been out of work are likely to fall into foreclosure.

In a topsy-turvy housing market, it’s more important than ever to know the facts before buying or selling. From California to the Carolinas, homebuyers are snapping up some of the best home prices in decades. Sellers, on the other hand, grapple to get what they believe is a decent offer. The housing market may be on the mend, but things aren’t likely to change overnight. Sellers are not lowing their prices, they are just taking what people will give them for their homes.

Hope for the future?

There are glimmers that the housing market is beginning to lift out of one of the worst slumps since the Great Depression. In 2009 low home prices pushed sales higher in many parts of the country. But the encouraging news should be met with caution. Why?

The boost was fueled primarily by:

• Foreclosure sells.
• A tax credit for first-time home buyers.
• The Federal Reserve’s program of buying most new mortgages to keep rates low for mortgage seekers.

Some experts argue the market already hit bottom, but others do not agree. The national median home price is forecast to decline 11.5% by the third quarter of 2010, to $157,707 from $178,200, according to the Fiserv Case-Shiller Home Price Index. Then, it’s expected to rise 4.8% by the third quarter of 2011.

A major factor is job losses. Though unemployment seems to be leveling off, many borrowers who have been out of work for some time are likely to fall into foreclosure or short sales. Ultimately, that will dump more houses on the market, dragging down prices. Detroit currently has the lowest housing prices in the country due to the recession in the auto industry. And homw prices in osme of the nation’s biggest metro areas – New York City, Los Angeles, and Chicago – are expected to slide further. Prices are expected to start up again in 2011 in Los Angeles and Chicago.
But there are locations, such as Charlesston, S.C., and parts of Washington state, where home prices are improving. And in other places the market is still depressed.

Sage Advice for Buyers

• Prepare your finances – In general, your monthly mortgage payment, including principal, interest, real estate taxes, and homeowners insurance, should not exceed 28% of your gross monthly income. And don’t overlook the variable cost of homeowners insurance from state to state.
• Consider your horizon – Prices aren’t expected to improve significantly in most areas for several years, so think twice before you buying.
• Be pragmatic – Avoid buying something too unusual, but you don’t have to buy a cookie cutter house, either.
• Be hard-nosed, but reasonable – Don’t expect a seller to take off $40,000 from the sale price, but do offer around 10% below what comparable houses are selling for in the neighborhood. Offer less, but be willing to pay the selling price if the seller will pay closing costs. And be willing to walk. If there are other homes that fit your criteria, don’t get stuck fighting for one.

Sage Advice for Sellers

• Set a fair price – If you’re anxious to sell, list your home at 10% below comparable homes in your neighborhood. To get attention, set your selling price at the low end of a price scale.
• Use online help selectively – Check Zillow.com, HomeGain.com, RealEstateABC.com, Trulia.com, and other online sites that offer home value estimates. But be aware that data may be old and spotty on details.
• Be open-minded – Many buyers come in with lowball offers, but don’t be fooled. They’re probably testing the waters. Keep the dialogue open and hopefully you will be able to strike a deal.
• Give and you will receive – Buyers want to think they got a steal, so make them feel like they did. Pick up the tab for some of the closing costs, dangle a cash bonus of $1,000 to a buyer’s agent, toss in new appliances, spring for repairs, or pay for a home warranty.
• Use an agent – It pays to list your property with a knowledgeable agent. Get a market analysis. Make sure the agent is going to market your property properly both online and using traditional marketing.