Here is the next new thing coming down the mortgage pipeline!
This is a reminder that as of April 2nd, 2010 the UFMIP (or Mortgage Insurance Premium) for all FHA case numbers ordered on or after this date will be increased from 1.75% to 2.25%. This means the closing costs to purchase your home are increasing! If you intend to do an FHA loan in the immediate future, you must order your case number NOW!
If you need a referral to a reputable, reliable lender. Call me and I'll be happy to get you connected with someone I know who will take excellent care of you!
Tuesday, March 30, 2010
Wednesday, March 24, 2010
California New $10,000 Tax Credit for 1st time Buyers
Homebuyer tax credits are almost certainly returning.
California buyers can begin claiming $10,000 tax credits starting May 1 under a bill expected to be signed soon by Gov. Arnold Schwarzenegger.
The legislation allocates $200 million for more state tax credits – twice what was offered last year to 10,659 buyers of new, unoccupied homes. The state's newest housing stimulus will grant $100 million in tax credits to first-time buyers of existing homes and $100 million to anyone who buys a new, unoccupied home.
The state Franchise Tax Board on Tuesday estimated nearly 32,000 homeowners statewide might get the tax breaks. Buyers must close escrow or reserve a credit on or after May 1 and before or on Dec. 31 to qualify.
The governor signaled his intent Monday while signing two other budget bills. In a signing message, he commended the Legislature for approving the tax credit bill, saying it will stimulate "the housing industry, creating jobs for thousands of Californians."
Schwarzenegger proposed the housing stimulus in his January State of the State Address to help revive the California economy. The new state tax credit would take effect one day after expiration of a federal $8,000 tax credit for first-time homebuyers.
As was the case last year, buyers won't be eligible for the full $10,000 credit if they owe the state less than that amount over a three-year period. Buyers can get up to $3,333 off their tax obligation in each of the three years after buying a house.
Buyers must be at least 18 years old and be unrelated to the seller. They must live in the home they buy. First-time buyers are defined as those who have not owned a home in the past three years
"The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.
This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state)." - Added exerpt from C.A.R.
This information was taken from:
Schwarzenegger expected to sign new $10,000 California homebuyer tax credit
By Jim Wasserman
jwasserman@sacbee.com
Published: Wednesday, Mar. 24, 2010 - 12:00 am Page 1B
Last Modified: Wednesday, Mar. 24, 2010 - 10:48 am
Read more:
http://http//www.sacbee.com/2010/03/24/2629239/schwarzenegger-expected-to-sign.html#ixzz0j7qfCh0M
California buyers can begin claiming $10,000 tax credits starting May 1 under a bill expected to be signed soon by Gov. Arnold Schwarzenegger.
The legislation allocates $200 million for more state tax credits – twice what was offered last year to 10,659 buyers of new, unoccupied homes. The state's newest housing stimulus will grant $100 million in tax credits to first-time buyers of existing homes and $100 million to anyone who buys a new, unoccupied home.
The state Franchise Tax Board on Tuesday estimated nearly 32,000 homeowners statewide might get the tax breaks. Buyers must close escrow or reserve a credit on or after May 1 and before or on Dec. 31 to qualify.
The governor signaled his intent Monday while signing two other budget bills. In a signing message, he commended the Legislature for approving the tax credit bill, saying it will stimulate "the housing industry, creating jobs for thousands of Californians."
Schwarzenegger proposed the housing stimulus in his January State of the State Address to help revive the California economy. The new state tax credit would take effect one day after expiration of a federal $8,000 tax credit for first-time homebuyers.
As was the case last year, buyers won't be eligible for the full $10,000 credit if they owe the state less than that amount over a three-year period. Buyers can get up to $3,333 off their tax obligation in each of the three years after buying a house.
Buyers must be at least 18 years old and be unrelated to the seller. They must live in the home they buy. First-time buyers are defined as those who have not owned a home in the past three years
"The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit.
This credit is equal to the lesser of 5 percent of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state)." - Added exerpt from C.A.R.
This information was taken from:
Schwarzenegger expected to sign new $10,000 California homebuyer tax credit
By Jim Wasserman
jwasserman@sacbee.com
Published: Wednesday, Mar. 24, 2010 - 12:00 am Page 1B
Last Modified: Wednesday, Mar. 24, 2010 - 10:48 am
Read more:
http://http//www.sacbee.com/2010/03/24/2629239/schwarzenegger-expected-to-sign.html#ixzz0j7qfCh0M
Thursday, February 25, 2010
The Short Sale Solution!!!
Short Sales are the new solution for solving today's real estate crisis! Many of us bought or homes thinking that one day we would be able to refinance or sell. Due to recent economic times both of these options, to most, have become impossible. Trying to work with the banks to obtain a modification is almost a joke and the banks aren't working with homeowners to reduce their balances or recast their loans!
If you are like many of the 1 out 6 (that's 15%) people who are distressed (either in foreclosure or in default (30+ days past due)) then a Short Sale may be your best and only option.
I am a Certified Distressed Property Expert (CDPE) and I understand what it takes to navigate through the short sale process and I have the tools and skills necessary to get deals done. Take a look below at the outline of the many benefits of doing a Short Sale versus a Foreclosure. One of the most attractive benefits is that in the majority of situations all fees are taken from the proceeds of the sale. This means, in most cases, you pay nothing!
Don't trust just anyone to short sale your home. This is a job for an expert! A Certified Distressed Property Expert! YOU ARE NOT ALONE!!
Call me today and we can work together to find a solution that works for you!
If you are like many of the 1 out 6 (that's 15%) people who are distressed (either in foreclosure or in default (30+ days past due)) then a Short Sale may be your best and only option.
I am a Certified Distressed Property Expert (CDPE) and I understand what it takes to navigate through the short sale process and I have the tools and skills necessary to get deals done. Take a look below at the outline of the many benefits of doing a Short Sale versus a Foreclosure. One of the most attractive benefits is that in the majority of situations all fees are taken from the proceeds of the sale. This means, in most cases, you pay nothing!
Don't trust just anyone to short sale your home. This is a job for an expert! A Certified Distressed Property Expert! YOU ARE NOT ALONE!!
Call me today and we can work together to find a solution that works for you!
Sunday, February 21, 2010
Monday, January 25, 2010
90 Day Flip rule Changes!!!
Just in case you didn't see this...
90-Day Seasoning Waiver Expanded!
This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA's policies regarding the waiver of the 90-day seasoning required for sellers.
Here are the 6 things you need to know about these changes:
1. Waiver takes effect February 1st, 2010 for 1 year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must be arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller's acquisition cost, the lender must:
a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only.
To read the text of this waiver and specific details: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
90-Day Seasoning Waiver Expanded!
This update from FHA was released on Friday January 15th, 2010, as an excerpt from the CFR (Code of Federal Regulations) without a corresponding Mortgagee Letter and contains information about FHA's policies regarding the waiver of the 90-day seasoning required for sellers.
Here are the 6 things you need to know about these changes:
1. Waiver takes effect February 1st, 2010 for 1 year unless extended.
2. Investors are now exempt from the 90-day seasoning rule.
3. All transactions must be arms-length.
4. No identity of interest can exist between buyer and seller.
5. If sale price is 20% or more of the seller's acquisition cost, the lender must:
a. provide supporting documentation and/or a second appraisal and
b. order an inspection of the property and provide it to the buyer.
6. The waiver is limited to forward mortgages only.
To read the text of this waiver and specific details: http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Thursday, December 31, 2009
Wednesday, December 16, 2009
Monday, November 9, 2009
Home Buyer Tax Credit
Some great information about the extension of the tax credit from my good friend Laural Spindler at Net America Lending.
General Rules:
- A "first time home buyer" is defined as someone who has not owned a home in the last three years. If you are a "first-time home buyer", your tax credit will amount to 10% of the purchase price of your new home not to exceed $8,000.
- A "long-time resident" is defined as someone who has lived in the same primary home for 5 out of the past 8 years. If you are a "long-time resident", your tax credit will amount to 10% of the purchase price of your new home not to exceed $6,500.
- The tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it.
- The home must be purchased for less than $800,000 before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010.
- Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit
- You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendent (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces, and others
- If you are married, both spouses must qualify for the credit
- If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify. However, the total credit taken cannot exceed $8,000 (or $6,500 for "long-time residents"). Alternatively, if only one of the unmarried buyers qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit.
- The credit applies even if you have co-signers on your mortgage loan
- The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others!
How does the tax credit work?
A tax credit is kind of like a gift certificate that you can use to pay your taxes - it reduces your income tax bill on a dollar for dollar basis. Imagine paying your bill at IRS Restaurant, and then later getting an IRS Restaurant gift certificate. Normally, you would need to go back to IRS Restaurant and buy more food in order to use your new gift certificate. But what if IRS Restaurant allowed you to just turn in your gift certificate for cash? That's how the home buyer tax credit works! All you need to do is file a form with the IRS after you buy your new home and they will send you a refund check for $8,000 (or $6,500) - just like the example of IRS Restaurant that allows you to exchange your gift certificate for cash! Remember though, you'll receive the $8,000 (or $6,500) from the IRS AFTER you purchase your new home, so you cannot use the funds to help with your down payment.
To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any U.S. federal tax advice contained in this communication (including any attachments) was not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding tax-related penalties or (ii) promoting, marketing or recommending to another person any transaction or matter addressed in this communication. I recommend that you consult with properly licensed legal, tax and investment advisors for specific advice pertaining to your individual situation.
Tuesday, September 29, 2009
Just Be Aware!!!! - LOAN MODIFICATION ATTORNEYS UNDER INVESTIGATION
This is an important article I received today that I felt needed to be brought to your attention.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.
Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.
C.A.R. provides REALTORS® with many legal articles covering a wide range of topics of interest. Some of the new or newly revised legal articles available at http://qa.car.org are as follows:
Signs: Can They Be Regulated?
Firestorms: Basic Real Estate Legal Issues.
Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.
Edited by:
Stella Ling, stellal@car.org
Executive offices:525 South Virgil Ave.,
Los Angeles CA 90020
phone (213) 739-8200;
fax (213) 480-7724
Legislative offices:
980 Ninth Street #1430,
Sacramento CA 95814
phone (916) 492-5200;
fax (916) 444-2033
To view C.A.R.'s Privacy Policy click on this link:http://www.car.org/aboutus/privacypolicy
Written inquiries regarding Realegal® should be directed to Stella Ling, stellal@car.org.
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®
The State Bar of California has recently launched numerous investigations against attorneys for misconduct related to loan modifications. In a rare move, the State Bar has released the names of 16 attorneys under investigation, by opting to waive investigation confidentiality in favor of public protection. These attorneys have allegedly taken fees for promised services, but failed to perform those services or even communicate with their clients who face the possible loss of their homes. Their non-attorney staff may also be under investigation for unlawfully practicing law.
Not all attorneys engaged in loan modifications are unscrupulous. However, this announcement from the State Bar serves as a good reminder for REALTORS® and their clients to be careful when dealing with attorneys and others for loan modifications. Scam artists may intentionally associate or affiliate themselves with attorneys in an attempt to lend credence to their fraudulent schemes. The list of attorneys currently under investigation is available at http://calbar.ca.gov/state/calbar/calbar_generic.jsp?cid=10144&n=96395.
C.A.R. provides REALTORS® with many legal articles covering a wide range of topics of interest. Some of the new or newly revised legal articles available at http://qa.car.org are as follows:
Signs: Can They Be Regulated?
Firestorms: Basic Real Estate Legal Issues.
Realegal® is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 175,000 REALTORS® statewide.
Edited by:
Stella Ling, stellal@car.org
Executive offices:525 South Virgil Ave.,
Los Angeles CA 90020
phone (213) 739-8200;
fax (213) 480-7724
Legislative offices:
980 Ninth Street #1430,
Sacramento CA 95814
phone (916) 492-5200;
fax (916) 444-2033
To view C.A.R.'s Privacy Policy click on this link:http://www.car.org/aboutus/privacypolicy
Written inquiries regarding Realegal® should be directed to Stella Ling, stellal@car.org.
Wednesday, September 2, 2009
It's Time to Look Ahead
Ok people, the worst is behind us and it's time to prepare for the future. There are still some rocky times ahead and many of us are having to deal with some tough times right now, but there's light at the end of tunnel. Before you get there make sure you have a plan so when it hits your prepared.
A huge problem that I see so prevalent in today's society is instant gratification. In the olden days when you wanted to buy a home (or anything of value for that matter) you had bite, fight, scratch, scrimp, and save just to barely have enough money for a down payment. So when you finally had that money saved and you got that home, it meant something to you! That was your blood, sweat and tears that went into that down payment. In recent years, all you needed was a heartbeat and the lender told you you were qualified, you'd need zero money for a down payment and the seller would give you a credit for all your closing costs! Can you see the problem!!! There's no vested interest, there's no skin in the game!! I'm not saying I'm perfect or immune to it either. I've been caught up in myself, but the time has come to see things for what they are, make ourselves better and look and prepare for the future.
A great we do that is to start a budget. We know we've over spent before, but now we can learn from those numbers to help us have more money in the future. Here's a few simple steps to help get you on your way.
1) Go back over all your expenses for the past 6 months (this will take some time, but it's worth
it)
2) Separate them into home or Business expenses
3) Categorize each expense - Here are some examples of what I use
Groceries
Parking
Mortgage/Rent
Marketing
Bank Fees
Personal Grooming
Pet Care
Savings - (Yes, this is a category!! You must always remember to PAY YOURSELF
FIRST!!!!)
You get the idea. Do this for each of the past 6 months
4) Now look at What your income has been for the past 6 months (break it down monthly).
Have you been living within your means??
Where can you make cuts? What have you been spending too much money on?
For me it was food! I love to eat, but I was spending way too much money on it!
5) Use the average for the past 6 months of each of your categories to come up with a budget
amount. Now you have budget for this month, see if you can stick to it! Remember it's a
working budget make changes to each category as needed!
Here is a great rule to live by when it comes to your finances. 70-10-10-10
Live off of 70% of your income
10% goes to Savings (once you have at least 6 months of reserves (that means you if you lost your income you could still live with NO money coming in for 6 months) then you can start using this 10% for investment)
10% goes to Charity (Remember, you have to give to receive, you deal it out in slices and it'll come back to you in loaves)
10% goes to Investments (I'll leave this up to you!)
Take a few hours Tonight and get this done! It's the start of a new month and just think come December you could be buying all those holiday gifts with CASH instead of putting yourself further into debt!
Think about it, it's worth it!
And remember, I'm never too busy for you or your referrals!
A huge problem that I see so prevalent in today's society is instant gratification. In the olden days when you wanted to buy a home (or anything of value for that matter) you had bite, fight, scratch, scrimp, and save just to barely have enough money for a down payment. So when you finally had that money saved and you got that home, it meant something to you! That was your blood, sweat and tears that went into that down payment. In recent years, all you needed was a heartbeat and the lender told you you were qualified, you'd need zero money for a down payment and the seller would give you a credit for all your closing costs! Can you see the problem!!! There's no vested interest, there's no skin in the game!! I'm not saying I'm perfect or immune to it either. I've been caught up in myself, but the time has come to see things for what they are, make ourselves better and look and prepare for the future.
A great we do that is to start a budget. We know we've over spent before, but now we can learn from those numbers to help us have more money in the future. Here's a few simple steps to help get you on your way.
1) Go back over all your expenses for the past 6 months (this will take some time, but it's worth
it)
2) Separate them into home or Business expenses
3) Categorize each expense - Here are some examples of what I use
Groceries
Parking
Mortgage/Rent
Marketing
Bank Fees
Personal Grooming
Pet Care
Savings - (Yes, this is a category!! You must always remember to PAY YOURSELF
FIRST!!!!)
You get the idea. Do this for each of the past 6 months
4) Now look at What your income has been for the past 6 months (break it down monthly).
Have you been living within your means??
Where can you make cuts? What have you been spending too much money on?
For me it was food! I love to eat, but I was spending way too much money on it!
5) Use the average for the past 6 months of each of your categories to come up with a budget
amount. Now you have budget for this month, see if you can stick to it! Remember it's a
working budget make changes to each category as needed!
Here is a great rule to live by when it comes to your finances. 70-10-10-10
Live off of 70% of your income
10% goes to Savings (once you have at least 6 months of reserves (that means you if you lost your income you could still live with NO money coming in for 6 months) then you can start using this 10% for investment)
10% goes to Charity (Remember, you have to give to receive, you deal it out in slices and it'll come back to you in loaves)
10% goes to Investments (I'll leave this up to you!)
Take a few hours Tonight and get this done! It's the start of a new month and just think come December you could be buying all those holiday gifts with CASH instead of putting yourself further into debt!
Think about it, it's worth it!
And remember, I'm never too busy for you or your referrals!
Subscribe to:
Posts (Atom)