Friday, April 16, 2010
Only 2 Weeks Left
There's only 14 days left for you to take advantage of the $8,000 first time home buyer Federal Tax Credit. Combine this with the new California First time Home Buyer's tax credit, and there exists an amazing, but very brief window of opportunity has presented itself to California first-time home buyers. If you want to get your hands on this whopping $18,000 in combined tax credits courtesy of Uncle Sam and our very own Governor you must start looking now! Buyer's must be in contract (made and have an offer accepted) BEFORE May 1st . If you're on the fence, you only have 14 days left to take advantage of this market and sign a contract to get California's $10,000 tax credit. The transaction MUST close before July, so you'll want to make sure that you keep everything in order and stay on your transaction. If you are serious about purchasing a home, now is the time to do it. Inventory is still near an all-time high and interest rates are still in the low to mid 5's! Contact me today, and we'll get the ball rolling. L'aurence Durr (310) 665-1145
Thursday, January 28, 2010
Mortgage Rates decline for third Straight week!
According To Freddie Mac, Long-term mortgage rates fell once again for the third straight week! This means that essentially it's costing less money to acquire a home loan. With 30 year fixed loans falling just below 5% (this week's average is 4.99 percent), and adjustable-rate mortgages also fell.*
What does this mean to you?
It means it's still a great time to purchase a property! With inventory at an all time high** ( Experts predict another 3 million foreclosures to flood the market next year) and rates still at historic lows, what's keeping you on the fence? The government has also extended the tax credit long and wide. Whereas the deadline was Dec 1, 2009 you are still eligible for the first time homebuyers $8000 tax credit f you purchase between now and April. Already own a home? You can still purchase a property between now and April and get a $6,500 tax credit.
Points to remember on the New Tax Credit
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Questions and Comments are welcomed!
*Source: Los Angeles Times, E. Scott Reckard)
http://www.latimes.com/business/la-fi-mortgage-rates22-2010jan22,0,5554562.story
**http://money.cnn.com/2009/11/06/real_estate/tax_credit_extended/
What does this mean to you?
It means it's still a great time to purchase a property! With inventory at an all time high** ( Experts predict another 3 million foreclosures to flood the market next year) and rates still at historic lows, what's keeping you on the fence? The government has also extended the tax credit long and wide. Whereas the deadline was Dec 1, 2009 you are still eligible for the first time homebuyers $8000 tax credit f you purchase between now and April. Already own a home? You can still purchase a property between now and April and get a $6,500 tax credit.
Points to remember on the New Tax Credit
Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.
Questions and Comments are welcomed!
*Source: Los Angeles Times, E. Scott Reckard)
http://www.latimes.com/business/la-fi-mortgage-rates22-2010jan22,0,5554562.story
**http://money.cnn.com/2009/11/06/real_estate/tax_credit_extended/
Thursday, January 21, 2010
Turn Key Properties? Get the Flip outta here!
Good Afternoon Everyone,
Friday the Us Department of Housing and Urban Development announced that beginning February 1st there will be at 1 year moratorium on the Federal Housing Administration's 90 day flipping rule. Okay, so what does that mean to you, the consumer? Well first let's examine what that 90 day flipping rule actually is:
Well a while back the Federal Housing Administration (herein after referred to as FHA) noticed a lot of fraud involving investors who were purchasing properties and quickly selling them at inflated prices to friends or associates and share the profit.
Now fast forward: in today's market with the abundance of foreclosures and no end to them in sight, we have many properties i that have shown the frustration of homeowners, homes that bear the wear and tear of the years or just even those that have suffered what we like to call "deferred maintenance" and need thousands of dollars of work. Well an investor purchases this property, rehabilitates it into turn-key condition and places it back on the market. Sounds Good right? Wrong. Because the investor has owned the home for less than 3 months, FHA will not finance a loan on the property until after this 90 day period. This means that either it will sit on the market or be taken by the few conventional buyers who have the money to pay the 20% down. In today's market, with money seeming more and more akin to an abstract idea than a form of currency, the average buyer is a consistently hardworking, middle-class, first-time homebuyer who doesn't have the funds required to use conventional financing (20% down etc.) and has just recently managed to save the 3.5% required as a down under FHA guidelines.
Beginning February 1, 2010, and lasting for one year, FHA will relax this restriction allowing more inventory to flow into the market, and more homeowners to purchase move-in condition properties through FHA. There is however a caveat to this, for properties that are sold for 20% or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions. That shouldn't be a problem, the investors need money and the buyers need homes....right? In any case I'll expect to see the average sit time of those listings reduce greatly and bidding wars ensue.
You can View the Letter Issued by Hud Here
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Terms To Know:
FHA- Federal Housing Administration
Flipping- Purchasing a property and quickly reselling it for profit, usually in the span of a few weeks to a couple months
FHA Financing: the federal agency in the Department of Housing and Urban Development that insures residential mortgages
Conventional Financing- A loan secured by investors, but neither insured by the FHA nor guaranteed by VA. Both fixed rate and adjustable rate loans are available with conventional financing.
HUD- U.S. Department of Housing and Urban Development
Turn-Key condition: Referrs to a property that is constructed/rehabilitated by an investor/developer and sold or turned over to a buyer in move-in condition
Friday the Us Department of Housing and Urban Development announced that beginning February 1st there will be at 1 year moratorium on the Federal Housing Administration's 90 day flipping rule. Okay, so what does that mean to you, the consumer? Well first let's examine what that 90 day flipping rule actually is:
Well a while back the Federal Housing Administration (herein after referred to as FHA) noticed a lot of fraud involving investors who were purchasing properties and quickly selling them at inflated prices to friends or associates and share the profit.
Now fast forward: in today's market with the abundance of foreclosures and no end to them in sight, we have many properties i that have shown the frustration of homeowners, homes that bear the wear and tear of the years or just even those that have suffered what we like to call "deferred maintenance" and need thousands of dollars of work. Well an investor purchases this property, rehabilitates it into turn-key condition and places it back on the market. Sounds Good right? Wrong. Because the investor has owned the home for less than 3 months, FHA will not finance a loan on the property until after this 90 day period. This means that either it will sit on the market or be taken by the few conventional buyers who have the money to pay the 20% down. In today's market, with money seeming more and more akin to an abstract idea than a form of currency, the average buyer is a consistently hardworking, middle-class, first-time homebuyer who doesn't have the funds required to use conventional financing (20% down etc.) and has just recently managed to save the 3.5% required as a down under FHA guidelines.
Beginning February 1, 2010, and lasting for one year, FHA will relax this restriction allowing more inventory to flow into the market, and more homeowners to purchase move-in condition properties through FHA. There is however a caveat to this, for properties that are sold for 20% or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions. That shouldn't be a problem, the investors need money and the buyers need homes....right? In any case I'll expect to see the average sit time of those listings reduce greatly and bidding wars ensue.
You can View the Letter Issued by Hud Here
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Terms To Know:
FHA- Federal Housing Administration
Flipping- Purchasing a property and quickly reselling it for profit, usually in the span of a few weeks to a couple months
FHA Financing: the federal agency in the Department of Housing and Urban Development that insures residential mortgages
Conventional Financing- A loan secured by investors, but neither insured by the FHA nor guaranteed by VA. Both fixed rate and adjustable rate loans are available with conventional financing.
HUD- U.S. Department of Housing and Urban Development
Turn-Key condition: Referrs to a property that is constructed/rehabilitated by an investor/developer and sold or turned over to a buyer in move-in condition
Friday, October 9, 2009
Welcome!
Welcome Everyone! My name is L'aurence Durr a local Executive Realtor specializing in the areas of Morningside Park and View Park-Windsor Hills. Whether you're thinking about buying or Selling or just want to stay abreast of what's going on in the Market, this is the blog for you. I'll also be posting relevant articles on where are the best places to dine, what's going on in the community and on a National Level what's being done to protect your investment and how the government is helping you become a homeowner during this recession! So click around, read some articles! Comments are always welcome!
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