Did you hear the latest news? Senate OKs $15,000 tax break for homebuyers

The housing industry should get a big boost from the latest addition to the stimulus bill that is working its way through the  Congress.  On Wednesday, Senators approved a proposal that would give home buyers a tax credit of 10% of the value of new or existing residences, up to a $15,000 limit. The current law, that was passed last year, provides for a $7,500 tax break and only for first-time homebuyers.

Sen. Johnny Isakson, (R-Georgia) said “It is time to fix housing first.”  Isakson’s office said the proposal would cost the government an estimated $19 billion. In all, the stimulus is now topping an estimated $920 billion.

President Barack Obama, in an op-ed that appears in Thursday’s Washington Post, painted a dire picture if Congress fails to move quickly to pass the stimulus bill.  “This recession might linger for years. Our economy will lose 5 million more jobs. Unemployment will approach double digits. Our nation will sink deeper into a crisis that, at some point, we may not be able to reverse,” Obama wrote in the op-ed titled, “The Action Americans Need.“

Tags: attracting buyers, buyer credit, congress, Housing, housing market, obama, stimulus, tax breaks, tax credit

Did You Know That There’s A Law That Makes Housing Affordable for Veterans

Veterans across America now have expanded homeownership opportunities due to the Veterans’ Benefits Improvement Act of 2008, which President George W. Bush signed into law last Friday. The bill includes housing provisions for veterans who are already home owners and those who aspire to homeownership, according to the NATIONAL ASSOCIATION OF REALTORS®.

“This [bill] will go a long way toward helping veterans buy and keep their homes,” says NAR President Dick Gaylord.

Three provisions in the legislation are critical to help veterans during the current housing turmoil.

1.  The law will make it easier for veterans who have fallen victim to risky subprime loans to refinance their loans into safer, more affordable loans backed by the U.S Department of Veterans Affairs.

2. The legislation also makes the VA loan limit increases permanent, which will help veterans living in high-cost areas.

3.  The VA also can now offer adjustable-rate mortgages to veterans. That would make homeownership more attainable for military families and personnel who often have to move more frequently than their civilian counterparts.

“We need to support and protect those who serve our country,” Gaylord says. “Helping ensure that every veteran who can afford to own a home and wants to do so will have the opportunity and that everyone who responsibly owns a home is able to keep it is part of that commitment.”

If you want to learn more or need help with your real estate needs, please feel free to contact us.

Tags: Housing, VA, VA housing, VA loans, veterans

Summary of the Housing Rescue Bill

The bill that was passed by the House last week, the Senate this week, was signed into law by the President this morning.  The following is a summary of H.R. 3221.  H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

1. GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
2. FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).
3. Homebuyer Tax Credit – a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).
4. FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.
5. Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.
6. VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.
7. Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.
8. GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.
9. Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.
10. National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.
11. CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.
12. LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.
13. Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

That seems to be it in a nutshell.  Stay tuned for another blog that discusses point #5 regarding seller downpayment programs.

Tags: Finances, Foreclosures, H.R.3221, Housing, Housing and Economic Recovery Act of 2008, housing rescue, legislation, mortgages

Housing Bill Clears U.S. Senate

Thanks to the over 2,695 REALTORS^® from New Jersey who had responded to the NATIONAL ASSOCIATION OF REALTORS^® (NAR) Call for Action! On July 11, 2008, the U.S. Senate voted 63-5 to approve H.R. 3221, which includes loan limits up to $625,500 for the government-sponsored enterprises (GSE) and Federal Housing Administration (FHA), as well as an $8,000 homeownership tax credit. The bill also includes broad GSE reform, FHA reform, development of a National Affordable Housing Trust Fund, and creates a new FHA program to help homeowners at risk for foreclosure. Differences remain between the bill passed by the House and the Senate version. These will be negotiated in the next few weeks, and both House and Senate leaders hope to get this bill to the President’s desk before the August recess.

Linda & Terry Iwaniw
REALTOR Associates
First Time Home Buyer Specialists
Foreclosure Prevention Consultants
RE/MAX Home Team

Tags: affordable housing, federal legislation, FHA, GSE, Housing, US Senate

The Housing Market in Winslow Township, NJ – January 2008

The I-Team Homes has been marketing quite extensively in Winslow Township NJ
including the areas of Sicklerville and Cedarbrook. We provide housing market analysis for our clients.
The following is the most current data we have for Winslow Township:

For the month of January 2008 -

• Properties Currently Being Marketed – 112
  • Average asking price – $265,835
  • Average Days on the Market – 84 days
• Properties that are Pending Sales (Under Contract, Not Settled) – 2
• Properties that Settled in January – 2
  • Average sold price – $209,631 (90.4% of average asking price)
  • Average Days on the Market – 81 days
• Properties that Expired (Not Sold and Listing Agreement ended) in January – 28
  • Average asking price – $260,893
• Properties that were Withdrawn from the Market by the Seller in January – 20
  • Average asking price – $248,685

We can provide you with a complete and accurate market analysis for your home with an
analysis of the market area it is located in. By knowing the value of your home you have a
basis to start selling your home. If you want to know the value of your home and to
receive a no-cost home evaluation, please call our Real Estate Hotline toll-free at
1-800-374-8571 x3025.

If you are planning to sell your home and would like to receive a free 12 page report,
“Insider’s Secret To Selling Your Home”, directly to your home. “Insider’s Secret To
Selling Your Home” is a must have report for anyone planning on selling their home. Don’t
wait, call now.

• If you have an immediate need to sell your home, call 1-800-374-8571 x3051.
• If you are planning to sell you home in the near future, call 1-800-374-8571 x3052.

When you call the above numbers you will will hear recorded instructions; you will not be
directed to a live agent.

For first time home buyers, purchasing your first home can be a very stressful
experience. We can help eliminate that stress and help you through the process. We work
closely with many first time home buyers and understand your concerns. First Time
Home Buyer Programs, 0% and No Money Down Programs, Conventional, FHA, and VA
Financing (To Qualified Buyers). Seller Assist with Closing Costs, New Homes Existing
Homes in Great Neighborhoods, Fixer Upper Properties. We search all of Camden,
Burlington, Gloucester, Salem, Cumberland, and Atlantic Counties. Go to
http://www.homes4firsttimebuyers.com/

Looking for a fixer upper property? Willing to put in some “sweat equity” to buy your
next home at a bargain price. Get a complete listing of fixer uppers in your area by going
to http://www.bestfixerhomes.com/

If you would like a free list of Fannie Mae homes currently for sale ,
go to: http://www.terryi.com/FNMA/.

Tags: buyers, camden county, cedarbrook, Housing, housing market, real estate market, sellers, sicklerville, winslow township

The Housing Market for Winslow Township, NJ

The I-Team Homes has been marketing quite extensively in Winslow Township NJ
including the areas of Sicklerville and Cedarbrook. We provide housing market analysis for our clients.
The following is the most current data we have for Winslow Township:

For the month of December 2007 -

• Properties Currently Being Marketed – 36
  • Average asking price – $252,283
  • Average Days on the Market – 105 days
• Properties that are Pending Sales (Under Contract, Not Settled) – 3
• Properties that Settled in December – 26
  • Average sold price – $211,221 (92.2% of average asking price)
  • Average Days on the Market – 90 days
• Properties that Expired (Not Sold and Listing Agreement ended) in December – 46
  • Average asking price – $274,440
• Properties that were Withdrawn from the Market by the Seller in November – 29
  • Average asking price – $243,765

We can provide you with a complete and accurate market analysis for your home with an
analysis of the market area it is located in. By knowing the value of your home you have a
basis to start selling your home. If you want to know the value of your home and to
receive a no-cost home evaluation, please call our Real Estate Hotline toll-free at
1-800-374-8571 x3025.

If you are planning to sell your home and would like to receive a free 12 page report,
“Insider’s Secret To Selling Your Home”, directly to your home. “Insider’s Secret To
Selling Your Home” is a must have report for anyone planning on selling their home. Don’t
wait, call now.

• If you have an immediate need to sell your home, call 1-800-374-8571 x3051.
• If you are planning to sell you home in the near future, call 1-800-374-8571 x3052.

When you call the above numbers you will will hear recorded instructions; you will not be
directed to a live agent.

For first time home buyers, purchasing your first home can be a very stressful
experience. We can help eliminate that stress and help you through the process. We work
closely with many first time home buyers and understand your concerns. First Time
Home Buyer Programs, 0% and No Money Down Programs, Conventional, FHA, and VA
Financing (To Qualified Buyers). Seller Assist with Closing Costs, New Homes Existing
Homes in Great Neighborhoods, Fixer Upper Properties. We search all of Camden,
Burlington, Gloucester, Salem, Cumberland, and Atlantic Counties. Go to
http://www.homes4firsttimebuyers.com/

Looking for a fixer upper property? Willing to put in some “sweat equity” to buy your
next home at a bargain price. Get a complete listing of fixer uppers in your area by going
to http://www.bestfixerhomes.com/

If you would like a free list of Fannie Mae homes currently for sale ,
go to: http://www.terryi.com/FNMA/.

Tags: buyers, camden county, cedarbrook, Housing, housing market, real estate market, sellers, sicklerville, winslow township

The New Housing Market – A Return of Sanity

When speaking with many people who would like to buy a home, most have expressed reservations.  The primary objection for making a move now is motivated by fear.  Most are afraid that if they buy a house now it will be worth less than they paid for it in a year.  They don’t want to be stuck with a house that they cannot sell for what they paid for it.

The present state of the market is a direct result of the huge numbers of risky, sub-prime mortgages that were written just a few years ago.  People who bought their homes with no money down, with adjustable rate mortgages, basically deferring the interest on their loans to the future, are the very people who are in trouble now.  These people bought homes that they clearly could not have afforded to purchase with a fixed rate loan.  When the mortgages they acquired began to adjust (that is what an adjustable loan means), their monthly payments rose significantly and they could no longer meet their monthly obligations.  As a result of this, the rate of foreclosures has reached a 40 year high.

The fallout of the huge number of loans in foreclosure has been the tightening of the mortgage market.  What have disappeared are all those risky loans. They are just not there anymore. In a way, that is the best news.  Now that the market is not flooded with buyers looking to buy homes they cannot afford, a more realistic market has emerged.

Sellers are forced to sell their homes for what they are really worth, not the over inflated prices that were prevalent during the ‘boom’.  With government looking into the practices of lenders, appraisers and realtors, the return to sanity has arrived.  A person who enters the home buying market today is in a much better position than they would have been just a few years ago.

Fixed rate mortgage rates are very good, still under 7%. When I purchased my first home I paid 7 ½ percent, that was in 1971. When I bought my second home, I paid 8 ¾ percent and that was in 1976 and I paid 11 percent in 1990.  There was even a period of time when the interest rates hit 19% in the early 1980’s. Interest rates are always fluctuating, but the constant is that property values steadily increased.  That first home that I paid $21,000 for in 1971 is worth $200,000 for in today’s market. Had I stayed in that home for 30 years, I would have paid off that home 6 years ago.

There is plenty of mortgage money available.  You can still buy a home with as little down as 2.25% with an FHA Fixed Rate Mortgage. Veteran’s can still buy with no money down. In today’s market many sellers are helping buyers by paying part of the buyers closing costs in order to get their homes sold. In other words, sellers are more realistic in the pricing of their homes. That is great news for buyers.

We’re looking at an historical moment right now with phenomenally good prices and interest rates, and there’s a point where, if you wait too long, the rates are going to start going up and you will have lost out.

Tags: homes for sale, Housing, Real Estate