Tuesday, February 16, 2010
Extended and Expanded Homebuyer Tax Credit
News for US Homebuyers - Monday November 16th, 2009 9:16amHome Buyer Tax Credit Extended and Expanded until June of 2010 and allows the homebuyer to file for tax credit of $8,000 in 2009 by amending 2008 tax return or filing 2009 tax return. Deadline for current extension requires purchase contracts to be signed by April 30,2010 and closed by June 30, 2010. An amendment by Johnny Isakson (R-GA) has removed the requirement of being a First Time Homebuyer and has raised the income caps up to $225,000 for joint filers and $125,000 for single filers. Additionally anyone who has owned a home for the past 5 years is now able to get $6500 in tax credit for a new purchase. If you need more information or would like to speak to me about taking advantage of this tax credit, contact Lynne Connor at 404-309-3300.
Friday, July 31, 2009
Top 7 Reasons Why Buying Is Better Than Renting
For those of you sitting on the fence about buying a home, read this interesting article:
RISMEDIA, July 30, 2009-Christine Van Tuyl and Margaret La Grange, an award-winning mother-daughter team with Prudential California Realty in Coronado, have compiled their latest list, the “Top 7 Reasons Why it’s Better to Buy then Rent in 2009.”
“Many renters are realizing that the increase in affordability- combined with low interest rates and tax incentives- are tipping the scales away from renting and towards homeownership,” said Christine Van Tuyl, agent with Prudential California Realty. “Simply put, some renters are finding that they can get a bigger bang for their buck if they buy.”
Following are the top 7 reasons why it’s better to buy than rent in 2009
1. Buying doesn’t always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.
2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40%.
3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.
4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.
5. The Tax Credit. First time homebuyers-defined as anyone who hasn’t owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn’t disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.
6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.
7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.Read more: http://rismedia.com/2009-07-29/top-7-reasons-why-buying-is-better-than-renting/#ixzz0MsgcLKB6
RISMEDIA, July 30, 2009-Christine Van Tuyl and Margaret La Grange, an award-winning mother-daughter team with Prudential California Realty in Coronado, have compiled their latest list, the “Top 7 Reasons Why it’s Better to Buy then Rent in 2009.”
“Many renters are realizing that the increase in affordability- combined with low interest rates and tax incentives- are tipping the scales away from renting and towards homeownership,” said Christine Van Tuyl, agent with Prudential California Realty. “Simply put, some renters are finding that they can get a bigger bang for their buck if they buy.”
Following are the top 7 reasons why it’s better to buy than rent in 2009
1. Buying doesn’t always cost much more than renting. According to a recent study by the Associated Press, the gap between monthly mortgage payments on a median-priced home and the median rent has decreased from $777 to just $221 in the last three years.
2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40%.
3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.
4. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%.
5. The Tax Credit. First time homebuyers-defined as anyone who hasn’t owned a home in the last three years- are entitled to an $8,000 tax credit. (Ownership of a vacation property or a rental property doesn’t disqualify homebuyers from this program.) No repayment is required for homes sold after 36 months of occupancy and ownership.
6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades.
7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden.Read more: http://rismedia.com/2009-07-29/top-7-reasons-why-buying-is-better-than-renting/#ixzz0MsgcLKB6
Saturday, April 11, 2009
5 Reasons Why Good People Can't Get Good Loans
Are you trying to buy or re-fi a home and can't get a loan? Read this interesting article on why...
If you have any questions on buying a home or need a good mortgage lender, contact me any time. http://www.lynnesellsatlanta.com/
5 Reasons Why Good People Can't Get Good Loans
By Peter G. Miller, RealtyTrac Published: 4/03/2009
There's been a price to pay for toxic mortgages. You're paying in the form of lower home values, fewer jobs, falling stock prices, massive deficits and a government that is printing money at an unprecedented rate -- a rate that could result in substantial levels of inflation if we're not careful.
The situation is even more severe if you want to finance or refinance real estate. Here again you'll pay, even if you have terrific credit and a mound of bullion in the basement. Why is it that good people with good credit and cash in their pocket are having so much trouble getting home loans? There are five key reasons which explain why the credit crunch is crunching even the best of us.
1. It's Not You
I recently got a letter from a loan officer who was fairly steamed. She had a borrower with a credit score well above 800 and a down payment equal to more than half the purchase price of a home he's trying to buy. Despite such facts, the lender still wanted the borrower to fully document his loan application.
The loan officer argues that her client was being treated unfairly, that he represents no risk to any lender and that he should be able to complete a short and sweet stated-income loan application. Truth is, on a one-to-one basis, she's right. The problem is that the world is not operating on a one-to-one basis. Instead, there's a vast system in place to originate loans and to then sell them. The money made from selling mortgages is used by lenders to create new loans with lenders getting fees, charges and interest along the way.
The people who buy loans, investors, are none too pleased with the U.S. mortgage system right now and who can blame them? The result is that the only way investors are going to buy U.S. mortgages and mortgage-backed securities is if loan applications are fully documented and verified. All loan applications, even from terrific borrowers with lots of equity and great credit.
2. Where's My Security?
As much as lenders want borrowers with solid credit and documented income and employment, they also want something else: Strong security for their loans. The logic is that if the borrower can't pay, the lender gets the property to settle the debt so the property has to be worth a certain amount.
This system worked well when home values were rising, but now many homes are worth less than the debt they secure. If you bought with little or nothing down or if you have an "affordability" loan that allows for negative amortization (meaning the principal amount can grow because those low monthly payments are not even covering interest costs), when it comes time to refinance you're asking lenders to give you a loan that is worth more than the house. No prudent lender would do that and with good reason: If the property is foreclosed, it will not generate enough revenue to pay off the loan.
3. The Flight to Credit Quality
The Federal Reserve reports that banks have been tightening their credit standards during the past quarter. This, of course, is in addition to previous efforts to raise credit standards. The result is that a large number of people who would like to finance and refinance can't take advantage of today's low mortgage rates. Like Moses at Mount Nebo, borrowers can see the Promised Land of less interest and better loans but they'll never get there because of today's credit extremism.
4. Where the Money Went
Despite hundreds of billions of dollars given to banks in late 2008 and early 2009, they're plainly not lending as much as they could. Instead, much of the money has gone to build up capital, acquire other companies and make sure that no executive misses a fat paycheck for the leadership efforts that created the mortgage meltdown in the first place.
Money from the U.S. government that was plainly intended to restore the lending process has instead been diverted into lender vaults and executive accounts. Having been spent for other purposes, that money is simply unavailable to mortgage borrowers, regardless of their credit standing or the value of their homes.
5. A Contract Is a Contract
During the past five years millions of so-called "affordability" mortgage products have been originated. Such loans are routinely distinguished by low monthly payments up front as well as growing loan balances. The result is that once "start" periods end after two, three or five years, the borrower owes more than the original loan balance and faces vastly larger monthly payments.
A savvy borrower, of course, would refinance the loan before higher monthly costs kick in, but now such changes are impossible for most borrowers. Why? Three reasons: First, while the mortgage balance has been growing in many cases the underlying value of the home has been declining. Second, higher monthly costs have resulted in late payments and no payments, meaning substantial credit issues have arisen. Third, toxic loans routinely include substantial prepayment penalties.
If you have any questions on buying a home or need a good mortgage lender, contact me any time. http://www.lynnesellsatlanta.com/
5 Reasons Why Good People Can't Get Good Loans
By Peter G. Miller, RealtyTrac Published: 4/03/2009
There's been a price to pay for toxic mortgages. You're paying in the form of lower home values, fewer jobs, falling stock prices, massive deficits and a government that is printing money at an unprecedented rate -- a rate that could result in substantial levels of inflation if we're not careful.
The situation is even more severe if you want to finance or refinance real estate. Here again you'll pay, even if you have terrific credit and a mound of bullion in the basement. Why is it that good people with good credit and cash in their pocket are having so much trouble getting home loans? There are five key reasons which explain why the credit crunch is crunching even the best of us.
1. It's Not You
I recently got a letter from a loan officer who was fairly steamed. She had a borrower with a credit score well above 800 and a down payment equal to more than half the purchase price of a home he's trying to buy. Despite such facts, the lender still wanted the borrower to fully document his loan application.
The loan officer argues that her client was being treated unfairly, that he represents no risk to any lender and that he should be able to complete a short and sweet stated-income loan application. Truth is, on a one-to-one basis, she's right. The problem is that the world is not operating on a one-to-one basis. Instead, there's a vast system in place to originate loans and to then sell them. The money made from selling mortgages is used by lenders to create new loans with lenders getting fees, charges and interest along the way.
The people who buy loans, investors, are none too pleased with the U.S. mortgage system right now and who can blame them? The result is that the only way investors are going to buy U.S. mortgages and mortgage-backed securities is if loan applications are fully documented and verified. All loan applications, even from terrific borrowers with lots of equity and great credit.
2. Where's My Security?
As much as lenders want borrowers with solid credit and documented income and employment, they also want something else: Strong security for their loans. The logic is that if the borrower can't pay, the lender gets the property to settle the debt so the property has to be worth a certain amount.
This system worked well when home values were rising, but now many homes are worth less than the debt they secure. If you bought with little or nothing down or if you have an "affordability" loan that allows for negative amortization (meaning the principal amount can grow because those low monthly payments are not even covering interest costs), when it comes time to refinance you're asking lenders to give you a loan that is worth more than the house. No prudent lender would do that and with good reason: If the property is foreclosed, it will not generate enough revenue to pay off the loan.
3. The Flight to Credit Quality
The Federal Reserve reports that banks have been tightening their credit standards during the past quarter. This, of course, is in addition to previous efforts to raise credit standards. The result is that a large number of people who would like to finance and refinance can't take advantage of today's low mortgage rates. Like Moses at Mount Nebo, borrowers can see the Promised Land of less interest and better loans but they'll never get there because of today's credit extremism.
4. Where the Money Went
Despite hundreds of billions of dollars given to banks in late 2008 and early 2009, they're plainly not lending as much as they could. Instead, much of the money has gone to build up capital, acquire other companies and make sure that no executive misses a fat paycheck for the leadership efforts that created the mortgage meltdown in the first place.
Money from the U.S. government that was plainly intended to restore the lending process has instead been diverted into lender vaults and executive accounts. Having been spent for other purposes, that money is simply unavailable to mortgage borrowers, regardless of their credit standing or the value of their homes.
5. A Contract Is a Contract
During the past five years millions of so-called "affordability" mortgage products have been originated. Such loans are routinely distinguished by low monthly payments up front as well as growing loan balances. The result is that once "start" periods end after two, three or five years, the borrower owes more than the original loan balance and faces vastly larger monthly payments.
A savvy borrower, of course, would refinance the loan before higher monthly costs kick in, but now such changes are impossible for most borrowers. Why? Three reasons: First, while the mortgage balance has been growing in many cases the underlying value of the home has been declining. Second, higher monthly costs have resulted in late payments and no payments, meaning substantial credit issues have arisen. Third, toxic loans routinely include substantial prepayment penalties.
Monday, April 6, 2009
6 Low Cost Updates That Attract Buyers
Here's an article on how to update your home for little money and help attract buyers in this competitive market. For other staging tips contact me at http://www.lynnesellsatlanta.com/
Budget Home Updates
Need to spruce up your house before you sell? These low-cost upgrades will boost your market value without breaking the bank.
By Kara Wahlgren, FrontDoor.com Published: 2/02/2009
Most homeowners have a room or two they'd like to overhaul, and when you're looking to sell, those must-do projects seem even more important. But while a major renovation might boost your home's value, does anyone really have the bottomless bank account to fund those big projects? The average staging budget is only 1 percent to 3 percent of your home's value -- hardly enough to finance those handmade hickory cabinets for your kitchen or marble mantle for your fireplace.
"If you're getting ready to sell in the next few months, major renovations are probably not going to pay off," says staging expert Lori Matzke, owner of CenterStageHome.com. According to a report from Remodeling magazine, even a swanky $50,000 kitchen remodel will only earn back about 80 percent of its cost when you sell. A smarter bet? Stick to inexpensive upgrades that can make a huge difference in your home's saleability. These simple projects will get you the most bang for your buck.
Fix what's broken. Got a broken heater? A cracked ceiling? A torn screen door? Put your money into these overdue repairs before you start worrying about cosmetic improvements. "A rule of thumb is, if it's there and in disrepair, you need to fix it," Matzke says. "Buyers are looking for a house that's in working condition." If they see a leaky faucet, they'll wonder what else needs to be fixed. A few minor repairs can eliminate those red flags.
Create curb appeal.First impressions are critical, especially in a competitive market. If half the homes in your neighborhood are boasting for-sale signs, curb appeal can give your property the edge -- so put a fresh coat of paint on your siding, re-stain your deck or power-wash your patio, and trim back any overgrown shrubs. And don't overlook your front door, which can be a make-or-break detail for would-be buyers. "It's the first thing people see when they pull up, so do they want to come in or not?" Matzke says. If your entryway is lackluster, consider investing in a mahogany door or a decorative-glass style.
Lighten up.It only takes a few dollars to make your home feel infinitely more warm and welcoming. If you've got clutter, box it up and put it in storage. Replace your mood lighting with the max allowable wattage for your fixtures. Tear down faded or dated wallpaper, and grab a few gallons of paint to cover up blemishes or soften a bold color palette. (So long, mauve living room!) "Neutral, neutral, neutral," Matzke advises. "It sounds really boring, but most people are looking for a house they can move into right now."
Modernize for less.Kitchens and baths are big-ticket items, but there's no need to plunk down thousands of dollars on a total overhaul. In these rooms, even minor upgrades -- such as new faucets or fresh lighting fixtures -- can reap major rewards, and a little elbow grease can go a long way. "Ripping out and replacing kitchen cabinets is great, but unless they're really horrid, it's probably better just to enamel them," Matzke says. You can also find bargains on newer appliances and plumbing hardware at sites like eBay or Craigslist. In the bathroom, replacing a tired vanity with a pedestal sink can instantly renew the decor and create more space, and outdated vinyl flooring can be replaced with inexpensive ceramic tile. Many big-box home stores offer options for around a dollar per square foot, so tiling a small room won't strain your wallet.
Finish it off.A basement remodel can rack up hefty labor costs, but if you're handy, it can be a profitable DIY project. Installing carpet and sheet rock in an unfinished basement instantly adds a few hundred square feet of living space; it's like putting an addition on your home for a fraction of the cost. "A basement finish, if it's done properly, is one of the best investments," says Leslie Sellers, president-elect of the Appraisal Institute. "The most expensive items -- the foundation and walls -- are already taken care of."
Go green.Eco-friendly extras might seem like frivolous expenses, but according to the National Association of Realtors, nearly half of all homebuyers said energy efficiency was "very important" when considering a purchase. Don't worry, that doesn't mean you need to retrofit your home with solar panels or install bamboo floors in every room -- but you may want to fix that drafty window or replace your stone-age dishwasher with an EnergyStar model. "These items will cut your energy bills down, make the house more comfortable while you're living there, and add to the marketability of the home when you sell it," Sellers says.
For additional staging tips visit my website at http://www.lynnesellsatlanta.com/
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