Posts Tagged ‘information’
New Website Outlines Tax Credit for Homebuyers
Enhanced Tax Credit Provides Outstanding Opportunity for Home Buyers
In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.
But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.
Find out more here.
Questions My Clients Are Asking…
Wow, with the New Housing Plan has come a ton of new business - both buyers and sellers are getting in on the action, and we are seeing the Denver market pick up at an unbelievable pace. Case in point, the listing we put on the market last week already has a contract pending, and it had multiple offers for the list price. So, if you have been sitting on the fence and waiting for the perfect time to buy or sell, jump down and join the fun - that time is NOW.
Of course, with the changes put in place by the Stimulus Plan, there are a ton of questions that our clients are asking…here are just a few:
- Should I refinance now, and will the New Housing Plan help me out even if I have never missed a mortgage payment?
The answer is maybe. I like this summary from the New York Times:
Removing a limit on refinancing for “responsible homeowners”
4 million to 5 million households.
The bill will remove the current restriction on Fannie Mae and Freddie Mac that prohibits them from guaranteeing refinancing on mortgages valued at more than 80% of the home’s value. This will allow many more homeowners to refinance at lower rates.
Who may qualify
- Example
- Today A family’s home value drops to $400,000 from $475,000. The loan balance at $337,460 is now more than 80 percent of the home’s value, making it difficult to refinance under current rules.
- Under the proposal The family can refinance to a rate of 5.16% from 6.50%, which would save $331 a month and $3,968 a year.
Who doesn’t qualify
- Those holding loans not owned or guaranteed by Fannie Mae or Freddie Mac.
- Mortgages above a certain threshold — $417,000 for single-family homes in most areas and $729,750 in higher-priced regions.
- Those whose outstanding mortgage debt exceeds 105% of their current home value.
Helping renegotiate loan terms for “at-risk homeowners”
3 million to 4 million households.
The bill creates incentives for lenders to modify the terms of subprime and other loans. Participating lenders will reduce payments to no more than 38% of borrower’s income, with the government matching further reductions down to 31%.
Who may qualify
- Example
- Today A family’s home value has fallen to $189,000 from $230,000 and its loan balance is $214,016. Job loss has reduced household income and loan payments can’t be made.
- Under the proposal The family could modify the mortgage for five years, so that payments are manageable. This would save $406 a month or $4,870 a year.
Who doesn’t qualify
- Mortgages above a certain threshold — $417,000 for single-family homes in most areas and $729,750 in higher-priced regions.
- Homes that are not owner-occupied.
- Those who apply more than three years after program’s start.
There is also a good Question and Answer sheet posted on the US Treasury website: http://www.treas.gov/initiatives/eesa/homeowner-affordability-plan/ConsumerQA.pdf
- Are there areas in the Denver Metro that haven’t decreased in value over the past year?
Absolutely. There are neighborhoods that have increased in value over the past year - and that are projected to keep on doing so. Highlands, Berkeley, Sunnyside, Wash Park, Congress Park and Cheesman are just a few of the places where it’s still rare to find foreclosures - and still solid areas to invest in and live.
- Is it still possible to make a profit by flipping?
Of course, but you have to be super smart about it. You have to be careful about what you pay for the property, how much you put into it, how long you hold it, and how you price it to sell. There is a ton of competition for great investment proeprties, so the best thing to do is set up an automatic search that will send you new listings the day that they hit the market. If you see something that looks like a good investment, don’t wait - make an offer. And create a net sheet that will allow you to project your profit so that you can budget for the flip accordingly.
It’s only 1.5% - but it’s great news for Denver Real Estate
I always like to read some good news - that’s why I like the site http://www.happyrenews.com/ - and why I was psyched to come across this article in the Rocky Mountain News:
Good news for Denver-area housing market By John Rebchook
The Denver area housing market showed the most appreciation of 20 metropolitan areas tracked by the closely watched S&P/Case-Shiller Home Price Indices from May to June.
The Denver area showed a 1.5 percent gain in that period. Boston, with a 1.2 percent increase, was the only other metropolitan area to show an increase.
The average percentage change in that one-month period was a loss of 0.5 percent for all 20 cities, and a loss of 0.6 percent for 10 of them.
Denver and Boston have shown three consecutive months of positive returns. Denver homes showed a 4.7 percent decline from June 2007 to June 2008, the third best of the 20 cities. (more…)