Just hot off the press, we are excited to share this very good news to all of you, courtesy of my preferred lender Aaron Gordon at Countrywide Home Loans.
As part of the Obama mortgage plan, that FHA has raised the loan limit to $400,000 in Clark County and $325,000 in Nye County.
You can find details at https://entp.hud.gov/idapp/html/hicost1.cfm
This means buyers looking for homes up to $412,000 can now qualify with as little as 3.5% down. This is one ray of hope that we have been waiting for to boost the housing industry and hopefully, be the catalyst for a much needed market stability.
Stay tuned for details on rates. If you or someone you know has been putting off the decision to buy a home, I can’t think of a better reason than this! The market is primed for qualified buyers: there is a sizeable amount of great inventories, mortgage rates are at an all-time low, and financing is available for responsible borrowers. It’s a win-win situation for buyers and sellers.
Please feel free to contact me if you have any questions at 702.285.1990. The Dulcie Crawford Group aspires to be your trusted Realtor for life!
Wednesday, February 25, 2009
Friday, February 20, 2009
STIMULUS PACKAGE AND OBAMA MORTGAGE PLAN ....SIMPLIFIED
Here is a very straightforward article with regard to the Obama Stimulus Package signed into law this week and how it could affect you as a homeowner or buyer, courtesy of my preferred lender Aaron Gordon of Countrywide Home Loans. His contact information is below for your reference should you need to contact him. We at the Dulcie Crawford Group will also be happy to answer any questions you may have. We have also included some links to the Stimulus Package if you are interested to learn more.
There has been a lot of activity this week attempting to solve the historic economic problems. No one expects this to cure the problem overnight but it could reduce the damage.These two plans have a dramatic effect on our business. Let me try and make them easy to understand.
The $787 billion Economic Stimulus Package
Here is how the Economic Stimulus Package affects our business:
The Fannie and Freddie loan limits will be raised to $727,000 in high cost areas.
Although this doesn't affect Las Vegas, which will stay at $417,000, it does our neighbors in Southern California. Market recovery in California is nearly as important to our local economy as theirs. Keep in mind most of our tourists come from their and many of our transplants.
The first-time homebuyer tax credit will be raised to $8,000 with no payback. Many were hoping this would be $15,000 as first passed through the Senate but it's settled at $8,000. You have to buy a home between January 1, 2009 (yes, it's retroactive) and December 31, 2009. You have to be a first-time homebuyer or have not owned a home in the last three years. To get the full benefit, you have to make less than $75,000 as a single tax payer or $150,000 as married taxpayers.
If you sell the home before you have been there three years, you have to forfeit the credit or pay it back if you already wrote it off. This credit is different than the $7,500 one first-time buyers got in 2008. Right now, that credit has to be paid back. However, there is some discussion that it may not have to be repaid. If the repayment provision in the new home buyer tax credit is made retroactive back to April 9th 2008, when that planfirst took place. This detail is still to be finalized.
Interest rates should stay low
Rates have been driven down to historic lows since late November. This is a direct result of the Government buying hundreds of billions of dollars in mortgage-backed securities.The Economic Stimulus package calls for the Government to buy another $200-300 billion of mortgage paper from Fannie and Freddie. We could see historically low rates through the end of the year.
The Homeowner Affordability and Stability Plan (Obama Plan)
You can read the plan here:
www.treas.gov/initiatives/eesa/homeowner-affordability-plan/FactSheet.pdf
The complete details will be announced on March 4th.
The plan seeks to help as many as 9 million Americans avoid foreclosure by restructuring or refinancing their mortgages. The program is intended to help responsible homeowners who are experiencing financial hardship and may be at risk of losing their homes to foreclosure. Lenders will not be forced to participate. It’s voluntary.
Here are the highlights:
Right now if you want to refinance, and your loan amount is over $287,500, you need around 20% equity in your home. The new plan allows homeowners who are current on their mortgage to refinance through Fannie and Freddie up to 105% of the value of their home.
This means if you owe $200,000 on your home and it's only worth $190,000 youcan now refinance. The 105% financing includes your closing costs up to 4%.Most Las Vegans are more than 5% upside down. There is not much relief for them in this plan.
If you are late on your mortgage, the Government is now introducing a new standardized form of note modification. This is NOT a principal reduction. Your loan amount will not change. This is modifying your existing loan. If you currently owe $250,000 on your mortgage and your home is worth $175,000 you would be modifying your $250,000. Not getting a new mortgage for less.
The Government will be financially incentivizing homeowners and loan servicers who modify mortgages successfully. If you modify your loan under this plan and make your payment on time for five years, you may be eligible for up to $5,000 in reduction of your mortgage debt.
The lenders who participate in the plan will be agreeing to let you modify your loan to 38% of your gross income. This means if you make $4000 per month, they will be agreeing to lower your payment to $1520. Then the Government will step in and help you lower your payment to 31% or $1240. They will pay the lender the difference out of the $75 billion in the fund.
You need to be able to document your income. This will be challenging for some self-employed borrowers.
The government is also investing hundreds of billions in Fannie and Freddie to keep them solvent and aggressive in making loans, while keeping mortgage rates low.
If you seek relief under the plan, the home must be your primary residence. Investment properties and second (vacation) homes are not eligible.The loan must be a conforming loan. That's $417,000 or under in Las Vegas. The homeowner must be able to qualify for a 30-year fixed mortgage payment with their current income.You must be employed to take advantage of the refinance. If you are not, you may be eligible for the modification still.
You may be eligible for a loan modification in this plan even if you have not been late yet or missed a payment. Let's say you have a first and second mortgage. Under this plan, you may be eligible to modify the first lien so long as the second agrees to re-subordinate the second if necessary.
The plan also calls for changes to personal bankruptcy provisions. This plan will allow bankruptcy judges to modify mortgages written in the past few years.If you have any questions, please don't hesitate to contact me.
Aaron Gordon
Home Loan Consultant/Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333 Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon
More on the Stimulus Bill on the web:
http://news.yahoo.com/s/ap/20090214/ap_on_go_co/stimulus_stakes_who_gets_what
http://news.yahoo.com/s/ap/20090215/ap_on_go_pr_wh/obama
There has been a lot of activity this week attempting to solve the historic economic problems. No one expects this to cure the problem overnight but it could reduce the damage.These two plans have a dramatic effect on our business. Let me try and make them easy to understand.
The $787 billion Economic Stimulus Package
Here is how the Economic Stimulus Package affects our business:
The Fannie and Freddie loan limits will be raised to $727,000 in high cost areas.
Although this doesn't affect Las Vegas, which will stay at $417,000, it does our neighbors in Southern California. Market recovery in California is nearly as important to our local economy as theirs. Keep in mind most of our tourists come from their and many of our transplants.
The first-time homebuyer tax credit will be raised to $8,000 with no payback. Many were hoping this would be $15,000 as first passed through the Senate but it's settled at $8,000. You have to buy a home between January 1, 2009 (yes, it's retroactive) and December 31, 2009. You have to be a first-time homebuyer or have not owned a home in the last three years. To get the full benefit, you have to make less than $75,000 as a single tax payer or $150,000 as married taxpayers.
If you sell the home before you have been there three years, you have to forfeit the credit or pay it back if you already wrote it off. This credit is different than the $7,500 one first-time buyers got in 2008. Right now, that credit has to be paid back. However, there is some discussion that it may not have to be repaid. If the repayment provision in the new home buyer tax credit is made retroactive back to April 9th 2008, when that planfirst took place. This detail is still to be finalized.
Interest rates should stay low
Rates have been driven down to historic lows since late November. This is a direct result of the Government buying hundreds of billions of dollars in mortgage-backed securities.The Economic Stimulus package calls for the Government to buy another $200-300 billion of mortgage paper from Fannie and Freddie. We could see historically low rates through the end of the year.
The Homeowner Affordability and Stability Plan (Obama Plan)
You can read the plan here:
www.treas.gov/initiatives/eesa/homeowner-affordability-plan/FactSheet.pdf
The complete details will be announced on March 4th.
The plan seeks to help as many as 9 million Americans avoid foreclosure by restructuring or refinancing their mortgages. The program is intended to help responsible homeowners who are experiencing financial hardship and may be at risk of losing their homes to foreclosure. Lenders will not be forced to participate. It’s voluntary.
Here are the highlights:
Right now if you want to refinance, and your loan amount is over $287,500, you need around 20% equity in your home. The new plan allows homeowners who are current on their mortgage to refinance through Fannie and Freddie up to 105% of the value of their home.
This means if you owe $200,000 on your home and it's only worth $190,000 youcan now refinance. The 105% financing includes your closing costs up to 4%.Most Las Vegans are more than 5% upside down. There is not much relief for them in this plan.
If you are late on your mortgage, the Government is now introducing a new standardized form of note modification. This is NOT a principal reduction. Your loan amount will not change. This is modifying your existing loan. If you currently owe $250,000 on your mortgage and your home is worth $175,000 you would be modifying your $250,000. Not getting a new mortgage for less.
The Government will be financially incentivizing homeowners and loan servicers who modify mortgages successfully. If you modify your loan under this plan and make your payment on time for five years, you may be eligible for up to $5,000 in reduction of your mortgage debt.
The lenders who participate in the plan will be agreeing to let you modify your loan to 38% of your gross income. This means if you make $4000 per month, they will be agreeing to lower your payment to $1520. Then the Government will step in and help you lower your payment to 31% or $1240. They will pay the lender the difference out of the $75 billion in the fund.
You need to be able to document your income. This will be challenging for some self-employed borrowers.
The government is also investing hundreds of billions in Fannie and Freddie to keep them solvent and aggressive in making loans, while keeping mortgage rates low.
If you seek relief under the plan, the home must be your primary residence. Investment properties and second (vacation) homes are not eligible.The loan must be a conforming loan. That's $417,000 or under in Las Vegas. The homeowner must be able to qualify for a 30-year fixed mortgage payment with their current income.You must be employed to take advantage of the refinance. If you are not, you may be eligible for the modification still.
You may be eligible for a loan modification in this plan even if you have not been late yet or missed a payment. Let's say you have a first and second mortgage. Under this plan, you may be eligible to modify the first lien so long as the second agrees to re-subordinate the second if necessary.
The plan also calls for changes to personal bankruptcy provisions. This plan will allow bankruptcy judges to modify mortgages written in the past few years.If you have any questions, please don't hesitate to contact me.
Aaron Gordon
Home Loan Consultant/Sales Manager
Countrywide Bank, FSB
Cell: (702) 283-2333 Office: (702) 304-8900
Secure eFax: 1-866-905-7922
10190 Covington Cross Drive #190Las Vegas, NV 89144
email: aaron_gordon@countrywide.com
web: http://countrywidelocal.com/aarongordon
More on the Stimulus Bill on the web:
http://news.yahoo.com/s/ap/20090214/ap_on_go_co/stimulus_stakes_who_gets_what
http://news.yahoo.com/s/ap/20090215/ap_on_go_pr_wh/obama
Friday, February 13, 2009
Las Vegas Sales up 15% and new Home Buyers Tax Credit
The Month of February has been as busy as January in the re-sale Housing market.
Sales are up 15% in the last quarter of 2008 and I expect to see the same pattern in the first quarter of 2009. I am seeing many first time buyers taking advantage of the new pricing and interest rates in the low 5% range and even high 4% range over the past two months now. I have also experienced more calls and requests for relocation materials and information than I had seen in 2008. This level of relocation interest may be showing that housing affordability has reached a level that will create new growth in our city again. I am optimistic as usual that the housing market will recover next year, but that depends if the new administration in Washington gets more proactive in the housing sector. If they do more with the toxic debts that the banks now hold to buy it off the banks’ hands, we can see a recovery much quicker, and inventory levels will plummet quickly as well. I do not feel that we will see appreciation growth into the 10% range again until 2012, but we could see 3-4% as early as late 2010 or early 2011.
There is, however, some silver lining showing on the horizon. According to a recent article in Forbes.com, “Motivated sellers in Las Vegas accounted for 64% of sales in October, the highest rate in the country. Home sale prices from last year are down 28%, but home sales are up 15%. That means buyers are getting deals and hastening Las Vegas' recovery.” I’ve included the link to the full article, as well as how the Stimulus package will impact home buyers.
Buyers in this market need to weigh in on what it will cost them to buy now at these all-time low interest rates vs. if the housing market should continue down another 5-10. Over the life of a 30 year loan, a buyer paying .5% higher interest rate will usually cost them more than if the home went down 30 or 40K. Buyers should also consider the tax implications of putting off buying and renting as well. Higher tax bracket income earners are loosing valuable tax breaks while renting. As one of my recent clients said to me recently as they closed on their new home “I need to start living a settled and permanent life with my family to be able to enjoy each day instead of wondering when I may get a notice to vacate my rental home. My wife wants to paint walls, hang curtains and plant a garden, these are things we have put off just renting and not owning. The rest of our settled lives begin NOW.”
The Stimulus package has been approved, and I will blog on what exactly it will mean for home owners and the housing market again in the next few weeks, as more credible information unfolds.
If you are ready to Buy or Sell call me for a no obligation consultation.
Have a great Valentines Day!!
Dulcie Crawford
Sales are up 15% in the last quarter of 2008 and I expect to see the same pattern in the first quarter of 2009. I am seeing many first time buyers taking advantage of the new pricing and interest rates in the low 5% range and even high 4% range over the past two months now. I have also experienced more calls and requests for relocation materials and information than I had seen in 2008. This level of relocation interest may be showing that housing affordability has reached a level that will create new growth in our city again. I am optimistic as usual that the housing market will recover next year, but that depends if the new administration in Washington gets more proactive in the housing sector. If they do more with the toxic debts that the banks now hold to buy it off the banks’ hands, we can see a recovery much quicker, and inventory levels will plummet quickly as well. I do not feel that we will see appreciation growth into the 10% range again until 2012, but we could see 3-4% as early as late 2010 or early 2011.
There is, however, some silver lining showing on the horizon. According to a recent article in Forbes.com, “Motivated sellers in Las Vegas accounted for 64% of sales in October, the highest rate in the country. Home sale prices from last year are down 28%, but home sales are up 15%. That means buyers are getting deals and hastening Las Vegas' recovery.” I’ve included the link to the full article, as well as how the Stimulus package will impact home buyers.
Buyers in this market need to weigh in on what it will cost them to buy now at these all-time low interest rates vs. if the housing market should continue down another 5-10. Over the life of a 30 year loan, a buyer paying .5% higher interest rate will usually cost them more than if the home went down 30 or 40K. Buyers should also consider the tax implications of putting off buying and renting as well. Higher tax bracket income earners are loosing valuable tax breaks while renting. As one of my recent clients said to me recently as they closed on their new home “I need to start living a settled and permanent life with my family to be able to enjoy each day instead of wondering when I may get a notice to vacate my rental home. My wife wants to paint walls, hang curtains and plant a garden, these are things we have put off just renting and not owning. The rest of our settled lives begin NOW.”
The Stimulus package has been approved, and I will blog on what exactly it will mean for home owners and the housing market again in the next few weeks, as more credible information unfolds.
If you are ready to Buy or Sell call me for a no obligation consultation.
Have a great Valentines Day!!
Dulcie Crawford
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