W-O-W! Check out this press release from HUD. This would be a boon for first-time homebuyers. Keep pumpin' money into the economy - the market in this area is picking up (some areas much stronger than others).
Good economic news for housing - let's get it implemented quickly!
http://www.hud.gov/news/release.cfm?content=pr09-072.cfm
Friday, May 29, 2009
Thursday, May 28, 2009
Can You Use Your $8k Tax Credit as a Downpayment? Maybe...
This may in fact happen soon! Very exciting stuff for first-time homebuyers. This was announced by Shaun Donovan, secretary of the U.S. Department of Housing and Urban Development during a recent meeting. Check out the link below for the full story and press release.
http://www.realtor.org/press_room/news_releases/2009/05/re_summit?lid=ronav0019
http://www.realtor.org/press_room/news_releases/2009/05/re_summit?lid=ronav0019
Changes to the Appriasal System - What does it mean?
Well, a lot. It means that appraisers are not fully informed of the properties status and the neighborhood -- and these folks are often being paid less and consumers are paying more. How hard would you work if your pay was cut significantly? It is true that you do get what you pay for.
Appraisals have always been a hot button issue, and we think that changes must be maid to make sure that the appraiser is giving a fair market value analysis. However, the 'new' system is often not providing good information and realiable, knowledgeable folks to appraise properties. Like any profession - there are great appraisers out there, and some not so great ones.
You be the judge - how would you change the appraisal system to guarantee a fair valuation but also providing necessary information on the status of a home? A tough question indeed.
*******************************************************
Washington Report: Appraisal System
by Kenneth R. Harney
Last week saw the official kickoff of Fannie Mae's and Freddie Mac's mandatory new system of appraisals nationwide, and some mortgage and appraisal groups are up in arms over sharply higher costs for consumers.
The so-called "home valuation code of conduct" imposed by Fannie and Freddie puts most appraisal assignments in the hands of management companies, some of whom are owned by major lenders such as Bank of America and Wells Fargo.
The Appraisal Institute, which represents 20,000 appraisers across the country, and the National Association of Realtors, which has thousands of appraiser members, both have been critical of the new code.
The Institute is particularly incensed at the expanded management company role in appraisals because those companies pay appraisers much less than their standard fees, and tack on thirty to fifty percent extra charged to the consumer.
For example, an appraiser who'd normally charge $325 for a valuation ordered though a lender or mortgage broker, now might be required by a management company to do the same work for $175 to $200.
Meanwhile the consumer, who has no idea where the money is going, is charged $400 or more for the appraisal, and must pay for it up front by credit card, rather than at closing.
The $200 to $225 extra goes to the management company. If the deal falls through and the mortgage doesn't close, that's the consumer's problem. The appraisal fee has already been pocketed by the management company.
Now evidence is circulating in Washington that not only are appraisal fees significantly higher under the new Fannie-Freddie code, but are being extended to FHA mortgages, despite the fact that FHA is not covered by the code.
The National Association of Mortgage Brokers has begun documenting the higher fees and other problems with the new code. In one case the association shared with Realty Times last week, a large lender, EverBank, circulated its list of new appraisal fees to be charged consumers through its "automated appraisal system."
Not only does the bank require credit payment for appraisals up front, but it now charges a flat $465 for FHA appraisals and $390 for standard single family conventional appraisals. Flat fees go up to $700 in Hawaii.
Roy de Loach, CEO of the brokers group, cited one member's experience -- where total appraisal fees for a routine FHA cash-out refi ballooned to $1,068 to the consumer.
Home buyers and realty professionals need to be aware of these sharply escalating fees -- and their controversial use on FHA loans that are supposed to be exempt from the Fannie-Freddie code.
Appraisals have always been a hot button issue, and we think that changes must be maid to make sure that the appraiser is giving a fair market value analysis. However, the 'new' system is often not providing good information and realiable, knowledgeable folks to appraise properties. Like any profession - there are great appraisers out there, and some not so great ones.
You be the judge - how would you change the appraisal system to guarantee a fair valuation but also providing necessary information on the status of a home? A tough question indeed.
*******************************************************
Washington Report: Appraisal System
by Kenneth R. Harney
Last week saw the official kickoff of Fannie Mae's and Freddie Mac's mandatory new system of appraisals nationwide, and some mortgage and appraisal groups are up in arms over sharply higher costs for consumers.
The so-called "home valuation code of conduct" imposed by Fannie and Freddie puts most appraisal assignments in the hands of management companies, some of whom are owned by major lenders such as Bank of America and Wells Fargo.
The Appraisal Institute, which represents 20,000 appraisers across the country, and the National Association of Realtors, which has thousands of appraiser members, both have been critical of the new code.
The Institute is particularly incensed at the expanded management company role in appraisals because those companies pay appraisers much less than their standard fees, and tack on thirty to fifty percent extra charged to the consumer.
For example, an appraiser who'd normally charge $325 for a valuation ordered though a lender or mortgage broker, now might be required by a management company to do the same work for $175 to $200.
Meanwhile the consumer, who has no idea where the money is going, is charged $400 or more for the appraisal, and must pay for it up front by credit card, rather than at closing.
The $200 to $225 extra goes to the management company. If the deal falls through and the mortgage doesn't close, that's the consumer's problem. The appraisal fee has already been pocketed by the management company.
Now evidence is circulating in Washington that not only are appraisal fees significantly higher under the new Fannie-Freddie code, but are being extended to FHA mortgages, despite the fact that FHA is not covered by the code.
The National Association of Mortgage Brokers has begun documenting the higher fees and other problems with the new code. In one case the association shared with Realty Times last week, a large lender, EverBank, circulated its list of new appraisal fees to be charged consumers through its "automated appraisal system."
Not only does the bank require credit payment for appraisals up front, but it now charges a flat $465 for FHA appraisals and $390 for standard single family conventional appraisals. Flat fees go up to $700 in Hawaii.
Roy de Loach, CEO of the brokers group, cited one member's experience -- where total appraisal fees for a routine FHA cash-out refi ballooned to $1,068 to the consumer.
Home buyers and realty professionals need to be aware of these sharply escalating fees -- and their controversial use on FHA loans that are supposed to be exempt from the Fannie-Freddie code.
More Info and a Great Link - What You Need to Know About the $8,000 Tax Credit!
It's a great time to be a first time homebuyer! Here's what you need to know to get your $8,000 tax credit!
http://www.lulu.com/items/volume_64/6547000/6547753/1/source/First-Time_Home_Buyer_Credit_09_LARGE.jpg
http://www.lulu.com/items/volume_64/6547000/6547753/1/source/First-Time_Home_Buyer_Credit_09_LARGE.jpg
Monday, May 11, 2009
What a way to travel!
"Houseswaps" are gaining in popularity - what a great way to see the world! We';re always looking for a vacation - anyone looking for a 4 BR, 3 1/2 ba home less than 5 miles from DC?
Summertime is just around the corner!
http://realestate.msn.com/article.aspx?cp-documentid=19562262
Thursday, May 7, 2009
The First Time Home Buyer Tax Credit - What You Need to Know!
First-Time Homebuyer Tax Credit Comparison
Here is a quick breakdown between the original tax credit in July 2008 and the new credit that came out in February’s American Recovery and Reinvestment Act. The February 2009 Tax Credit is a much better deal for home buyers - read on!
Here is a quick breakdown between the original tax credit in July 2008 and the new credit that came out in February’s American Recovery and Reinvestment Act. The February 2009 Tax Credit is a much better deal for home buyers - read on!
- The original credit created by July 2008 and the revised credit was released in Feb. 2009
Definition of first time home buyer:
Buyer (and buyer’s spouse) may not have owned a principal residence for 3 years prior to purchase - Amount of tax credit:
The February 2009 credit allows for a maximum credit $8,000 - True credit or repayment?
True credit – unless the home is sold within three years, at which point the first-time homebuyer who is now the seller) must repay the entire amount to the IRS at closing - Effective dates:
Applies to homes purchased between January 1, 2009 and November 30, 2009 - Tax implications:
Reduces (or can eliminate) income tax liability for the year of purchase; e.g., buyers will pay less tax or receive a bigger refund - Eligible properties:
Any single family residence (including condos, co-ops, townhouses, etc) that will be used as a principal residence - Income limits
Full credit for individuals with a modified adjusted gross income of $75,000 or less ($150,on a joint return); partial credit for income from $75,000 to $95,000 ($150,000 to $170,000 on a joint return)
For all of your real estate needs - contact Chrissy and Lisa, we'll save you $$.
Chrissy and Lisa do not give tax advice. For additional questions regarding tax advice, please consult your tax professional
Getting to Know Your Neighbors - It Really Makes a Neighborhood
When we read this article in the Washington Post, the first thought was "how many neighbors do we know?" Well, after thinking about it we know quite a few of our neighbors, although we make efforts to do so since it is our business. One thing we are asked a lot is 'How is the nieghborhood?' Well, sometimes it is what you make it and getting to know your neighbors is step 1. Washington, DC and surrounding areas are full of amazing and interesting people -- maybe more so than any place in the world. What does your neighbor do? What are their interests? You might be surprised.
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/01/AR2009050101657.html
http://www.washingtonpost.com/wp-dyn/content/article/2009/05/01/AR2009050101657.html
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