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6502 Crosswoods Cir, Citrus Heights, is for sale!

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Lovely wooded setting for this bright and airy end unit condo, conveniently located in the popular Crosswoods subdivision. Backs to trails and greenbelt area, very quiet and private, with nice, large deck for relaxing or entertaining. Lovingly maintained and move-in ready. HOA maintains roof and exterior. 3 community pools and walking trails. This is a place to call home! Not an REO or short sale.

For more information or a private showing, call me at 530-305-8409, or email me at ncrider@kw.com.

Market update January 8, 2010

What’s going on in the market? Scott Cooper of Big Valley Mortgage knows his stuff! Read on…

Rates

Conventional 30 Year 4.875%-5.125%
FHA/VA 30 Year 5.0%-5.25%
Jumbo Conventional 30 Year 5.125%-5.375%
Investor 30 Year 5.25%-5.50%

5 Reasons to Buy Now!

1) Tax Credit Going Away:

$8,000 for First Time Buyers & $6,500 for Move-Up Buyers
• Must be in contract by April 30th, 2010
• Must close by June 30, 2010

2) Rates Positioned to Rise

The Fed has stated that it is set to discontinue buying Mortgage-Backed Securities in March.  (Many Analysts expect Rates to increase over 1%)
Low Rates= Low Payments!

3) Sales Prices Still Low

With increased sales activity and low inventory, we are seeing many properties appraisal for more than the sale price.  In addition, the recession is officially over and the economy is in the beginning stages of recovering.  These are good indications of increased sales prices in the future.

4) Appraisal Ordering is Getting Tougher

HA is implementing an HVCC style appraisal ordering process. This means we will lose the benefit of picking the appraiser.

5) Continued Tightening in Underwriting:

As lending tightens buyers who qualify today, may not qualify tomorrow.

Current Underwriting Basics

• Minimum Credit Score to Buy – 620 FICO
• Foreclosure – Can buy after 3 years
• Chapter 7 Bankruptcy – Can buy 2 years after discharge
• Chapter 13 Bankruptcy – Can buy with 1 year clean payment history from date filed
• Short Sale – Can buy 2 years after a short sale with no lates in the year prior to the short sale
• Can buy 3 years after a short sale with lates in the year prior to the short sale

Bottom Line: If you’re paying at least $1,000 in Rent, you should own!

 

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Stupid or broke?

A recent article in BusinessWeek made this bold statement in reference to fence-sitters in the current real estate market. Marc Roth’s statement makes us stop and take notice.

In 1986, my husband and I purchased a home just south of Tucson, Arizona, in the small rural town of Sahuarita. It was a purchase necessitated by a job transfer, and at that time, we paid right around 17% interested on our $90,000 home.

Why is now the right time to buy?

1. Interest rates are historically low, right around 5%.
2. Home prices have taken huge discounts, and are now showing signs of steadying. 
3. It is expected that interest rates will increase as the economy begins so stabilize.

I want to wait until prices drop further.

Let’s say you decide to wait for another 10% drop in home prices. Just a 1 point rise in interest rate on a typical 30-year-fixed loan will negate any benefit from that 10% price drop.

Roth states that for every quarter-point rise in interest, expect an increase of debt in the amount of $6,000 over the life of the loan for every $100,000 borrowed.

Here’s an example: You want to buy a $200,000 home with 20% (or $40,000) down. Over the course of this loan, each quarter-point increase in interest rate will cost you $12,000 over the life of the loan.

The bottom line is that if you are planning to buy a home now or in the near future, it’s wise to pay more attention to the interest rates than the price of the home.

Read more about the benefits of buying a home.

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Buy a Home in 2010

Are you a first-time homebuyer? Are you a homeowner considering purchasing an investment property? Either way, you are among a large group who are planning to buy a home in 2010.

A recent Move.com survey revealed that many Americans have “buying a home” as one of their top New Year’s Resolutions! 17.7% of Americans want to be come First Time Home Buyers and 15.7% are planning to purchase an Investment Property.

Here are the Top Four Reasons to buy now!

1. Record Low Interest Rates.

2. Record Low Home Prices.

3. Tax Credits for Home Buyers – through April 30, 2010.

4. Tax Benefits of Home Ownership over the long term.

Read more about the benefits of buying a home.

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Why you should buy a home now.

“If you wait until you see the robin, spring is over.” Warren Buffet

You may be sitting on the sidelines waiting for the right time to buy a home. Here are some reasons you shouldn’t wait.

1. Interest Rates. Today’s record low rates are under 5% for most loan types, with jumbo loans and those for investment properties slightly higher. We haven’t seen rates this low since Freddie Mac started tracking them in 1971. The federal government has been injecting $1.25 trillion into mortgage-backed securities to push down mortgage rates, but that money is set to run out next spring, and rates are expected to go up.
2. Home Prices. With median home prices bouncing around all-time lows, there is no reason to wait. Think about this: even a 10% decrease in home prices is immediately nullified by a mere 1 percent increase in interest rates on a 30-year loan.
3. Tax Credits. The government has extended the $8,000 first-time home buyer credit through April 30, 2010, and has added a $6,500 credit for repeat buyers. Read about it here.
4. Tax Benefits.  When you purchase a home, in most cases, loan discount points and origination fees are tax deductible to the buyer, regardless of who pays them. In addition, you can deduct mortgage interest charged on a loan used to acquire or improve your principal residence in the year that it is paid. In the early years of a loan, most of your monthly payment is interest, so this can really add up. Finally, when you sell the home, as an individual you can earn up to $250,000 and pay no taxes on it, and as a couple, it’s $500,000. Learn more.  
5. Timing the Market. It’s ironic that when prices were escalating in the seller’s market a few years ago, buyers were clammoring to buy! No one can time the market, but statistics show that the worst is over, and we are bouncing around the bottom. The time is now to purchase a great value.

For more information about buying a home in today’s market, contact me.

4 Important Tips for Repairing Your Credit

Credit repair does not have to be complex and can be boiled down two basic ideas: First, positive accounts will counteract the negative accounts. Second, time heals all credit. 

1. If you have positive accounts, keep them.  Do not close any accounts that have good payment histories as they will help balance the negative.  In addition, older, unused accounts with a zero balance may help improve your score.
2. If some of your positive accounts are credit cards, keep the balances below 50% by paying them down, or transfer part of the balance to another card so the balance does not exceed 50% of the limit.
3. If you do not have at least 3 accounts that report to the credit reporting agencies, open up more accounts.  With negative credit, opening new accounts may be difficult, so open a “secured” credit card.  With a “secured” credit card you will need to send the credit card company a specific amount of money, and then you will receive a credit card in that amount.  The new accounts will help you establish a positive credit history. 
4. WAIT.  While this may not seem like a plan packed with insider secrets, the fact of the matter is…time heals credit.  Remember, this is a marathon not a sprint.  If you maintain at least 3 accounts with perfect payments, your credit will progressively improve.

So, now you are 2 to 3 years in the future and what is the payoff for sticking to the plan?  Your credit will be good enough to buy a home again.  Don’t let the setback of a short sale or foreclosure make you feel hopeless.  You have options, and with the proper course of action, you may become a homeowner again much sooner than you thought possible.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

Buying a home after a Short Sale or Foreclosure???

by Scott Cooper, Big Valley Mortgage

Many people believe they won’t be able to purchase a home for at least 7-10 years after a short sale or foreclosure, however, I am happy to inform you that is not the case. 

Although your credit will be affected, you will be surprised how quickly you can buy again.  The following are some commonly asked questions and answers you may find useful:

Q. How long after a short sale before I can buy another home?

A. New FHA guidelines state there is no minimum wait period after a short sale before you can buy another home if you do not have late payments on your mortgage and your credit history is acceptable.

Q. If I have late payments along with a short sale, how long before I can buy again?

A. The current guidelines require a two-year waiting period.

Q. How long after a foreclosure before I can buy again?

A. With an FHA loan, the minimum wait period is 3 years after a foreclosure.

If you need further information, or would like assistance with credit repair, contact me:

Scott Cooper

It’s Official! The First-Time Homebuyer Credit has been Extended.

On Thursday the Senate and the House both overwhelmingly approved the legislation to extend and enhance the Homebuyer Tax Credit. On Friday, President Obama signed it into law.

The down and dirty:

1. The First Time Homebuyer Credit of $8,000 will be applicable through contracts in place by April 30, 2010, and allows for 60 days beyond this date to close the transaction.
2. In addition, repeat buyers — those who have lived in their previous home for 5 of the last 8 years — will qualify for a credit of $6,500 for purchases between December 1, 2009 and April 30, 2010.
3. Couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the credit, an increase from $75,000 for individuals and $150,000 for couples.

I like this summary of the information from NAR: 

For more information, please contact me!

How do I file for the First Time Homebuyer Tax Credit?

If you are a First Time Homebuyer who qualifies for the First Time Homebuyer Tax Credit, here’s how to file and receive your credit.

You have two choices: you can file to amend your 2008 tax return, or wait and file in 2009.

How to amend your 2008 tax return:

1. Download Form 5405 ”First -Time Homebuyer Credit” from the IRS website. Use this link to determine the amount of your credit.
2. Then download Form 1040X  ”Amended U.S. Individual Income Tax Return” to amend your 2008 return.
3. Fill out the amended credit amount on Line 15 under Payments.
4. File Form 1040X along with Form 5405.
5. Any refund due will be sent to you.

Filing for your credit in 2009:

1. File Form 1040 as usual.
2. On Line 69, enter the amount of your credit calculated using Form 5405;
3. Be sure to attach Form 5405 to your return.
4. Your refund will be sent to you.

Be sure to consult your tax professional for further information.

Contact me for assistance in purchasing your first home.

First Time Homebuyer Tax Credit – Update

Senate votes today to extend the first time homebuyer credit through April 30th, 2010.

Once the Senate votes, the House is expected to follow suit and then off to Obama’s desk for signature.

Here are the details of the new and improved credit:

1. The First Time Homebuyer Credit of $8,000 will be applicable through contracts in place by April 30, 2010. This allows for 60 days to close the transaction past this date.
2. In addition, repeat buyers — those who have lived in their previous home for 5 of the last 8 years — will qualify for a credit of $6,500 for purchases between December 1, 2009 and April 30, 2010.
3. Couples earning as much as $225,000 and individuals as much as $125,000 would qualify for the extension, an increase from $75,000 for individuals and $150,000 for couples.

Act quickly:

“The American people should understand this — and the affected industries — this is the last extension,” said Senator Johnny Isakson, a Georgia Republican who cosponsored the plan. “Tax credits like this only work by creating the sense of urgency to take advantage of them.” See the entire article.

 

http://www.bloomberg.com/apps/news?pid=20603037&sid=ai5ZNuz56Q4g