September 20th, 2010
If you’ve been considering purchasing in one of the first San Jose High Rise condos, now may be the time to make the leap. A new housing plan from www.SJHousing.org called Building Equity & Growth in Neighborhoods (BEGIN) has recently approved over $8 million to assist qualified buyers in beautiful downtown San Jose.
First time home buyers that meet the qualifications can receive a
Down Payment assistance state loan of up to 20% of the purchase
price of their new San Jose highrise at an unheard of 3% interest
without any payments being required for the first 30 years. And, the down payment required to lock in your new home could be just 5% of the sales price with this great program.
MORE at SANJOSEHIGHRISES.com….
Posted on September 20th, 2010 in Buyers, Contracts, Downtown Living, Downtown San Jose Condos, First Time Buyers | Comments Off
August 27th, 2010
Before the economy changed in 2008 not many had heard of a Short Sale, and even fewer had known of anyone who bought or sold with this type of transaction. Short sales became the norm when the subprime mortgages began to reset and home values began to drop, leaving about a quarter of American homeowners “upside down,” or owing more on their homes than the homes are worth.
Today I field questions from my buyers as to why the banks have the right to come back and ask for additional funds in order to purchase a property after we have a signed purchase agreement from both parties.
I have to answer “The seller’s bank absolutely does have the right to change the terms of your transaction, even though you have a contract signed by both buyer and seller, and even if you’re a month, two months or six months into the transaction.
Because the banks are not recouping enough from the sale to pay off the mortgage lenders, all lenders with an interest in the house must give their permission for the transaction to close. And many will not do so unless they can get just a little bit more from the deal.
I will always recommend offering $5,000 to $10,000 below market value because as a buyer you will have to make the simple decision on whether you’d still want the house at the cost of $5,000 to $10,000 more, or not. And if your already $5k to $10K below market value that decision is a lot easier.
A San Jose buyer’s agent like myself is skilled at managing buyers’ understanding and expectations of short sales. So try and make sure you run through all the scenarios with your Realtor and know that the banks will most always ask for additional funds to get the Short Sale deal closed.
Posted on August 27th, 2010 in Contracts, First Time Buyers, General, Short Sales | No Comments »
May 12th, 2010
Fannie Mae announced the extension of its buyer assistance incentive on all Fannie Mae-owned HomePath properties. Buyers will receive 3.5 percent of the final sales price to be used toward closing cost assistance or their choice of selected appliances. The offer is available to any owner-occupant who closes on the purchase of a property listed on www.HomePath.com by June 30, 2010.
Properties listed on www.HomePath.com are owned by Fannie Mae and include a wide selection of homes, including single-family homes, condominiums, and town houses. HomePath properties may also be eligible for special HomePath Mortgage and HomePath Renovation Mortgage financing, which offers prospective buyers an opportunity to purchase properties with as little as 3 percent down.
See properties listed on HomePath.com For Sale in Santa Clara County
Here are the key benefits of a HomePath® financing Loan:
Only 3% down required on a primary residence property*
No mortgage insurance required**
No property appraisal required
Only 10% down on 1-unit investment properties
Allows investors to finance up to ten properties
For more information about the program and to find out if you qualify call Kenny Stephen of Prospect Mortgage, 415.412.3363. You will be glad you did!
Posted on May 12th, 2010 in Buyers, Contracts, First Time Buyers, General | 7 Comments »
November 12th, 2008
First-Time Homebuyer Tax Credit
One of the most exciting new provisions of the Housing and Economic Act of 2008 is the First-Time Homebuyer Tax Credit. The credit is designed to encourage first-time homebuyers to go ahead and make the leap to purchase their first home. Combine this tax credit with the fact that home prices are at historical lows, and indeed it is an ideal time for many first time homebuyers to purchase homes.
Here are some things to keep in mind:
The credit is available for home purchased between April 9, 2008 and July 1, 2009
The credit amounts to 10% of the purchase price of the home not to exceed $7,500
A first-time homebuyer is defined as someone who has not owned a home in the last three years
Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit
The tax credit works like an interest free loan and must be prepaid over a 15 year period.
How does the tax credit work? A tax credit is a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deductions items and the number of exemptions, among other things, to figure your total tax liability. If your total tax liability ends up being $7,500, and you qualify for the full $7,500 tax credit, this credit would be applied and would wipe out all of the tax due. If your employer had already deducted the $7,500 from your pay checks throughout the year, you would receive a tax refund of $7,500.<\p>
Does the credit have to be repaid?
Yes, the credit does have to be repaid, so it is really more like an interest free loan. Homebuyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house. If there is sufficient capital gain from the sale. For example, a homebuyer claiming a $7,500 credit would repay the credit at $500 per year. The homeowner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the homeowner sold the home, then the remaining credit amount would be due from the profit on the home sale, if there was insufficient profit, then the remaining credit payback would be forgiven.
Conclusion:
For more information about the first-time homebuyer tax credit or other changes resulting form the Housing and Economic Recovery Act of 2008, just give me a call/email
This was sent to me by Carma Van Houten. Sr. home loan consultant from our in house lender at JPMorgan Chase
Posted on November 12th, 2008 in Buyers, Contracts, General | Comments Off
