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Special Fannie Mae HomePath Buyer INcentive Offer

There’s great news from Fannie Mae: Buyers may be eligible to receive up to 3.5% in closing cost assistance through October 31, 2011 as part of the HomePath buyer incentive.

To be eligible for this incentive, the following qualifications must be met:

  1. Buyers and/or selling agents must request the incentive upon submission of the initial offer in order to be eligible.
  2. The initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. If an initial offer was made prior to the effective date, the offer is not eligible for the incentive.
  3. The sale must close on or before October 31, 2011. No exceptions will be made to this deadline.
  4. Only buyers purchasing a HomePath property as their primary residence may receive up to 3.5% in closing cost assistance. Second homes and investment properties are excluded from the incentive.
  5. Buyers must sign an Owner Occupant Certification Rider to the real estate purchase addendum.
  6. If the buyer’s total closing costs are under 3.5%, the difference will not be available as a credit to the buyer.

Dont hesitate – offers submitted after September 15, 2011 may be difficult to close by the October 31, 2011 deadline. 

Contact us for specific details on this incentive offer and for all of your Fannie Mae HomePath financing questions.

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How Property Tax Rates Work

It’s that time of year again, and some of you may have already received your property tax bill calculation for 2011. If that’s the case, you’re probably be wondering just how the government calculated the property tax rates and why your bill changes every year. Well, the following will answer some of your questions.

First, there is a difference between property tax rates and a property tax assessment. The rate is an overall percentage at which your property is taxed. The assessment is a value of your property, so that the government can determine how much money it is taxing.  States have different rules for conducting a property tax assessment, but the goal is to get an accurate value for the taxable property. This is usually determined by the replacement cost of structures and property, or the market value of the property calculated via comparison to similar properties.

Keep in mind that reassessment happens every few years, directly impacting property tax rates.  Once a property tax assessment has been conducted for an entire region, the local taxing entity then determines property tax rates.  Tax rates are determined in one of two ways, but are subject to percentage caps imposed by the law.  The taxing authority can choose to divide its yearly projected expenditures by the assessed value of all property in the region, assigning a portion to each property. It may also choose to estimate its budgetary needs based on different tax rates until it finds a reasonable rate.

Though no one enjoys fluctuating property tax rates—or taxes in general—they serve an important function. Taxes pay for local services, such as police and the fire department, as well as maintenance of infrastructure. They also pay for schools. So complain all you want, but please pay your property tax bill.

For more information visit www.findlaw.com.

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10 Things A Buyer Should Know Before Purchasing

  1. With falling home prices and near-record low mortgage rates, now really is a good time to buy. First and foremost, buyers need to make sure that they have solid job security before deciding to buy a home. Job security is probably the number-one consideration that people should have when purchasing a home. Buyers that feel comfortable enough about their income are in a great position to take advantage of some very attractive real estate deals.
  2. Now more than ever it is important for potential buyers to use an experienced real estate professional. There is very little downside and a lot of upside to getting a professional working on your behalf to help you find the right house. Foreclosures and short sales, an increasing large portion of the current market can involve legal and other hassles often best handled by an experienced professional. Look for an exclusive buyer agent who will have your interests at heart and can help you with strategies during the bidding process. Remember, sales commissions are paid by the seller, so there is no cost to the buyer to have their own representation.
  3. Start by shoring up your credit. Since you most likely will need to get a mortgage to buy a house, make sure your credit history is as clean as possible. Get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.
  4. Aim for a home you can afford. The rule of thumb is that you should buy a house that will cost about two-and-one-half times your annual salary. There are many calculators available online to get a better handle on how your income, debts, and expenses affect what you can afford. If you have a home to sell, wait to look for your next home until you have a contract on your current home. That way you will know exactly how much you have to spend on your new home.
  5. Before house hunting, get pre-approved. Getting pre-approved will put you in a better position to make a serious offer when you do find the right house. Pre-approval from a lender is based on your actual income, debt and credit history and is a fairly simple process.
  6. Use a knowledgeable reputable mortgage lender. Be sure to select a reputable lender that will work with you to get the best deal possible. Look for a lender who will put all costs in writing, carefully explain loan options, encourage you to ask questions, and not rush you into a quick decision.
  7. 6% is a good rate. With all the headlines about 30-year mortgage rates dipping below 5 percent, many consumers believe they’ll be able to lock in a rate in the high 4’s. But with today’s tighter lending standards, many borrowers won’t qualify for the most attractive rates. Keep in mind, trends of 30-year, fixed-mortgage rates over the past few decades, it’s clear that any rate that starts with a 6 is still very attractive. If you qualify, there are many lenders that offer low-interest mortgages that require a down payment as small as 3 percent of the purchase price.
  8. Choose carefully between points and rate. When selecting a mortgage, you typically have the option of paying additional points (a portion of the interest that you pay at closing) in exchange for a lower interest rate. If you plan to stay in the house for a long time, five or more year, it’s usually a better deal to pay the points if possible. The lower interest rate will save you more in the long run.
  9. Don’t buy if you plan to live in the home short term. Purchasing a home in today’s market only makes sense if the buyer plans to live in the home for at least three to five years. Those who plan on selling the property sooner might not provide the property enough time to recover the costs of buying and selling and any lost value that may have occurred in the short term. Even if a home declines in value over a short term, it can still be a good investment if you give the market enough time to recover.
  10. Before making an offer on a home examine the selling prices of similar, nearby properties. Make sure the sales information is fresh because the market is constantly changing. For an accurate gauge of home prices in a given market, buyers should look for comparable sales data that is as recent as possible. Your opening bid should be based on the sales trend of similar homes in the neighborhood.
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Indian Home Loan Guarantee Section 184

Section 184 is a mortgage product specifically for American Indian and Alaska Native families, tribes, Alaska Villages or tribally designated housing entities. Congress established this program in 1992 to facilitate homeownership in Native American communities.

Borrowers can purchase a home with a low down payment, no monthly mortgage insurance and flexible underwriting.

  • 2.25% down payment requirement for loans over $50,000;
  • 1.25% downpayment requirement for loan under $50,000;
  • No monthly mortgage insurance
  • A one-time, 1% loan guarantee fee that can be added to your financed loan
  • HUD underwriters and Loan Guarantee Specialists are familiar with the unique issues and circumstances that Native Americans face when trying to obtain a mortgage in Indian Country.

The Section 184 Loan Provides Numerous Options

  • Purchase of an existing home
  • Construction of a home (stick-built or a manufactured home on a permanent foundation)
  • Rehab loans
  • Purchase and rehab
  • Refinancing (Rate and Term, Streamline, Cash Out)

Getting Started

To qualify for a home loan, it’s recommended (but it’s not mandatory) that applicants first find out if there are homebuyer education classes available through their tribe, housing department and/or in their community.  Homebuyer classes prepare you for the home buying process, so that when you meet with a lender you’ll have a better understanding of what it takes to qualify for a home loan.  To apply for a 184 loan, you must contact a HUD-Approved Section 184 lender.

Call us today 665-8559 and let us help you navigate these waters!

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Home Buyer Tax Credit Deadline Is April 30th

Home Buyers don’t miss out! The tax credits offered by the Federal Government has been extended through April 30, but is not expected to be extended again.

First Time Home Buyers can receive up to $8,000. The credit is for 10 percent of the purchase price of the home and does not need to be repaid. This is a direct credit meaning that you do not need to have incurred any tax obligation to receive money. Also, beginning November 7, 2009, an additional category of new homebuyers, long-time residents (who owned their own homes), was added. The credit for this group is a maximum of $6,500, which, with some exceptions, does not have to be repaid.

To be eligible for a tax credit a buyer must be under contract by April 30, 2010 and close on the property before July 1, 2010.

To get details on tax credit options visit the IRS Website at: www.irs.gov.

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The First Impression

The first impression is very important when you are selling your Tulsa home. When I hear “first impression”, I think “curb appeal”. An attractive curb appeal is critical if you want to sell fast.

If your house doesn’t look good from the outside, chances are that Tulsa buyers won’t even stop to visit it. In order to show how beautiful the inside is, your Tulsa home needs to catch the potential buyers’ eyes right away. A few little changes go a long way.

Below are a few solutions you can adopt:

  • Clean up; rake leaves and kill weeds. Trash cans and cars should be out of sight because you want people to focus on your house and nothing else.
  • Add color to spice up the front of the house. Simple but colorful flowers, foliage and fresh mulch are all you need to make potential buyers feel welcome.

The impression the front door area makes is crucial. Tulsa buyers have plenty of time to look around and notice the flaws while waiting for the agent to unlock the door. Therefore you should:

  • Replace the house numbers (if needed) or spray paint them black.
  • Replace mailbox if dated or spray paint it black to freshen it up.
  • Make sure your doorbell works.
  • Add a welcome door mat.

Last but not least, don’t forget to clean up the windows to maximize natural light.

All this should help you make an amazing first impression. Your curb appeal will show nicely, your Tulsa home will look well maintained and buyers will be eager to discover the inside.

Staging tip of the week:

To clean your windows inside and out, you need a window cleaner along with a squeegee. Use a vertical motion on one side and a horizontal motion on the other. That way, you will know what side streaks are on for follow-up cleaning.

Good luck!
Virginie Gill, Certified Staging Expert
Owner of Voila Design