Realtors Offer some Employment Insurance

This is the time of year when we really loose our momentum.  I am committed to continuing to blog — regularly.  So here is my offering today.

The National Association of Realtors announced their latest enticement for the buying public.  One of the reasons the real estate market has been taking so long to recover is that people are afraid of loosing their jobs.  Anyone can understand that concern in these times.  So, to try to allay that fear, Realtors are offering their buyers an insurance policy that will essentially pay up to $1000 or $1500 per month for 6 months if the borrower looses their job.  This insurance has a premium somewhat like a Home Warranty policy.  For the higher amount of coverage, one pays $275 (one time at close of escrow), the lower one $200.

There are some restrictions of course but basically this looks like a good deal.  The coverage is only for one year and the buyer cannot renew it.  It does only cover 6 months but this bit of help could be just what buyers need to get them off the fence and into their own home — at a time when everything else is giving them the green light!  If you are interested, read more here and contact us!

Way to go NAR!!  NOW, LET’S GET THE WORD OUT!!

Congress votes to extend temporary loan limits for Fannie & Freddie

I was speaking with my colleague Ephraim Schwartz yesterday trying to make sense of the news that Congress had voted to extend the temporary loan limits that had been put in place at the introduction of the economic stimulus package.  This, I thought, would be good information to put in our monthly newsletter.  I  studied up on it, regurgitated it onto paper then passed it over to him for editing.  Following his review, this is what “we” came up with.  I hope we did a better job than the articles I read because the articles left me in the dark.  I can imagine what the average lay person must go through.    Thank you Ephraim for making the muddy waters more clear. [Read more]

First Time Homebuyers HURRY UP!

As if the first time buyer needs more incentive to get off the dime, FHA has just announced that they are considering increasing the up front “mortgage insurance premium” fee that they assess a borrower when they take out one of their insured loans.

The FHA is talking about increasing the fee from the current level of 1.75 percent of the loan to 2.25 percent.  That would mean that based on a $300,000 mortgage, a borrower will now have to pony up  $6,750 instead of $5,250. This amount will still be able to be financed by adding it to the total loan.  These changes are expected to take effect sometime in the first half of this year (2010).

For the reader who is not aware, the FHA does not make loans, they insure loans against default, something that we have seen a lot of lately.   According to The Mortgage Banker’s Association, 18 percent of FHA borrowers are at least one payment behind or in foreclosure, compared with 14 percent of all loans.   FHA insured loans are traditionally granted to those borrowers who put a minimum of 3.5% downpayment of their own money.

So, Buyers, hurry up.  On top of this looming cloud, don’t forget the other reasons to purchase NOW.

1)  prices are lower than they have been in years,  here is a list of homes under $350,000 – there are condos too, call us for more info.
2)  The federal government has offered a tax credit of up to $8000 for the first time buyer. This credit is set to expire in April 2010;
3)  There are many down payment assistance plans in your neighborhood. If you live in Truckee check it out here at. If you live elsewhere, check with your city or county website or housing affordability department.  I’ll bet there is something similar there, everyone is trying to stimulate the economy.

Whatever you do, be sure to go talk to a mortgage broker and a Realtor about your chances of purchasing your new home this year.  We’re Realtors and We would love to help you!!

More Financial Help for Truckee Locals

I am in the midst of working with a buyer who is attempting to purchase a mobile home in Truckee.  My client is a young man who is gainfully employed but has been out of work for some time, consequently has no savings in his bank account.  He would like to purchase a mobile home in a local park and since he doesn’t have any downpayment money, I went in search of some in the community.  Well, currently Truckee has a Downpayment Assistance program which is administrated by a very bright lady by the name of JoAnn Anders.   JoAnn is committed, by the way, to helping people attain homeownership who otherwise would not be able to qualify.

This downpayment assistance program is available to people who live and work in Truckee.  The assistance comes in the form of a “silent second” loan at 3%.  The payments and the principal are deferred until the borrower either sells the home, pays off the mortgage or the home becomes something other than his principal residence.

The surprising thing to me is that this program is available to those who want to purchase a mobile home in a mobile home park.  JoAnn told me that they have been successful with one borrower on a home in the Coachland Mobile Home Park.   If you are someone who thinks they can benefit from this opportunity — give us a call and we will supply the application and more information.

Financial Help for Locals

The Town of Truckee and its Redevelopment agency have combined forces and will be rolling out a new downpayment assistance program for first time buyers within the town of Truckee on December 18, 2009.  The assistance program will come in the form of  “silent seconds” whose terms will be 30 years, interest rate will be 2-3% and neither the principal nor the interest will be due until the house changes hands again or the 30 years have expired, whichever is first.  In other words, the money will not have to be repaid at all until the borrowers sell their home.

This program is designed to be used on some of the affordable stock within the town of Truckee’s inventory.  We are not talking about just deed restricted properties, rather, also those properties that are currently lowering in price to the point where they become affordable.

As you can imagine, there are some restrictions with regard to income, family size and to the price to be paid for the home.  The eligible home prices are from $265,000 to $445,000.  These home prices are available in the Truckee area (see link below).   Be sure to get in touch with us for more information or call David Griffith, Redevelopment and Housing Coordinator with the Town of Truckee.  He is the expert and really great to deal with.

HERE IT IS TRUCKEE!!  Now with the extension of the 1st time homebuyer tax credit this tool makes it impossible not to look at NOW as being a great time to get into the housing market.   Call us for a list of homes that qualify or just check it out here.

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