Posts Tagged "8000 First Time Homebuyer Tax Credit"

How To Buy A House And Get The Money To Fix It Up!

Posted in For Buyers, Mortgage Loans

You are First Time Homebuyers and you have Found THE HOME.  You have watched DIY and HGTV and you know you can do everything those couples do on the home improvement show, but beyond the down payment, you have very little money to replace the cabinets in the kitchen, tile the bathroom and maybe add a family room in the basement.   What’re ya gonna do?

Cheer up little buckaroo, as sure as the sun shines, or in Utah the rain comes as of late, you can accomplish all those magical repairs, rehab your home and live the life of Riley (now that Really dates me doesn’t it).

How can you accomplish this miraculous feat you ask?  Simple, with an FHA 203k rehab loan.  This most fabulous loan will allow you to not only purchase your home, but finance the improvements as well and keep it all in one mortgage at low FHA loan rates.

Now, what Can you do with an FHA 203k loan you ask?  Any or all of the following:

• Paint
• Repair a kitchen
• Add a deck or patio
• Insulate for greater energy efficiency
• Replace flooring ie tile, carpet, etc
• Add a bathroom, replace a bathroom
• Finish a basement
• Replace windows
• Replace Appliances ie stove, furnace, water heater…energy credit
• Add central air (again energy credit here)
• And Much More

What Can’t you do with an FHA203k mortgage loan?

• Put in a pool or an ice skating rink
• Add a Theater Room and all the equipment (you could get away with the room)
• Buy a Ferarri
• Any other Luxury item, like gold plating the baseboards
• Putting in a yard

So what do I have to do to get one of these FHA 203k loans you ask?

There are hoops to jump through to qualify for this kind of mortgage (what government program Doesn’t have hoops?)

• Owner/occupants only…no flipping or investors (and no you don’t have to be a 1^st time homebuyer to qualify)
• The house must have been completed for at least 1 year , no new construction houses, sorry
• You will need to have 2 appraisals (one for the as-is value now and one for the projected value once the work is completed)
• Only 1 appraisal for a HUD Home- ask me how you can get one of those for $100 down!
• You must identify the repairs and work to be done, and have a written estimate of materials and labor by a licensed contractor and an interior plan of the home.
• Note here: You can actually do the work, but you must have enough in escrow for labor in case you don’t get it done in a timely manner.
• Repairs and addition must have the proper permits, inspections and be done to code
• And most of all…..you must be able to qualify for the finished product (cost of house + rehab money), so you can’t buy that million dollar fixer upper guys, sorry…..well unless you can Afford that million dollar home.
• You must still have your 3 ½ percent down payment for the entire purchase price (home + rehab money)

So, if you’re game for the hoop jumping, have the vision to make the ugly duckling into a swan, then the FHA 203k loan is just what you are looking for.  Give us a call (yep the number is right up top) or text us…or you can even email us… and we will help you get started, both with the mortgage and with finding the right home to apply it to!

Salt Lake County Market Update

Posted in General Musings, Market Statistics

Market Update For Salt Lake County

Boring statistic time! Now comes before us the Salt Lake County market update for February 2010.  This time we are approaching things a bit differently and comparing year to year .  Yes, I know that most everyone has come out comparing 4^th quarter 2009 to 4^th quarter 2008 with weaping, wailing, and gnashing of teeth however, in our humble opinion, this information is not entirely accurate.  Pricing and sales fluctuate during a quarter , so to accurately gage what is happening in the market, let’s take a look at the year to year trend.

For example

Let’s take a look at single family homes in Salt Lake County over the last 3 years.  The average price for a single family home in Salt Lake County increased from 2006 to 2007 by 9.56 % (the last year of the madhouse sellers market).

Now we all know, unless you were on a deserted island and had no TV or internet news channels, that sales prices  (we are talking Utah here, remember Real Estate is a local issue) decreased in 2008 and 2009.  However, in Salt Lake County the decrease in 2008 was only 2.76% and 6.99% in 2009.

Therefore, at the beginning of 2010 we are dead even with 2006 prices.  So, like Walmart, we have “rolled back the prices” to 2006 levels, which means that most areas of the Salt Lake Valley are in the affordable category again.  Similar trends have happened in Tooele, Davis, Utah counties.

Now, if you’re a first time homebuyer…

This means great things to you.  Not only are prices more affordable, but there are incentives like the $8000 first time homebuyers tax credit and extremely low interest rates to help you into that home.  Likewise, if you have lived in your home for 5 years and are ready to move up, the same interest rates AND a $6500 move up tax credit is available to you.  And by the way, those can be claimed THIS year to help you furnish that new home, put in a yard, or what ever you want to do.

If you are thinking, or know someone who is, about making a move, give us a call.  We can answer your questions and give you the information you need to make an educated decision…besides, we love to talk! Call us today!

Salt Lake Market Statistics

Posted in General Musings, Market Statistics

Boring Utah Market Statistics time again, but in all fairness we need to give you the information to keep you up to date on the market.

You will notice on each of these reports that The Salt Lake, Tooele, and Utah county market had an increase on days on market for most of the year, with a drop in November, this would be due to the perceived end to the First Time Homebuyers Tax Credit….those houses got snatched up let me tell you.

Pricing in Utah, Salt Lake, and Tooele Counties have pretty much stabilized for the moment…a good sign. Now, if only interest rates would cooperate! If you would like to whether your particular neighborhood has stabilized, try our market snapshot.

Anyway, have a look at the stats. They are in pdf form, so download them here.

• For Salt Lake County
• For Tooele County
• For Utah County

And…

If you want more detail of the Utah Market by zipcode for the 3rd quarter 2009 compared to 2008 (sorry we don’t have 4th quarter yet), you can get it here.  It is in Excel format and includes, Salt Lake, Tooele, Davis, and Utah counties.  If you cannot read that, let me know and I will send it to you in pdf format.

So all you statistical type people, start salivating and download the reports.  Let me know your thoughts!

Ciao!

HELP! I’m Melting..What A World, What A World!

Posted in General Musings

Scary Thoughts for Halloween! I read an article in one of my trade publications this morning about how frustrating it is for first time homebuyers to actually Find homes in this market.  The article went on to say that many first time homebuyers have actually given up their search and are planning to forego the $8000 tax credit because they can’t find the right home.

Now, given the fact that they cited examples of frustrated home buyers in Florida (one of the worst hit markets in the country) where investors are coming by the droves to pick up distressed properties (foreclosures and short sales), where multiple offers are the norm and where most homebuyers cannot compete with a “Cash Offer”, I can see how this might be a huge disappointment to a young couple, young professional, not so young professional, whipper snappers, singles,(did I cover everyone?)or anyone else looking for their first home.

But, if you are planning on buying here in Salt Lake County or the surrounding area, the news is great.  There are plenty of properties available that are Not distressed, that are affordable, that qualify not only for the $8000 First Time Homebuyer Tax Credit, but also grants, Utah Housing, and other programs that can help you buy your first home.

For example:  In Salt Lake County Alone there are 2713 single family homes ($250,000 and under) that are active on the market and available to first time homebuyers.   Some are short sales , but as you can see by the breakdown below, most are regular resale homes.

The same is true for condos : There are currently 1026 condos for sale in Salt Lake County ($250,000 and under) that are available to first time homebuyers:

Similarly, there are homes available in Davis, Tooele, Utah counties and in fact all over

Receive Utah Home Run Grant of $4000

Utah.  In addition, there are new construction homes available in Utah and Tooele counties that qualify not only for the $8000 first time homebuyer tax credit(which you can still receive for this year..don’t have to wait til next year’s tax return), but also for the $4000 Homerun grant currently offered by the state (this can be used for down payment or closing costs at settlement, not as a cash payment or credit like the Federal Tax Credit).  If you add that onto Utah Rural Housing that offers 100% financing in these areas, a first time homebuyer can purchase a home, get his closing costs paid for by the seller and the Homerun grant, and get $8000 to furnish the new home!

Couple this with low interest rates, and you truly have a fantastic opportunity!  How could anyone NOT want to take advantage of this?

So, cheer up little buckaroos, there is still time to get into your first home!   Just get started on your journey toward homeownership.  We could inundate you with platitudes  like“ The longest journey begins with the first step” etc. but the fact is don’t wait!

In reality, the midnight hour is approaching, and you must close on your home by November 25,2009 to get your tax credit (We have Thanksgiving in the final days,where all the folks that we need to have to close this transaction will be gone for the weekend).  Also, there are only 895 homerun grants left and they must also be claimed by November 30^th.  Don’t delay; CONTACT US TODAY and we will help you get started!