Thanks to Nathan Jensen of Express One Mortgage for some updated info on the $8000 homebuyer tax credit that is available. This should clear up some of the issues surrounding this program!!
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DONOVAN ANNOUNCES RECOVERY ACT'S HOMEBUYER TAX CREDIT CAN IMMEDIATELY HELP THOUSANDS OF FIRST-TIME HOMEBUYERS TO BUY A HOMEFHA
plan will stimulate new home sales and help stabilize housing market
WASHINGTON - Speaking to the National Association of Home Builders Spring Board of Directors Meeting, U.S. Housing and Urban Development Secretary Shaun Donovan today announced that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. Donovan said that today's action will help stabilize the nation's housing market by stimulating home sales across the country.
The American Recovery and Reinvestment Act of 2009 offers homebuyers a tax credit of up to $8,000 for purchasing their first home. Families can only access this credit after filing their tax returns with the IRS. Today's announcement details FHA's rules allowing state Housing Finance Agencies and certain non-profits to "monetize" up to the full amount of the tax credit (depending on the amount of the mortgage) so that borrowers can immediately apply the funds toward their down payments. Home buyers using FHA-approved lenders can apply the tax credit to their down payment in excess of 3.5 percent of appraised value or their closing costs, which can help achieve a lower interest rate. To read the FHA's new mortgagee letter, visit HUD's website.
"We believe this is a real win for everyone," said Donovan. "Today, the Obama Administration is taking another important step toward accelerating the recovery of the nation's housing market. Families will now be able to apply their anticipated tax credit toward their home purchase right away. At the same time we are putting safeguards in place to ensure that consumers will be protected from unscrupulous lenders. What we're doing today will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing."
Currently, borrowers applying for an FHA-insured mortgage are required to make a minimum 3.5 percent downpayment on the purchase of their home. Current law does not permit approved lenders to monetize the tax credit to meet the required 3.5 percent minimum down payment, but, under the terms of today's announcement, lenders can now monetize the tax credit for use as additional down payment, or for other closing costs, which can help achieve a lower interest rate. Buyers financing through state Housing Finance Agencies and certain non-profits will be able to use the tax credit for their downpayments via secondary financing provided by the HFA or non-profit. In addition to the borrower's own cash investment, FHA allows parents, employers and other governmental entities to contribute towards the downpayment. Today's action permits the first-time homebuyer's anticipated tax credit under the Recovery Act to be applied toward the family's home purchase right away. Unlike seller-funded down-payment assistance, which was a vehicle for abuse, this program will allow homebuyers to shop for the best home price and services using their anticipated tax credit.
According to estimates by the National Association of Home Builders, the Administration's homebuyer tax credit will stimulate 160,000 home sales across the nation - 101,000 of which will be first-time buyers who will receive the credit. Another 59,000 existing homeowners will be able to buy another home because a first-time buyer purchased their home. Given FHA's current market share, it's estimated that thousands of families will be able to purchase a home by allowing the anticipated tax credit to be applied toward their purchase together with an FHA-insured mortgage.
Homebuyers should beware of mortgage scams and carefully compare benefits and costs when seeking out tax credit monetization services. Programs will vary from organization to organization and borrowers should consider whether the services make sense for them, as well as what company offers the most suitable and affordable option.
For every FHA borrower who is assisted through the tax credit program, FHA will collect the name and employer identification number of the organization providing the service as well as associated fees and charges. FHA will use this information to track the business closely and will refer any questionable practices to the appropriate regulatory agencies, as necessary.
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Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572
p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team!!
Saturday, June 20, 2009
Here are the mid month graphs of inventory, courtesy of Sarah Boelter of Equity Title.
Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572
p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team!!
Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572
p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team!!
Thursday, June 04, 2009
Here are some graphs from Sarah Boelter at Equity Title that give you a good look at inventory.
Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572
p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team!!
Wednesday, June 03, 2009
Great Statistics to give guidance on the current market!
Phoenix April Home Sales/Median Prices/Foreclosure Resales/%Absentee Buyers/%FHA
April sales of existing homes in the Phoenix area rose to the highest level for any month in nearly three years as absentee buyers and those using government-insured FHA loans accounted for the vast majority of purchases. The median price paid for all new and existing homes sold dropped to $125,000, the lowest in a decade, a real estate information service reported.
Distressed sales once again dominated the market. Sixty-five percent of the Phoenix-area houses and condos that resold in April had been foreclosed on in the prior 12 months, according to MDA DataQuick. The San Diego-based firm tracks real estate trends nationally via public property records.
A total of 9,012 new and resale homes closed escrow in the combined Maricopa-Pinal counties metropolitan area in April, up 8.6 percent from March and up 27.1 percent from a year ago. Resales of houses and condos combined have risen on a year-over-year basis for 10 consecutive months, and the April resale total of 8,152 was the highest for any month since June 2006.
Stronger home sales across much of the West have been driven mainly by bargain hunters. Most are first-time buyers and investors choosing either foreclosure resales or other lower-cost homes in hard-hit neighborhoods. Last month about 46 percent of all Phoenix-area buyers used government-insured FHA loans, a popular choice among first-time buyers. Absentee buyers made up 37.4 percent of all purchases – a relatively high percentage in the West. Absentee buyers include investors, mainly, as well as other buyers whom public records show will have their property tax bills go to an address other than the one for the home they just purchased.
Last month’s year-over-year gains in house and condo resales offset a year-over-year decline in sales of newly constructed homes, which posted a drop of 57.0 percent. The 860 homes builders sold last month marked the lowest new-home tally for an April in more than a decade.
The median price paid last month for all new and resale houses and condos combined fell to $125,000, down 3.8 percent from March and down 41.6 percent from a year ago. The 3.8 percent month-to-month decline in the median last month matched the decline in March, which compared with month-to-month declines averaging 5.5 percent in the 6 months ending in February this year.
It’s unclear whether milder month-to-month declines in the median sale price in Phoenix and some other Western markets foretell a price plateau. Depending on their severity, ongoing job losses and foreclosures could undermine any trend toward near-term price stability.
Last month’s $125,000 median stood 52.7 percent below the Phoenix area’s peak $264,100 median reached in June 2006. The median has fallen on a year-over-year basis for 27 consecutive months.
An alternative price gauge analysts watch shows sharper price declines: The median paid per square foot for existing single-family (detached) houses fell to $64 in April, down 47.6 percent from a year ago and down 62.6 percent from a peak $171 in June 2006.
Across the West, year-over-year declines in the median sale price - the point where half of the homes sold for more and half for less – have sometimes overstated the extent to which the value of the typical home has fallen. It’s because the median is being tugged lower not just by price depreciation but by shifts in the types of homes selling. For example, more of today's sales involve foreclosures, which tend to sell at a discount and be concentrated in more affordable areas. Also, the August 2007 credit crunch made larger "jumbo" mortgages more expensive and harder to obtain, which has led to sluggish sales – in some cases the lowest in many years – in higher-priced neighborhoods. (A dropoff in high-end sales can pull down the median.)
Media calls: Andrew LePage (916) 456-7157
Copyright 2009 MDA DataQuick Information Systems. All rights reserved.
Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572
p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team
Phoenix April Home Sales/Median Prices/Foreclosure Resales/%Absentee Buyers/%FHA
April sales of existing homes in the Phoenix area rose to the highest level for any month in nearly three years as absentee buyers and those using government-insured FHA loans accounted for the vast majority of purchases. The median price paid for all new and existing homes sold dropped to $125,000, the lowest in a decade, a real estate information service reported.
Distressed sales once again dominated the market. Sixty-five percent of the Phoenix-area houses and condos that resold in April had been foreclosed on in the prior 12 months, according to MDA DataQuick. The San Diego-based firm tracks real estate trends nationally via public property records.
A total of 9,012 new and resale homes closed escrow in the combined Maricopa-Pinal counties metropolitan area in April, up 8.6 percent from March and up 27.1 percent from a year ago. Resales of houses and condos combined have risen on a year-over-year basis for 10 consecutive months, and the April resale total of 8,152 was the highest for any month since June 2006.
Stronger home sales across much of the West have been driven mainly by bargain hunters. Most are first-time buyers and investors choosing either foreclosure resales or other lower-cost homes in hard-hit neighborhoods. Last month about 46 percent of all Phoenix-area buyers used government-insured FHA loans, a popular choice among first-time buyers. Absentee buyers made up 37.4 percent of all purchases – a relatively high percentage in the West. Absentee buyers include investors, mainly, as well as other buyers whom public records show will have their property tax bills go to an address other than the one for the home they just purchased.
Last month’s year-over-year gains in house and condo resales offset a year-over-year decline in sales of newly constructed homes, which posted a drop of 57.0 percent. The 860 homes builders sold last month marked the lowest new-home tally for an April in more than a decade.
The median price paid last month for all new and resale houses and condos combined fell to $125,000, down 3.8 percent from March and down 41.6 percent from a year ago. The 3.8 percent month-to-month decline in the median last month matched the decline in March, which compared with month-to-month declines averaging 5.5 percent in the 6 months ending in February this year.
It’s unclear whether milder month-to-month declines in the median sale price in Phoenix and some other Western markets foretell a price plateau. Depending on their severity, ongoing job losses and foreclosures could undermine any trend toward near-term price stability.
Last month’s $125,000 median stood 52.7 percent below the Phoenix area’s peak $264,100 median reached in June 2006. The median has fallen on a year-over-year basis for 27 consecutive months.
An alternative price gauge analysts watch shows sharper price declines: The median paid per square foot for existing single-family (detached) houses fell to $64 in April, down 47.6 percent from a year ago and down 62.6 percent from a peak $171 in June 2006.
Across the West, year-over-year declines in the median sale price - the point where half of the homes sold for more and half for less – have sometimes overstated the extent to which the value of the typical home has fallen. It’s because the median is being tugged lower not just by price depreciation but by shifts in the types of homes selling. For example, more of today's sales involve foreclosures, which tend to sell at a discount and be concentrated in more affordable areas. Also, the August 2007 credit crunch made larger "jumbo" mortgages more expensive and harder to obtain, which has led to sluggish sales – in some cases the lowest in many years – in higher-priced neighborhoods. (A dropoff in high-end sales can pull down the median.)
Media calls: Andrew LePage (916) 456-7157
Copyright 2009 MDA DataQuick Information Systems. All rights reserved.
Yours to Count On,
Erika Madsen
Real Estate Consultant
Re/Max Power Realty
"Your Advisory Team" Founder/Manager
480-695-6572
p.s. if you or anyone you know is considering a move in the current real estate market- you deserve an agent who has a strong knowledge to help you succeed! Visit http://www.PhoenixAreaMls.com/ to learn more about Your Advisory Team
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