Today’s market holds tremendous opportunities for first-time buyers and the REALTORS® dedicated to assisting them in their first home purchase. Housing affordability is at historic highs in many areas as low mortgage rates, government tax credits, and lower home prices have continued to make the goal of homeownership within reach for every California household−but they can’t do it alone. They need you, the California REALTOR® , with the skills and market knowledge to navigate through this often difficult process of buying a home. While these transactions do take a little more effort and preparation on the part of the REALTOR® and the home buyer, there is no greater reward than getting that family into their first home.
The CALIFORNIA ASSOCIATION OF REALTORS® continues to be a strong advocate for programs that will assist home buyers in these difficult economic times. We have developed this guide as an introduction to the programs currently available to potential California home buyers from federal, state, and local agencies. Because these programs do evolve over time, always contact the relevant agency to verify program availability and eligibility before you begin. If working with first-time home buyers is your calling, you will need to invest in learning about the various programs that are offered in your community.
With this guide, you’ll learn the basics of working with these programs and some practical tips to help you avoid the common pitfalls.
2010 C.A.R. Financing Guide for California Home Buyers
from CAR’s website
The Dept. of Housing and Urban Development (HUD) announced Friday it will eliminate for one year the Federal Housing Administration (FHA) 90-day anti-flipping rule.
FHA’s anti-flipping rule generally prohibits insuring a mortgage on a home owned by the seller for less than 90 days. That rule already has been waived for certain transactions, including REOs. Beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors. This one-year waiver will give FHA buyers access to a broader array of recently foreclosed properties.
Under the temporary waiver, all transactions must be made at arm’s-length and may require additional documentation of improvements and justification of certain price increases. Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many FHA home buyers, such as the lack of housing inventory available to them, and the need to revise this rule to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.’s board of directors meetings in October.
from: C.A.R. Newsline e-mail update
The evening news is beginning to sound more and more like the children’s fable, Chicken Little – who proclaims “the sky is falling!” With unemployment on the rise and an uncertain economy, buying a house may be the last thing on your mind. But if you’ve been waiting to purchase a home, now may be the perfect time. Here’s why:
* It’s actually more affordable now. According to the National Association of REALTORS, the housing affordability index, which measures home prices, mortgage interest rates and family income, is more favorable now than any other time since NAR started the index 1970.
* You get a break on taxes. As part of the American Recovery and Reinvestment Act, first-time buyers (anyone who has not bought or owned a home in the past three years) can take advantage of a tax credit up to $8,000.
* Big selection and big discounts. There is a large inventory of homes on the market, so you have a variety from which to choose. Many builders and home sellers are also offering incentives to help move inventory. Not only are home prices low, but mortgage rates are lower than they’ve been in years.
* Price of ownership. Want to paint your bedroom midnight blue? Go ahead. In your own home, you get to make the decorating decisions that reflect your personal sense of style.
Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor
www.BrianRipp.com serving Fremont, Newark, Union City & surrounding communities. Real Estate & Property Management.
Real Estate Market Weekly Update Webcast: http://realtytimes.com/REUv/BrianRipp
The surrounding neighborhood is just as important because it can have a big impact on your lifestyle — safety, available amenities, and convenience all play their part, according to the National Association of Realtors (NAR).
NAR also says you can keep your home value stable if you find the right neighborhood.
And you can find the right neighborhood by getting information direct from the best sources — rather than from second hand and often incomplete data bases professing to offer you one stop shopping for all your neighborhood checking needs.
* Make a list of the activities — movies, health clubs, churches — you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engage in your most common activities.
* Check out the school district. The education department in your town can provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. Even if you don’t have children, a house in a good school district will be easier to sell in the future.
* Check crime. Ask the police department for neighborhood crime statistics — not only the level of crime, but also the type — burglaries, armed robberies — any trends of increasing or decreasing crime and the location of crime.
* Look for economic stability. Your local city or county economic development office can tell you if income and property values in a neighborhood are stable, rising or falling, the percentage of homes to apartments. Apartments don’t necessarily diminish value, but they can indicate transient populations. Check for vacant businesses or homes.
* Consider resale value. A local real estate agent or trade association can give you information about price trends, inventories, selling times and other information that can indicate how well your home’s value will hold up.
* Hit the streets. Narrow your focus to several neighborhoods and do a “walk-through” of each. Pick a warm day when people are out and available for chatting. Look for tidy, well maintained homes, quiet streets and other indicators of neighborhood stability.
Brian Ripp, CRS, GRI, Broker – your Bay Area Realtor
