Fannie Mae is extending an incentive program through June 30 which gives buyers of distressed properties a 3.5 percent rebate of the final sales price. The money may be used for closing costs or selected appliances.
Fannie's current inventory of homes listed on Homepath.com are more than 62,000. The company reported owning 86,000 properties at the end of 2009.
If you are on the market to purchase look for properties listed as having been placed on Homepath.com and take advantage of the rebate as an extra bonus on the sale price. Send me an email if you need help.
4/26/2010
What Items Affect The Cost Of Your Home Insurance
Home insurance can significantly increase the cost of home ownership.
Several factors that affect the cost of insuring your home:
· Location. A home near a fire hydrant or protected by a professional fire department, as opposed to volunteers, is less expensive to insure.
· History of claims. Previous claims push up the cost of insurance. This information is available at: The CLUE report cost is $19.50 and can be purchased at: http://tinyurl.com/26m57uo. The A-Plus report is $9 by mail and $13 by fax and available at: http://tinyurl.com/293slq7.
· Flood or Earthquake insurance? Policies for both of these perils are sold separately at a higher cost.
· How old are the home systems? Electrical and plumbing systems that are less than 10 years old cost less to insure.So planning upgrades should always consider the reduction effect on the home owners insurance costs.
Several factors that affect the cost of insuring your home:
· Location. A home near a fire hydrant or protected by a professional fire department, as opposed to volunteers, is less expensive to insure.
· History of claims. Previous claims push up the cost of insurance. This information is available at: The CLUE report cost is $19.50 and can be purchased at: http://tinyurl.com/26m57uo. The A-Plus report is $9 by mail and $13 by fax and available at: http://tinyurl.com/293slq7.
· Flood or Earthquake insurance? Policies for both of these perils are sold separately at a higher cost.
· How old are the home systems? Electrical and plumbing systems that are less than 10 years old cost less to insure.So planning upgrades should always consider the reduction effect on the home owners insurance costs.
4/13/2010
Update for Second-Homes Buyers Taxes Rules
If you own a second home be aware that according to the IRS taxpayers who are married and filing jointly can't deduct interest on more than a combined total of $1 million of "home acquisition debt" for a primary and a secondary home.
You may also deduct up to a combined total of $100,000 of home-equity debt on your first and second homes.
If you refinance IRS will allow deduction of interest on the original amount of the loan at the time you refinanced, plus $100,000.
You will also be allowed to deduct loan fees or "points" if the money was used to buy or improve your home. You may not deduct them if you refinanced to lower the interest rate.
Make sure you consult your accountant as IRS rules are frequently modified.
You may also deduct up to a combined total of $100,000 of home-equity debt on your first and second homes.
If you refinance IRS will allow deduction of interest on the original amount of the loan at the time you refinanced, plus $100,000.
You will also be allowed to deduct loan fees or "points" if the money was used to buy or improve your home. You may not deduct them if you refinanced to lower the interest rate.
Make sure you consult your accountant as IRS rules are frequently modified.
4/12/2010
How You Can Tell If The Property Has Potential
The best properties to purchase in today's market are properties that need repairs.
So which of these properties have potential?
In answering the question these are the factors to consider:
Location - You are better off to buy a lesser home in a better neighborhood.
Age - property to be less than 50 years old. Unless they are remodeled you will be dealing with old wiring, sagging foundation and plumbing problems.
Livable floor plan - A home with basic deisgn is the most economical. If you have to move walls it will become very expensive.
Light - The property with the most natural light will have the most potential.
Good Storage - Additional storage is very expensive. You save money with a property that already has storage space.
So which of these properties have potential?
In answering the question these are the factors to consider:
Location - You are better off to buy a lesser home in a better neighborhood.
Age - property to be less than 50 years old. Unless they are remodeled you will be dealing with old wiring, sagging foundation and plumbing problems.
Livable floor plan - A home with basic deisgn is the most economical. If you have to move walls it will become very expensive.
Light - The property with the most natural light will have the most potential.
Good Storage - Additional storage is very expensive. You save money with a property that already has storage space.
Beware of Landlord Scams
According to the Associated Press an increasingly common scan involves crooks posing as landlords for property they don't own. They take deposit from people trying to become their tenants and then disappear with the money.
Some states are introducing legislation that would make impersonating a landlord in order to collect money a charge of felony grand theft.
Beware if you are in the market to lease!
Some states are introducing legislation that would make impersonating a landlord in order to collect money a charge of felony grand theft.
Beware if you are in the market to lease!
New Statistics for 2010 Troubled Banks
Year to date 42 federally insured banks have failed compared to 21 that failed in 2009.
Mortgage related closings are 55 year to date. They include credit unions, banks, and non-bank lenders. Last year there were a total of 50.
Mortgage related closings are 55 year to date. They include credit unions, banks, and non-bank lenders. Last year there were a total of 50.
4/11/2010
Loan Officers Compensation Tied to Quality Control
GMAC, a lender who lost more than $7 billion last year on bad loans and who was taken over by the Federal Government, its asking their loan officers to concentrate on the quality of loans they make.
The Loan Officers are being encouraged to approved qualified home owners by having their compensation tied to a goal. The ones who are successful indentifying good prospects will be compensated more. A total of approximately 150 are currently enrolled in this program.
The Loan Officers are being encouraged to approved qualified home owners by having their compensation tied to a goal. The ones who are successful indentifying good prospects will be compensated more. A total of approximately 150 are currently enrolled in this program.
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