A good time for a great cause!

My long time friend Teresa Gray is at it again with her 3rd annual benefit to support local (Fife/Milton) families in need during the holiday season. Held at Buds Saloon in Milton the evening will feature a $5.95 spaghetti dinner, silent auction, raffles, appearances by Santa, psychic readings, and live music. All proceeds go to support two local nonprofit services;  Brightening 4 Children and the Underprivileged Children’s Fund.

Come on down, show some love and enjoy a great evening of entertainment!

Bud's 3rd Annual Christmas Benefit - Sat. Dec. 10th @ 5PM

Increase your take home pay with a mortgage tax credit

Did you know that as a first time home buyer you could receive up to a 20%  reduction in your over all tax liability for the life of your loan? And that reduction could help you qualify for more home?

Its called a Mortgage Credit Certificate. Its a certificate issued by the state government that allows a taxpayer to claim a tax credit for the amount of mortgage interest they paid in a given year.

Here’s an example of how it works:

Say you get a loan for $200,000 and the interest rate is 6%. The interest paid after the 1st year is $12,000. The total tax credit equals $2,400 ( $12,000 x 20%) or a monthly savings of $200 (tax credit of $2400 divided by 12 months).

So you can actually use that $200 as addition monthly income to help you qualify for larger loan amount.

There are a few restrictions such as you must be a first-time home buyer and the the house has to be your primary residence.

There are also income and purchase price limits that vary by county and you will have to take a first-time home buyer education class.

If you’d like to know more about the Mortgage Credit Certificate, let me know and I willl put you in contact with a mortgage Lender that can help.

Disclaimer:  I am not a Tax Adviser, Attorney, Accountant or a Doctor.  Any advice I give is my opinion based on my experience. Always seek the advice of a professional before acting on something that I might say.

Back in the saddle again

After a year or so off from real estate, I decided to jump back on that horse and see where it leads me.  Giddy Up!

HUD makes changes to speed resale of foreclosed properties

HUD announces a temporary policy change (1 year beginning Feb. 1, 2010) that will allow FHA insured financing on foreclosed properties.

For example in the past if an investor purchased a foreclosed property with the intention of rehabilitating it and then reselling it, the seller would need to wait 90 days (called title seasoning) before re-selling it to a potential purchaser that was using FHA financing. With this new policy change it will now expand FHA Mortgage insurance allowing for a quicker resale of foreclosed properties.

Right now every buyer I am working with is using FHA-insured financing, and I think this change will create more affordable housing options that may not have been available in the past.

via U.S. Department of Housing and Urban Development (HUD).

Will this house pass a FHA appraisal?

If you plan on purchasing a home with a FHA backed mortgage you might be wondering (like I always am) whether or not a particular house will pass a FHA appraisal. FHA loans are insured by the Federal Housing Administration and FHA approved appraisers must follow certain guidelines when appraising a property. If a home is a “fixer” and needs a lot of work, chances are it may not pass a FHA  appraisal.

Below is a FHA appraiser checklist my Lender sent me. A good list to keep around when looking at homes, or if you’re getting ready to sell, you may want to make sure these items are attended to.

1. At the time of inspection, all gutters and downspouts are in place with adequate drainage away from the foundation.
2. The roof is in average condition with an estimated life expectancy of 15 to 20 years.
3. The attic space above the ceiling was visually inspected with no apparent signs of water damage.
4. Plumbing shows no apparent leaks and water pressure appears to be average.
5. A test of the hot water system revealed that all sink locations tested received hot water in a reasonable time frame.
6. The heating systems was active during the inspection and produced heat on demand.
7. A random test of electrical outlets and light switches showed that all tested locations were functioning normally.
8. All appliances appeared to be in average condition and are working properly.
9. Interior floor coverings are in average condition.
10. All windows appear to be working normally with no apparent leaking.
11. Exterior walls are in good condition and all painted surfaces are in good condition.
12. The crawl space was visually inspected and a vapor barrier was visible and dry and free of debris.
13. No physical, functional or external obsolescence were noted, and no major repairs needed at the time of inspection.