Summer is off to a quick start this year.  The calendar page hadn’t even turned to June and we’ve had several days in the 80′s.  With the clouds away for a few months now is a great time to begin searching for a home if you’re thinking about purchasing.  As previously mentioned in my First Time Homebuyer Tax Credit post, the Federal Government is now offering an $8,000 first time homebuyer tax credit.  The tax credit is literally free money people!  A first time homebuyer is defined as someone who has not owned a home in the past 3 years.  If you don’t meet this qualification, I’m sure you know someone who does.

Here are some great reason to buy in 2009

Historically low interest rates: Despite what you may have heard in recent weeks, mortgage rates are still at all time lows.  Mortgage rates below 6% only come around every 10 years or so.  To see them in the sub-5% range is even more of a rarity.  First time homebuyers can fit a larger purchase price into their personal budget when interest rates are low.

Historically low home prices: We are definitely beginning to see a great amount of movement of home purchases in the Willamette Valley this year, but we are still have plenty of homeowners with the need to sell.  The inventory of homes on the market is greater than ever which makes it a perfect buyer’s market.

Loan programs designed for first time homebuyers: There are several programs that have been designed and adjusted for first time homebuyers (although they are not necessarily exclusive for first time homebuyers).  The FHA home loan program only requires a down payment of 3.5%.  FHA also offers a rehabilitation home loan which allows borrowers to finance up to $35,000 of improvements.

Free money: The $8,000 first time homebuyer tax credit is definitely a once in a life time opportunity.  The tax credit is only available for those who purchase before November 30th, 2009.  There are a few important steps to buying your first home, so it’s best to get prequalified now to know if you can take advantage of this amazing opportunity.

If you want to discuss how you can take advantage of this market then contact me today.  If you don’t qualify as a first time hombuyer i’m sure you have friends or family who do and should get the education they need to learn about this epic time.

Have you wanted to buy a home and finance-in some improvements?  Well now is your chance!  For years the department of Housing and Urban Development (HUD) has offered the FHA 203k FHA rehabilitation program.  As the mortgage industry expanded in the early 2000′s FHA simply became less desirable as other lenders offered programs that were more affordable.  However, we now stand in a market heavily saturated with FHA loan applications.

The FHA 203k streamline rehabilitation program allows a borrower who is purchasing or refinance to include cosmetic improvements in the loan.  I’ve heard hundreds of clients say, “this house is perfect, it only needs some cosmetic TLC”.  The problem is the money may not ever be available for them to actually complete the improvements.  The FHA 203k rehabilitation loan can be the answer for many of these buyers looking to put a little money towards improvements during a purchase.

Improvements of the property cannot alter the structure of the home (i.e. moving a doorway or tearing down a wall), but can include many updates that include: appliances, flooring, paint, windows, etc.

The key to this program is being completely educated on the process.  Not only do you need to understand how the financing program works, but you also need what improvements will actually raise the value of your home.  Working with a knowledgeable Realtor will help you in determining the potential for work to be done.

I will soon have a detailed description of this program on my blog.  Please contact me today if you might be the slightest bit interested in learning more – 503.798.9183 – email Conrad.

As I mentioned a few weeks ago, President Obama’s American Recovery and Reinvestment Act included a new program for struggling home owners.  The existing modification program for those who are delinquent is still available, but now there is a program geared towards those who have continued to be responsible with their mortgages, but simply don’t have the equity in their home to take advantage of today’s low interest rates.

The website financialstability.gov has been around since the signing of the new bill, but the Obama Administration has yet again expanded what I’m calling the “Government 2.0″ efforts with the new website makinghomeaffordable.gov.  This website allows home owners to check eligibility for the new program and offers a handful of other helpful tools.

Although the program will only help a select group of Americans with Fannie Mae or Freddie Mac loans the website will likely be a good resource for those who are struggling.

As with any real estate or mortgage related questions, I am here for you.  If you have any questions regarding any of these new programs or about your current financing scenario please don’t hesitate to contact me.

15 March 2009

Dear Bethel Family and Friends: (E-Mail Version)

I never had the capacity to fully appreciate all of Maya Angelou’s poetry. One statement attributed to her, however, is awesome. She said, “A woman’s heart should be so hidden in Christ that a man should have to seek Him first to find her.”

One way or another, that was the standard, stated or implied, my generation of church-related young men were taught. Of course, if the young lady also happened to be attractive, so much the better. After all, young men are young men…guaranteed.

Ms. Angelou’s statement is profound. Men tend to reflect the attitude and manner of the one they love. We thrive on their approval. Even so, we men can be sorry critters, make terrible mistakes, calling for maximum understanding from our women. God bless’em!

…

Love…Larry Buhler

My wife’s grandfather is an educated, Godly man.  He sends a weekly letter (I get the email version) to his friends, family, and congregation.  He gave me the thumbs up to share his thoughts within my blog.  I’m excited to share some of his words with my readers.

8 February 2009

Dear Bethel Family and Friends: (E-Mail Version)

Common sense, defined as sound judgment, appears to be in short supply. In its purest form, common sense isn’t usually all that difficult. Just identify the problem and then apply the simplest solution. Children do this automatically. Farmers do this or go broke.

If the water’s too hot, cool it down. When an object is too heavy, get help. When it is raining, take an umbrella. If the soup needs flavor, add salt. When the sun is too hot, wear a hat. When your money runs out, stop spending and earn more. Common sense.

If ever America needed common sense it is now. It isn’t that politicians do not know what to do, they just won’t do it. Personal ambitions and greed appears to drive those we have put in high places. We can only hope common sense will rise from the ashes.

…

Just this week I was reminded once again how many unchurched are turned off by showy, glitzy, and jazzy TV evangelists. Sad, but true. This is not the Christianity described in the adult SS lesson this morning. Ephesians 4 shows that humility, patience, and gentleness should typify one’s demeanor as he seeks to live in a manner that witnesses to a lost world. Not easy, but God’s way.

Ephesians 4:1ff: “I implore you to walk in a manner worthy of the calling with which you are called, with all humility and gentleness, and patience, showing tolerance for one another in love, being diligent to preserve unity in the bond of love.”

May this be a good week for each one. Love…Larry Buhler

Today the US Senate advances the new Stimulus Bill which includes an increase in the current home buyer tax credit.  Currently a home buyer purchasing a home from April 2008 to July 2009 may be entitled to a tax credit up to $7,500.  Currently the credit is to be paid back in increments of $500 each year thereafter.  The new Stimulus Bill proposes an actual tax credit of 10% of the sales price with a maximum of $15,000.  This provision may rid of the requirement to repay the credit, making it a true benefit for the home buyer.

In the article Senate Advances Tax Breaks for Homebuyers, Senator Johnny Isakson said,

“We do have a history in this country with housing and it goes back to the crash of 1974, which actually in terms of inventory and price declines was comparable to what’s happening now”.

“Within one year of the inception of that tax credit, two-thirds of the available inventory that was on the market was gone. The market moved back to a balanced inventory, values stabilized and things became very healthy. The only reason I know all of that is I was selling houses in 1974, that’s what I was doing to feed my family and make a living.”

The Stimulus Bill that was passed by the house last week will be reconciled with the Bill passed today and may have a final approval as early as Thursday February 5th.

Stay tuned for more information regarding this tax break.  Rates are still great and inventory is beginning to move again!

Today the Federal Open Market Committee adjourned their meeting without a change in interest rates.  The primary focus of Chairman Ben Bernanke was on the need to resuscitate our private credit markets.  The Feds announced that they are prepared to buy long term treasuries if the credit trend continues to be tight in the market.

With so much attention to mortgage rates with recent refinance inquiries and now with increasing purchase activity, banks are exercising the law of supply and demand.  Currently the Fannie Mae 30 year fixed coupon rate is trading in such a fashion that mortgage rates should be near 4.5%.  However, due to the slow banking inquiries over the past 24 months many banks and lenders have downsized their operations to stay afloat.  With a surge in new applications the pipelines are full and the banks are holding rates slightly higher so they can manage the current loans in process.  The capacity of the lenders should be eased in the coming week or weeks as these loans begin to clear the temporary warehouse lines.

Stay tuned and be prepared if you have not already began the refinance process.  It is best to know you current situation and get your loan application started so when the desired rate is available you can grab it before it’s gone!

Call me at 503.798.9183 or email me by clicking on my name –> Conrad Venti.

A report of existing home sales showed an unexpected rise in December.  Purchases grew 6.5% at the end of 2008.  As foreclosures have forced existing home sales down throughout most of 2008 it was nice to see a gain on board.

2009 is setting up to be another recording breaking year.  Hopefully we’ll see more positive news than in 2008, but with so much on the line it’s tough to say which direction it will go.  The sign of rising exisiting home sales shows that people are beginning to take advantage of the amazing purchase opportunity at hand.

Make sure you’re prepared to take advantage of the opportunities at hand!

Remember, opprtunities are never lost…someone will take the ones you miss!

Happy Monday!

With so much media attention on the economy and real estate markets in 2008 I am asked daily by clients what the current home values are in the Willamette Valley.  As a loan officer real estate values play a very important role in opportunity to work with a client, regardless of whether it is a purchase or refinance.  I do my best to use available resources on each and every inquiry and conversation I have with a client.  We’ve all heard the doom and gloom of what the media has to say about the real estate market in the U.S., but it’s very important to focus on the Willamette Valley when we’re talking about our own homes.

Home values in the Salem/Keizer and surrounding areas did see some decline in home sales prices in 2008, but if we look at the big picture, we have to be thankful for where we stand.  The majority of the country has experience even greater declines in value.  I have included the statistics from Willamette Valley Multiple Listing’s December year-end report.  West Salem and South Salem had the largest decline in average sales price in 2008.  With so much new construction in the last three years those neighborhoods still have a substantial amount of new homes listed for sale therefore making it a great opportunity for those looking to purchase.  Keizer showed a small percentage of appreciate in 2008, mainly due to the law of supply and demand.

I met with several clients in 2008 who were looking to purchase a foreclosure or bank owned property.  Some for the investment purposes or for the purpose to use as a primary residence.  I thought I would give a brief description of few common types of foreclosure or pre-foreclosure properties.

Short sale: A home that is typically listed with a real estate agent.  The owner has to contact the lender and prove some sort of financial hardship and has to show that they have tried to sell the home to at least break even.  Each bank has specific guidelines for short sale approval.  Once the thumbs-up is given by the bank, the borrower can then list the home with a real estate agent for a price that is less than the mortgage owed on the property.  The offer will then go to the bank for approval.

Foreclosure/auction sale: A home that is typically sold the county courthouse steps via a trustee sale.  After several attempts to work with the home owner the bank will eventually sell the home at an auction for a starting bid starts at or sometimes less than the amount owed on the mortgage plus fees and defaulted payments.  Investors will purchase the property at the auction with cash on hand (cashier’s check).

REO: A home that is owned by the bank and typically listed with a real estate agent.  If a home does not sell at the auction the retains ownership and will list the property with real estate agent.  Once the home is listed offers will again be made to the bank for approval.  This type of property is now owned by the bank (i.e. REO – real estate owned).

According to Willamette Valley MLS there were 236 REO/bank owned properties sold in the Willamette Valley in 2008.  This number grew about 39% between 2007 and 2008, however, the number of properties sold as an REO was less in 2004.  To see the stats from WVMLS year end click on REOs in the Willamette Valley.