by Houtan Hormozian | Jun 4, 2010 | CRESTICO
Fannie Mae is beginning to implement some changes to its policies regarding distressed homeowners. The institution is now moving towards helping currently distressed homeowners maintain their ability to own a home, by giving them second chances. Intended to support the housing market and incentivize homeowner cooperation with lenders, Fannie Mae will now offer homeowners who grant a “deed-in-lieu of foreclosure” a shorter waiting period before they will be able to qualify for a new Fannie Mae mortgage.
Historically, this waiting period has been at least four years, which is to say that if you, as a Fannie Mae borrower lost your home to foreclosure, you would not be eligibly for another Fannie Mae mortgage for at least four years from the date of foreclosure. Now, however, this waiting period is being reduced by half.
With the new two-year waiting period, homeowners will be required to put at least twenty percent of the purchase price as a down payment, however. This new policy will begin to take effect on July 1 of this year. Fannie Mae is hoping that offering such incentives to these homeowners will be helpful to the country’s recovery as well as setting forth a policy that homeowners who work with lenders are less risky to deal with and better than homeowners who simply abandon their mortgage obligations or fight the lenders for short sales.
Fannie Mae’s policy may be, in part, a reaction to Obama’s HAFA program which is aimed at homeowners who do not qualify for modifications and other foreclosure alternatives. Industry expert are predicting a dramatic increase in “pre-foreclosure” activities this year and next year, which Fannie Mae is hoping to alleviate through its new policy.
Mitra Karimi
Crestico, Inc.
by CRESTICO | Mar 25, 2010 | CRESTICO
Governor Schwarzenegger signed Assembly Bill 183, the Homebuyer Tax Credit legislation, into law today. This is a law that will allow for approximately $200 million for home buyer tax credits,. Of this $200 million, about half will be set aside for first-time home buyers who qualify and purchase existing homes. The other half will be set aside for qualified buyers who purchase new, or previously unoccupied, homes.
Under this program, eligible taxpayers purchasing personal residence and who qualify for the credit must purchase the property between May 1, 2010, and Dec. 31, 2010, unless they purchase the property after Dec. 31, 2010, and before Aug. 1, 2011, but have an enforceable contract executed on or before Dec. 31, 2010, will be the individuals who will be allowed to take the tax credit.
The amount of the credit is equal to the either 5 percent of the purchase price or $10,000 ( taken in equal installments over three consecutive years); whichever is less. Additional requirements in order to be eligible for the credit include the fact that buyers MUST live in the home for at least two years. If this last requirement is not met, the credit will be forfeited, and any portion previously claimed will immediately be due, payable to the state.
Historically, programs such as this one have led to a positive increase in Home Purchases. Many buyers describe themselves as being more willing to purchase a home when they know they are eligible for a tax credit. A prime example of the impact of credits on the housing market can be seen by the impact the Federal credit has had on the housing market.
Industry professionals are hoping that this state tax credit will result in just the push that the housing market in California needs to stimulate sales, motivate rehabilitation and create employment for Construction and contractor-related jobs.
by CRESTICO | Oct 31, 2009 | CRESTICO
An Update on Recent News Surrounding the Homebuyer Tax Credit
Much discussion and controversy have been surrounding the impending end of the First Time Homebuyer Tax Credit. Initially set to expire in November, the government is now considering extending the credit into next year. In this article, you will find some of the recent developments in this topic.
In order to be eligible, the cost of the home may not be more than $800,000 and there would be $125,000 and $225,000 income limits for single and joint filers (over the age of 18), respectively. Additionally, as long as the new home is the buyer’s "principal residence" for at least 3 years after the date of purchase, the credit will not need to be repaid.
$8,000 is the amount of the credit for first time homebuyers and there is now talks of adding a $6,500 credit for move-up buyers (people who have been using the home they are leaving as their "principal residence" for at least 5 years) who purchase homes between December 1, 2009 and April 30, 2010, as long as the transaction closes by June 30. Any purchases made in 2010 would be acceptably filed on 2009 tax returns, as long as a HUD-1 settlement statement is attached when the credit is being claimed.
As always, buying a home is a big task and there are lots of questions anyone considering buying or selling will have. For this reason, it is a very good idea to get the assistance of a qualified, experienced and helpful Real Estate agent. Your real estate agent can mean the difference between happy holidays in your new home or spending the holidays stressed out and worried about just one more unnecessary thing!
For more information please visit http://www.crestico.com
by CRESTICO | Oct 6, 2009 | CRESTICO
Is It A Good Time To Buy A Home? The simple answer is YES! It is still a good time to buy a home. With the help of the right agent, you can make this "good time" into a "great time" for you and your family. The news is full of stories about the housing crisis, homeowners losing their homes, and the overall bad state of the economy. Not all of this news, however, has to translate into dissuading you from buying a home. In fact, right now is a very good time, especially for some, to jump in and achieve the American dream of home ownership. As of late, the housing market is starting to look better. Read on for more information about why it is still a good time to buy a home.
First, the government is looking to help you. If you are a first time buyer (which, to the government, is defined as anyone who has not owned a home in the last three years), you are entitled to a maximum $8,000 tax credit. Additionally, Interest Rates are at all-time lows and the Federal government is taking steps to insure and make these loans available to more and more people.
Leverage. Leverage is defined basically as borrowing money to supplement existing funds for
investment. Imagine if you invested ten thousand dollars in stocks and those stocks earned ten percent, you would have earned one thousand dollars. But investing ten thousand dollars on a home, and having that home's value increase ten percent; effectively, you would have earned ten thousand dollars. Which sounds like a better investment to you?
Next, you have to live somewhere. And so does everyone else. According to nationwide statistics, approximately 800,000 new households are created each year in the United States alone. Each of these households will need housing, regardless of the state of the economy. This fact alone ENSURES the recovery of the housing market.
Cycles. The economy is a cycle, and like a cycle, what goes down must come back up. Once this happens, it will create INSTANT equity for you. That means you will have earned FREE money just by living in your home, which you are going to do regardless of where you live. Why not buy a home and earn free money in the process?
Mortgages. Many people think a mortgage is just like paying rent, right? WRONG! With the right fixed-rate mortgage, you are basically ensuring the same payment for thirty years. If you try to rent an apartment for thirty years, odds are that every year or so, your rent will be increased. That does not happen with mortgages.
Ownership. Owning a home is a GREAT accomplishment and it allows you to express yourself in the best way possible. You can decorate it any way you want, furnish it, paint it, and improve it and all the while you will be increasing its value and the value of your investment. Ownership also gives you and your family a sense of stability and a place to lay your roots.
These are only a FEW of the reasons why right now is a good time to buy a home. A qualified agent will be able to answer any questions you may have and also give you more reasons to consider investing in your next home!
by CRESTICO | Apr 3, 2009 | CRESTICO
Is It A Good Time To Buy A Home?
The simple answer is YES! It is still a good time to buy a home. With the help of the right agent, you can make this "good time" into a "great time" for you and your family. The news is full of stories about the housing crisis, homeowners losing their homes, and the overall bad state of the economy. Not all of this news, however, has to translate into dissuading you from buying a home. In fact, right now is a very good time, especially for some, to jump in and achieve the American dream of home ownership. As of late, the housing market is starting to look better. Read on for more information about why it is still a good time to buy a home.
First, the government is looking to help you. If you are a first time buyer (which, to the government, is defined as anyone who has not owned a home in the last three years), you are entitled to a maximum $8,000 tax credit. Additionally, Interest Rates are at all-time lows and the Federal government is taking steps to insure and make these loans available to more and more people.
Leverage. Leverage is defined basically as borrowing money to supplement existing funds for investment. Imagine if you invested ten thousand dollars in stocks and those stocks earned ten percent, you would have earned one thousand dollars. But investing ten thousand dollars on a home, and having that home’s value increase ten percent; effectively, you would have earned ten thousand dollars. Which sounds like a better investment to you?
Next, you have to live somewhere. And so does everyone else. According to nationwide statistics, approximately 800,000 new households are created each year in the United States alone. Each of these households will need housing, regardless of the state of the economy. This fact alone ENSURES the recovery of the housing market.
Cycles. The economy is a cycle, and like a cycle, what goes down must come back up. Once this happens, it will create INSTANT equity for you. That means you will have earned FREE money just by living in your home, which you are going to do regardless of where you live. Why not buy a home and earn free money in the process?
Mortgages. Many people think a mortgage is just like paying rent, right? WRONG! With the right fixed-rate mortgage, you are basically ensuring the same payment for thirty years. If you try to rent an apartment for thirty years, odds are that every year or so, your rent will be increased. That does not happen with mortgages.
Ownership. Owning a home is a GREAT accomplishment and it allows you to express yourself in the best way possible. You can decorate it any way you want, furnish it, paint it, and improve it and all the while you will be increasing its value and the value of your investment. Ownership also gives you and your family a sense of stability and a place to lay your roots.
These are only a FEW of the reasons why right now is a good time to buy a home. A qualified agent will be able to answer any questions you may have and also give you more reasons to consider investing in your next home!
