Buying a Home

...now browsing by category

USDA Rural Home Loans Congress is Trying to Provide Additional Funding for 2010

Thursday, April 22nd, 2010

Are you hoping that you can use USDA Rural Guarantee Financing? It looks like Congress is working on making sure that the funding is going to be available without interruption. USDA Rural Loans can be a great way for home buyers to buy a home in a rural area. We have written articles on USDA financing here at Classic Homes Northwest. One of the reasons we talk about USDA loans here is that much of Pierce County is eligible for USDA financing. If you are interested in learning more about USDA financing you can read our other articles by following the links below.

http://classichomesnorthwest.com/2010-fiscal-year-usda-loan-program-expected-to-be-out-of-funds-by-end-of-april.htm

http://classichomesnorthwest.com/usda-guaranteed-rural-housing-loans-in-pierce-county.htm

You will need a lender who is experienced in USDA financing. We know a few so if you have questions we can point you in a direction to find the answers to your questions get in touch with us.

Press Release from House Financial Services Committee

Press Release

	For Immediate Release: April 22, 2010


	KANJORSKI BILL PRESERVING AFFORDABLE MORTGAGES IN AMERICA’S HEARTLAND PASSES IN COMMITTEE
Without Congressional Action, USDA 502 Rural Housing Program Will Run Out of Funding Within Days
	Washington, DC – Today, the House Financial Services Committee unanimously passed H.R. 5017, the Rural Housing Preservation and Stabilization Act of 2010, introduced by Congressman Paul E. Kanjorski (D-PA), Chairman of the House Financial Services Subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises. This action clears the bill for consideration by the U.S. House of Representatives, which is expected to take up the bill as early as next week. The bill ensures the continued access of rural homebuyers to affordable mortgages through the U.S. Department of Agriculture’s (USDA) loan guarantee program. The financial crisis has spiked consumer interest in the program, tripling the number of loans annually made since 2006. Because demand continues to grow, the program will exhaust its federal funding within days. H.R. 5017 would, at no cost to the taxpayers, solve this problem by making the program self funded, enabling families living in rural communities to continue to access these much needed loan guarantees. “Since its creation in 1987, USDA’s affordable rural home loan guarantee program has helped hundreds of thousands of families to realize the American dream of homeownership, including many in Northeastern Pennsylvania,” said Chairman Kanjorski. “As a result of the unprecedented demand, the program is now unfortunately running out of money. At no cost to taxpayers, my bill will preserve the access of millions of families living in America’s heartland to needed USDA loan guarantees, so that they can continue to buy homes with affordable mortgages. Without action, too many families in rural America will have no options for getting home loans. We cannot allow that to happen.” “As a result of this program, I was able to purchase my first home which I have wanted all my life,” said Virgie Spruiell from Bushkill, Pennsylvania. “I enjoy it every day and it is a blessing. I greatly appreciate Chairman Kanjorski’s efforts to enable the program to continue so that other people can access these guaranteed home loans just as I did. It has had helped me tremendously.” Chairman Kanjorski’s legislation will correct the Section 502 Single Family Housing Guaranteed Loan Program funding shortfall by enabling the program to pay for itself, rather than relying on federal funding. In order to pay for the program, lenders will pay up to a 4 percent fee on new home mortgages. As a result of these changes, financing of the program will move from a combination of government funding and industry fees to a self-sustaining initiative. The USDA’s Rural Housing Service manages the Section 502 program, which provides a vital source of mortgage credit for people living in rural communities. Low- and moderate-income individuals and families in rural communities often have fewer mortgage credit options than those households in urban areas. The program aims to fill that void and lower the costs of homeownership by giving rural areas access to a home loan guarantee program. These guarantees decrease the exposure of home lenders to defaults so that they will underwrite more mortgages. In 2009, loans made under the program averaged $112,000. To qualify for the program, borrowers must have good credit and reliable incomes to sustain homeownership. ###

Subscribe to our RSS Feed to be kept up to date with all things related to USDA related topics impacting Pierce County.

Posted in Buying a Home, Lending, USDA Financing | 3 Responses »

Who is happy to see the first time home buyer tax credit ride off into the sunset? I am.

Thursday, April 15th, 2010

I will admit flip flopping on this topic. When the tax credit was announced last year I ran out and purchased a domain that I just knew would be a constant source of home buyer leads. Boy, was I ever wrong. What I found out was that the type of site I had created was like a picnic to ants. Lots and lots of traffic with nothing good ever happening. The people who visited the site were looking for something too good to be true, they were looking for something for free, and they were looking for someone to do the work for them. Even ants do the heavy lifting of taking the food from the picnic for themselves.

Buying a home should never be about getting something for free. Buying a home is about buying a container for your life. A place for quiet times with your loved ones, a place to share in the joys of life and the sorrows of life together. A home should not be considered a ATM machine or a get rich quick scheme. When the $8,000 tax credit was announced the goal was a noble one. To increase the interest in buying homes to help stabilize the economy. On the surface this makes sense but what it really does is to create a false sense of security and a sense of entitlement for some people.

During the past year I have sold quite a few homes to first time home buyers. Did they buy the home just because they were going to receive a tax credit? I sure don’t think so. During my conversations with my clients I learned something that I find to be quite interesting. They all had decided to buy a home because it was time for them to buy a home. Their situations had moved to the point where buying a home made sense to them with or without the tax credit. Of course they applied for the tax credit and received it if they were qualified to leave the money on the table is silly. But they DID NOT BUY A HOME BECAUSE OF THE TAX CREDIT!

The people that I talked with about buying a home that were looking for the tax credit all ended up not purchasing a home. This could be for a number of reasons yet I noticed one trend in particular. They lacked the true desire to buy a home. Buying a home is a complicated and time consuming task. Without being committed it is easy to simply take your marbles and go home. The people that WANTED the tax credit were not willing to put in the time and work required. They were looking for something for nothing. There is no free lunch.

By removing the tax credit from consideration I feel that the housing market will begin to return to a point of equilibrium. The people who are looking for something for nothing will go back to buying things like televisions, or clothing at 50% off retail no matter if it fits or not. The remainder of people who are at a place in their lives that buying a home makes sense will have less distractions when it comes to shopping for homes. I am looking forward to May 1st and the end of the first time home buyers tax credit.

Posted in Buying a Home, Ramblings | No Responses »
Tags: buyiing a home, tax credit

Buying a home? Does the Wall Mount TV Come With The Home?

Friday, March 19th, 2010

An interesting conversation was being had the other night. Potential buyers of a home were wondering if the wall mounted flat screen TV was going to come with the home. Normally one would think that the TV would be personal property and as such go with the sellers when they sell the home. However, what happens to the wall mount for the TV? Since it is attached to the wall is it considered a fixture? The buyers were asking questions about the TV and the wall mount and if they would be staying or if the TV would be taken and the wall mount left behind.

Given the nature that flat screen TV wall mounts are attached to the wall it would seem (to me in my opinion) that they would be considered a fixture. However, if the seller did not intend for the TV to be attached to the home would it be a fixture or personal property? The mount however by both its name and the way it is attached to the home could be considered part of the house thus it would be a fixture.

When looking at a home that has a wall mounted TV it would be wise to verify with the seller that the TV stays or that it goes. If the TV goes make sure if the mount is staying behind or it it will be removed. If the mount is going to be removed you should get it in writing that the mount and TV will be removed and any damage caused by the mount to the wall will be repaired to your satisfaction. This needs to be in writing for the benefit of all parties.

Another related conversation might be are the home theater speakers that are mounted to the ceiling going to be staying with the home? If not then you would be well served to make sure that you have it in writing any damage caused by the speaker mounts will be repaired to your satisfaction prior to closing.

When it comes to purchasing a home remember you need everything in writing. If it’s not in writing you cannot count on it turning out the way you expect it to. Working with a Realtor who will take the time to go over the contract with you is something you should insist on. When you’re ready to talk we will be here.

Posted in Buying a Home, Ramblings | No Responses »

Music and the MCC

Tuesday, March 16th, 2010

Well, this is my first blog post! As you can see from my bio, I’m a musician as well as a mortgage lender so I thought that I’d talk about two things:

1. Don’t miss the Tacoma Symphony concert this Sunday afternoon! We’re doing a Gospel and Broadway show with local singer, James Caddell. You can find out more on the Tacoma Symphony’s website at:

caddellfunky

http://tacomasymphony.org/index.php/Concerts/JamesCaddellGershwinGospelMotown/

I’ve been a member of the Tacoma Symphony Orchestra for 10 years now and it’s been great! We’ve been so lucky to play with such great artists as Ray Charles, Marvin Hamlisch and Wynonna. James is a great local talent and this promises to be a great show!

2. I am so glad that I have the opportunity to work at Wells Fargo! It’s been a great switch but best of all I have discovered the joys of the Mortgage Credit Certificate or MCC for short…

Now, this isn’t just our program, it’s administered by the Washington State Housing Finance Commission and is actually an IRS tax credit that a first time homebuyer can get OVER AND ABOVE the $8,000 first time buyer credit that expires soon.

The MCC is great because it’s an ongoing tax credit that gives a first time homebuyer a credit of 20% of the interest that they pay over a given year. For example: if you pay $10,000 per year in interest on your mortgage you can get a tax credit of $2,000 towards your refund (or payment) and the other $8,000 is able to be itemized with all of your other deductions… and the best part is that the homebuyer can claim the credit as long as they occupy the house as their primary residence!

Of course, there are restrictions… All of the guidelines can be found at www.wshfc.org or you could contact me at 253.224.1275 or kevin.s.jones@wellsfargo.com. You can also visit my webiste at: www.kevinstirretjones.com to see more first time buyer links.

We can do these tax credits with most 1st mortgages and even use them along with some down payment assistance programs so that you can get into a house with very little out of pocket AND have the IRS continue to pay you for living there… I wish I’d known about this where I used to work!

Until next time…

Kevin

Posted in Buying a Home, FHA Financing, Ramblings | 1 Response »

2010 Fiscal Year USDA Loan Program Expected to be Out of Funds by End of April

Monday, March 15th, 2010

The USDA program funding for 502 Guaranteed loans is expecting to be out of money by the end of April. Once the funds are gone the agency will not be issuing conditional commitments “subject to receipt of appropriated funds” This is due to the uncertainty of when additional funding will be available.

This does not impact at this time the 502 Direct Loan Program.

What does this mean to you the potential home buyer looking in rural areas of Pierce County? The limited funds along with the expiration of the $8,000 tax credit will be motivating factors for some people to get off the fence and make an offer on the home that they feel will be a good fit for their needs. If you have been looking online and as of yet have not actively started looking today would be a great day to make a few calls to Realtors to see who would be a good fit to help you purchase a home in the next 30 days.

If you have not started talking to a lender to see if you are qualified for a USDA loan pick up the phone today and call a lender to see what you need to qualify for a USDA loan. You can start by calling any of the three lenders who are authors here on this blog. All three can do USDA loans.

Happy House Hunting!

Posted in Buying a Home, Lending, Ramblings, USDA Financing | No Responses »

FHA 203(k) Streamline

Thursday, March 4th, 2010

In the real estate market today there are a number of bank owned properties available for purchase at great prices, in “as is” condition. “As is” can mean the house is an ugly duckling or it can mean that it has been stripped to the studs and raccoons have taken up residence. As a potential buyer, purchasing a bank owned home can be a great opportunity to invest in a fixer and earn sweat equity. The problem is, in order to get a mortgage to buy the house it can’t have any ‘health or safety’ deficiencies. Some typical health & safety issues would be: missing carpet, holes in walls, missing plumbing or electrical fixtures, broken windows, water leaks, mold, doors that won’t lock; raccoons or other pests etc. Beauty is in the eye of the beholder, but adequate heat, plumbing, electrical, roof are absolutely required for financing.

I’ve had a number of buyers tell me that they would be willing to do the work on the house prior to closing on the loan. Unfortunately, I have yet to encounter a selling bank that will allow it. There is a willing buyer, a willing seller but no financing…catch 22.

The FHA 203(k) Streamline loan is ideal for this situation in that it allows borrower to close on the home before the improvements are made. Repairs and improvements up to $35,000 are financed into the loan. Borrower is required to make a 3.5% down payment based on the price of the house plus repair costs. Funds from the loan are disbursed by the bank to the contractor based on FHA guidelines as the work is completed after closing.
I won’t tell you this is a quick and easy loan, but if you follow your Loan Officer’s instructions and do exactly as they advise you along the way it will be worth the extra effort to get the house you want.

A few things you should keep in mind:
*Generally self help is not allowed (can’t do the work yourself)
*House must be for owner occupancy (not for rentals or house flips)
*NOT only for first time buyers!
*NOT just for purchase, you can use this for refinance too which I’ll talk about another time
*not just for required repairs…you can do this for cosmetic upgrades only: new appliances, remodel a bathroom or kitchen, paint, etc.

My comments are intended to give you an idea of how a FHA 203(k) Streamline may be used. A Loan Officer who is experienced in FHA 203(k) financing will be a great resource to give you more specific product guidelines.

Good luck!!!

www.rosemarykendall.com

Posted in Buying a Home, FHA Financing, Lending, Ramblings, Vendors | 1 Response »

Taking a Sunday Drive? Please Join us at our Open House today 1pm to 4pm

Sunday, February 28th, 2010

Today we will be in Rochester holding our listing at 5420 189th. Ln SW open. If you are in the area please stop in and take a look at this very nicely maintained home.

View Larger Map

For more information on 5420 189th. Ln SW Rochester, WA 98579 follow this link.

Posted in Buying a Home, Open House | No Responses »

McKinley Hill Neighborhood in Tacoma One of the Best Old House Neighborhoods in 2010

Tuesday, February 23rd, 2010

Looks like we’re getting some more national press here in Tacoma. This Old House magazine selected the McKinley Hill neighborhood as one of the best neighborhoods in the country if you’re looking to buy an older home. For those of us who live here this is not news but it is exciting to see that Tacoma is once again in the national media spotlight for something positive. We are linking to the article so you can see what This Old House Magazine has to say about the McKinley district.

The McKinley Hill area has a lot of great older working class homes that are quite affordable for both first time home buyers and single income buyers. Additionally the McKinley area has easy access to downtown Tacoma and I-5 for those that have to commute to Seattle.
If you’re looking to buy a home and you want a bit more information on the McKinley area you can search our articles here on Classic Homes Northwest.

Of interest to many will be that the McKinley area qualifies for the Tacoma Down payment assistance program funds. Buyers may qualify for assistance with their down payment if they meet the income qualifications. Many homes that are for sale in the McKinley district are priced within reach of the guidelines of the Tacoma Down payment assistance program.

If you’re looking for a classic home in Tacoma you should consider the McKinley District. Please feel free to use our home search right here on Classic Homes Northwest to look at all of the homes that are for sale in Tacoma and the McKinley District. If you would like additional information on any of the homes you see please contact us and we will get right back to you with the information you are asking for.

Posted in Buying a Home, Ramblings, Tacoma | No Responses »

Today Super Bowl Sunday is Really the Start of the Real Estate Season in Tacoma!

Sunday, February 7th, 2010

This is a little known fact. The Sunday of the Super Bowl is traditionally the start of the real estate buying and selling season in and around Tacoma. If you were to look at the statistics for the month of February you would see the beginning of a trend upward each year. I am betting (afterall, today is Super Bowl Sunday) that as soon as the game is over many people who are thinking about buying or selling a home will start their searches to find the perfect home or the perfect Realtor®

No matter who wins today (we are rooting for the Saints) you know that starting tonight the real estate websites will see a uptick in traffic. What does this mean you you the reader?

Buyers: There will be more competition for homes in the price range you are looking for. You will need to have a game plan in place to help insure that you are finding the homes you want to look at as quickly as possible. Think of this as the no huddle offense for home buyers. We can help you with this. You can search all the listings of homes for sale in and around Tacoma by using our home search right here on Classic Homes Northwest. You can also send us a message simply by filling in the form on the sidebar on the right of the page. This will notify us immediately that you are wanting more information. Just tell us what you want and we will make sure to get it to you.

Sellers: More and more buyers will be looking at homes. Will yours be one of them? Without the right exposure your home could be overlooked like a bad Superbowl ad. If you are thinking about selling you should contact us and schedule a meeting to go over how we market homes and what we could do to help you sell your home as quickly as possible. Since more and more buyers will be looking for homes to buy you must realize that more homes will be coming on the market. You need to capture those eyeballs early.

We hope you enjoy the game today and that when you are ready for real estate season here in Tacoma that you will visit us often. Classic Homes Northwest is looking forward to finishing the 2010 Real Estate Season at the top of the standings. We promise no more Football references….. Baseball references will abound but no more Football. Call us today to get the ball rolling on your home purchase or sale in Tacoma. You can reach us at (253) 353-2194

Posted in Buying a Home, Ramblings, Selling a Home | No Responses »

Healthy Home Tips & Green Alternatives for New Homeowners in Tacoma Washington

Tuesday, January 19th, 2010

Click to enlarge image

For anyone who is considering buying a home that was built before 1980 this information can be of great value. I would recommend that you bookmark this post and refer to it often during your home buying process. For more information on Asbestos you should visit the Mesothelioma Cancer Centers website. The site has an abundance of information on Asbestos and what you should do if you have been exposed to it or if you are concerned about minimizing the risks of it. The following information is courtesy of the Mesothelioma Cancer Center.

Please click the image to the left to see a larger version.

Healthy Home Tips & Green Alternatives for Homeowners

The home buying process is an exciting time, but one that may bring additional responsibilities into your life. Many homes may need renovations or inspections, especially in areas that are susceptible to natural disasters. Having the assistance of an experienced and honest real estate agent will make this process smooth and stress free.

Some older homes may still contain obsolete building materials. Citizens of this great state are striving to move to a green lifestyle, advocating environmentally sustainable methods to be used throughout the state. Building or remodeling your homes with eco-friendly materials can lower utility and water bills, higher real estate value, purer air quality, reduced waste sent to landfills and conservation of natural resources.

Asbestos + Healthy Tips

Asbestos is a fibrous mineral that was used in construction applications for the greater part of the 20^th century. Often appearing as insulation, piping, roofing and flooring, homes and buildings could still contain asbestos materials if they were built prior to 1980.

If you locate any suspected asbestos in the home, most experts suggest leaving it un-disturbed until a home inspector can examine your property, take evaluations and determine the safest course of action. Sometimes the best action is no action at all. Disturbing asbestos in good condition may cause its fibers to be released into the air. The removal of asbestos must be undertaken by a professional abatement contractor who is trained in handling dangerous materials.

Exposure to this material can lead to the development of mesothelioma, a lung ailment associated with asbestos exposure. Though a cure does not exist, mesothelioma treatment options such as radiation, chemotherapy and surgery may be available to patients to battle the disease. Mesothelioma compensation has become tough to predict for victims and their families because diagnosis can take 20-50 years. For this reason, many people refer to it as a silent killer.

Removal of asbestos in public facilities, workplaces and homes should be performed by licensed abatement contractors as long as the National Emissions Standards for Hazardous Air Pollutants (NESHAP) are not violated. They must wear protective equipment such as masks and gloves to avoid any exposure. The materials should be removed in as large pieces as possible and places in disposable bags.

Green Building Benefits

Each and every human being would like clean air to breathe and crisp water to drink. It takes a lot of effort and political advocacy to achieve this on a macro level. The implementation of eco-construction, green energy solutions will play an important role in the transformation to a healthier and sustainable world. Many locations throughout Alabama are swiftly changing their construction practices to suit the environment and the health of human beings.

There are many green, eco-friendly materials that replace the need for asbestos and can reduce energy costs annually. These include the use of cotton fiber, lcynene foam and cellulose. Cotton fiber is quickly becoming a favorite for home builders and renovators. Made from recycled batted material, it is also treated to be fireproof. Research has demonstrated that the use of eco-friendly insulation alternatives can reduce annual energy costs by 25 percent.

Implementing green methods of building can have positive environmental, health and economic benefits. These include: Conservation of natural resources, enhancement of air quality, energy sustainability, increase property value, improve quality of life, improvement of pulmonary/cardiac health and reduction of waste.