The recently enacted housing bill that was passed by congress has created a lot of questions.  In particular regarding the 1st time homebuyer credit.

Here are some resources to get the answers you may need:

Here is a 1-page summary of the First-time Homebuyer Tax Credit

Also, this can be very important to read and understand:

29 Questions/Answers on the tax credit.

And finally here is a great article from the Washington Post which is very informative.  There is a lot to understand about this tax credit.  Be sure that you have all the facts!

Before You Take That New Housing Credit . . .

Are you a 1st time homebuyer with questions about getting pre-approved or just where to start?  Let me know how I can help.  Calls and emails are always welcome.

First Time Buyers’ Dos And Don’ts

If you are a first time home buyer, you have a lot to learn.

Working from a blank slate you must build an understanding of the housing market, determine what you can afford, land a loan and hone in on a home that’s a good fit for your lifestyle.

The transaction will likely become your largest asset ever so there’s little room for error.

It is a daunting task, but you can ease your concerns if you take the process step-by-step, watching your footing as you move along the path toward the American Dream.

Below is a list of "Dos and Don’ts" to help first timers turn that stress into the self-confidence you’ll need to move closer to your first home.

The list focuses on areas first-timers typically stumble over in their initial home buying attempt. Knowing what you could face will help you avoid some of those trip ups.

The Dos:

DO examine your credit standing. You need to know your credit standing…

Click here to read the rest of this article in my May Real Estate Update Newsletter

 Also, FHA financing has really started to become the financing choice for a very large part of the homebuying market.  While it’s not just for 1st time homebuyers, it is perfect for them.  Read more about FHA financing here

As always your comments and questions are welcome!

March 2008 Home Sales For West Chester & Liberty Township, Ohio

 Sales were once again down in March 2008 when compared to March of last year.  Unit sales (closings)  were down 6.31% in West Chester and Liberty Township.  The percentage decreases are smaller than they had been previously, for instance the 29.27% decrease that we saw in January  So the downside trend in unit sales may be slowing which is good news if it continues.

Average sale prices were down 10.09% over March of 2007 and there is no way to paint this statistic in a good light.  This is a huge decrease in the average sale price for West Chester and Liberty Township homes.  The median sale price was even worse, down 14.15% when compared to the month of March 2007.  Home prices are falling and these numbers reflect a continued and perhaps worsening trend.  The numbers from April will need to be closely examined to see if this is a one month drop or a continuing trend.  Thinking of selling?  Click here to learn the current market value of your home.

Interest rates continue to be very volitale.  In the last week I have seen a swing from 5.60% for a 30 year fixed rate mortgage to at weeks end 6.05%.  The rates are changing daily.  If you need a referral to a good lender with competitive rates and closing costs please let me know.

Moving to West Chester, Liberty Township, Mason Or Cincinnati, Ohio?  Click here to receive our Relocation Packet, full of information and completely free, with no obligation!

And finally, the Cincinnati Enquirer ran this story recently on the foreclosure problem in Ohio and some assistance that is available.  I am going to write a couple of posts on this issue of home foreclosure in the next week or so, so check back here for that.

Your questions and comments are always welcome!

First the interest rate drop.  Interest rates have dropped considerably in the last week and a half with the 30 year fixed rate mortgage falling from 6.20% to just 5.60%.  A more than welcome decrease.  Interest rates do continue to be very volitale.  This article on the CNBC website provides more details on the volitility.  FHA financing is the new trend in home mortages.  I will provide an update and more information on this in the next few days.

And what a little bit of paint can do for the appearance of a home listed for sale.  Especially in today’s real estate market, anything that can be done to make your home show better an dbe more appealing should be done. The freshness of a new coat of paint both visually and in the fresh smell when you walk in the door are hard to deny.  This is a great home in West Chester, Ohio, listed for $165,000 and is now freshly painted throughout most of the interior.  Click here to checkit out.

Living Room before:

Living Room after:

Lower Level Family Room before:

Lower Level Family Room after:

And finally… I saw this video on Seth Godin’s blog this week and had to pass it on:

Your comments and questions are always welcome!

FHA loan limits are moving higher as part of the Economic Stimulus package that President Bush signed into law this past week.  Why should this matter and how will it impact the West Chester and Liberty Township, Ohio real estate market?  Great question!

1.)  The higher loan limits when they are published by HUD will allow a significantly higher number of buyers to qualify for an FHA loan, which has less stringent qualifying criteria and lower down payment requirements. 

2.) This change in the loan limits may open up some additional avenues for buyers to obtain financing, which will certainly impact our West Chester and Liberty Township real estate market.  Many borrowers, in particular first time home buyers, have felt that they may not be able to get a mortgage loan due to all of the recent news and talk about the sub prime mortgage mess.

The National Association Of Realtors has developed an "estimated" amount of the new loans.  These are only estimates at this time.  HUD has 30 days to publish the new loan limits.  The estimated FHA loan limit for West Chester and Liberty Township, Ohio are $337,500, which is a significant increase from the old limit of $256,500.

Interest rates have moved higher in the last couple of weeks.  Just three weeks ago a 30 fixed rate loan was 5.49% with no points and as of Friday it was now 5.80% with no points.  Ouch!  Will the rates go lower again?  It is so hard to say if rates will go up or if they will go down and if someone tells you they do know the answer, proceed with caution.  My sense is that we are in a range for rates that we will probably stay in for a while.  With rates moving slightly lower and then back up slightly higher.  There is no doubt in my mind though, at some point, there will be people saying they wished they hadn’t waited so long and missed out on the opportunity to get a 5.5% or so interest rate.

Your comments and thoughts are always welcome!

December 2007 Home Sales For West Chester & Liberty Township, Ohio

So, one by one let’s review…

Number of closed units, not good.  Down by 21.00% is not a good sign at all.  Yes, it was December, but that is compared to December of 2006.

Average sale price was up to $253,213 in December.  This is probably the most over examined statistic in real estate today.  What is doesn’t mean is that prices are rising, they are not.  What it simply means is, the average price of the homes that did sell, was higher.

The average days on market moved up to an average of 102 days on the homes that closed in December.  A very large increase over December 2006 that really bears watching.

The list price to sale price ratio was considerably lower in December.  In December of 2006 homes that sold in West Chester and Liberty Township sold for an average of 97.54% of list price vs. 95.72% in December of 2007.

For a bit of really good news…  look to mortgage rates which are hovering around 5.65% for a thirty year fixed rate mortgage.  These are unbelievable times to be buying a home!

I will continue to monitor these market numbers  for West Chester and Liberty Township Ohio and will share them as they become available.

I would love to hear your thoughts as well!

FHA Financing is back! 

Actually, it really never went away, but was certainly overtaken by the many loan programs that became such hot commodities the last few years.  Many of these loan programs were the subprime mortgages that we now hear so much about in the media.  And while most of these programs are now long gone, as are the lenders that made them, the FHA loan is now back in fashion.

Why is it such a good loan program for the first time homebuyer.  Among the many reasons are it’s low down payment requirement, it’s more lenient qualification guidelines and… the rates are so low right now that it is an incredible deal.

Here is a senario that I created today as an example:

Buyer buys a home for a purchase price of $150,000. 

Using the FHA loan, the rate as of today is 5.75% with just a 3.00% down payment. 

By the way, that 5.75% interest rate today was for 30 years, fixed rate.  (No adjustable rates with skyrocketing payments in a year or two). 

In this senario, the buyer’s monthly payment for principal and interest would be only $849.10!

This payment does not include property taxes and homeowners insurance, but what an opportunity to buy a home and stop paying rent with a truly low monthly payment.

And by the way, FHA loans are not just for 1st time homebuyers! 

If you would like more information on FHA loans or for that matter any other mortgage financing let me know and I will get you in touch with a top mortgage consultant.

More detailed information on FHA loans by clicking here