Archive for the ‘First Time Buyer’ Category:

Just reported on MSNBC “Senators agree to extend homebuyer tax credit”

Senators agreed to extend the existing tax credit for first-time homebuyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev. (more…)

Time is running out for the First Time Buyer Credit but Congress seems to be moving towards an extension. The possibility of writing an offer and closing on a short sale property before the deadline passed weeks ago.  The comfort zone for closing a “regular” sale has passed and gotten to the risk of not closing by December 1.  Not impossible, still doable but don’t cash that check ’til you qualify. (more…)

I was on the OPB‘s Think Out Loud program discussing The First Time Buyer Credit this morning.  I come on the show 36 minutes in: Think Out Loud Home Buying (mp3).

I’d like to see the credit expanded to all primary residence purchases without increasing it from the current $8000 to see if that can stimulate the entire real estate market.  I’d support lowering it to help pay for it to- $5000?  I also think that a lot of people may find the three year requirement a challenge; things change.  Ultimately lending requirements and perhaps more price softening is what it is going to take to stimulate the $500,000-$750,000 range in Portland. (more…)

The National Association of Realtors estimates that an additional 350,000 people bought real estate this year because of the first time buyer credit.  Calculated Risk, in turn calculates that the cost of the $15.2B program was therefore $43,300 per additional house sold. That’s because 1.9 million people qualified for the credit.

What seems harder to gauge is what goes back into the economy.  I met with a buyer last week at their soon-to-be house and he said to the contractor, “when we close we’ll have the $8000 to spend on improvements.  We’re doing just what the government wants us to do with it.” (more…)

The Oregonian reports today about the funds our area has received from the Neighborhood Stabilization Program.  Through the program managed by the Portland Development Commission, eligible buyers in eligible neighborhoods can by eligible houses by making use of a $50,000 interest free second loan.  The map below is from the PDC Website and is a graphic- their interactive map should be the definitive authority.

Oregon-NSP-Property-Map. Verify on PDC website.

(more…)

The way the first time home buyer credit is written now, you have until November 30, 2009 (109 days as of 8/13) to close on your new home (if you qualify for the credit).  Realistically, its earlier than that as Thanksgiving falls on November 26th.  I’d be planning on closing no later than November 20th and even that may not be enough cushion if something goes wrong.

Will the buyer credit be extended?  Who knows?  Congress could let it expire, extend it or change it.  The first iteration was the $7500 credit which was really a loan. Then it became a true tax credit for those that qualified under the rules of a first time buyer (interesting IRS scenarios). (more…)

My title statement of this post may or may not be true.  We’re always looking for clients both through referrals and other sources of business but there’s a chance that you don’t want to work with me (or another member of the team) and vice versa.

Sunday’s Oregonian featured real estate story is all about selecting a Realtor. Having spoken against dual agency early and often in the past, the article made me smile.  Especially this quote which was also the second page headline:

“Sometimes you see dual agencies that represent both sides.  But that’s like a husband and wife hiring the same attorney for a divorce,” [Michele Gila, principal broker for Roots Realty said.]

I’ve also advocated clients using more of an interview process when selecting a Realtor but in many ways the initial contact and what the Realtor does or doesn’t do is self-selecting.  If your Realtor is a referral there is some inherent relationship already but if not, the interview is even more important for both the client and Realtor. (more…)

Here’s some more information on using the first time buyer credit at closing:

Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent.

The loans can’t be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning. (more…)

HUD announced this week that last week’s announcement was null and void.  Reported here and most outlets regarding real estate, it was thought that qualified first time buyers would be able to use the $8000 credit as a part of their down payment.

Lenders, home builders and real- estate agents had reacted favorably to the bridge-loan proposal, saying it would open up the housing market to more first-time buyers. (more…)

***Update: No longer true.  New post 5/20/09.

The US Department of Housing and Development has approved a plan which will allow qualified buyers to put their $8000 first time buyer credit towards their down payment.  It must be used in conjunction with and FHA loan. (more…)