Prairieville, LA

Prairieville buyers have plenty of reasons to buy a great house in Ascension Parish or anywhere in the Greater Baton Rouge areas. After all, homes are plentiful and well priced, the interest rates are low, and of course, the home buyer's tax credit is in effect through April 30. Yesterday, the FHA made an announcement that impacts anyone who buys after the tax credit has expired. The best advice to potential home buyers is to buy now, if you can can to beat the FHA clock.

FHA has always been a good financing option if you less downpayment in hand and if your credit score was a bit lower than what some banks liked. Over the last few years, FHA has written almost 30% of the loans (up from 3% back in 2006) and has suffered from rising delinquencies. The agency now must build its reserves and keep FHA-insured financing alive and well for homeowners. HUD Secretary wants borrowers to "have more skin in the game" as a way to reduce future defaults.

Some of the new rules apply to lenders who must now increase their reserves and practice more responsible lending practices. These are effective immediately. So what are the new rules that affect buyers?

Mortgage Insurance Payment (MIIP) will increase from 1.75% to 2.25% of the one and be added to the balance at closing. This will go into effect April 5, 2010.

Credits scores must now be at least 580 if you want to qualify for a 3.5% down payment. If your credit score is lower, you must come up with 10%.

Sellers will only be able to contribute 3% to the closing costs, as compared to 6% now.

These changes are reasonable, but they will cost new buyers more. All three changes will be effective by late spring-early summer which means those who buy before April 30 will reap some benefits of the tax credit and be able to go by the old rules (except for the MIP increase effective 4/5/10.) Currently, interest rates are low but expected to rise by late spring, so buyers will benefit from that as well. After that, if your credit score is low, you may have to save longer to get your downpayment in order, while all FHA borrowers will pay more MIP and closing costs.

If you are ready to buy a home, call Sandy's Team to discuss your home buying plans. Sandy and her team can find you the perfect place to call home in the new year in Greater Baton Rouge area, including Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant. We can also you answer any questions you might have about the home buyer's tax credit - $8,000 for first time buyers or $6,500 for repeat buyers.

Monthly Sales were 91 units. Comparison to last month: Increased 3% from 88 units. Comparison to this month last year: Increase 11% from 81 Units.

Average Sold Price was $186,413. Comparison to last month: decreased 2% from $191,023. Comparison to this month last year: Decreased 10% from $207,090.

Current Inventory is 6.48 months. Comparison to last month: Holding steady from 7.05 months. Comparison to this month last year: Decreased from 8.92 months.

Average Days on Market was 67. Comparison to last month: decreased from 78 days. Comparison to this month last year: Decreased from 87 days.

So what do all these numbers mean? The Average Sold Price being down is again indicative of the type of buyers we are seeing. First time homebuyers are still fueling the market. The inventory is slowly being eaten up and homes are not sitting on the market as long. This is all great news in the recovery of the housing market. I feel as if we have hit the bottom and are on our way up. FHA has announced some changes that will not make the climb easy. But as the old fable goes…SLOW AND STEADY WINS THE RACE.

As I am sure you are aware, the tax credit has been extended to having an accepted contract in place by April 30, 2010 and closing by June 30, 2010. It has also been expanded to include "long time homeowners". These homebuyers will receive $6,500 on a new purchase. For more information about these credits, click here.

These stats are for areas 90,91 & 92 in Ascension Parish. Information used from Greater Baton Rouge MLS. They include only single family dwellings. Mobile home and land sales are not part of these numbers. If you would like information on either of these, feel free to let me know.

When you become a homeowner who just made one of the most expensive purchases in your life, you are starting out on an exciting new adventure. You just bought a great home in Baton Rouge, Prairieville, or a nearby city and you are now surprised to realize that you are pretty much on your own in learning to be a homeowner. If a major system goes wrong, you may have recourse, especially if you have a homeowner's warranty, but that's only one of the challenges. Here are some tips to keep in mind to help you make the transition.

When you rented, whether there was a leak in the room or window didn't open, you called the landlord. (You may have even mumbled aloud that the problem wouldn't have happened if he had only done some preventative maintenance.) Now, you need to fix what's broke and plan ahead. Aside from anticipating possible repairs, you need to schedule time to mow the lawn, fix, and clean the gutters. If you don't have the time, money, or interest to do these things or hire them out, then perhaps a condo would have been a better choice for you.

If you are like most new homeowners, you will want to make a million changes in your new home to make it yours. These projects range from painting to adding an addition and everything in between. If you are qualified to do these things, great, you can save some money. If not, depending on how much is involved, you can learn to do many projects. For major projects involving plumbing, electrical, or major remodels, you are better off hiring a licensed contractor. It's safer, often cheaper, and more likely to increase resale later in comparison to an amateur job.

When you got your mortgage you probably had to get homeowner's insurance, to protect the bank's interest, but buying a home is a good time to reassess all of your insurance. The coverage on the home itself and on your possessions should include replacement value if you can get it, and should have high liability limits that can cover you if some litigation-happy person slips on your walk or is bitten by your dog. You should also consider whether you have enough life and disability insurance to protect your partner and children in case of your death or illness or an accident that could limit your ability to work. Even your car insurance deserves a look - minimum state limits won't protect you enough if you are sued.

When you buy a home, your days of the form 1040EZ are probably over. There are many deductions you can take as a homeowner, especially the first year; for other things, like improvements, there is no deduction until you sell. Even if you usually do your taxes yourself, you might want to use a professional tax preparer the first year to make sure you take the deductions you are entitled to without over doing it. Make sure to keep all your receipts on anything you do in the house so you can take the proper credit later.

Buying a home can be daunting experience but at RE/Max Excellent Properties, Sandy Ogburn-Sandlin and her team will prepare you for home ownership and follow up afterwards, as our testimonials attest. Sandy's Team can show you new and resale homes in homes in the Greater Baton Rouge area that offer great values for first time buyers and repeat buyers available under the home buyer's tax credit. AND that are right for you and your situation.

2009…it’s almost over. As I sat down to write this, the first words to hit the keyboard were this. “Thank God this year is over. I am so ready for a New Year!” As I sifted through the past months in my mind, I pulled up the thoughts of seeing friends, family and strangers struggle with hardships, grief, pain and so much more. Again the thought of “Thank God this year is over. I am so ready for a New Year!” crossed my mind.

As I thought about each of these challenges a little more, I found myself doing some deep searching. All of these things that my family faced were actually blessings in disguise. Everything happens for a reason, we all have been told this, we all know this. I am here to tell you that this is very true. I think that each of the things we faced this past year were sent as wake up calls. We get so busy in our everyday lives that we tend to operate well within our comfort zone. This year, we were forced to function outside of our comfort zone and the results were amazing! After facing each speed bump or road block, we were stronger, wiser and genuinely better. This is true with both our personal and professional lives.

As I think about my friends and others, their stories are much similar. They finished the year with stronger families, stronger marriages, better jobs, better health and a renewed faith in God. As I wrote in Growing Pains, we are experiencing a “growth spurt”. I now view 2009 as a year of growth. Growth is always a great thing. I only hope that 2010 will bring more of the life lessons that helped us to grow and the new friendships that are truly treasured. I know that I have changed and I like the change!

I will enter 2010 with the intention of operating outside of my comfort zone, will you?

May 2010 bring you much love, happiness and prosperity. Happy New Year!

Prairieville home buyers, if you are planning on buy a home with FHA financing, listen up!

For over 50 years, FHA has helped those with less than perfect credit buy homes by guaranteeing the loans, but recent announcements by HUD Secretary Shaun Donovan indicate that major changes are on the way for both consumers and lenders. Since the Great Depression, FHA has backed loans actually written through member banks. Over the years, it has provided an alternative financing process that some sellers looked down on because it took longer. In recent boom times, FHA was only called on to guarantee about 3% of all mortgages. Buyers got their loans with as little as 3.5% down and with 500 credit scores though most participating lenders required a score of 620 or more. Sellers could contribute up to 6% of the closing costs.

The recent mortgage crisis has affected FHA dramatically. Over the last few yours, FHA suddenly has been called upon to back 30% of mortgages and 20% of refinancing deals on homes up to $729,750. In an era when many homeowners have defaulted on loans, FHA cash reserves are at the lowest since 1994 and serious losses are projected for the next five years with over 71% of the losses coming from loans already on the books. FHA has been called upon to back not just loans on starter homes but on more costly move up homes as well. The defaults have hit them hard.

To prevent further losses, Donovan said the new plan would force potential buyers "to put more skin in the game" which would prevent further losses and stabilize the system. The new rules would require buyers to put up a 5% down payment, raise required credit scores to a yet undetermined level, and decrease the amount of contribution the seller can make to the closing costs. The agency is also considering whether to increase the monthly insurance fee borrowers pay.

HUD is also changing the rules for lenders, especially those who repeatedly make questionable loans. All lenders will be held accountable for losses, and will be ranked on a "lender's scorecard" of banks who make FHA loans. Lenders will have to submit annual financial reports and maintain higher net worth. Weak lenders will lose their ability to process FHA loans. The agency does not want to be the source of the next "subprime crisis" in lending.

Will making it harder it to buy a home have the desired effect of reducing future loses for FHA? The jury is out on this. Some critics of the new rules are more apt to blame unemployment and other disruptions in personal finance (i.e., divorce, death of spouse, illness or disability, unforeseen expenses) to cause people to get into mortgage trouble than how much down payment they paid.

FHA has not yet announced when the new rules go into effect but if the new down payment and credit score requirements would make a difference as to whether you could afford to buy a home now or not, waste no time in calling Sandy Ogburn Sandlin. She and her team will discuss your options with you as you consider your new home in Baton Rouge, Prairieville, Gonzales, Denham Springs, Watson, Walker, Central, Greenwell Springs, Zachary, Baker, Port Allen, Brusly, Geismar, and St Amant. We can also you answer any questions you might have about the home buyer's tax credit - $8,000 first time buyers or $6,500 for repeat buyers.