Donne Knudsen

Ok, you've heard the hoopla about the extended and expanded tax credit but what does it all mean for you and how is it going to help you buy a home now. Well, first and foremost, here are just a few of the benefits of what it means for the first time buyers:

• First time buyers only - you must not have owned a primary residence in the last three years.
• Credit effective for 2009 only - must purchase a primary residence between January 1, 2009 through April 30, 2010. In order to receive the tax credit, you must be in escrow by April 30, 2010 and you must close escrow by June 30, 2010.
• The credit is for 10% of the purchase of the home for a maximum of $8,000
• The biggest difference between the previous $8,000 tax credit and the new, extended and expanded tax credit for first time buyers are the qualifying income levels.

Yeah, I know, you want to know how this is going to help you buy a home now while rates are still low.

With this tax credit, it will allow you to offset your tax liability by tweaking your W4 deductions and reducing your tax withholding so that you are taking home more money every paycheck.

However, having said that, I must strongly advise you to seek professional advice from a tax specialist to find out just how much you can tweak your deductions and reduce your withholding to balance out with the tax credit you will be eligible for.

If you don't already have a tax specialist, call me, I can give you referrals to several local tax specialists who would be happy to talk to you and help you out.

Another feature to the new, extended and expanded tax credit is the benefit for move-up buyers. Move-up buyers now have the option of receiving up to $6,500 tax credit if they purchase a home before April 30, 2010 and close before June 30, 2010. Here are just a few of the benefits of what it means for the move-up buyers:

• Move-up buyers must have owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date.
• For married taxpayers, the law tests the homeownership history of both the home buyer and the spouse.
• Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $6,500.
• Purchases of homes priced above $800,000 are not eligible for the tax credit.

For more information on how much you will qualify for and how to claim it, check out the Home Buyers website on the tax credit:

Home Buyer Tax Credit

At the base of the Verdugo Mountains, just south of Shadow Hills and minutes from the Theodore Payne Foundation for Wildflowers and Native Plants is an incredible home located at 11770 Snelling St. in Sun Valley.

This 3bd home with nearly 1,100 sq. ft. of living space sits on a large lot of more than 11,000 sq. ft., which is listed for $265,000 and is move-in ready.

Don't worry about having to fix up this home after the close of escrow because this isn't another run-down and dilapidated dumpy REO like all the rest of the properties you've probably been seeing. This home is not a short sale or an REO.

The best part, this home is eligible for up to $75,000 in down payment assistance.

As part of HUD's Neighborhood Stabilization Grant Program, the Los Angeles Housing Department (LAHD) is offering their Low Income Purchase Assistance (LIPA) program.

The

LIPA program offers assistance in the form of a "silent second" of up to $75,000 to low income households for down payment and closing cost assistance for homebuyers who wish to purchase properties in NSP eligible areas.

Eligible buyers are those who do not currently own a home, whose household income meets the programs income guidelines and who plan to occupy the property as their primary residence.

For more info on this incredible home, contact Robert Saldana of Onyx Real Estate at 818-339-2103 or at Caesarro1@gmail.com. For more info on how you can qualify for the LIPA down payment assistance to purchase this wonderful home, contact me, Donne Knudsen of Cobalt Financial Corp, at 805.5278554 or info@donne4loans.com.

Today's real estate market and lending environment can be really scary, which is why it's important to get as much information as possible before starting your search. Finding out more about affordable home loan options and getting pre-approved is an absolute must.

The pre-approval process is relatively simple so contact me today to get pre-approved for this incredible program and make this fantastic property your next home.

The other day, I came across this post from Julia Odom titled AS IS - What's it mean?. Reading Julia's post got me thinking of the "as-is" market here in Los Angeles & Ventura counties. While Julia writes a great post of what "as-is" does and doesn't mean, based on my personal experiences in my market, "as-is" seems to have taken on a whole new meaning.

Apparently (at least around here), "as-is" means that if there are any building code violations, don't count on the seller and/or bank to be taking care of them. Also with BofA and/or Countrywide short sales, "as-is" means that the bank and/or seller will not pay for any delinquent HOA dues regardless of how much they increase during the months it takes for the bank to finally accept your offer.

But what it doesn't have to mean is a deal breaker. With many run-down, dilapidated, dumpy REO and short sale properties that the bank and/or seller refuses to fix, you may qualify for an FHA 203k loan that will allow you to finance the repairs you make after the close of escrow.

So all hope is not lost if you come across a "as-is" property that may have some potential to be a really nice home with just some work to it. Contact me if you want more info on how this loan product can help you.

Via Julia Odom - AS IS - What's it Mean?

With foreclosures and other 'distressed' sales abounding these days you see a lot of listings with two little bitty words: AS IS.

So what does AS IS mean, Jules?

It means that the seller doesn't want to hear you (or actually me, your agent) whine about all the little things that are wrong with the place. It means that they have no intention of fixing anything. It means that you know you're buying this house, warts and all, and you aren't going to come back to the seller after the fact and say that it's their fault you didn't know about the warts. It means buyer be wary.

Well then, what doesn't AS IS mean?

It doesn't mean that there's something horrifying lurking behind the drywall (although there could be). It doesn't mean that you have to go through with the transaction if you find Jimmy Hoffa's body in the basement structural or mechanical problems with the house - you can still ask for and in almost all cases will be granted an inspection contingency. It doesn't mean that this is a bad house. So if you find that your dream home is for sale "as is", don't be scared but do be aware.

I recently came across this video about how to buy a bank owned home on Lisa Wetzel's blog.  I couldn't stop laughing through this whole video because it describes the REO market here in Los Angeles and & Ventura counties to a tee.

Recently, CBS Evening News aired this segment on what buyers need in order to buy a home. This is a classic example of the blatant misinformation that the media is putting out there to the public who see this crap and actually believe it. Don't even get me started on the crap that 60 Minutes aired recently about Barney Frank being the smartest man in the world! AAARRRGGGHHH!!!

CBS Evening News - Loans Are Hard To Come By

While I can't speak for other markets across the country, here in LA and Ventura counties, there are several programs available to first time buyers that do not require 20% down. The couple in the news segment has just been dealing with the wrong lender and they need to find them someone else who can really help them.