Logan Jones Realtor San Antonio Homes For Sale

Creative ways to buy a home
If your credit situation is less than ideal, here are a few options for purchasing a new home:

1. Research and speak with your real estate agent and lender about local, state and national down payment programs that may be able
to cover part or all of your down payment if you qualify.
2. Arrange financing through the seller for part of or for the entire purchase price.
3. Find a shared equity partner for your home. A family member, friend or third-party investor buys a portion of the home and shares any
appreciation when the home is sold.
4. Secure a loan from a family member or ask a family member to cosign on your home loan.
5. Lease with the option to buy, which will allow you to rent for a period while you collect enough for a down payment. You will likely be
able to apply part or all of the rent paid to the final purchase price.
6. If you have good income and low debt, apply for a second short-term mortgage to allow for a higher down payment.

Information from Buffini & Company

Here's the skinny in simple terms:
The tax credit is for home buyers (either spouse if filing jointly) who have NOT owned a principle residence during the three-year period prior to the purchase. Ownership of vacation property or rental property does not disqualify home buyers from this program.
The maximum credit is $8,000 or 10% of the home purchase, whichever is less.
The credit is available for homes purchased on or after January 1, 2009 and before December 31, 2009.
There is no recapture or repayment clause IF the home is owned for at least 36 months.
The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.
To qualify for the full tax credit, married couples' modified adjusted gross income (MAGI) should be under $150,000 and single filers' MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000. If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.
Home buyers who qualify for this program, but who do not intend to purchase a home until the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment. However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.
The effective date of purchase for new construction (even if buyer owns title to the lot) is the date the owner first occupies the home. So even if construction began in 2008, as long as the home and buyers qualify for the tax credit, they will be eligible if they take possession any time during 2009. However, new construction bought from the builder is only eligible if the settlement date (closing) takes place between January 1, 2009 and December 31, 2009.
The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.

The “American Dream” is and has been to own your home free and clear without any mortgage payment.

If this dream is still valid today, how can it be explained that thousands of financially successful Americans, who have the funds to pay off their mortgage, choose not to. The American Dream has been passed down to us by our parents and grandparents alike. Many Americans fear a home mortgage, particularly when they are at retirement age. This way of thinking is very outdated, although valid back in the 1930’s. During the great depression, banks were legally able to call a mortgage loan due in order to receive a much needed cash infusion. The stock market had lost over 75% of its value, un-employment was at an all-time high, and real estate values were falling dramatically. Many homeowners lost their homes because they did not have the funds to pay off their mortgage and they could not sell the home because there were no buyers at the time. Due to this horrific situation, a new way of thinking was born. “You should own your home and never carry a mortgage”. This way, if the economy dropped suddenly and you lost your job, you would at least have a roof over your head. Since then, laws have been past that make it illegal for banks to call your mortgage loan due.

Today, it is no longer the case that we will live in our homes for 30 years and keep the same mortgage for 30 years until it is paid in full like our grandparents did. Today, the average person lives in their home for only seven years and according to the Federal National Mortgage Association, the average American mortgage lasts for only 4.2 years. People are moving to larger homes in better areas as well as refinancing for a better rate or to pull equity for home improvements and other expenses. These statistics show that it makes little financial sense to pay down your mortgage by applying additional principle payments and to have large amounts of equity in your home.

Ask yourself these two questions: What rate of return do you receive on the equity sitting in your home? Would you burry $100,000 cash in your backyard? The answer to the first question is 0 or nothing! For question two, most people would answer NO, however, a vast majority of home owners across the US are basically doing just that by leaving the equity in their homes.

Rather then allow your cash to remain dormant, pull that equity out and utilize it in any number of great investments. One option is real estate. You receive tax benefits such as depreciation, cash flow and property appreciation. Another option would allow you to invest those funds as a private mortgage loan secured by real estate and earn double digit returns on your money collateralized with real estate. Both of these options make you money! Isn’t that much better then having the equity sitting in the walls of your home making you nothing?

Even if you were to pull $100,000 of equity from your home in the form of a Home Equity Line at an interest rate of 7% ($7,000 annual cost) and placed those funds in a safe interest producing asset which produced a return of 7% ($7,000 annual gain), would you be exactly even at this point? The answer is NO! The interest you pay on your equity line is tax deductible (mortgage interest is 100% tax deductible in most circumstances) therefore, the true cost of the 7% loan is actually only 4.55% (assuming a 35% tax bracket). It is not difficult at all these days to find an investment vehicle which produces a 7% return.

Another problem with all that equity sitting in your home is that if sued you risk losing it. You want to look cash poor when an attorney looks at your assets. If liens show up against your homes and it appears you have very little or no equity then it may keep you away from a lawsuit. Most attorneys won’t work for free. If they can’t find a way to get paid through your assets then they won’t file the lawsuit.

In closing and most importantly, it is a very wise decision to separate the equity from your home to prevent losing it. If you have an equity position in your home and the home values in your area decline, you will lose that equity. If you separate it from the home, via an equity loan for example, you secure the equity by converting it to cash which then may be used for safe & conservative investments. According to a recent study, 67% of Americans hold the majority of their net worth in personal home equity. If we were ever taught to diversify our investments, this statistic shows a failure to practice that advice.

Beautiful historic home located in King William District. Almost all furniture is included except for a few family pieces! Six bedroom six full baths with hardwood floors throughout most of the home. A detached converted garage serves as one of the six bedrooms. Currently operated as a Bed and Breakfast. For sale as a single family residence as well. According to documents pulled from the City of San Antonio the property is zoned MF33HHS. Close to restaurants, shopping, and conveniences of downtown. For more information go to Chunn & Baugh Realty LLC

n a tough real estate market, where inventory and competition for buyers is high, sometimes the seller has to "sweeten the pot" to get the deal done. Here are five creative ideas to help close the deal.

Offer a Decorating Allowance

There may be a buyer that likes the home, but just has different decorating tastes. To seal the deal, offer a decorating allowance (for painting, new carpets, or wallpaper). You can offer cash at closing, or put money in escrow to reimburse decorating & remodeling expenses made within 90 days of closing, up to a maximum amount. This may be just the thing to get the deal done.

Do a Pre-Sale Inspection

This actually works for both you and the buyer. By having a whole house inspection done before listing the house, you get a chance to address any issues before prospects see the home. That means you increase the homes salability. Display the report during open houses and highlight the repairs that have already been addressed. It's like seeing the repair history when you buy a used car; it makes you feel better about making an offer because you know the car is in good shape and exactly what has been repaired in the past. Buy having the home inspected before listing it people don't have to guess what kind of condition it is in, they can see it in writing.

Offer a Home Warranty

A home warranty reassures the buyer that the property is in top condition, and gives them comfort knowing that certain future repairs will be covered by insurance. Buyers fear that as soon as they buy the house the dishwasher, dryer, or stove will go on the fritz. The home warranty is quite inexpensive, and it buys peace of mind for the buyer.

Cover Closing Costs

Sometimes it just takes a little nudge to close the deal. You can offer to pay the buyers half of title and escrow fees, or pre-paid intrest charges. Paying the points on the loan may also be a tax deduction for you. Many lenders may limit how much of the closing coats you can pay, but if the buyer is short of cash, offering to pay some closing costs can make a difference.

Offer Seller Financing

There are many ways to offer seller financing. Options include putting funds in escrow to cover several months of mortgage payments, buying down the mortgage rate, or carrying a second mortgage cover the down payment. It is wise not to offer seller financing unless you have consulted a real estate attorney and your real estate agent. Make sure that the buyer has good credit. Although this is the least attractive option to the seller to get a deal closed, sometimes it takes creativity and going the extra mile to get your home sold.

Summary

In today's tight real estate market, not only does your home have to be more attractive than the other homes on the market, but the deal has to be more attractive also. With these tips, you can make the deal as attractive as the house, and close the sale while other homes stay on the market.