Effective today, April 1, 2010, and good for a limited time only, FHA has announced a new pilot Zero Down Payment Financing program available to self-employed individuals with credit mid-scores of at least 350.
Based on the huge success of the former NINA (No Income, No Assets) loans and other ‘Alt A’ “No Documentation” loan programs which led the housing boom of 2005-2007, the loans will be available for homes which appraise for at least 80% of list price, regardless of condition.
HUD spokesman Noe Jose said, “The program is a trial effort to find a replacement for the hugely successful Tax Credits for Home Buyers which expire April 30. Those Tax Credits are widely acknowledged as boosting home sales during a period of economic uncertainty.” Of course, increased home sales lead to increased employment in the construction sector, one of the largest job creation industries.
On another note, of course today is April 1, widely known as April Fools Day. See http://en.wikipedia.org/wiki/April_Fools'_Day for a thorough discussion of the history of this great day of mischief. Our all time favorite is the BBC’s Great Spaghetti Harvest.
Of course, there will be no “Zero-Down” financing, or any loans for that matter, for people with credit scores under 620. But for those who are eligible and can qualify for a loan, you still have 29 days to find a great home, and get it under contract. As long as the contract is binding by April 30, and closed prior to July 1, the Tax Credits are available. For a complete discussion of eligibility, see this site.
The FED has stopped buying Mortgage-backed securities, and in fact, is now selling them to reduce their inventory. That will put upward pressure on Mortgage Rates, along with the normal seasonal demand pressure. If you are going to take advantage of the Tax Credit or historic low rates, now is the time to do so. If you are thinking about Buying or Selling, or know someone who is, please call us. Waiting could be expensive!
Best regards (and Happy April Fools’ Day),
Doc and Ellen Stephens, REALTORS®
Keller Williams Realty
10999 IH-10 West, Suite 175
San Antonio, TX 78230
(210) 696-9996, ext 409
Wondering if prices have stabilized in your (San Antonio area) neighborhood? For the last two years, we have been offering a Free Market Snapshot, sent monthly or quarterly to anyone in the Greater San Antonio area who wants one, without cost or obligation. We are happy to tell you that the price hasn't changed - it's still FREE. Our friends who read it tell us they love the thoroughness and detail of information. Here's what they like:
1. It contains ALL the houses near your home that are on the market now - that's an easy way to keep tabs on the market value of your home (without calling on all the signs). Those homes represent the potential competition if you decide to sell yours and move. Those that are pending (under contract) show more clearly what price range is actually attracting Buyers right now.
2. It also has all the recent (last 3 months) Closed Sales of homes similar to yours within about 1/2 mile. That allows you to compare the Asking Price to the actual Sold Price. (Be careful - it doesn't always disclose Seller Concessions that are not reported. To get that, ask us for a Professional Market Evaluation on your home - also FREE.) It also shows how long it is taking to sell these days. We'll also send along our Booklet, 97 Easy Ways to Make Your Home Sell Faster! if you request it.
3. Other useful information includes graphs comparing asking to Sold Price, new entries on the market by week, price range, details on individual homes, neighborhood information, school information, and most importantly, how to contact us to get a thorough, individualized Maximum Home Value Report for a specific purpose (tax reduction, Estate evaluation, refinance, etc.)
It's also a good tool for people looking to Buy a Home in San Antonio because it gives such specific neighborhood values. So, if you want one for yourself, follow this link: Send Me My Market Snapshot! If you are already getting it, please take a minute and let us know if you like it, or if not, what should we change to make it better. We are here to serve you and those you care to refer to us.
Best regards,
Ellen and Doc Stephens, REALTORS®
Keller Williams Realty
10999 IH-10 West, Suite 175
San Antonio, TX 78230
2009 Greater San Antonio Platinum Top 50 Finalists
I am not a cynic, but I have come to believe that News programs have only one real purpose - to keep you watching between commercials. Bad news and fear are very effective in doing just that.
Now, when all the signs point to the beginning of a sustainable recovery, with interest rates at historic lows and Uncle Sam giving lots of Buyers Tax Free Cash to help them buy a home, and when Inventories are plentiful, giving Buyers the chance to pick the best from among many, why is it that the doom sayers are chattering so loud? "Be afraid, be very afraid" they say, louder and louder.
You have always been told, "Buy at the bottom, Sell at the top", right. The problem with that is that by the time everyone agrees that the bottom has been reached, we will be well on our way up the other side. So, trying to time it just right could result in missing the best opportunity of our lifetimes to buy a great home at a fabulous price. Here's how to calculate your chances:
•1. What does it cost to build a new home? My Builder friends say upwards of $90/Square foot for a basic home; lots more for a palace.
•2. How many homes can you buy in San Antonio for under $60 per square foot? As of March 4, 2010, there are 1,310 homes in greater San Antonio that are priced at or below $60 per square foot.
•3. How do you find a bargain that is REALLY a bargain? You find a REALTOR® you can trust, one who knows the market and knows the numbers. You look at what's available, pick the best and check them out, hire an inspector if you wish, calculate your repair costs if any, and make an offer you can live with. Very often, those offers are accepted, or negotiated only slightly higher!
This is the time to act! Don't be one of those poor souls who says in ten years, "Why, I could have bought that home for $XX,XXX back in 2010." Use your 2020 hindsight, and call your REALTOR today. If you would like a list of all the bargain homes available in a specific area, contact us for a FREE list. If you want to know which 5 homes I think are the BEST Buys, you'll have to call. They'll be gone before your e-mail reaches you.
Today, the world's most famous weather forecaster, Punxsutawney Phil, emerged from his den, saw his shadow, and scurried back to rest for six more weeks. If you missed this landmark event, you can find the story here: http://www.msnbc.msn.com/id/35194650/ns/us_news-life/
The contrarian pretender, Staten Island Chuck, did not see his shadow, and thus, predicted an early spring. http://news.puggal.com/staten-island-chuck-21209/ So it always is: To paraphrase an old economist joke, "If you took all the forecasters in the world and laid them end-to-end, they wouldn't reach a conclusion."
Opportunity occurs when everyone else is playing it safe. By the time Phil emerges, the rewards of an early Spring will be gone. Here are the opportunities available as we see them:
1. First-Time home Buyer Tax Credit - Expires on April 30, 2010 To take advantage of this gift of $87,000 TAX FREE CASH, one must have not owned a home for the last three years, and meet certain other requirements and income tests. See the IRS Website for all the details. One must be under contract to purchase a house by April 30, and close and fund before July 1.
If you know someone who may qualify and wants to see if they can buy a home in San Antonio, please let us know, and we will explain the program to them and help them achieve their dream.
2. Move-up (or down) Tax Credit - also expires April 30 - for those who have owned their home for at least 5 of the last 8 years, a $6,500 Tax Credit if you sell your existing home and move up or down,. Perfect for down-sizers or growing families. Of course, consult with your personal Tax Advisor to see if this works for you. If it does, $6,500 TAX FREE CASH can certainly pay for that move to the home you've always wanted.
3. Low Interest Rates - Last year we were delighted if we could lock-in a rate of 6%. Now rates are bouncing between 4.75% and 5.5%. The Federal Reserve has announced that they will stop buying Mortgage-backed Securities in March. We think that will cause rates to climb once again. If you haven't re-financed, perhaps you should check on it. We have a good calculator available at http://TellEllen.com. Money saved is money earned.
Also, if you buy now, before rates start to climb, you scan buy a nicer home for the same payment. A ½% change in interest rates affects the house payment the same way that a 5.8% price change does.
4. Investment properties - San Antonio still has lots of investor homes available at low prices. Some need work, but some are ready to go with very little fix-up. A rental home, bought right and managed professionally should be able to cash-flow (cover the payment and generate a little extra), and generate significant appreciation and tax benefits. It's a solid way to supplement your retirement income, when that day comes.
If you have some extra cash, aren't feeling so good about your prospects in the Stock Market, let us help you to find a great rental home or two. We have a property management department in-house, so you don't have the hassle of finding and dealing with tenants. Call or e-mail us for a FREE list of HUD Homes, VA foreclosures, short Sales, Lender-owned homes and other bargains in the Greater San Antonio area, available by neighborhood or ZIP code.
We are here to help you anytime you, or people you know, are ready to buy or sell a home in San Antonio and the surrounding area. We appreciate all your referrals.
Best regards,
Doc and Ellen Stephens, REALTORS®
Keller Williams Realty
10999 IH-10 West, Suite 175
San Antonio, TX 78230
(210) 696-9996, ext 409
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Located on the first floor of the Chase Bank Building, at the corner of IH-10 West @ Huebner Road in NW San Antonio. We serve all of the Greater San Antonio MSA and the Texas Hill Country. CALL US!
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