Have you been noticing a LOT of people who were perfectly content with renting homes are now entering in to the real estate market to BUY instead? Maybe they thought because they didn't have thousands of dollars saved or would have to live in the boondocks, they HAD to rent? Not if they use the Neighborhood Stabilization Program!
In October 2008 - February 2009, there were stimulus packages being approved right and left. One of the elements contained within one of these packages was designed to help stem the tide of foreclosure homes that have flooded our real estate markets. Up until July 2009, here in Jackson County, Oregon more than 50% of the sales taking place have been bank owned foreclosure homes. In July, that percentage dropped below the 50% mark, and this is before the official release of the Oregon Neighborhood Stabilization Program. Per Krista Bolf, 2010 President of the Rogue Valley Association of Realtors, the homes priced at under $200,000 have not only been selling quickly, they are often receiving multiple offers, which really represents a "seller's market" vs. a "buyer's market" in this price range.
So, what IS the Oregon Neighborhood Stabilization Program? This program is a silent second bearing zero interest and no monthly payments. It will be used in conjunction with your primary financing - i.e. a 30 year fixed rate FHA home loan, or a USDA Guaranteed Rural Housing loan, or a VA loan. This silent second may be used to match a buyer's contribution toward any down payment requirements (up to 20% of the purchase price), cover closing costs, cover any required repairs on the foreclosure home, or reduce the balance of the first mortgage - up to a combined total of $50,000.
For example, say you plan to buy a bank owned home within the City Limits of Medford Oregon for $170,000 using the FHA 30 year fixed rate loan. This program has a minimum down payment requirement of 3.5% ($5,950), so you will need to have 1.75% ($2,975) of your own funds to bring in at closing. Neighborhood Stabilization Program funding can match the other 1.75% plus cover all closing costs, prepaid expenses and home repairs required on your whole house inspection AND REDUCE YOUR PRIMARY MORTGAGE AMOUNT BY THE REST...up to a total of $50,000. That means, the amount you will have to pay on each month is the principal and interest on your FHA mortgage only, monthly mortgage insurance premium, property taxes, and homeowner's insurance. This could save you hundreds of dollars each month, allowing you to qualify for a home that may otherwise be out of your budget. Call to be fully qualified, and to know what the cash/payment amounts will be based on your individual circumstances.
The main eligibility requirements are:
There are a myriad of other guidelines, many of them coinciding with today's standard underwriting guidelines for real estate home loans, so it is important you get preapproved for this Neighborhood Stabilization Program funding along with your primary mortgage -before you head out to find a home. Your real estate broker and loan officer/mortgage consultant will need to work together with you very closely to make sure you are looking at homes that will qualify and your contract terms are structured as they will need to be in order for you to receive both loans. If your offer to purchase the bank owned/ foreclosure home is accepted by the bank but makes you ineligible for your financing, not only could you lose the opportunity to purchase that home, you could lose your earnest money deposit, so be careful!
The latest update from Oregon Housing & Community Services said this program should be available for reservations by the last week of August. Time is of the essence if you want to take advantage of the $8,000 first time home buyer tax credit you may be eligible for, too, before it sunsets November 30, 2009 so don't wait - get preapproved right away. Also, Oregon received the minimum allowable amount of funding from HUD in order to participate in the Neighborhood Stabilization Program, so funding could run out quickly.
What an opportunity for everyone this program is! The banks that foreclosed get inventory off their books; the people who live near these homes get to have neighbors moving in who will want to care for these vacant homes often in a state of disrepair; eligible home buyers needing a hand up are able to buy homes they otherwise may not be able to afford. Is that win/win/win or what?!?!?! I am working with several sets of buyers on this Neighborhood Stabilization Program who would not be able to buy a home that meets their requirements without this funding. For example, one of them is a disabled veteran who would qualify for a USDA Guaranteed Rural Housing home loan and a purchase price of $90-95,000 without using the Neighborhood Stabilization Program funding. If you are familiar with pricing today in Southern Oregon, even in the outlying areas he is looking in like White City, Eagle Point, Shady Cove and Gold Hill, he's finding it impossible to find a home that will meet the minimum standards for this loan program. Now, with the Neighborhood Stabilization Program, he will look at homes for $130,000-135,000 - for the same monthly principal and interest payment he would have on the $90,000-95,000 priced home - which makes several homes come up for his broker to show him that he'll be able to afford.
So, how do YOU find out if you qualify for the Oregon Neighborhood Stabilization Program funding to assist you with YOUR home purchase? Choose a lender that is familiar with this program and get preapproved for your financing through them. We will help you with not only the application and processing of your first mortgage, but will also help you with the necessary paperwork and processing of the Neighborhood Stabilization Program silent second loan at the same time. This means we will be working to preapprove you for two programs at the same time, but the Neighborhood Stabilization Program does not allow us to charge you any costs for this, so you won't pay extra for the service. But, this also means many lenders will not be working with the Oregon Neighborhood Stabilization program, so be sure you find out if the lender you have chosen for your FHA, USDA, VA or Conventional loan can/will help you with this second one, too. Here in the Rogue Valley, there were hardly any other lenders in the conference in April dealing with affordable housing programs such as the Oregon Neighborhood Stabilization, but a few of us are ready, willing and able!
See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com
For additional tips on How To Buy A Home In The Rogue Valley, Oregon, follow these links:
How to Buy A Home In The Rogue Valley, Oregon | If You Are A Self-Employed Borrower
There are some fabulous buying opportunities out there for home buyers, from foreclosure homes that are priced under market to short sales and private party home sales. Add to that the range fixed interest rates have been hovering at and incentives like the first time home buyer $8,000 tax credit, and it's been a pretty busy summer selling season.
There are people who although they have good credit, stable employment and income and WANT to buy, but because of a high cost of living saving the down payment and closing costs to purchase a home have gotten in the way of purchasing a home. Maybe you sold a home, but did so by the skin of your teeth, leaving no funds to buy another one with, and now you wonder if they are going to be renters for the long haul. Possibly, you have managed to save a down payment, but find offers are not being accepted because you are asking the seller for help with closing costs.
GOOD NEWS California homebuyers! A new program was released this week to help bridge the gap and help you cover 3% of the minimum FHA down payment and/or closing costs. This program mirrors FHA guidelines, and is a second mortgage with a fixed interest rate of 8.25% with fully amortized payments paid back over a 15 year term. Here's how it will work on say a $250,000 purchase in Siskiyou County, California:
Purchase Price $250,000
First FHA Mortgage $241,250
Second Down Payment/Closing Costs Mortgage $ 7,500
Seller may contribute up to 6% ($15,000) toward your closing costs and prepaid expenses, so you bring in $1,250 of your own funds which may be a gift from family or a grant!
Say under the above scenario you qualify for an interest rate of 6% (6.951 a.p.r.), here is what your payments would look like:
First Mortgage $1471.72
Second Mortgage $ 72.76
Hazard Insurance $ 65.00
Property Taxes $ 260.42
Mortgage Insurance $ 110.57
Total Monthly Payment $1,980.47
If you are eligible for a USDA Guaranteed Rural Housing program, that loan would work better for you since it currently is offering better terms including no monthly ongoing mortgage insurance, but if you are not and need down payment/closing costs assistance, this would be an alternative for you to consider.
You need to be making less than 120% of the HUD area median income in order to qualify, and you need to be able to qualify for these FHA guidelines, but these guidelines are geared toward the needs of buyers entering the real estate market for the first time and struggling with affordability. Here are some general parameters:
Got $1,250 + or - and want to buy a home? Call or e-mail for more information.
See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - www/Quality4Loans.com
Being a Sunday School Teacher, I remind myself there are better ways to vent anger than some of the words that come to mind when working through what can be a very frustrating job these days in the mortgage industry.
Yesterday, I learned that Oregon has once again delayed the release of the Neighborhood Stabilization Program. This was good news and bad news, as the good news was that our NSP Coordinator, Becky Baxter, is being promoted. The bad news was that we have to wait for her replacement to get up and running before Oregon will re-release the NSP funds for eligible home buyers interested in purchasing foreclosure homes in eligible areas.
So, it's looking like our 2-3 week wait quoted 3 weeks ago just became another 2-3 week wait. I have several buyers patiently awaiting this release, and more coming in all the time wanting to be approved and ready to make an offer on an eligible property as soon as these funds are released. Those buyers that did not want to risk missing out on a great home, great deal, or push the deadline too close to the sunset date for the $8,000 first time homebuyer tax credit have already proceeded.
"Patience, my child, patience..."
See you at the closing table!(eventually, NSP buyers!)
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com
It's that time of year again! Rotary Club of Ashland Oregon will be holding their "A Taste of Guanajuato" fundraising event in August. The City of Ashland's sister city is Guanajuato, Mexico. Several reciprocal events take place throughout the year, and one of these events is the International support of Rotary Club of Ashland Oregon, Rotary International and the people of the Rogue Valley who are in partnership with Guanajuato Mexico and her citizens building affordable homes - FOR AROUND $3,000 EACH!!!!
Rotary Club of Ashland is holding the second "A Taste of Guanajuato" with the hopes that once again Ashland will be able to help build 50 homes contributing $750 toward each of them with matching funds coming from City of Guanajuato and the State of Guanajuato, and the support of Club Rotario de Guanajuato Rotary International.
Want to be a part of this great cause? Do you know of any others that build affordable housing for people in need FOR THREE THOUSAND DOLLARS? What a great cause for Southern Oregon Realtors operating in Ashland to support - affordable housing for Ashand's Sister City!
If you would like to attend "A Taste of Guanajuato" dinner and auction event, sponsor a home for $750!!!, or need more information, please call 541-210-0373.
See you out there!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com
Have You Been To The Wharf In Medford Oregon? No, not the wharf as in at the ocean shore. "The Wharf Fresh Seafood Market and Eatery", that wonderfully unpretentious seafood restaurant/market in West Medford?
We braved the "Fish Friday" crowd this warm Summer evening, and finally got over to The Wharf, a "hole in the wall" seafood restaurant that has been highly recommended to us by family and friends. Although my husband has a voracious seafood appetite, our youngest and I are tried and true steak and potato folk. But, I do enjoy trying different foods - even if our youngest would be content eating the same handful of favorites day after day!
The Wharf in West Medford has the perfect menu for a family like ours. For obvious reasons, the menu has a great variety of fish and seafood selections which will keep my husband dying to go back again and again to try all his favorites. We won't mind a bit, because there are plenty of alternate choices for our youngest.
With 50+ items on the menu, I knew exactly what I wanted to try today - which was the Grilled Crab and Shrimp Sandwich - but there were some close seconds I'll be headed back to try, like Lobster & Chips. At the speed Roy devoured his meal tonight, I know he must have really enjoyed it - whatever it was!
Affordable prices, casual atmosphere, good friendly service and good fresh food...what are you waiting for?
Dine in, through the Dinner Roll delivery service or special order catering/parties, The Wharf is a great choice.
The Wharf Fresh Seafood Market & Eatery
827 W Jackson Street
Medford OR 97501
(541)858-0200
(Near the corner of W. Jackson and McAndrews)
See you out there!
Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com
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