Sandra Mathewson, CRS, ABR, GRI

VA loans made after March 1, 1988 require the buyer assuming the loan to qualify. Owner-occupants or owner-investors can assume these loans, if qualified. They need not occupy or be veterans. The veteran is then no longer responsible.

These loans can also be sold without loan qualification on installment sales such as lease purchases, contract for deed or land contracts, as long as the original veteran remains the owner of record and is willing to remain liable for repayment of the loan. There are some additional things the veteran could do to protect himself.

If a veteran assumes another VA loan, he can apply for an interest rate reduction, the appraisal fee is waived and it could be less expensive than obtaining a new loan.

In situations where the veteran is unable to continue making mortgage payments, the VA, at its discretion, may waive loan qualifications to a willing buyer on the assumption. VA referes to this as "Special Apporval", which really means no approval is required to qualify to assume some VA loans made after March 1, 1988. This is done to avoid foreclosures. Two requirements must be met for waiver of the assumption approval: (A) The veteran must be unable to continue making payments and (B) reasonable effort has to have been made to find a credit-worthy buyer for the property. The veteran would also remain liable. The veteran seller and a prospective buyer should make an appointment with a VA loan guarantee officer to discuss waiving the requirement to qualify to assume. If Va agrees to waive the requirement to assume, they may influence the lender to do likewise. The prospective buyer does not have to be a veteran. NOTE: It would be wise to have a buyer on contract willing to make up any back payments, subject to no qualifications, when the VA seller discusses the approval waiver with VA and/or the lender. They are more likely to waive the approval on assumption with a bona fide buyer on contract.

If you are thinking of purchasing a home or selling your home in the Northern Nevada area, please call Sandra at (775) 287-8222.

Please consult a professional lender that does VA financing. Every attempt has been made to be accurate.

Secretary of Housing, Shaun Donovan reported on Tuesday that the Federal Housing Administration is working on a policy that will allow FHA approved lenders, HUD approved nonprofits and state and local housing finance agencies to "monetize" the tax credit through short-term bridge loans.

First-time home buyers will soon be able to access their $8000 federal tax credit when closing on a home through a short-term bridge loan that will cover their down payment on FHA-backed loans.

At the National Association of Realtors midyear conference in Washington, D.C., Donovan told members "We think the policy is a real win for everyone, ensuring that borrowers can tap into the numerous organizations that are already part of the FHA network to receive this additional benefit. Donovan added "We all want to enable FHA consumers to access the tax credit funds when they close on their home loans so that the cash can be used as a down payment".

Donovan said the first-time homebuyer tax credit will benefit communities struggling to deal with an oversupply of housing. The National Association of Home Builders estimates that the tax credit would spur 160,000 home sales--101,000 purchases by first-time buyers, and 59,000 purchases by existing homeowners who will be able to trade up because a first-time buyer purchased their home.

The best rates on loans eligible for purchase by Fannie Mae and Freddie Mac require 20 percent down payments, and private mortgage insurers typically require minimum down payments of 5 percent to 10 percent. But FHA's minimum down-payment requirements remains relatively modest at 3.5 percent.

With the Obama administration's Making Home Affordable initiative, which is aimed at helping 7 to 9 million homeowners modify or refinance their loans, will also help take pressure off of inventories, Donovan said.

FHA's market share has grown from 1.9 percent in the fourth quarter of 2006, reaching 23.7 percent in the last three months of 2008, and continues to grow, Donovan said. He said FHA is on track to guarantee $290 billion in mortgages in fiscal year 2008, and that the Obama administration's new budget asks lawmakers to approve up to $400 billion in loan guarantees in 2010, or about 2.25 million mortgages.

Call me to find out more about the First-Time Home Buyer Tax Credit, (775) 287-8222. I am Fernley's longest-serving RE/MAX agent.

For the month of April 2009, Fallon had 13 sales (14 in March) so things are still moving. Of the 13 sales all were stick built homes. Six were bank-owned, the rest were regular owner sales.

List price high $399,900 Low $40,000 Average $143,084

Sold price high $335,000 Low $45,500 Average $132,873 Average days on market 107

May starts off with 233 listings, 183 stick built and 50 manufactured homes.

Stick built homes, 29 are bank-owned, 15 are short sales

List price high $729,500 Low $19,900 Average $234,562 Avg. $124 per sq.ft. Avg. 187 days

Manufactured homes:

List price high $274,000 Low $69,900 Average $151,201 Avg. $96 per sq.ft. Avg. 216 days

If you are thinking of purchasing a home, don't forget about the USDA Nevada Rural Bond Program that is no down payment. The First-Time Home Buyer Tax Credit of $8000 is in effect until 12/31/09. If you don't owe any taxes and are due a refund, the tax credit is added to your refund.

Call Sandra at (775) 287-8222 for more information or visit www.SoldOnFernley.com

(Every attempt has been made to provide factual information, please consult a professional lender or tax advisor).

The recession, state budget woes and rising unemployment continue to be the headlines. Real estate is struggling, we all know that. This is the MLS data for the month of April in Silver Springs, Nevada.

There were only two sales, both bank owned and both manufactured homes:

#1 List price $91,000 sold for $80,000 1420 Fir Ave.

#2 List price $59,900 sold for $58,000 1905 E. 4th St.

For May we start off with 72 listings, 51 are manufactured homes and 5 are bank-owned, 2 short sales and 1 subject to court approval. Of the 21 stick built homes, 5 are bank-owned and 2 are short sales.

The high list price for all listings is $309,500 and the low is $40,000 with and average of $142,705. Days are market are 954 for the highest and an average of 225.

Every attempt is made to be accurate with the data from the MLS.

The Recession, State Budget Woes and Rising Unemployment are daily news stories.

The golf course community had 5 sales in April. (February 7 sales, March 9 sales). Of those 5 sales, 3 were bank-owned properties and 2 short sales.

List price high $119,900 Low $104,900 Average $113,266

Sales price high $115,000 Low $106,000 Average $109,100

Average days on market were 100 days

Two short sales were sold:

List price #1 $ 99,000 Sold $ 99,000

List price #2 $159,900 Sold $159,000

The rest of Fernley had 29 sales (February 29 sales, March 39 sales)

Of the 29 sales, 21 were bank owned, 2 short sales and 6 regular sales.

Bank owned stat's:

List price high $176,900 Low $45,000 Average $103,952

Sales price high $170,000 Low $50,100 Average $$102,892

Average days on market were 137 days.

The 6 regular sales (non-distressed):

List price high $289,000 Low $110,000 Average $160,766

Sales price high $285,000 Low $114,000 Average $158,566

The days on market average was 58.

Two short sales:

#1 List price $ 99,000 Sold price $ 69,000

#2 List price $120,000 Sold price $112,000

May starts off with 279 listings (April started with 305; March 284 listings).

Golf course has 30 listings, 9 bank-owned, 14 short sales, 6 regular and 1 relocation.

The rest of Fernley has 249 listings, 117 bank-owned, 81 short sales, 48 regular and 3 relocation.

Every attempt is made to provide accurate figures obtained from the MLS.