Sandy Ogburn Sandlin - Fine Baton Rouge area homes

When many people hear about the $8,000 first time homebuyers credit, they say "Great! Too bad I can't use it toward my down payment!"

Now you can under certain conditions!

Getting the down payment together is an issue for many people even if their numbers work out "perfectly" on a monthly basis. For buyers with another house or with savings, loving parents able to help, or 401k's to tap, this might not be an issue. For many, accumulating a lump sum is hard - even the 3 1/2% for FHA type loans. This is particularly true for lower income citizens who might lack the wider resources even to get help. The only way a potential borrower could see any actual money was by reducing the amount of his withholding.

When the credit was in the discussion stage, the National Association of Realtors (NAR) lobbied for it to be applicable to the down payment. Opponents pointed to a concern in the recent housing crisis: many people who lost their homes to foreclosure had little or no stake in their properties. Encouraging no money down or low money down purchases could lead to future doom. Down-payment assistance funds dried up.

That's why HUD Secretary Shaun Donovan announced a plan back in May that changed the rules for the tax credit to allow using it for the down payment. His good news was promptly clarified by subsequent HUD Mortgage Letter updates. The credit could be "monetized" or used toward a down payment after the buyer came up with the FHA minimum. Alternatively, a non-profit could help finance the down payment with a bridge loan.

Government agencies like state housing finance agency could offer longer term loans as second mortgage or could issue tax credit loans. Also, approved FHA lender can purchase the anticipated credit to apply to closing costs and any downpayment above 3.5%

If you looking to buy a home but need down payment help, one local resource is the Louisiana Housing Finance Agency in Baton Rouge. Sandy Ogburn Sandlinis committed to help you work though the details and even find more approved agencies who can help you take advantage of the new rules. Your Sandy's Team Realtor will help you find the perfect affordable home in Baton Rouge, Prairieville, or many other locations in East Baton Rouge, Ascension, or Livingston Parish. The credit currently is set to end December 1, so time is of the essence.

Three is the magic number for homeowners who want to claim the $8,000 tax credit for buying their new home. That's the number of years it must have been since you owned your last home to qualify for the credit. If you owned a home in the past, as long as three years have passed, start shopping! The new credit will give you an $8,000 head start.

The first time homebuyer's credit sounds like it only applies to you if you are 25 and looking for your starter home. In reality, it can apply in any of these scenarios:

• When you retired a few years ago, you moved to an apartment. You want to be homeowner again. Go for it!
• You moved to Prairieville a few years ago from up North. You weren't sure where in the Baton Rouge area you wanted on locate, so you've been renting a place ever since. You know more about the area now and are prepared to buy. Go for it!
• After you'd owned a home for a while, you found that your income at the time wasn't enough to cover the extra maintenance costs sometimes involved in home ownership, so you went back to renting. Now, three years later, you are in a better position to face unexpected challenges, so you want to buy again. Go for it!
• Back in 2005 or 6, you mother was ill, so you sold your home and moved in with her. Now, she's passed on and you want a place that reflects your taste. You love those new condos over at the Quarters at Dutchtown and really want to buy. Go for it!
• When you were married, you owned a home. When you got divorced four years ago, you sold the home and moved back home. Now, you are ready to own again. Go for it!

It doesn't matter what got you out of homeownership three years ago. As long as you or your spouse have not owned a home for three years, you are considered eligible to get a 10% credit on your home up to a maximum of $8,000.. Of course, you must be creditworthy and not exceed income limits of $75,000 to $95,000 for singles and $150,000 to $170,000 for couples. The credit is a true credit that does not have to be repaid so long as you keep the home for three years.

Sandy Ogburn Sandlin and her team would like to help you realize your dreams of home ownership - or "re-realize" them if you are reentry homebuyer with that magic three years since you last owned a home. Contact Sandy's Team today for the best in East Baton Rouge, Ascension or Livingston parishes.

Beautiful windows and door enhance the appearance of your Baton Rouge home, but poorly insulated ones add to your energy bills too. Even windows installed 10-15 years ago are often lose energy around the frame and through the panes themselves. Upgrading will reduce greenhouse emissions from power plants, make you more comfortable in your home as you reduce drafts and overheated spaces, reduce condensation, and reduce the sun rays that can damage and fade fabrics in your home by acting as a sun screen. Go green and you'll save green!

As an incentive to homeowners to upgrade inefficient windows and doors, stop energy loss, and create a more energy efficient home, the Federal Stimulus Bill offers homeowners a tax credit of 30% (up to total of $1,500) to install energy efficient upgrades in their homes. This credit, good through 2010, improves on a popular credit in effect in 2006-2007 by expanding the amount. Besides windows and doors, the credit also covers insulation, water heaters, roofs, air conditioning, and biomass stoves. For homeowners willing to convert to alternative energy sources such as geothermal heat pumps, solar water heaters, solar panels, fuel cells, and small wind energy systems, there is no cap on the 30% contribution and they have until 2016 to fully install these systems.

Over the past decade, window technology has improved so that through new glazing techniques and better sealing, less air escapes from around the frames. Air loss leads to substantial heat loss, heat gain, and moisture migration in a building. Proper sealing around all doors, windows and other open through the walls, ceiling and foundation is as important to energy code compliance as are proper insulation R-Values and component U-factors. Click here for a handy sheet to help you select energy efficient windows in Baton Rouge from the Efficient Window Collaborative.

Windows and doors that have a combination of a less than .30 U-Value and a .30 SHGC qualify for the credit. Prior to June 1, 2009, it was enough to have an Energy Star label on the product. Now window ratings must be certified by the National Fenestration Rating Council (NFRC), the only federally recognized organization for determining the energy performance of windows, doors and skylights. Windows must have an NFRC label. To get the credit, homeowners must obtain a manufacturer certification statement to document window, door, or skylight eligibility for the tax credit. This certification may be available on the manufacturer's Web site if the retailer or installer cannot provide this document. More information about product performance is available at the NFRC website.

Even with the credit, replacing windows or undertaking any other project to improve energy efficiency can be costly for homeowners, who have to spend the money upfront in order to claim the credit. Homeowners with good credit can often take advantage of financing plans and promotions like buy one, get one free offered by some window companies. Low income families can attain a more comfortable home at minimal cost through weatherization programs offered through community agencies.

In addition to the new energy credits, Louisiana residents can also benefit from some state programs which we will consider next time.

Interested in buying a new home that is energy efficient? Sandy's Team can help you find new construction or an existing home in East Baton Rouge Parish that meets these standards or can be easily upgraded.

There was a time when a prospective homebuyer could be pre-qualified to purchase a home and everyone involved - the buyer, the seller, and the real estate agent - was confident that the deal would sail through the bank. The buyer and seller planned for a closing date. Since the passage of HERA, the Housing and Economic Recovery Act of 2008, obtaining a mortgage involves full pre-approval.

What's the difference between pre-qualification and pre-approval? With pre-qualification, the homebuyer would state their income and assets and advised if they were likely to qualify for a loan and for how much. Pre-approval requires the applicant to submit documents such as a photo ID, most recent W-2's, current pay stub (possibly for the last 6 months),statements from savings or investment accounts, and maybe even information on any other outstanding loans and credit card balances. The lender will pull a credit report and submit the information through an automated pre-approval process to obtain a maximum amount you can borrow.

Once the would-be buyer finds the home of his dreams - or the one he can afford according to the bank - he has to then wait for the lender to process a final approval. At that point the application comes before a human underwriter who can approve or even deny the loan based on the information, the appraisal on the home, or any changes that have occurred.

This tougher approach is a reaction to the sub-prime mortgage crisis and the lending practices that precipitated it. Much of the HERA regulation was an attempt to help homeowners whose payments had increased beyond their ability to pay, perhaps due to deceptive lending practices. For new borrowers, the act added more steps

What does all of this mean to you as a buyer? The intended effect is that you will get a loan you can afford on a home you can afford. However, getting the loan will be harder as the requirements to qualify have escalated, while the process will take longer. In theory, a greater awareness of your loan terms and home value is a positive thing. However, the new standards for being approved might throw you off track in a couple ways. If you have a good but not great credit score per the new guidelines, you are likely to get a mortgage but will have to pay more for it. You might even be denied your loan at the last minute, especially if your appraisal comes in too low or something has changed since you were pre-approved.

If you are thinking about buying a home, now is the time to confer with your agent and set into motion your plans to be homeowner. Sandy Ogburn-Sandlin and her team of agents can walk through the loan process and help you find your new home in Baton Rouge and other communities in East Baton Rouge, Ascension, and Livingston counties.

Summer, 2009 is passing, and as fall approaches, one of best the deals first time homebuyers have had it a long time is winding down. As currently written, the $8,000 first time homebuyer credit is set to expire November 30, 2009. That does not mean you have signed a sales contract that day; it means that by that date, you must have closed on the property. The moving truck is on the way; you'll be having Christmas in your new house.

Given that it takes a little longer to get a loan and have all the paperwork completed these days, your best bet is to have your contract signed by October 1, with October 15 being your "drop dead date." Of course, if you come to the closing with a wheel barrow full of cash, your schedule might be a bit different!

So why haven't you called me or a reputable agent in your area to get the ball rolling? Mind you, I'm not trying to make you buy a home before you're ready, but a lot of times, I find that people are stuck in the inactive mode. Here's what might be on your mind:

What if the credit is renewed and made even larger?

It's true that there are a few attempts underway to expand the credit to more buyers and extend its length. If a larger credit is approved, it is likely that you would be able to claim the higher one, based on how the government handled the transition from the $7,500 credit to the $8,000 one.

If the credit is expanded to include all homebuyers, there will be more competition for existing homes. As it is now, the homes that are moving briskly on the market are the homes closer to a first time buyer's price range. With even more competition, the housing stock you might want to look at might be seriously depleted.

What if my job isn't stable? I don't want to make a commitment and then be unable to pay the mortgage?

Of course, if you are fearful of losing your job, you should be cautious. You might ask yourself how much your current rent is. Is your household a one income household or a two income one? Are you in a field where you could easily get another job in the worse scenario? Assuming that your boss is not walking down the hall toward your office with a pink slip and you don't have a concrete reason to believe that will happen, you might take the plunge if your house payment won't be much more than what you pay now.

My credit is not perfect, so I'd better wait.

In these times, lenders are stricter and may require a higher credit score than in the past. You should look at your credit report and see how you stand. Many times, when you pull your report, you will see some things that can be fixed quickly by notifying the credit bureau. By updating payments falsely reported as late, checking that your balance and credit limits are reported correctly, and getting old outdated or inaccurate information removed, you might get your score good enough to qualify for the loan. If your score isn't good enough to qualify for the best terms, you still might be able to get a loan that you can refinance later when your credit report looks better and you have built some equity in your current home.

What if prices keep dropping and I pay a few more thousand that I would need to?

No question about it, no one wants to see an item go on sale right after they've bought it! Right now, all indications are that housing process are near the bottom of their free fall. If your homes falls even a few thousand dollars, your mortgage would be pretty close to what it is now. It is better to get a home you can afford now than wait for the market to completely adjust.

My dog has fleas, my car is in the shop, or, as the Bible says, there's a lion in the street. Now is not a good time to buy!

Well, in some Southern states, there are cases where alligators turn up in residential neighborhoods. But most of these "reasons" amount to procrastination. Maybe you are hesitant to take such a big step if you have never bought a home before or if you took a break from home ownership. If your finances are right and you would like to be a homeowner, this is a great time to do so.

If the $8,000 incentive is not enough to your fears about buying a home now, it's time to talk to your agent about whether your concerns are legitimate or whether you need some encouragement to pursue your part of the American dream.

Sandy Ogburn-Sandlin and her team of agents are ready to discuss your concerns and then show you the prettiest homes in Prairieville and other parts of East Baton Rouge, Ascension, and Livingston Parish.