Portland, OR

Late Saturday we had a typical fall drenching here in Portland and I got the nightmare call from a wonderful client who I helped buy a little cutie in the halcion days of last summer... "Keith, my basement's leaking what do we do?!" Ugh, I hate those calls, but here in Oregon they happen. I suggested she disconnect the offending downspout, which was gushing water next to the foundation and attach a gutter extension that can be purchased at any big-box hardware store, and route the river into the yard. That did the trick and the water stopped intruding. Next we called my "water remediation specialist" who is on his way to figure the best way to keep the water away from the house. Keep those gutters functioning!

The majority of U.S. cities experienced an upswing in the median price of single-family homes sold during the three months that ended Sept. 30th. This is the second consecutive quarter of gains. Nation wide the median home price went up $7,000 from the previous quarter.

The number of homes on the market has started to decrease indicating that we are closer to price stabilization. The concern is maintaining a steady number of buyers who are employed and therefore qualified to buy a home.

Much of the recent increase in home prices has been attributed to the government's first-time homebuyer tax credit. Which is probably why an extension and expansion to that credit was approved recently.

The $8,000 tax credit to first time buyers was scheduled to expire on Dec. 1st. Now, not only will it be in effect through the end of June, but those who have owned and occupied a residence for the last five years (out of eight) can trade up and get a $6,500 tax credit. Homebuyers must sign a contract before April 30 and close by June 30. The income limits were also raised: Single buyers can now earn up to $125,000 and still get the full credit while a married couple can earn $225,000.

This could be as helpful, or maybe even more helpful then the previous version because so many more people will qualify.

http://money.cnn.com/2009/11/10/real_estate/latest_home_prices/index.htm

http://money.cnn.com/2009/11/06/real_estate/tax_credit_extended/index.htm

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com & OUR NEW PORTLAND METRO BLOG AT http//:www.TonyandLibby.blogspot.com & pdxrealtynews.com (make sure you leave comments)

4.750% on 30yr Conv - (1/2pt origination or 4.875% w/0 orig)

4.750% on FHA 30yr - (5.000% with zero origination)

5.000% on 30yr Investment Property

3.500% 5yr ARM interest-only

5.500% 30yr Fixed Jumbo

4.375% 5yr ARM Jumbo (to $1million)

MAJOR LENDING GUIDELINE CHANGES VERY SOON.

This will affect ALL your clients. You need to know what's going on and prepare them to either move forward NOW, or be prepared. FHA Streamline will require full-documentation, and the debt-to-income ratios for Conventional will be lowered. This is across the board with ALL LENDERS. It will have an impact on how much your clients can afford to borrow. I will be sending out an email blast on this topic, with details, in the next 24hrs. FHA changes become effective Nov 17^th, and Conventional shortly after.

GET YOUR PAST FHA CLIENTS TO REFI NOW!! - The rules for Streamline FHA refinances are changing in a big way very soon. As of now, we just go off their original loan amount, with no appraisal and no income/asset documentation. They can also LEAVE an existing 2^nd mortgage in place to unlimited loan-to-value. VERY easy to lower their rate. Starting November 17^th, they will have to document their income, will have to own the home for a certain time, have cleaner credit, have a max limit on LTV, and more.

LOOK IN YOUR CLOSED DATABASE for anyone that bought using FHA and call/email them about refinancing. With these rates and loose guideline for the next two weeks only, it's the best chance they will every have to see a rate reduction, with minimal cost. Have them call me right away to evaluate their benefit level.

NO MAJOR ECONOMIC NEWS TODAY - however a big Treasury auction is happening again, and the response is expected to be good. Stay tuned.

FANTASTIC PRICING FOR ARMs - I know that most people want fixed rates, but before you say that, make sure you consider the time the home AND loan will be kept. If less than 8 or 9yrs, then at least look into an ARM, which will save significantly on the interest. No point in having a higher 30yr loan if you won't keep it that long. Call/email and I can show you how to compare accurately. We can do both at very competitive pricing.

HOW TO GUARANTEE THE BEST RATE - In order to lock anything, we need to have income/asset info on file. Purchases require Sales Contract. Currently, we have historic low rates. If we lock today, and rates dip significantly while we're processing the loan, we can look to renegotiate with our investor to give you the lower rate. If you have a lower target rate, then apply today (get info on file) and we'll be ready if rates dip. As a courtesy, if rates swing lower 4-6 months after you close a loan with us, we can in many cases do a no-cost refi to the lower rate. Don't miss a great opportunity!

Apply Online 24/7 at www.GoNorthwestLoans.com/applyNow.html.

Or call 503.698.5801 and do it by phone.

Here's a quick snapshot of today's most popular programs:

Conforming - (up to $417k)

30yr fixed 4.750% (4.844apr) - Owner-Occupied - 4.875% with zero origination

15yr fixed 4.250% (4.412apr) - Owner-Occupied - 4.375% with zero origination

30yr fixed 5.000% (5.217apr) - Investment 25%down 1.5pts - or 5.125% at 1pt

5/1 ARM i-o 3.500% (3.415apr) - fixed for first 5yrs - interest only minimum pmt

30yr FHA 4.750% (5.437apr) - 5.000% with zero origination - similar for VA or USDA

Jumbo - (over $417k)

30yr fixed 5.500% (5.621apr) - up to $500k at this rate

30yr fixed 5.750% (5.902apr) - up to $600k at this rate

30yr fixed 6.125% (6.296apr) - up to $700k at this rate

30yr fixed 6.375% (6.527apr) - up to $850k at this rate

30yr fixed 6.625% (6.798apr) - up to $1,500,000 at this rate

5/1 ARM 4.375% (4.688apr) - fixed for first 5yrs - up to $1million

NOTE - These rates are just a sampling of the thousands of programs we have available from over to fit virtually any situation. The above-listed rates assume a purchase loan with excellent credit (740+), at or below required loan-to-value ratio (varies by program, call for details), and required income documentation. This is PAR pricing with standard origination and underwriting fee. Very competitive rates are also available for borrowers needing a higher loan-to-value, and those with lower credit scores and/or challenges. Rates are subject to change without notice. Please email or call us for accurate quotes and pre-approvals.

Current Product Offerings:

Purchase, Refinance, Construction, Land loans, Lot loans, Farms, Commercial, Investment Property, Single & Multi-family, Business acquisition & refinance, Conventional, FHA, VA, USDA, Reverse, Cash-out, No-Cost refi's available

and most of these loans can be done on our in-house bank lines (faster and cheaper)

Have a successful day ... call or email me with any scenarios!

ERIC

SELLERS: SOME GOOD QUESTIONS TO ASK YOUR HOME STAGING COMPANY

When you’re comparing home staging proposals, here are some questions to consider asking so that you can be confident you’re selecting the company that’s best for your project:

• Is the home staging company registered in the City they’re based in and fully insured for liability in the event of property damage while on your premises? Will they provide a copy of their insurance coverage to you?

• Does the staging company's pricing proposal include staging the same number of rooms as your other proposals -- so that you can compare apples to apples? Do they partially stage with "vignettes" only, or do they offer full staging with coordinated furnishings and accessories?

• Did they show you examples and photos of their actual work, and not just stock photos of the company they trained with (or photos they found on the internet)?

• Does the staging company provide top-quality digital photos for your agent to use online, as well as for flyers?

• Are they an established professional staging company with a good website? How long have they been in business? Does local media include them in articles, interviews & film clips?
  

• Does the staging company include periodic visits to the property to check on the staging as part of their service?

• Does the staging company accept credit cards?

• What training and professional affiliations does the home staging designer have? Are they a full time home stager?

• Does the staging company provide photos of their recent staging projects?

• Does the staging company give you local clients' references and testimonials?
  

• Does the staging company require a 3-month or longer rental minimum? (you may prefer a shorter time frame)
  

Because home staging is not yet a regulated industry, there are misconceptions about how it should be done as well as how to hire a good home stager. If you ask these questions of the stagers you're considering for your project, you'll be able to determine who's best for you.

*** *** ***

Room Solutions Staging in Portland OR helps homeowners, builders, investors, banks & Realtors prepare their properties with a full menu of home staging services to make them appealing to your target buyer. For a complimentary home staging proposal call us @ 503-246-1800.

More Portland Oregon Homebuyers Qualify for Homebuyer Tax Credit

President Obama has just signed an expanded version of the $8,000 first time home buyer tax credit that was set to expire on November 30. This will allow more Oregon homebuyers, both first time homebuyers and move up homebuyers, to qualify for the tax credit.

The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more Oregonians will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for home buyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up home buyers did not qualify.

Consider these three examples:

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved
out in 2007, and turned that home into a rental property. If Jane decides to buy a
new primary residence today, she would qualify for the $6,500 tax credit based on
the fact that she lived in the same residence as her primary home for at least five
consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary
home. If Harry decides to buy a new primary residence today, he would qualify for
the $6,500 tax credit based on the fact that he lived in the same residence as his
primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary
home. If Nicole decides to buy a new primary residence today, she would not qualify
for the $6,500 tax credit based on the fact that she did not live in the same residence
as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to Oregon homes purchased for less than $800,000 before May 1,
2010. If you sign a binding contract to purchase a home before May 1st, you would
need to close on the transaction before July 1, 2010. It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.

The income limitation for single tax payers in Oregon went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit - especially in parts of Oregon with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit. As an example, earlier this year I helped a single Fire Fighter get into a townhome. He works a lot of overtime and makes around $90,000 per year. This disqualified him for the tax credit under the old rules, but he would qualify under the new rules.

There are many creative ways of structuring your home purchase transaction in ways
that maximize the benefits of the credit. Here are a few examples:

• The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others.
• If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)
• The credit applies even if you have co-signers on your mortgage loan.

Combined with the USDA Guaranteed Rural Home Loan or an FHA Loan, lower property values, many great homes on the market and today's great rates, there has never been a better time to buy a home in Oregon.

Home buyers who work with a Certified Mortgage Planning Specialist are much better equipped to save money and navigate the complexities of the tax credit.