Eastside Real Estate Working-for-you!

Homebuyer Seminar -- Introducing 425Homebuyer!

You're invited to a FREE SEMINAR  "How to Buy Your First Home" (or make a move up in this market)

Introducing 425Homebuyer, a seminar where you can learn how to realize YOUR dream of HOME OWNERSHIP!  Your key to YES!

Do you have questions about home ownership, but don't know what questions to  ask?  Don't feel bad, you're not alone!  Join local real estate expert, Greg Perry of Windermere Real Estate, author of 425Realty.com and contributing author to the Seattle Real Estate Professionals Blog and Ron Poborsky, public speaker and local home loan expert with Cobalt Mortgage for a lively and informative seminar on How to Buy Your First Home (or make a move up).

Here's what you'll learn in this FREE seminar:

1. Is it in my best interest to buy a home? 
2. Can I qualify?  
3. What does my credit score say, and how will a mortgage banker look at it? 
4. How much home can I afford to buy? 
5. How should I go about finding the right home?      

And, much, much more! 

 

LOCATION:    COBALT MORTGAGE CONFERENCE ROOM

                  11255 KIRKLAND WAY, SUITE 100

                  KIRKLAND, WA 98033

Date:  Tuesday, July 7

TIME:  6:45 PM

Seating is Limited

Reservations Required!

To Register: email -- info@425lending.com

                   or Call 425-605-3164  

 

Free Credit Analysis! When you attend this Free 1 1/2 hour Seminar, you will also receive a FREE, CONFIDENTIAL CREDIT ANALYSIS, which will help you find out how quickly you can qualify for a home mortgage loan.

 

Urgent! $8,000 Government New BuyerTax Credit   
Ends Nov.30th!

 

 

Remember, there is no cost for this 1 1/2 hour seminar, and no obligation.

PS.  You can come even if you live in area code 206, 253, or 360 (or any other area code)!

 

 

On your mark.....get set.....RECOVER!

Yesterday, I attended a "cine-meeting" sponsored by Wells Fargo in which they produced a very good quality presentation from industry leaders and real real estate trainers.  Over 500 real estate agents watched the Wells Fargo presentation on the big screen at the Pacific Place Theater in Seattle.  The theme was up-beat.  Money is rapidly returning to the markets.  We are set for real estate recovery.

Annecdotally, we're hearing stories and seeing signs of increased activities:

• Title companies have been slammed with purchase title orders in the last two weeks.
• First time buyers are inquiring on the $8,000 tax credit.
• Offers are being written about the region.
• Stories of multiple offers are surfacing regularly.
• Conforming loan limits have raised.
• Jumbo rates are falling.
• Federal funds are flooding into Washington banks and the banks are now contacting builders to suggest buy down programs to move existing inventory.  Buchan homes currently have a 2/1 buy down program starting at 3.75% on jumbo products!  We're hearing of other builders offering <5% fixed rate loans.
• We're hearing rumors that Nehemiah Down Payment Assistance programs are coming back.
• Fannie Mae forbids lenders from grabbing Realtor commssions on short sales on Fannie Mae backed mortgages.
• There has never been more focus on real estate recovery in both Washington DC and Olympia.

On the National economic front, the stock market staged a stunning rally this week, mostly fueled on the news that Citigroup, one of the most beleagured mega banks announced a profit and is claiming they dont' need another government infusion of capital.  Wells Fargo claims they have plenty of money to loan.

Make no mistake.  Nationally, real estate caused our economic turmoil, real estate will lead the way out to recovery.   This recovery will start with FIRST TIME BUYERS!  In our region, this could be any home under $600,000.  This will free up Sellers to make their relocation move or their move up purchase.

What does this mean?  If you are a FIRST TIME BUYER, don't wait.  You have selection, Seller motivation, low interest rates and an $8,000 tax credit working for you.  You'll have your best success being ahead of the masses!  Real Estate is currently on SALE!  

Greg and Brian regularly hold absolutely free, no strings attached classes for FIRST TIME BUYERS.   We review the home buying process from top to bottom to completely educate our buyers to position themselves for their best chance for success.  To attend a 425Realty.com FIRST TIME BUYER class, email or call Greg or Brian today.  gregperry@working-for-you.com or brianperry@working-for-you.com

2009 FHA Loan Limits in Washington State

The 2009 FHA Loan Limits for Washington State have been published.  Residential loan limits in King County have gone up to $567,500.

 We are also seeing dramatically increased activity in buyer traffic and offer activity since the $8,000 New Buyers Tax Credit was enacted a few weeks ago.

 

County Name	Single Family	Duplex	Tri-plex	Four-plex
ADAMS	$271,050	$347,000	$419,425	$521,250
ASOTIN	$271,050	$347,000	$419,425	$521,250
BENTON	$275,000	$352,050	$425,550	$528,850
CHELAN	$342,700	$438,700	$530,300	$659,050
CLALLAM	$383,750	$491,250	$593,800	$738,000
CLARK	$418,750	$536,050	$648,000	$805,300
COLUMBIA	$271,050	$347,000	$419,425	$521,250
COWLITZ	$271,050	$347,000	$419,425	$521,250
DOUGLAS	$342,700	$438,700	$530,300	$659,050
FERRY	$271,050	$347,000	$419,425	$521,250
FRANKLIN	$275,000	$352,050	$425,550	$528,850
GARFIELD	$271,050	$347,000	$419,425	$521,250
GRANT	$271,050	$347,000	$419,425	$521,250
GRAYS HARBOR	$271,050	$347,000	$419,425	$521,250
ISLAND	$381,250	$488,050	$589,950	$733,150
JEFFERSON	$437,500	$560,050	$677,000	$841,350
NON-METRO
KING	$567,500	$726,500	$878,150	$1,091,350
KITSAP	$475,000	$608,100	$735,050	$913,450
KITTITAS	$328,750	$420,850	$508,700	$632,200
KLICKITAT	$271,050	$347,000	$419,425	$521,250
LEWIS	$271,050	$347,000	$419,425	$521,250
LINCOLN	$271,050	$347,000	$419,425	$521,250
NON-METRO
MASON	$310,000	$396,850	$479,700	$596,150
SHELTON, WA (MICRO)
OKANOGAN	$271,050	$347,000	$419,425	$521,250
PACIFIC	$271,050	$347,000	$419,425	$521,250
PEND OREILLE	$271,050	$347,000	$419,425	$521,250
PIERCE	$567,500	$726,500	$878,150	$1,091,350
SAN JUAN	$593,750	$760,100	$918,800	$1,141,850
SKAGIT	$373,750	$478,450	$578,350	$718,750
SKAMANIA	$418,750	$536,050	$648,000	$805,300
SNOHOMISH	$567,500	$726,500	$878,150	$1,091,350
SPOKANE	$271,050	$347,000	$419,425	$521,250
STEVENS	$271,050	$347,000	$419,425	$521,250
THURSTON	$361,250	$462,450	$559,000	$694,700
WAHKIAKUM	$271,050	$347,000	$419,425	$521,250
WALLA WALLA	$271,050	$347,000	$419,425	$521,250
WHATCOM	$375,000	$480,050	$580,300	$721,150
WHITMAN	$271,050	$347,000	$419,425	$521,250
YAKIMA	$271,050	$347,000	$419,425	$521,250

Uncle Sam Wants You! (To buy a home -- and he'll give you $$)

 

I WANT YOU!

 

Uncle Sam wants to give you money! Up to $8,000 in a tax credit if you are a first time Buyer making a home purchase.  (You are a first time Buyer if you are buying your first home OR have not owned a home for 3 years or more.)

The tax credit is for owner occupied homes purchased between January 1, 2009, and December 1, 2009.  You will NOT have to pay this credit back as long as you live in the home without selling it for at least 3 years.

The income limitation is $75,000 for single tax payers claiming the full credit and $150,000 for married tax payers.  The credit remains refundable, which means that first-time home buyers who owes less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns.  In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill.  In fact, the credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.

If you a ready to make your home purchase, or you know someone who qualifies as a first time home buyer ready to make a home purchase, call or email Greg or Brian Today!  gregperry@working-for-you.com  brianperry@working-for-you.com.

 
By Greg Perry
Kirkland Realtor, www.425Realty.com
I you have further questions, please consult your tax advisor.

Buying Power

Real Estate Stimulus Package Becoming Clearer

While it looked for awhile that we may be getting a $15,000 tax credit for home buyers, Congress has  settled upon an $8,000 tax credit.

This just in from the National Association of Realtors:

1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.

So for now, higher conforming loan limits, an $8,000 tax credit, lower interest rates and an increase in eligible loans for investors.  The bill passed the House today.  Vote in the Senate is pending.  More will come.........

More On Real Estate Stimulus......

Today, the Senate approved an $838 billion economic stimulus bill that includes a $15,000 home buyer tax credit.  Also, Treasury Secretary Geithner unveiled a multi trillion dollar financial stability plan that includes $50 billion for foreclosure prevention programs.

In play in the Senate package are higher loan limits for Fannie Mae, Freddie Mac and FHA.  The government is also looking to drive mortgage interest rates lower.

The House version already restores the upper limits for Fannie, Freddie and FHA loans programs to $729,750 in the higher cost housing areas, where they stood for much of 2008.  The House version also eliminates the repayment requirement on an existing $7500.00 tax credit that is scheduled to expire on July 1.  The Senate version would go farther, increasing the tax credit to $15,000 allowing all home buyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.

The House and the Senate now must negotiate the two versions for a final bill.  It looks clear that both bodies of Congress are intent on passing a home buyer tax credit.  We'll be watching to see what the finished bill looks like.

More Real Estate Stimulus News.........

Some clarification on real estate stimulus issues from Washington Realtors:

Last week, the US House of Representatives passed the American Recovery and Reinvestment Act (H.R.1). This bill has some key provisions that will stimulate the housing market:

• It will restore FHA, Fannie Mae and Freddie Mac to 125 percent of median home prices - up to $729,750
• It would eliminate the repayment provision for the $7,500 first time home buyer tax credit
• It expands tax-exempt housing bonds

Two days ago, the Senate approved an amendment to their bill that offers up to a $15,000 tax credit to people that purchase a home in the next year.  The credit would apply to anyone, not just first time homebuyers and you would not need to repay the credit.  The credit is based on 10% of the purchase price of the home and the credit is spread over two years.  So for example, if you buy a house with a purchase price of $300,000, you would qualify for the maximum credit of $15,000.  The first year you claim the credit, you receive $7,500, and you would receive the remaining $7,500 the next year.

Senator Patty Murray Introduces Housing Amendment

In addition to supporting the $15,000 credit, Senator Patty Murray (D) Washington, has introduced her own amendment to the Senate Stimulus Bill relating to the FHA and conforming loan limits. Specifically, Murray's amendment:  

• Ensures that the 2008 FHA mortgage limits and conforming loan limits do not decline during calendar year 2009.
• Provides discretion to the Secretary of HUD and the Director of the Federal Housing Finance Agency (FHFA) to raise loan limits in sub-areas, up to the conforming ceiling for high cost areas.  
• Temporarily increases FHA's Home Equity Conversion Mortgage (HECM) limit to $625,500 for 2009.  

Free Government Money For Buyers?

Developing........

Last night the Senate voted to include a $15,000 tax credit in the new stimulus plan, up from the previous figure of $7,500, in hopes of revitalizing the slumping housing market. The proposal would allow a tax credit of 10% of the value of new or existing residences, up to a $15,000 limit. It appears this tax credit is extended to anyone buying a principal residence. The tax credit will apply to all purchases occurring within a year after the bill is signed into law. This would be a true tax credit; it does not have to be repaid. All the exact details are not yet known.

There are also rumors that the existing $7,500 tax credit provided with HR 3221 may be changed so that it does not need to be paid back as well. In addition, I also heard that if you purchase a home in 2009, you may amend your 2008 tax return to receive the $7,500 tax refund more quickly.

To see a discussion on this go to this post over on the SREP Blog:

http://blog.seattlepi.nwsource.com/realestate/archives/161339.asp

It's time to look at your interest rate (again!)

Don't look now, but we're firmly in a mini refinance boom (seems like deja vu all over again).  Rates have been bouncing between 4.5% and 5%.  The markets are erratic and the rate bounces are happening quickly.  Every time the rates reach a low point, by the time most people hear about it ---it has passed.

If you have a an ARM loan or a loan that has an interest rate above 6%, you may want to consider refinancing your home. 

Meet with your mortgage professional and get your documentation and affairs in order, so that when the rates make a sudden drop, you can lock.  Keep in mind that banks have all experienced major lay offs and currently banks are taking anywhere from 5-20 days to underwrite a file!

One more thing........A wise friend many years ago gave me this advice.  He said pigs are cute, hogs get slaughtered.  When rates look good -- lock.  More people get hurt trying to eke out the best possible rate, than accepting a good, competitive rate.  Don't be too greedy.  If you can lock at 5% or under, go for it!

For future home buyers AND refi candidates:
Remember, inflation may be just around the corner.  Once the economy starts to recover, liquidity will need to be taken out of the markets.  The Fed may need to rapidly hike interest rates to control potential inflation.  These low rates may not last long.