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My Blog
The Economic Stimulus Plan, passed by Congress, is just now implementing an incentive to help clear Eugene neighborhoods of bank-owned properties. Through NSP (Neighborhood Stabilization Program), Dept. of Housing and Urban Development, funds are available to qualified home buyers up to $50,000. The loan requires no monthly payments and charges no interest. The money can be used for down payment and towards paying closing costs when buying vacant, bank-owned properties. Eligible areas throughout Oregon and the U.S. may participate. Each municipality, like Eugene and Springfield, that are managing their share of the funds, may make their own specifics. In particular, the City of Eugene will allow the loan up to $50,000, and can finance some repairs. The City of Springfield has limited their loan amount to $35,000, and no repairs can be financed. Currently, the State of Oregon has been allocated over $16,000,000, to be used towards the NSP. The NSP program was designed to make funds available to those who may need assistance in buying a foreclosed property. The idea is to that if more households can afford to buy a home, demand to purchase these homes goes up, cleaning up the glut of bank-owned properties, and stabilizing the housing market. For more information on the features, requirements, and benefits of this program, call John Byrd and Karin Olsen, at 541-338-0870. Or email us at teamwork@oregonishome.com. We will help you find out if this program will work for you.
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Congress did pass the bill renewing first-time buyer credit, and has expanded the credit for a much larger pool. It includes up to $6500 for other "move up" homebuyers, who have lived in their current home for 5 years. This was done to give a needed boost to the housing market, as a part of the recovery plan for the economy. It will also help sellers, who need to sell their homes, before they can move-up. It provides an incentive for more buyers for their homes.
Because home values have decreased so much in the last two years, more first time buyers are able to afford homes than in the past, as long as they have good credit, and a downpayment. It is indeed a "Buyer's Market." Many homes are being sold "short," as more is owed on them than the current market will bear. This provides an impressive opportunity for buyers, who have a Realtor, who is skilled in in short sales.
Most real estate brokers do not see the real estate values increasing at least through 2010, which makes now an optimal times to take advantage of the low prices, low interest rates, and tax credits. The expanded buyer tax credits will expire in June, 2010, and homes must be under contract by April 30, 2010 to qualify. So, if you find a home that you like, and if you qualify to purchase it, there has not ever been a better time!
As the economy recovers, house prices will start increasing, interest will go back up, and the inventory will be reduced, affording fewer choices for the home buyer.
Karin Olsen, Broker
Prudential Real Estate Professionals
541-338-0870
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During 2009, Congress offered up to $8000 as a tax credit to first time homebuyers. This credit is also for buyers who have not owned a home in 3 years. This program is nearing the end! It expires on December 1st. If you are planning to use this credit, you will need to close escrow on a home by November 30th.
Has it helped the economy? The answer is yes. Home sales to first-time homebuyers increased by 25% in 2009, and now accounts for 50% of all home sales. The tax credit is reducing the inventory of foreclosures that are sitting on the market, helping our neighbors and communities recover. However, time is running out, and all homebuyers did not qualify for a credit.
The National Association of Realtors President, Richard F. Gaylord stated, "Housing has always lifted the economy out of downturns, and it is imperative to get the housing market moving forward as quickly as possible. It is vital that Congress take specific actions to boost the confidence of potential homebuyers in the housing market and make it easier for qualified buyers to get safe and affordable mortgage loans."
The NAR is the leading advocate for home ownership and private property rights, and believes that it is important for Congress to address the concerns and fears of America's families. "Housing is and has always been a good, long-term investment and a family's primary step toward accumulating wealth," Gaylord said. The NAR recommended that Congress extend the tax credit to all buyers of a primary residence, to significantly boost the economy. In the meantime, the NAR is working to extend the first time buyer tax credit through December 31, 2010.
Please feel free to give me a call with any questions about the homebuyer's credit at 541-338-0870.
Karin Olsen, Broker
Our TeamWorks ...For You!
teamwork@prurep.com
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Here is another reason why it is a great time to be a home buyer: If you live in a rural community, you may qualify for no-money-down financing through the Rural Housing Service (RHS,) and agency of the U.S. Department of Agriculture (USDA.)
RHS offers affordable loans to qualified families and individuals who live in, or want to move to, rural communities. If you qualify for a no-money-down guaranteed loan with RHS, you will be allowed to finance the sales price and closing costs, up to the appraised value of the home. You may also be able to use gifts from family and friends, and seller contributions to pay for some of the closing costs.
Families at 115% or below median income may be eligible. Sales price and closing costs can be financed up to appraised value, and a low up-front guarantee fee eliminates monthly mortgage insurance payments.
Give us a call today to find out more about the rural housing loan. We will help you find a knowledgeable mortgage broker, who can help you determine if a rural housing loan is available and right for you. Then we will help you find your new home!
John Byrd and Karin Olsen,
Oregon Real Estate Brokers
Our TeamWorks...for you!
teamwork@prurep.com
541-338-0870
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Do you know that the Stimulus Plan is offering an $8000 tax credit for first time home buyers, or for buyers who have not owned a home in the last three years? If you will live in the home for 3 years, you may be eligible! The credit is not repayable, and will be credited when you file taxes for the year. The $8000 credit applies to couples making up to $150,000, and individuals making up to $75,000 a year. For those with incomes above those amounts, a portion of the $8,000 will still be credited.
We will appreciate your questions, comments and concerns about the Stimulus Package, or any other topics about real estate, in this changing marketplace. Information enables opportunity! Let's start the conversation! Please email us at teamwork@prurep.com, or call us at 541-338-0870.
John Byrd and Karin Olsen,
Oregon Real Estate Brokers
Our TeamWorks...for you!
teamwork@prurep.com
541-338-0870
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Equal Housing Opportunity.
