MORE HELP FOR FIRST TIME HOME BUYERS

More great news for FHA approved home buyers using the First Time Homebuyer Tax Credit. FHA approved lenders have been given the go ahead to develop a bridge-loan product that will enable first time home buyers to use the benefit of the First Time Homebuyer Tax Credit upfront.

FHA approved lenders can develop bridge loans that first time homebuyers can use to help cover closing costs, buy down their interest rates or put more than the minimum 3.5% down.

It is important to note, that these bridge loans can not be used to cover the minimum 3.5% down payment required by FHA.

Straight Talk About Foreclosures & Short Sales

Let’s face it, loan modifications, short sales and foreclosures have impacted the housing market in the Twin Cities, and they’re not going away any time soon.

A homeowner first course of action should be to try and work out a loan modification with their lender. If there does not happen, then the homeowner should consider a short sale. A short sale is an arrangement that a home owner makes with the lender to accept less than what is owed on the property. This is often done to try and sell a property before it goes into foreclosure. As a last resort the lender will foreclose on a property. A foreclosed property is one in which the lender has repossessed the property from the homeowner and now the lender owns it.

First quarter statistics for the Roseville area show the number of lender-mediated homes for sale up 56.3% compared to this time last year. While traditional (non-lender mediated) homes for sale were down 33.3% compared to this time last year.

Robust Home Sales In The Twin Cities

As we near the halfway mark of 2009, the Twin Cities housing market continues to show a pattern of robust home sales and declining new listing activity. Setting aside fluctuations over the Memorial Day holiday, long-term market improvement can be seen when comparing 2009 to 2008.

There were 1,210 pending sales for the week ending June 13—a strong 33.8% increase from last year. There were 1,970 new homes added to the market during the same week, a decrease of 2.6% from the same week in 2008. That 2.6% decline in new listings is a much smaller drop than we have seen in recent months when there were typically year-over-year drops of 10% or stronger.

Opportunity is Knocking for First Time Home Buyers

If you have been considering purchasing your first home, but have been waiting on the sidelines for the right time, this may be the right time. This year, qualified first time home buyers can receive a tax credit up to $8,000. This is part of the American Recovery and Reinvestment Act of 2009.

Some facts about the Tax Credit:

•Available to first time home buyers
•Credit amount up to $8,000
•Eligible for homes purchased on or after January 1, 2009,
and before December 1, 2009
•Available on single family detached homes, townhomes and condominiums,
new construction or pre-existing homes
•The tax credit does not need to be repaid unless the home is sold
within the first 3 years after the purchase
•Home must be your primary residence
•You have not owned a home during the last 3 years

Interest rates are still low and there are still plenty of wonderful homes available. Now IS a great time to buy a home.

Senate Pushes To Expand Home Buyer Tax Credit To $15,000

Lawmakers are pushing to revive legislation in the Senate that would almost double an $8,000 tax credit for first-time home buyers and expand the program to all borrowers.

This proposed legislation would extend the home buyer credit to multi-family properties that are used as the borrower’s primary residence. It would also eliminate income caps of $75,000 and $150,000 on individuals and couples seeking to claim the credit.

“The housing market continues to be a drag on the economy”, said John Castellani, President of the Washington-based Business Roundtable. “We believe that if we don’t stabilize this vital sector, we can’t turn the tide on the recession.”

The business Roundtable and the National Association of Realtors are both pushing to expand the tax credit and to lower mortgage rates to revive the U.S. housing market.

Home Sales Hot Streak Continues...

April home sales in the Twin Cities were even stronger than March's upswing, according to the Minneapolis Area Association of REALTORS® (MAAR) based on data from the Regional Multiple Listing Service of Minnesota, Inc.

There were 5,211 pending sales in April, up 23.8% from last April. This is the highest showing of signed purchase agreements in April since 2005 and the tenth consecutive month of year-over-year increases.

It’s all about low rates and excellent affordability. If you’re in the position to buy a home, opportunities are available and the time for action is now.

Buyer's Market Continues

The most important tip in economics is to buy low and sell high. Of course, that is easier said than done.

Nobody knows when the housing market will hit rock bottom or if it already has. Everyone wants to know when the bottom of the market will occur, however, we’re not going to know, until the bottom of the market is past by a month or by a quarter or by a half-a-year depending on what stats are being looked at.

What is clear, however, is that this is a buyer’s market for housing.

If you find a good house, buy it now because by the time we know the bottom of the market has come, it will have come and gone.