First Time Home Buyer's Just Got a Little More Help....

A quick look at the new Housing Bill signed into law today!

• A temporary increase in mortgage revenue bonds to refinance subprime mortgages. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide.
• Permanent Conforming loan limit of $625,000
• First-time home buyer tax credit, which allows first-time home buyers to receive a tax refund worth up to 10 percent of a home’s purchase price, up to a maximum of $7,500. The refund serves as an interest-free loan and the homeowner is required to repay it in equal installments over 15 years.
• New regulator for Government Sponsored Enterprises to restore investor confidence in GSE loans and help the market and economy stabilize.
• Temporary raise in the loan limit for the Veterans Affairs home loan guarantee program to the same level as the economic stimulus limits until the end of 2008.
• Adjustment to the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA), allowing sellers to provide the non-foreign affidavit to a qualified closing entity and not just the buyer.
• The setting of minimum requirements for mortgage originators, which mandates fingerprinting of loan originators and establishes a nationwide loan originator licensing and registration system. The requirements do not apply to those only performing real estate brokerage activities unless they are compensated by a lender, mortgage broker, or other loan originator. States will have the ability to implement more stringent laws.
• The creation of a National Affordable Housing Trust Fund to help cover the cost of the FHA rescue plan for the first five years and develop affordable housing in subsequent years.
• The Treasury Department’s proposal to create a federal backstop program to insure the financial well-being of Fannie Mae and Freddie Mac.
• The FHA’s inability to insure loans that utilize a seller-funded down-payment assistance program. Down-payment assistance from family, employers and other nonprofits is still allowed.
• The Community Development Block Grant Programs’ $4 billion allotment for communities to purchase and refurbish foreclosed homes.

This is good news for home owners and future buyers, but there is a time frame associated with many of the provisions so if you are considering your options you will want to review them ASAP to ensure you are taking the right steps.

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Rancho Santa Margarita and Mission Viejo. Realizing Singles were being left out of the Real Estate market, Kelly has made it her passion to serve this demographic and help them take the necessary steps towards their real estate goals. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, Its Possible!

The above information is provided as an opinion and is deemed reliable but not guaranteed.

Portrait of a First Time Home Buyer

Have you heard the news, today’s real estate market is open for First Time Home Buyers. In fact just about 40% of new buyers in 2007 were First Time Home Buyers and the National Association of Realtors gives us a pretty good look at where those buyers came from.

Do you fit this profile?

• Status: 51% Married couples, 11% Unmarried couples, 25% Single Female, 11% Single Male
• Age: 52% were age 24 – 35 with 21% aged 35-44
• Income: $68k Married, $68k Unmarried Couples, $44k Single Female and $52k Single Male. Interesting Single Women earn an average of $8k less but purchase 14% more homes then Single Males.
• Down Payment/Mortgage: 73% used own savings, 22% received gift funds, 98% uses a mortgage to finance the purchase and 81% chose Fixed-Rate Mortgages.

Have you thought about buying your first home and know the window of opportunity is here, than we hope the above description gives you an idea that it is possible. Of course, all the rules apply, good credit, not over extending yourself and working with a trustworthy lender and Realtor® who understands the programs that are available for first time home buyers.

Though the lending standards are a bit more complicated, which I believe is a good thing for first time home buyers, there is the added benefit of the new FHA limits. In Orange County that limit is up to $729k. But keep in mind this program is currently only available till the end of 2008. So if buying your first home is something that you are considering then we want you to know, It’s Possible!

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Whether she’s helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, Its Possible!

The above information is provided as an opinion and is deemed reliable but not guaranteed.

New FHA Limits for Orange County!

Great news, the new FHA loan limits were released today, ahead of schedule, with little fan-fair.

• The new limits for Orange County are:
  Single Family Residences: $729,750
  *2 Family Residences: $934,200
  *3 Family Residences: $1,129,250
  *4 Family Residences: $1,403,400
  
• Single Family Limits for San Diego were increased to $629k and for Riverside they were increased to $500k.
  

Now it will take a little time to filter down, but this temporary increase, will certainly help home buyers have access to better jumbo loans, which was previously set at $417,000. As well, this should build some security for investors to increase their demand for these federally insured loans, resulting in jumbo rates coming down!

If you are in the process of re-financing and or considering buying a home, keep in mind not all Lenders are FHA approved. In addition, there are specific requirements a homeowner must meet when selling to a FHA buyer.

Keep in mind this is technically a temporary change till the end of 2008. I wouldn't imagine they will go back down to the previous levels as there is legislation to secure California is a high cost state but you never know.

This change, along with the current inventory level and reduced pricing, we just about have a perfect storm for buyers!

* These are 2-4 units’ investment properties

Kelly Turbeville is one of South Orange County premier Realtors® focusing in the Saddleback Valley and the communities of Lake Forest, Portola Hills, Foothill Ranch, Trabuco Canyon, Mission Viejo and Rancho Santa Margarita. Whether she’s helping a first time buyer accomplish the goal of homeownership, or coaching a homeowner on how to use their equity to step up into a nice home or use it to buy an investment property or finding exclusive properties for the high end consumer. Kelly is committed to making it happen. So if you’re considering selling or buying a home in Saddleback Valley, call Kelly to schedule a free consultation. Whatever your dream, with Kelly at your side, It’s Possible!

The above information is provided as a courtesy and is deemed reliable but not guaranteed.