Obama’s stimulus package, Will it help you?| 7500 tax credit| Ocala housing perdiction for 2009

With all this government spending, I am wondering how it is going to help us.  Beside raising our taxes to pay for all this spending, what else do we personally get?   I was reading one of the articles and I found this:

Private-sector economists who support the stimulus plan say that it could be made better, and, yes, bigger.

“I would make the package bigger . . . increase the package to over $1 trillion,” Zandi said.

One change, he said, could be to take the $7,500 tax credit being proposed for home purchases by first-time buyers and apply it to all home purchases, payable at closing. This would help reverse the deep slide in the national housing market.   © 2009, McClatchy-Tribune Information Services.

This, I believe will actually help many people.  I believe that the real estate market directly affect many other business.  If real estate is not moving then the builders, title companies, insurance companies, home inspectors  ect all slow down.

If everyone that buys a home can get up to $7500 and at closing instead of on their tax return, that would help many that are on the fence about buying now or not.   Real estate is picking up in Ocala.  I get a lot of call from tenants that have to get out because their Land lord are not paying their mortgages and now they have 30 days to get out of their home.  That is not fair to the tenants. They need to be able to at least have time to find a place to live.  With the home prices down and interest rate still low, people that are renting can now buy a home for the same price as they are renting for.

I f any one has any questions about what options are available to help these tenant, Call Rhonda.  Here in Ocala, Florida, I am helping many buy a home with zero to little down.  You can always got to www.BucknerHomes.com to search for property that is avaiable in Ocala.Marion County.  Looking forward to helping you.

Ocala Market update Jan 20, 2009

What is happening in Marion County, Ocala, Florida. View the video below to find out market statistics.  Rhonda Buckner is here to help you find your perfect home.  I also help those get their financing in order to buy a home in the future.Give Rhonda a call 352-266-2637

Ocala Marion County Market Udates

5 best reasons to be hopeful about housing in 2009| Help for low income families

1. Cheap mortgage rates Mortgage rates are at their multi year low. Thirty year, fixed rates hit an average of 5.47 percent last week, the lowest they have been since 2004.  Still rates present a welcome incentive for qualified borrower’s to step up to the plate. Lower mortgage rates mean more people will be able to qualify.

2. Lower prices: Home prices at the national level have already fallen 21 percent from their 2006 peaks. While home prices are expected to drop further in 2009, values Ocala’s markets are already at levels low enough to tempt bargain hunters. “Falling home prices aren’t part of the problem, they are part of the solution,” says Mike Larson, a real estate analyst at Weiss Research.

3. Fewer housing starts: In the face of dwindling demand, home builders have been forced to sharply pull back on new construction. The government reported Tuesday that November housing starts dropped to their lowest level since 1959.  While that’s bad news for the economy-because it means fewer jobs for builders and others-it’s an important step in bringing housing supply back in line with demand.

4. Obama stimulus: In an attempt to hoist the economy out of its rut, President-elect Barack Obama has announced plans for a massive federal spending program. The initiative is expected to put between $500 billion and $1 trillion into infrastructure repair and other projects in an effort to keep Americans working.

5. Credit programs: It will be tough for the housing market to come back to life until the credit markets-which have been log-jammed by fear for more than a year-begin to unlock.  Here in Ocala, Community Service has been given a grant of $6 Million dollars to help the lower income family.  They will be buying the vacant pre forclosure or foreclosed homes.

As a Realtor in Ocala, Florida, I have been watching the market.  We have come down in home values far more than we went up in the last few years.  Home prices are below what they were in 2004, when Marion County was the best valued homes in the state.  With the opportunities out there, the first time home buyer should be searching for that perfect home.  If your low income, you get assistance and you still get the tax credit, that is if you buy before July 1, 2009.  I believe it is a great time to buy because the interest rates low, short sales every where and foreclosures available.

If you do not know where to start or you just have questions, give me a call 352-266-2637.  I am always here to help.  You can always do property search at www.Bucknerhomes.com.

2009 Real Estate Predictions|Low income help|Loan Modification

Despite some initial signs that subprime foreclosures were near a plateau, the combination of severe weakening in the economy, continued decline in home prices, steady increase in delinquencies, particularly in the prime mortgage space, ensure that foreclosure numbers, absent more dramatic intervention, will march steadily higher.

While loan modifications and similar interventions (such as the Hope for Homeowners FHA refinancing program) could help to reduce the march of foreclosures, the proliferation of generally timid loan mod programs with confusing loan features raises significant doubt as to whether the current loan mod momentum is sufficient to reduce foreclosures materially. Further, though mortgage walkaways have been important, the disease hasn’t infected the general population. However, should the downward spiral in home prices, neighborhood condition and equity deterioration continue, more and more mainstream borrowers are likely to walk away from their homes. Thus far, the population of subprime borrowers in the US is relatively small. However, the severe recession that appears more and more likely, coupled with the collapse of confidence in housing and resultant foreclosures and the impact on credit scores, risks transforming the US into a subprime society.

That is, the deeper the foreclosure crisis penetrates into the gene pool, the greater the percentage of American consumers with impaired credit, and therefore limited ability to access credit. Therefore, foreclosures aren’t only a housing-related phenomenon and should foreclosures spread, a large percentage of of the population could suffer impaired credit, which in turn would hurt credit availability.

There is good happening even if it is just a start and for a specific people.  Here in Ocala/Marion County we have been given help with lower income housing.  Through Marion County SHIP or Community Services Department the Federal Government has given money to help the lower income buy homes.  Of course there are guidelines.  If you fall within 1 person earning under $27,350, you can buy a brand new home, bank owned or REO, with down payment assistance.  The government has given Marion County 6 million and they are still working out the kniks, so you have time to apply.  Go to www.Marioncountyfl.org click on departments, community resourse bureau, community service.  You then can call them or go to form and print out application, fill it out and take to their office.

If you have any questions call me 352-266-2637.

Loan Reqirements FHA

 

   FHA – no income restrictions,   Loan size restrictions by county (Citrus & Marion $271,050).  FHA requires only 2.25% down if the buyer pays their own closing costs.  3% down if seller participates in any way.

 Nehemiah and Ameridream are non profit companies that filter seller paid down payment assistance of 3% back to the buyer.  This is not a loan and never needs to be repaid.  This can only be used with FHA products.  The seller simply pays a small processing fee of $499 and the 3% down amount to Either Nehemiah or Ameridream.  They in turn wire money to the closing table as a “gift” to the buyer.   The seller can also pay Closing costs and Prepaids and Escrow reserves up  to 6% of the loan  amount.  There are no homebuyer classes required.  Buyer can come to the table with ZERO cash out of their pocket.    This is great for nurses, teachers, firefighters, county workers, any union member. Since there are no income limits,  anyone can use FHA.  Particularly working families have a hard time saving the down payment.  FHA also allows all closing costs, down payment, prepaids/escrows to be a gift from  a family member.  FHA also allows state and county subsidies.    In addition, Chase will offer reduced closing costs to any union member.    FHA will use  “alternative credit” if the credit bureau report shows no score or insufficient credit.  This means, the borrower must show ability to repay debt.  Such as cell phone, car insurance, gym membership, room & board, rent.     If these can be verified in some way, we can use it as “credit”.     New employment is not a problem. Don’t have to be in the same line of work or on the job for any length of time.  Cosigners are allowed for debt ratio issues only.  Must be a relative.

 FHA has reduced monthly PMI payments.  Much lower than conventional PMI.    This is a government insured loan (Dept of Housing & Urban Dev.)

 

All lenders are differnt and have different programs available.  That is a good thing because everyone needs different ways of financing.  Call Rhonda to find out who the best lenders are in Ocala, Florida. and to find you the perfect home in Ocala  352-266-2637

 

 

 

 

 

 

Hello world! How’s your credit?

Everyone knows that we are scored by three different credit companies.  Credit scoring is a numeric way of weighing various financial factors, like income, debts, job history, credit history and other factors, which can predict the likelihood of the borrower defaulting on the mortgage.  While there are a number of credit scoring models used, most lenders seem to use the Fair Isaac & Co. (FICO) score that ranges from 300 to 850.  The lower the score the higher the risk. 

 

The score is developed by giving weight to the following areas:    

            Record of timely payments on loans 35%               

            Amount and type of outstanding debt 30%

            Length of credit history 15%     

            Mix of accounts, credit cards, department stores,

            finance companies, bank loans-10%

            Number and types of account opened recently-10%

 

An A rating entitles borrower the prime interest rate, A pays .5%-1.0% more interest, B pays 1.0%-2.0% and C pays 2.0%-3.0% more than A, and so on.

 

Here are some tips to help:  The longer that you have had credit without late payments the higher the score.  The more sources of good credit references that you have the higher the score.  On the negative side, slow payments lower the score, as do high loan balances.  If account balances are 75% or more of the credit limit, it may signal high financial leverage and a higher risk . Credit balances should not exceed 30% of credit limit.  Borrowers should not open many new accounts if they desire high credit scores.

The single most important thing one can do to improve your credit score is pay timely. A payment that is more than 30 days late in the past year may harm a credit score more than a bankruptcy that occurred more than 5 years ago! 

Never use consumer finance companies, as credit scores are lowered for those using this type of credit.

It seems like everyone life revolves around their credit scores.  In order to get insurance, a rental, a home, they pull your credit.  I hope this helps you understand what they are looking for, and help you bring your score up.  If you have question call me 352-266-263.  Once you get your credit score fixed you will be able to buy your perfect home. 

 

Ocala, FL Premiere homes, 352-266-2637