Cape Coral Florida Real Estate

Many first time buyers are among a growing number of buyers rushing to find a home in time to cash in on the federal government’s tax-credit program. The couple, who moved from Lakeland, is eligible for up to $6,500.
They plan to put the money toward a swimming pool.
“We were worried we wouldn’t be able to close on time,” said Bob Freeger. “Getting that tax credit was a huge motivation.”
Real estate agents say their phones are ringing a lot more in recent weeks as folks scurry to sell and or buy homes before next month’s tax credit deadline.
“It’s been absolutely nuts,” said Joseph Beauvais, a real estate Exclusive Buyers agent with Sunny Spot Realty inc in Cape Coral Fl. “I have showings galore and contracts are coming in left and right. I had 15 requests for showings this week.”
To qualify for the credit, buyers must have fully executed sales contracts in place by April 30 and the deal must close by June 30. Loans take 45 days so it is almost too late.
First-time homebuyers are eligible for up to $8,000. Buyers who have owned a home for five consecutive years within the past eight years can get a credit of up to $6,500.
Joseph Beauvais credits most of the increase in traffic to improvements in the economy, but says the tax credit is also helping business.
“We’re seeing more people retiring to Lee county,” Beauvais said. “I’ve had four or five retirees close in one week. In the past three years, I hadn’t seen that many. We had some retirement communities that went a full year without a sale.
“People are no longer afraid to do something. They were afraid for so long.”
Prices are indeed enticing buyers to pull the trigger, and more homeowners are putting their houses on the market in hopes of selling in time to buy another home. Some are trading up to bigger homes while others are downsizing.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

The new short sale rules will take effect April 5, 2010, requiring the banks to expedite short sale claims. Will the new guidelines be effective?

Story after story of homeowners who lost their homes due to banks not processing their request in a timely manner will hopefully soon end. The government has issued new guidelines to mortgage companies to aid them in processing the claims.

Anyone who knows anything short sales will explain that it is a long and tedious process and many potential buyers walk away before the sale is ever approved.

According to The Sun News "New Rules to Speed Up Short Sales," there was an agent named Nancy Philbrick from Manchester, NH and she had a short sale with Bank of America for over six months with no answer. The loan package was sent to another party for a second review and in the meantime, the deal fell through. The buyers walked and gave up on the process.

Bank of America has hired over 3500 new processors to help implement this much needed program. Although this is not typical for all banks, depending on the area that short sale is initiated, it is cause for alarm for President Obama, so he has implemented new rules for short sales beginning in April 5 2010:

Read more at Suite101: Government to Implement New Short Sale Rules: Will the Obama 75 Billion Dollar Affordable Home Plan Help You? http://mortgage-negotiation.suite101.com/article.cfm/government_to_implement_new_short_sale_rules#ixzz0gk7UfJc8

These guidelines will instruct lenders that they are not able to make buyers wait many months to find out if they will get the home they put the offer on. While this is a great idea and would normally help greatly.

It may not help and here is why;

The lenders I have been working with have had a practice in place for months which circumvents the new guidelines. Why is the Government not aware of this? Had they talked to an Exclusive Buyers agent like Joseph Beauvais they would have found out that lenders with short sales are now accepting all offers on Short sales quickly, adding an addendum to the contract that they can continue marketing the property and accepting offers during the process, which can still take many months. Whew! What a mess. How many hundreds of thousands of our dollars could have be saved buy not creating more committees to investigate this and all they had to do is ask an Exclusive buyers agent.

All that the lenders are doing are tying up more buyers’, assets and time. The buyers will be notified that they are in a multiple offer situation and asked “is this their highest and best offer”, and then raise their offer. Then wait again.

You are welcome to read about short sales at Http://www.sunnyspotrealty.net/ShortSale

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

This is the link to read about it. http://www.sunnyspotrealty.net/ChineseDrywallCapeCoralFortMyersRealEstate

Now you can act today and buy these properties. Call the company first and ask questions. I am waiting for a return call.

I can find the homes for you in any price range.

Joseph Beauvais
Sunny Spot Realty inc.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

I invite serious buyers only to read all of this.

Because my web site is so high in Google ranking, I am attracting buyers from around the world. The ones that are affected are mostly the buyers from other states than Florida.

This mistake can and has cost buyers thousands and heartaches.

As an Exclusive buyer’s agent, my job is to give advice to buyers to protect them during the process and find them the best deal at the best price.
What do you think the biggest cost is other than the home itself? Right the mortgage, ie loan.

What is happening?

Buyers are listening to me to the extent that they do get pre-qualified for a loan, which is mandated. However they normally choose a lender they are familiar with and trust. That would be ok if they were willing to do the work that the mortgage rules dictate. %95 are not doing what they should because they think, “why do 4-5 hrs of work pre-qualifying this person when they may not buy?”. They may pull credit only then write a letter for the buyers. ‘This is what can cost you dearly if we trust the lenders word.

Think of the time wasted and heartaches!

You spend days and hours looking, make an offer, put money down, get excited. Then the lender says, “I need more time and a lot more information”. Actually the lender is just starting the process to see if you can get a loan. Now you have to extend the closing if the seller is willing, if not, you lose the home and start looking again not knowing you cannot get a loan. The next home the same thing happens, you ask for an extension due to the loan. You really found a steal and do not want to lose it but the seller will only extend the closing, because it happened before to them, if you risk your deposit and additional security. You do this only to find out the lender lied and you cannot get a loan. Did you know that the letter the lender wrote, without verifying assets, income etc., is a violation of brokerage rules with a fine or loss of licence. This is very low risk to lenders because the buyers do not know the rules and thus do not turn them in.

How can a lender handle an out of state sale?
Very poorly! if at all.

First they do not know about assessments and how to handle them up front on a loan.
 New government rules just this month.
Appraisals how do they handle appraisals in areas they know nothing about? Very badly. They call around until they get a cheap appraiser and have them do it without knowing the market conditions or comparables. They most likely do it soley by computer and never view the homes. Why is that bad for you? Low appraisals means you have to come up with the difference between sales price and appraised price or lose it.

I recommend a lender without compensation. Why?

The lender I recommend does not compensate me at all except for a thank you. It is a law that I do not break. Then why do I do it? We forgot about one very important item. I just wasted perhaps 20hrs, my gas and expertise for nothing. Not to even mention the buyers time and loss. All that my agents and I want is the sale and the loan to go through for your sake and mine.

What about the lender?

He is one of the best experts I have worked with in 26 years of working with buyers, he is honest, he is thorough, if he gives you a letter of pre-qualification, it will close. Why is he willing to work so hard? Because I give him my clients and he does not want to lose the business. Are his rates competitive? Yes very.

How long will it take to get a pre-qualification letter?

Once you supplied the lender all of the information, 3 days. He may ask for other information due to new rules in January 2010 and or change the loan due to your circumstances like self employed or asking for seller concessions.
These are different types of loans.

If you are looking to buy a home, condominium, duplex etc in or around Cape Coral and you contact me as a Real Estate expert to find a home, then listen to me, please. Three buyers this month alone did not listen. None closing. Is that you? Why am I not adding his name here? I do not want other agents to read this and tie him up and many reading this are just lookers that may call just because they are curious. If you are my client and willing to work with a very experienced Buyers agent, then ask me.

If you hire an expert, listen to him or her!

Thank you,

Joseph Beauvais

· Mortgage insurance premium (MIP) will be increased by 50 bps to 2.25% to build up capital reserves and bring back private lending

· New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%

· The allowable seller concessions will be Reduced from 6% to 3%

· There will be an Increased enforcement on FHA lenders

What this means to you! Fewer buyers will qualify. Others lenders soon to follow.

 If you are considering a purchase, do not wait.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Interest rates are at historic lows but cyclical trends suggest they will soon rise. Home buyers may never see such a chance again, writes Marc Roth

By Marc Roth Roth on Real Estate December 2009

.Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates.

As of today, the average 30-year fixed-rate loan with no points or fees is around 5% which is the lowest the rate has been in nearly 40 years.

In fact, rates are so well below historic averages that it should make all current and prospective homeowners take notice of this once-in-a-lifetime opportunity.

And it is exactly that, based on what the graph shows us. Let's look at the point on the far left.

In 1970 the rate was approximately 7.25%. After hovering there for a couple of years, it began a trend upward, landing near 10% in late 1973. It settled at 8.5% to 9% from 1974 to the end of 1976. After the rise to 10%, that probably seemed O.K. to most home buyers.

But they weren't happy soon thereafter. From 1977 to 1981, a period of only 60 months, the 30-year fixed rate climbed to 18%. As I mentioned in one of my previous articles, my dad was one of those unluckily stuck needing a loan at that time.

Interest Rate Lessons

And when rates started to decline after that, they took a long time to recede to previous levels. They hit 9% for a brief time in 1986 and bounced around 10% to 11% until 1990. For the next 11 years through 2001, the rates slowly ebbed and flowed downward, ranging from 7% to 9%. We've since spent the last nine years, until very recently, at 6% to 7%. So you can see why 5% is so remarkable.

So, what can we learn from the historical trends and numbers?

First, rates have far further to move upward than downward; for more than 30 years, 7% was the low and 18% the high. The norm was 9% in the 1970s, 10% in the mid-1980s through the early 1990s, 7% to 8% for much of the 1990s, and 6% only over the last handful of years.

Second, the last time the long-term trends reversed from low to high, it took more than 20 years (1970 to 1992) for the rate to get back to where it was, and 30 years to actually start trending below the 1970 low.

Finally, the most important lesson is to understand the actual financial impact the rate has on the cost of purchasing and paying off a home.

Every quarter-point change in interest rates is equivalent to approximately $6,000 for every $100,000 borrowed over the course of a 30-year fixed. While different in each region, for the sake of simplicity, let's assume that the average person is putting $40,000 down and borrowing $200,000 to pay the price of a typical home nationwide. Thus, over the course of the life of the loan, each quarter-point move up in interest rates will cost that buyer $12,000.

Loan Costs

Stay with me now. We are at 5%. As you can see by the graph above, as the economy stabilizes, it is reasonable for us to see 30-year fixed rates climb to 6% within the foreseeable future and probably to a range of 7% to 8% when the economy is humming again. If every quarter of a point is worth $12,000 per $200,000 borrowed, then each point is worth almost $50,000.

Let's put that into perspective. You have a good stable job (yes, unemployment is at 10%, but another way of looking at that figure is that most of us have good stable jobs). You would like to own a $240,000 home. However, even though home prices have steadied, you may be thinking you can get another $5,000 or $10,000 discount if you wait (never mind the $8,500 or $6,500 tax credit due to run out next spring). Or you may be waiting for the news to tell you the economy is "more stable" and it's safe to get back in the pool. In exchange for what you may think is prudence, you will risk paying $50,000 more per point in interest rate changes between now and the time you decide you are ready to buy. And you are ignoring the fact that according to the Case-Shiller index, home prices in most regions have been trending back up for the last several months.

If you are someone who is looking to buy or upgrade in the $350,000-to-$800,000 home price range, and many people out there are, then you're borrowing $300,000 to $600,000. At 7%, the $300,000 loan will cost just under $150,000 more over the lifetime, and the $600,000 loan an additional $300,000, if rates move up just 2% before you pull the trigger.

What I'm trying to impress upon everyone is that if you are planning on being a homeowner now and/or in the foreseeable future, or if you are looking to move your family into a bigger home, then pay more attention to the interest rates than the price of the home. If you have a steady job, good credit, and the down payment, then you really are being offered the gift of a lifetime.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

I changed only a few words.

This will be the last blog for a while. Christmas, New Year and my birthday.

I hope all of you have a wonderful holiday season. I know I will.

My company has broken record sales this month since it began. Wow!

New Housing Numbers Show SWFL Home Sales/Prices Heading Towards Recovery. Especially Cape Coral and Fort Myers. Real Estate is GREAT!

The Housing Market in Southwest Florida has been slowly recovering for the last few months. Inventory has been being purchased at ever-increasing rates, however in November, the home sale prices actually started to rise as well.

According to the Realtor Association of Greater Fort Myers and the Beach, the new sales numbers look promising, the group released the following data earlier this month:

* Home sales in November 2009 were up 70.5 % over November 2008

* 1,245 single family homes sold in November, bringing the 2008 total to 15,336 (8,768 homes sold in all of 2008)

* Of November's home sales, 47.4 percent were bank-owned.  Conventional sales made up 33.7 percent.

* Pending sales for the month were 3,741, a 57.5 percent increase over last year.

* 6,976 homes are currently in the MLS system, which is down from 12,106 at the same time last year.

It looks like those wise enough not to wait any longer are getting the picture.

January is going to be very busy again for us.

Remember! You cannot steal in slow motion.
For those of you that trust the news more than someone that does this daily for a living, you will snooze and loose.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

McLEAN, Va. – Dec. 18, 2009 – Mortgage rates rose for the second consecutive week but the number of homeowners who applied for refinancing remained strong.

The average fixed rate on a 30-year mortgage was 4.94 percent this week, up from 4.81 percent last week, Freddie Mac said Thursday.

Mortgage rates are closely tied to yields on long-term government debt, which have risen since the average fixed rate on 30-year mortgages hit a record low of 4.71 percent the week of Dec. 3.

A Federal Reserve program to buy $1.25 trillion in mortgage-backed securities has kept rates on 30-year mortgages around 5 percent this year. The program, geared to make homebuying more affordable, is set to end next spring.

The low rates resulted in a wave of refinancing activity: Roughly three out of four mortgage applications were for refinancing during the first two weeks of December, the Mortgage Bankers Association reported.

Freddie Mac collects mortgage rates each week from lenders around the country. Rates often fluctuate, even within a given day.

The average rate on a 15-year fixed mortgage rose to 4.38 percent from 4.32 percent last week.

Rates on five-year, adjustable-rate mortgages averaged 4.37 percent, up from 4.26 percent last week. Rates on one-year, adjustable-rate mortgages rose to 4.34 percent from 4.24 percent.

The rates do not include add-on fees known as points. The nationwide fee for loans in Freddie Mac’s survey averaged 0.7 point for 30-year loans. The fee averaged 0.6 point for 15-year and five-year loans, and 0.5 point for one-year mortgages.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

This is special financing on Fannie Mae owned foreclosures. This is an effort by Fannie Mae to reduce their inventory of foreclosed homes nationwide.

Makes buying a home in Cape Coral, Fort Myers or Bonita Springs easier and better.

Hilights:

1. As little as 3% down for owner occupied.
2. 10 % down for Second homes
3. 10% down for Investment properties.
4. Available on single family, multi-family and PUD’s
5. NO MORTGAGE INSURANCE
6. NO APPRAISAL REQUIRED
7. Credit scores as low as 580.
8. Fixed rate, interest only and ARMS available.
9. Financing to fund both purchase and renovations (much easier that FHA 203(K) rehab loans)

If you are not familiar with this program give me a call and I will get more information.

Joseph Beauvais Sunny Spot Realty inc 239-770-0686
email; jb@sunnyspotrealty.net

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

This is a national report and Cape Coral to include Fort Myers and surrounding areas have already surpassed this increase in home sales nationally.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, increased 3.7 percent to 114.1 from 110.0 in September, and is 31.8 percent above October 2008 when it was 86.6. The rise from a year ago is the biggest annual increase ever recorded for the index, which is at the highest level since March 2006 when it was 115.2.

Lawrence Yun, NAR chief economist, said home sales are experiencing a pendulum swing. “Keep in mind that housing had been underperforming over most of the past year. Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually, but we were well below the 5-million mark before the homebuyer tax credit stimulus,” he said. “This means the tax credit is helping unleash a pent-up demand from a large pool of financially qualified renters, much more than borrowing sales from the future.”

The PHSI in the Northeast surged 19.9 percent to 100.2 in October and is 44.2 percent above a year ago. In the Midwest the index rose 11.6 percent to 109.6 and is 36.6 percent higher than October 2008. Pending home sales in the South increased 5.4 percent to an index of 115.4, which is 31.6 percent above a year ago. In the West the index fell 11.2 percent to 127.7 but is 21.9 percent above October 2008.

Yun cautioned that home sales could dip in the months ahead.

“The expanded tax credit has only been available for the past three weeks, but the time between when buyers start looking at homes until they close on a sale can take anywhere from three to five months. Given the lag time, we could see a temporary decline in closed existing-home sales from December until early spring when we get another surge, but the weak job market remains a major concern and could slow the recovery process.

“Still, as inventories continue to decline and balance is gradually restored between buyers and sellers, we should reach self-sustaining housing conditions and firming home prices in most areas around the middle of 2010. That would mean broad wealth stabilization for the vast number of middle-class families,” Yun said.

Still bargains are around. Call me today! Joseph Beauvais (239-770-0686.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

News from Florida Realtor association

Florida’s existing home sales rose in October, marking 14 months that sales activity has increased in the year-to-year comparison, according to the latest housing data released by Florida Realtors®. October’s statewide sales also increased over sales activity in September in both the existing home and existing condominium markets.

Existing home sales rose 45 percent last month with a total of 15,160 homes sold statewide compared to 10,444 homes sold in October 2008, according to Florida Realtors. Statewide existing home sales last month increased 5.1 percent over statewide sales activity in September.

Florida Realtors also reported an 82 percent increase in statewide sales of existing condos in October compared to the previous year’s sales figure; statewide existing condo sales last month rose 6.1 percent over the total units sold in September.

All of Florida’s metropolitan statistical areas (MSAs) reported increased existing home sales and higher condo sales in October. A majority of the state’s MSAs have reported increased sales for 16 consecutive months.

Florida’s median sales price for existing homes last month was $140,300; a year ago, it was $169,700 for a 17 percent decrease. Housing industry analysts with the National Association of Realtors® (NAR) note that sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is the midpoint; half the homes sold for more, half for less.

The national median sales price for existing single-family homes in September 2009 was $174,900, down 8.1 percent from a year earlier, according to NAR. In California, the statewide median resales price was $296,090 in September; in Massachusetts, it was $290,000; in Maryland, it was $261,718; and in New York, it was $213,900.

According to NAR’s latest industry outlook, the housing market is continuing its positive momentum. “We’re getting early indications of price stabilization, but we need a steady supply of qualified buyers to meaningfully bring inventories down and return us to a period of normal, steady price growth,” said NAR Chief Economist Lawrence Yun. “That, in turn, would help fully remove consumer fears, which would then revive the broader economy.”

In Florida’s year-to-year comparison for condos, 5,398 units sold statewide last month compared to 2,958 units in October 2008 for an 82 percent increase. The statewide existing condo median sales price last month was $105,200; in October 2008 it was $147,900 for a 29 percent decrease. The national median existing condo price was $175,100 in September 2009, according to NAR.

Interest rates for a 30-year fixed-rate mortgage averaged 4.95 percent last month, a significant drop from the average rate of 6.20 percent in October 2008, according to Freddie Mac. Florida Realtors’ sales figures reflect closings, which typically occur 30 to 90 days after sales contracts are written.

Among the state’s smaller markets, the Gainesville MSA reported a total of 172 homes sold in October compared to 130 homes a year earlier for a 32 percent increase. The market’s existing home median sales price last month was $156,700; a year ago it was $173,300 for a 10 percent decrease. A total of 22 condos sold in the MSA in October, up 22 percent over the 18 units sold in October 2008. The existing condo median price last month was $116,700; a year earlier, it was $133,300 for a 12 percent decrease.

© 2009 Florida Realtors

 Cape Coral Florida Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

The widely predicted increase in interest rates was confirmed at today’s RBA meeting.

Following on from last month’s increase, the RBA has confirmed their intention of steering interest rates closer to a ‘normal range’, by increasing rates again by another 0.25% taking the cash rate to 3.50%. Most economists are predicting that rates will continue to move upwards over the next 12months from the current emergency levels which have seen mortgage holders enjoying the lowest rates in close to 50 years.

While this may not be welcome news at all for home buyers, we should not lose sight of how well our economy is doing compared to global economies.

Our economy has escaped the recession, being buoyed by a strong Chinese economy plus we have a currency which is close to parity with the US dollar. For many overseas investors we are seen as the premier destination for investment in both our share market and our currency. Plus recent figures from the Australian Bureau of Statistics show real estate prices are increasing.

It is ironic that the end of a global recession actually carries a downside in the form of rate increases, but there are advantages and disadvantages in every scenario. A strong economy gives us job security and positive economic growth.

Is it too late to buy? Not yet!

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Senate Democrats indicate that First time Homebuyers Tax Credit will be renewed until at least April of 2010!

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Rude awaking for buyers that are waiting!

Once again I had a buyer yesterday that I showed a home to. They have been looking for months and months. Comments from them, “There are thousands of homes on the market and we can keep looking”.

Are they right?

We in the industry know that the news is months behind on current events and statistics. However some of you take my views and advice as slanted towards making a sale.

Big mistake! I do not need to lie nor mislead to make a living. I was not raised that way.
My company, Sunny Spot Realty inc only works for buyers. Without referrals from past buyers we would be out of business.
It is a personal and business decision to be honest with everyone. Period!

Those of you that doubt what I have been telling you in this blog and my website and think they know more than I, please read the news press article. Our major News Paper in the area. http://www.news-press.com/article/20091003/RE/91002054/1076

Now that you have verified my words, should you really wait? Can you afford to?

Pool homes are also going up!

I am still able to find Sailboat homes in Cape Coral and N. Fort Myers for under $200,000.
Just go to https://sunnyspotrealty.agentxsites.com/PageLogin.aspx?WebPage=content.aspx&FileName=CustomPage113.x&Query= Request a password if you do not have one and look.

That is todays news. They have already gone up some $40,000.00.

Of course many will still wait until interest rates and homes have gone beyond their means then say, “I should have” But you didn’t!

Now you have the News as well as my facts. What are you waiting for?

Call me today (239)770-0686, Email Joseph Beauvais Jb@sunnyspotrealty.net

Defaults help Lee County home sales soar past record

Driven by foreclosures, sales of single-family homes in Lee County this year have already blasted past the record set at the height of the buying frenzy in 2005. More

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Hello! I have some great news for Buyers of homes. About time I am able to give good news!

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Aug. 14, 2009 – Rates on 30-year mortgages rose this week, remaining above 5 percent after reaching a record low earlier this year, Freddie Mac said Thursday.

The average rate on a 30-year fixed-rate mortgage was 5.29 percent this week, up from 5.22 percent last week, Freddie Mac said. Last year at this time, the 30-year fixed-rate mortgage averaged 6.52 percent.

Rates on 30-year mortgages dropped to a record low of 4.78 percent earlier this year, but have been above 5 percent since June.

Though the troubled U.S. housing market is beginning to stabilize, higher rates could slow down any recovery
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

The average rate on a 15-year fixed-rate mortgage was 4.68 percent, an increase from 4.63 percent last week, Freddie Mac said.

Rates on five-year, adjustable-rate mortgages averaged 4.75 percent, up from 4.73 percent last week. Rates on one-year, adjustable-rate mortgages dropped to 4.72 percent from 4.78 percent.

The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point for 30-year and 15-year fixed-rate mortgages, 0.6 point for five-year adjustable-rate mortgages, and 0.4 point for one-year adjustable-rate mortgages.

Please do not wait any longer to buy a home. Call me!

Joseph Beauvais (239) 770-0686 email; mailto:jb@sunnyspotrealty.net

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

New Condo Underwriting Law

New Underwriting Guidelines

AIG, a major private mortgage insurance company, will no longer underwrite coverage if you own a condominium in an area where property values are declining. For condo owners, this means you could face some serious obstacles in the future if you want to sell or refinance your condo. This new underwriting guidelines is important because it has the potential to both discourage new homeownership and make it nearly impossible for current owners to preserve the value of their homes.

About the New Guidelines

AIG’s decision is novel because it has nothing to do with applicants’ assets or credit scores. Rather, it is about the direction the market is headed in the area where the property is located. If the condominium subdivision is in a declining market area, owners may find it impossible to find insurance coverage if they decide to sell or refinance. Other insurers might continue underwriting such coverage but will probably follow AIG’s lead to some extent by demanding higher down payments for entry-level homebuyers.

Similar Changes for Lenders

In a similar change, Fannie Mae and Freddie Mac have announced more stringent underwriting guidelines for lenders that write loans for condominium buyers. As a result, the loan officer must verify the accuracy of a long list of descriptors about the condo and its surrounding area. The loan officer must look into the subdivision characteristics, association operation budgets, legal documentation of the subdivision, amount of reserves, percentage of late payers, percentage of non-owner occupants, and many other factors before writing the loan. Before the new guidelines, this information was usually supplied in the form of something called a Condo Cert. What is different now is that the loan officer must go to great lengths to verify its accuracy.

How It Affects Condo Owners & Buyers

These new underwriting guidelines have important implications for both current condo owners and prospective buyers. The changes in insurance underwriting will make it very difficult for condo owners in declining markets to sell or refinance. The additional underwriting guidelines for lenders could make it nearly impossible for lenders to issue condo loans if they do not have the staff needed to accomplish the requirements. Many experts speculate that these new guidelines will have a profound effect on condominium values as a whole. Especially for condo associations in declining markets, budgets, costs, and reserves will need to be carefully revisited if they want to meet the requirements of the new guidelines. Ultimately, these changes could discourage new condo ownership and make it impossible for current condo owners to protect the value of their homes.

But as usual we have the answer!

Our loan specialist has no problems with this. We are looking out for you.

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1. You do not and should not pay for lists of foreclosures. They are listed through Realtors and available through Exclusive Buyers agents and more.
2. Once you find an exclusive buyers agent in that area, decide which types and prices of homes you want to see.
3. Before you start looking, have a check of at least 2k (Min )in a money order not a check due to clearance time. Have it made out to any local title company or ask the agent.
4. Have proof of cash in writing (if applicable).
5. Getting loan? Have a prequalification letter done right. Should have the maximum amount you are qualified for, interest rate, date (no older than 3 mts) and the fact they reviewed credit.
   Many lenders do not do it correctly. Make sure or all is lost in the offer stage. Have the lender put the highest amount you may be qualified for. “It shows strength.”
   

   I have a lender I know and trust. 100% instead of 66% (1 in 3 have this issue) of loans Not closing due to low appraisals.
   Many have cheap appraisers, if you get your own lender, that appraise the home very low by computer. Many never see the home. Then you must pay cash for the difference or not close. Use my recommended lender. I get nothing for this accept the deal closes and everyone is happy.

   If you found a great Exclusive Buyers agent like at Sunny Spot Realty Inc. you should still check the offer which will be an “as is” contract. If not done right it will not even be submitted. The agent should check for downloadable addendums or other specific requirements to this lender and property.
6. Do not expect to low ball a foreclosed home or ask for concessions. If you ask for consessions your loan type must say, "allowed up to 6% seller consessions." The Lender (owner) has usually set the price low to cause a bidding war and it is working. To date the offers made have from 3 -45 other offers. I would not expect a counter offer. They do not do that.
7. What they may do is, submit a form stating “this is a multiple offer situation, is this your highest and best offer?”  You will never know if this is true but it most likely is.
8. The market conditions in my part of Florida “Cape Coral” is hot with many buyers.
9. If you think you can come here and not listen to your Experienced Exclusive buyers agent then you are wasting your time. Ask questions, do not be a know it all. If you start with a very good agent with an attitude you know more than the agent, you will set a tone for no advice. Ok! Do it your way. About the third time you lose a dream home you will come to realize you need the agents help. Kind of late but better than never. If you are looking for a saltwater pool home in Cape Coral fl and you miss three. Whew! You may not find another even close to that price.
   We currently have 4 buyers looking for that in one Company. Imagine with all the Realtors.
10. When you put a date for acceptance allow a week (working days). Pushing the date to two days is meaningless to the lender and you will be out of contract before they even have a chance to review it.
11. Date to obtain financing. Allow at least 45 days. I do not care how good you think your lender is, there is a new twist. The lender hires auditors and their job is to find some silly fault with the loan. They do this at the last minute. If you have 30 days on the offer and you cannot get the loan in that time limit, you have signed a addendum that comes from the lenders attorneys that you have to pay around 100.00 per day over the date on the contract.
12. Closing date: 60 days or sooner. If you put 30 days, you will be out of contract if delays happen. and pay the daily fee.  All of my deals have closed sooner with acceptance by the seller, you (buyer) , lender, and the title company.
13. Do not leave blanks in the offer. Fill them in with 0 or whatever is applicable.
14. Once the offer is accepted, they will send you the addendums from 3 to 35 pages long written by their attorneys. Here is where you will be glad you hired an Exclusive buyer agent with a lot of experience like Joseph Beauvais.  If you did not hire one, shame on you. Now you need an attorney. $$$. An attorney is paid to change things, and they will. However the bank will not accept changes. "interpretation only"
    The addendum supersedes the written offer. It normally takes away nearly all of your rights. 
15. Inspections are very important and they will change any time you put in the offer to 10 days.

An exclusive buyers agent is used to working with these inspectors and can recommend one.

Remember this is an “as is sale”. Nothing is normally removed like the refrigerator or air conditioner but if they do not work, they will not cover them. You must understand this is not a legal way to get out of the contract and get your money back. In the addendum there is one term used that has (to my knowledge) no case law to cover this term and define it. “major defects” are covered. “Structural “defects are the terms normally used. The inspection will reveal both structural and cosmetic defects. You are able to get out of the contract for “structural defects”, perhaps not under “major defects”.

Remember, any items in the home are not included. They will be left but may not be working nor part of the sale.

With all of that being said, I sell many foreclosures and have had little problems. I hope this extensive blog helps other agents as well as buyers.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Buying Foreclosures in Cape Coral Florida. Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers Foreclosures for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 July 10, 2009 – Average rates for 30-year mortgages fell for the second-straight week, but still remained above record lows reached earlier this year, Freddie Mac said Thursday.

The average rate for a 30-year fixed home loan was 5.2 percent this week, down from 5.32 percent last week, Freddie Mac said. At this time last year, the average rate for a 30-year fixed mortgage averaged 6.37 percent.

Rates on 30-year mortgages fell to a record low of 4.78 percent earlier this year, spurring refinance activity.

But rates then rose as high as 5.6 percent in June after yields on long-term government debt, which are closely tied to mortgages rates, climbed as investors worried that the huge surplus of government debt hitting the market could trigger inflation.

Since then, the yield on the 10-year Treasury note has fallen back from an eight-month high of 4.01 percent reached in June to 3.38 percent on Thursday.

Frank Nothaft, Freddie Mac’s chief economist, said rates for 30-year fixed-rate mortgages fell for the second week in a row to the lowest level in six weeks “amid market concerns over a weakening labor market.”

“The weak employment situation coupled with declining home values in many markets has added to greater defaults on home equity loans and lines of credit,” Nothaft said.

The American Bankers Association reported that the number of home equity loans that were 30 days or more delinquent rose to a record high of 3.52 percent in the first quarter, Nothaft noted.

Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.

This week, the average rate on a 15-year fixed-rate mortgage fell to 4.69 percent, down from 4.77 percent last week, according to Freddie Mac.

Average rates on five-year, adjustable-rate mortgages were 4.82 percent, down from 4.88 percent a week earlier. Rates on one-year, adjustable-rate mortgages fell to 4.82 percent from 4.94 percent.

The rates do not include add-on fees known as points. The nationwide fee for 30-year and 15-year fixed rate mortgages averaged 0.7 point, while the fee for five-year and one-year adjustable rate mortgages was 0.6 point.

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None!

The short and sweet answer!

Clearly you see from this administration a push to get people back into homes and to push home sales. It is starting to have an effect. The tax credit is definitely bringing first-time homebuyers to the market and housing will lead to our recovery. There are signs all around that we are raising the bottom. It might be kind of a rocky rise but the general consensus of economists is that we will move away from recession this year. My first thought would be a recession is a horrible thing to waste. This kind of pricing is just not going to be available in the next few years. Remember, as demand increases prices follow. You need to react to this market and you need to do it today especially with the kind of interest rates and incentives that are out there.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Effort to Protect Consumer From Bad Appraisal Creates Havoc

Joseph Beauvais Exclusive buyers agent does not have the answer as to what can be done when getting a loan for a home in Cape Coral, Naples, Ft Myers, or anywhere in S.W. Florida.

Chris Griffith / Naples Daily News  / Friday, July 3, 2009

One of the many protective measures that evolved from the housing downturn is the HVCC – Home Valuation Code of Conduct.

It was developed by federal officials to protect consumers purchasing or refinancing homes by eliminating fraud and inflated appraisals. The effort was looked upon by some as little more than closing the barn door after the horses got out.

In a nutshell, mortgage brokers may no longer communicate with appraisers. The communication with appraisers is done strictly with the lender-bank though an “appraisal management company.”

This new code may sound great in theory but the ramifications since May 1, 2009, already have started to be felt.

Gone are the days when mortgage brokers can choose an appraiser on the basis of experience, professionalism or quality of their work. Appraisals are now awarded to whoever will work for the cheapest and fastest.

Here’s how it works: A consumer goes to a bank to get a loan. The bank collects $390 for an appraisal. Yes, the price for an appraisal has now gone up because the bank pays an “appraisal management company” about half of the $390 and the appraiser gets the rest. The best, most-qualified appraisers can’t afford to work at such a discount. The consumer has no idea that their appraiser is probably less-experienced, working at a discount and has often been hired just because they’re the cheapest and the fastest appraiser on the list.

Wait, there’s more. If you’re a consumer in the process of getting a loan with “Bank A” and your mortgage broker finds a better program or you are turned down for a loan with “Bank A,” your appraisal is owned by “Bank A” and not transferable. You’ve just thrown $390 into the wind. Another appraisal has to be ordered for your second lender.

This is affecting the consumers trying to refinance their homes, too.

In the past, mortgage brokers could contact an appraiser and get an estimate on whether a home would be close to the appraisal price before spending money on a full appraisal. Now, a consumer that would like to refinance will have to go through the appraisal process and pay for it regardless of the outcome of the appraisal.

What was meant to protect the home buyers and refinancing home owners is now hurting them by costing them more and dragging out the time to fund loans. It also means rate-lock extensions or longer rate locks, which result in higher interest rates.

There were and still are good, honest and reputable appraisers that didn’t rip anybody off during the housing boom. They’re now being punished and driven out of the business by a system full of flaws, including lack of transparency.

Instead of being rewarded for years of experience and professional conduct, appraisers are being undermined by the Wal-Mart effect caused by HVCC.

In the end, those who are affected the most are consumers who are shelling out more money for less service and the local, small business owners, which include independent appraisers and mortgage brokers who are being micro-managed out of business.

It’s quite obvious that there were considerable problems with the way that appraisals were done during the boom but the way that the system is functioning right now just isn’t working.

Appraisal Rules Under Fire
Ken Harney
Friday, July 03, 2009

WASHINGTON -- It's by far the hottest controversy in real estate this summer, and it could directly affect the value of your house -- probably negatively -- by tens of thousands of dollars.

The issue concerns lowballed valuations and the new rules guiding appraisers in both price-depressed and rebounding markets. Consider these snapshots of what's going on:

-- In San Diego, Steve Doyle, division president for Brookfield Homes, is trying to close out the final 20 houses of a 120-unit single-family subdivision. Prices range from $340,000 to $350,000. But recently there's been a major hitch: Appraisers assigned by banks are coming in with valuations $60,000 or more below Doyle's selling prices. The appraisers, who Doyle says are unfamiliar with local market trends, inexperienced or both, are using distressed sales -- foreclosures and short sales of existing houses -- as their "comparables." Some of the distressed properties are in poor condition, and all of them offer fewer amenities, according to Doyle.

-- In Wilmington, N.C., a loan applicant with a house in excellent condition, and an umblemished payment record, sought to refinance into a 4 3/4 percent mortgage. She had purchased the property four years ago for $160,000 and made about $20,000 worth of improvements in the interim. Her loan application, according to Paul Skeens, president of Colonial Mortgage Group of Waldorf, Md., was "a slam dunk. Nothing to it." The house was worth $180,000 to $200,000, according to a local realty estimate.

But when an appraiser with little local knowledge was sent in by a bank to value the house, he chose two short-sale properties that had both closed in the mid-$140,000 range, and one inheritance sale around $155,000. The last property was "in horrible condition," said Skeens. "I'd call it dog meat." The deal-paralyzing appraised value that came in for the cream-puff refi: $149,000.

-- In the suburbs near Cleveland, Enzo Perfetto, manager of Enzoco Homes, builds custom houses on clients' lots. Recently, according to Perfetto, banks have begun assigning appraisers from far outside the area to value lots as part of mortgage packages on new homes. Some of the comparables they use are foreclosure situations, and that depresses land valuations. A young couple who paid $75,000 for their lot recently had it valued at just $30,000 by an out-of-area appraiser who only looked at online data, according to Perfetto -- discouraging the young couple from proceeding.

"I think the pendulum is swinging way too far in the wrong direction on appraisals," said Perfetto. Bank-assigned appraisers often "don't know the local market and they're going for low numbers to be 'safe.'"

Complaints about lowballed appraisals -- from builders, realty agents, consumers and mortgage companies -- have erupted since May 1, when government-sponsored Fannie Mae and Freddie Mac put their new appraisal rules into effect nationwide. Critics charge the new system is fostering the use of appraisers willing to work for low fees -- sometimes 50 percent below previous standards -- and who are willing to conduct home appraisals far outside their typical areas of activity.

The Fannie-Freddie system -- known as the Home Valuation Code of Conduct -- is complicated by the fact that it is a byproduct of a legal settlement in 2008 between New York Attorney General Andrew M. Cuomo and the two government-sponsored mortgage investors.

Under the code, appraisers are now routinely assigned by appraisal management companies rather than being selected by local mortgage companies or loan officers. The management companies pocket as much as 40 percent to 50 percent of the appraisal fee paid by the consumer.

Frustration with the new system boiled over and made its way to Capitol Hill late last month. The National Association of Home Builders called for an immediate change in the rules governing the use of foreclosures, short sales and other distress transactions as comparables for appraisals on non-distressed, typical homes, whether new or resale.

Two congressmen -- Travis W. Childers, D-Miss., and Gary G. Miller, R-Calif. -- have introduced legislation calling for an 18-month moratorium on the appraisal code. In identical letters to James B. Lockhart, the top regulator of Fannie Mae and Freddie Mac, and Cuomo, the National Association of Realtors also requested a moratorium and complained that the code is raising consumers' costs, distorting property values and killing sales.

Asked for comment, Lockhart said through a spokesperson that his agency is "monitoring" the situation, and considers "the views of market participants important."

Bottom line: Be aware of the issue. It affects your equity, even if you're not currently buying or selling. And watch whether Congress fixes the problem.

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Whew! Big problems for buyers with loans and appraisals

Homeowners can take advantage of tax credits for home improvements that save energy.

A new federal tax credit allows homeowners to recoup part of the cost of certain energy-efficient home improvements.

The tax credit can be claimed for such improvements as energy-efficient doors, windows, insulation, roofing materials, heating ventilation and air-conditioning (HVAC) systems, solar panels, solar water heaters, geothermal heat pumps, fuel cells and even small wind-energy systems.

The tax credit was originally enacted late last year and was updated and expanded in 2009's economic stimulus package.

How to take advantage of the energy-efficient tax credit
Homeowners can receive a tax credit of 30 percent of the cost of energy-efficient home improvements, up to a two-year maximum credit of $1,500. Like all tax laws, the rules are somewhat complicated. For example, the $1,500 cap doesn't apply to geothermal heat pumps, solar water heaters, solar panels, wind generators or fuel cells, which are more costly.

In addition, only certain types of energy-efficient products qualify for the tax credit. For some products, only the cost of materials can be claimed while for other products, both materials and installation costs can be claimed. Some of the products must be installed in the taxpayer's principal residence. Others can be installed in a new-built home, second home or residential rental property.

The tax credit can be claimed for home improvements made from Jan. 1, 2009, through Dec. 31, 2010. A tax credit is particularly valuable because, unlike a tax deduction, a credit is subtracted from the total tax that's owed, not just the income that's reported. That means the benefit is dollar-for-dollar, instead of a percentage of the deduction. Be sure to save the Manufacturers Certification Statement to document the energy-efficiency rating for each product that's purchased and installed in your home.

Research tax credit before making home improvements
It’s a good idea to do some research before you decide to make home improvements that may qualify for the tax credit. You might want to ask a qualified tax professional to give you more information about the tax-credit rules or you might want to explore the federal government's EnergyStar website to learn more about energy-efficient products. Note that not all EnergyStar-rated products qualify for the tax credit.

Homeowners also can make other improvements to make their home more energy-efficient. Ceiling fans, programmable thermostats, and energy-saving appliances and light bulbs are a few examples. These improvements don't qualify for the federal tax credit, but can save energy and lower the home's energy costs. That's particular smart for older homes since they tend to be especially susceptible to inefficient energy use.    

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#1They think the market has not bottomed out yet.

Are they right?

1. Perhaps they are.

2. Perhaps not.

Is it worth the wait?

How can it cost me money if I wait?

How savvy investors look at it! What they look for.

1. Low interest rates. As the market improves, interest rates go up. They have already gone up 1%. How much will that cost. Ask your lender. Not hundreds but many thousands.

2. They look for a large supply to get the best home out of many. Now is the time.

3. When there are a large number of homes for sale, sellers are in completion with other homes. Their Realtors let them know. They are more apt to consider an offer during high competition.

4. True the investor knows that they may offer on homes that are priced slightly higher but they can get a really nice home for a bargain and negotiate the price while market conditions are right.

5. An investor knows that waiting for the bottom is like trying to gaze into a crystal ball. It is a big gamble.

6. The right home at the right price is what investors are after.

To sum it up!

Waiting until the elusive market bottoms out severely narrows the number of homes available. What is left is what home buyers do not want. You want a great home at a great price. Right?. Waiting narrows opportunities. The interest rates rise costing thousands. An offer can be made now equaling the possible lower market value in the future. If foreign investors, the exchange rate will rise costing a fortune. Investors know the news is usually many months behind the market conditions. They contact an Exclusive buyers agent that is savvy with how to help investors.

Be a savvy investor today!

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1. Who is eligible to claim the tax credit?
   First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after January 1, 2009 and before December 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs and the title to the property transfers to the home owner.
   
   
2. What is the definition of a first-time home buyer?
   The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse.
   
   For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer, such as may occur if a parent jointly purchases a home with a son or daughter. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.
   
   
3. How is the amount of the tax credit determined?
   The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
   
   
4. Are there any income limits for claiming the tax credit?
   Yes. The income limit for single taxpayers is $75,000; the limit is $150,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
   
   
5. What is "modified adjusted gross income"?
   Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.
   
   To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income. See IRS Form 5405 for more details.
   
   
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
   Possibly. It depends on your income. Partial credits of less than $8,000 are available for some taxpayers whose MAGI exceeds the phaseout limits.
   
   
7. Can you give me an example of how the partial tax credit is determined?
   Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $8,000 by 0.5. The result is $4,000.
   
   Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $8,000 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,800.
   
   Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
   
   
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
   The most significant difference is that this tax credit does not have to be repaid. Because it had to be repaid, the previous "credit" was essentially an interest-free loan. This tax incentive is a true tax credit. However, home buyers must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Certain exceptions apply.
   
   
9. How do I claim the tax credit? Do I need to complete a form or application?
   Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on Line 69 of their 1040 income tax return. No other applications or forms are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and first-time home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase.
   
   
10. What types of homes will qualify for the tax credit?
    Any home that will be used as a principal residence will qualify for the credit. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
    
    
11. I read that the tax credit is "refundable." What does that mean?
    The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
    
    For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $8,000 home buyer tax credit. As a result, the taxpayer would receive a check for $7,000 ($8,000 minus the $1,000 owed).
    
    
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
    Home buyers in this situation may file an amended 2008 tax return with a 1040X form. You should consult with a tax advisor to ensure you file this return properly.
    
    
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
    Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been "purchased" on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and before December 1, 2009.
    
    In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.
    
    
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
    Yes. The tax credit can be combined with the MRB home buyer program. Note that first-time home buyers who purchased a home in 2008 may not claim the tax credit if they are participating in an MRB program.
    
    
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
    No. You can claim only one.
    
    
16. I am not a U.S. citizen. Can I claim the tax credit?
    Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of "nonresident alien" in IRS Publication 519.
    
    
17. Is a tax credit the same as a tax deduction?
    No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
    
    A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
    
    
18. I bought a home in 2008. Do I qualify for this credit?
    No, but if you purchased your first home between April 9, 2008 and January 1, 2009, you may qualify for a different tax credit. Please consult with your tax advisor for more information.
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
    Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.
    
    Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.
    
    Further, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. Some state housing finance agencies have introduced programs that provide short-term credit acceleration loans that may be used to fund a downpayment. Prospective home buyers should inquire with their state housing finance agency to determine the availability of such a program in their community.
    
    The National Council of State Housing Agencies (NCSHA) has compiled a list of such programs, which can be found here.
20. The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean?
    It means that HUD will allow buyers to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.
    
    Under the guidelines announced by HUD, non-profits and FHA-approved lenders will be allowed to give home buyers short-term loans of up to $8,000.
    
    The guidelines also allow longer term loans secured by second liens to be used by government agencies, such as state housing finance agencies, to facilitate home sales.
    
    Housing finance agencies and other government entities may issue tax credit loans, the funds of which home buyers may use to satisfy the FHA 3.5% downpayment requirement.
    
    In addition, approved FHA lenders will also be able to purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5% downpayment that is required for FHA-insured homes.
    
    More information about the guidelines is available on the NAHB web site. Read the HUD mortgagee letter (pdf) and an explanation of the FHA Mortgagee Letter on Tax Credit Monetization (pdf). An FAQ about monetization (pdf) is available at the NAHB web site.
21. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
    Yes. The law allows taxpayers to choose ("elect") to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.
    
    Taxpayers buying a home who wish to claim it on their 2008 tax return, but who have already submitted their 2008 return to the IRS, may file an amended 2008 return claiming the tax credit. You should consult with a tax professional to determine how to arrange this.
22. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?
    Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Interest rates continued to increase during the week ended June 11 according to results of Freddie Mac’s weekly Primary Mortgage Market Survey released this morning.  Three of the four average rates tracked by the survey were the highest of the current year.

According to the survey the 30-year fixed-rate mortgage (FRM) jumped to an average of 5.59 percent with 0.7 point.  One week ago the average rate was 5.29 percent with 0.7 point.  This is the highest average rate for the 30-year FRM since the week ended November 26, 2008 when it averaged 5.97 percent.

The 15-year FRM averaged 5.06 percent with an average 0.7 point, up from last week when it averaged 4.79 percent also with 0.7 point.  The last time the 15-year FRM was higher was the week ending December 11, 2008, when it was 5.20 percent.

Well It has started!

The five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) jumped 32 basis points to 5.17 percent.  Fees and points were unchanged at 0.6 point.  This is the highest rate for the 5-year ARM since the week ended February 12, 2009, when it averaged 5.23 percent.

One-year Treasury-indexed ARMs had an average rate of 5.04 percent this week, up from last week when it averaged 4.81 percent.  Fees and points also increased from 0.6 point to 0.7 point.  The last time the 1-year ARM was higher was the week ending December 11, 2008, when the average was 5.09 percent

Please do not wait anylonger to buy.

Call me today! 239-770-0686

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

 Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.

Sales of existing single family homes were up 101% above the prior year with 1,451 existing single-family homes sold, compared to 719 in May '08. Year to date, 66% of all single family homes sold listed in the MLS were bank-owned; of these 64% were cash deals. At the end of May, there were 7,477 active listings of existing single-family residential properties compared to 11,634 a year ago (a decline of 33.7%) and the active listings were down 13.7% versus the prior month.

What does this mean to you. He who hesitates is not lost but looses the best deals at great prices.

It is not too late but you better hurry!

Cape Coral Real Estate Search thousands of Cape Coral, Bonita Springs, Naples & Ft Myers homes for sale with our Free MLS Search. We have the Largest list of homes for sale in Lee County.