DC Urban Living

Top banks taking some responsibility in our economic distress?

2012-02-09T12:10:00.001-05:00

Banks will pay roughly $26 billion to reimburse American homeowners and overhaul their industry. Nationwide settlement stems from abuses that occurred after the housing bubble burst. This settlement is not perfect but it is a start to right the wrong of the financial atrocities that homeowners have endured in the hands of these banks, it is my hope that the momentum continues. Read the article (link) and tell me your thoughts.

http://www.bbc.co.uk/news/business-16961355

10 tips that give your room a facelift on a dime

2012-02-06T20:38:00.000-05:00

1. Add a new paint color

One of the cheapest, simplest ways to change the look of a room is to change the color of your walls. A new color can transform a room. If painting a whole room seems overwhelming just paint one wall or your door, it will instantly jazz up the space.

2. Light it Up

You can bring an entire room to life by changing your light fixture. You will find a large variety of stylish, affordable fixtures in most stores, I prefer target, ikea, and home depot. It's actually very easy to install the fixtures yourself, i like this youtube video from home depot

3. Move It

One of my favorite ways to redecorate is to move furniture, decorations and Art you already have. Look around your home and think of how items from one room could change the setting in another room. A simple trunk, book case or chair would look great in your favorite or not so favorite room. Try clustering items together, like candlesticks, books or vases to create a focal point. Don't for get your art work.

4. Look Down

Want to add the wow factor real quick? Put a bold area rug down. It can make a room seem cozier and new. Don't forget to put something on top of it like a piece like a trunk (instant coffee table) and Chairs

5. Green it up

House plants can serve many purposes in improving the environment of your home. They bring a soothing, natural atmosphere into a room. Many kinds of house plants actually help cleanse the air of harmful indoor pollutants such as benzene, formaldehyde and trichloroethylene all of these have been found in new homes. Herbs and aloe vera can provide fresh ingredients for cooking and healing (aloe vera is often used to soothe burns and bug bites).

The next five will be posted later this week make sure you subscribe

Top 5 Neighborhoods in Washington, DC

2012-02-02T15:21:00.000-05:00

I was reading the real estate section of the Washington Post and came across this great article. Washington Post List DC Top 5 Neighborhoods I was happy to see my favorite neighborhood, Shepherd Park Listed as the Top 5. Shepherd Park is this wonderful little treasure nestled in the Northwest quadrant of the District, bordering Silver Spring, Maryland. This friendly neighborhood has a thriving and diverse community were it seems everyone knows each other. If you ever have the opportunity you should drive through park your car and take a walk, the landscaping and architecture of the homes are amazing.

5 Eco-Smart ways to save money and keep warm

2012-01-17T17:34:00.002-05:00

Winter time is here! This is the perfect time to start thinking about ways to reduce your heating cost. Here are 5 smart ways to heat your home in an environmentally green way.

Adjust your thermostat by turning it down when you're not home. By turning your thermostat back 10 or 15 degrees for eight hours you can save 10 percent a year on heating and cooling bills. Using a programmable thermostat is also a good way to schedule when you want the temperature up or down, you won't have to remember to adjust because it will already be scheduled.
Use fireplace inserts If you have an older fireplace, you could be losing more money than you realize. Since many older fireplaces have open hearths that produce slightly more warm air than they consume, most of them are only 5 to 10 percent efficient. By using a fireplace insert -- often made from steel plates, cast iron and glass -- homeowners can make their fireplace airtight, attractive and more efficient.
Use a space heater In some homes, or more specifically, apartments where central heating may not be practical, space heaters can be used. If you're only looking to heat one room, space heaters can deliver warmth at a fraction of the cost of oil or gas. Space heaters, which often just run on electricity can also eliminate the risk of overheating a home and wasting otherwise needed heating oil. There are safe heaters on the market now that auto cut off when tilted and will not burn you or your littles ones when touched. Always turn off your heater when leaving the house.
Weatherize your home Weatherizing your home is one of the best ways to stop a heating problem before it begins. In the early autumn homeowners should look for cracks and holes in their foundation, doorways and windows. To prevent the cold weather from getting inside their house in the first place, homeowners can apply weatherstripping or caulk to particularly drafty areas. Caulking and weatherstripping gaps in doorways and windows has been found to pay for itself in energy savings within a year.
Upgrade your current heating system T
hose not looking to perform a major overhaul on their home should look into upgrading their current heating system. Mechanisms like a HeatManager and a hot water heating system fuel economizer can be installed to help curb fuel consumption by up to 10 percent.

These are the top 5 ways believe will help you keep warm in eco-friendly way. Using radiant heat, double pane windows,and solar panels are costly but can save you up to 40% in heating and sometimes cooling cost.

Going green is economically and environmentally smart.

A garden of blooming questions

2011-04-15T09:28:00.000-05:00

It was such a beautiful day yesterday that I decided to take time and do some gardening. I should let you know that I am not a gardening, get in the dirt type girl, but I truly enjoyed myself. As I was looking for plants at the nursery I was amazed and overwhelmed by the selections. I started thinking Wow! this must be how my buyers feel when they are looking for their home. I've created a list of a few questions that are often asked by clients and friends who have bought or are buying in the metro area. If you have any questions please feel free to ask. Happy Spring!

Q: What should I do before I start the process of looking for a home?

A: Everyones’s situation is unique so it is important that you speak with your REALTOR® to better understand what needs to be done. Here are some starting points I believe all buyers should do.

- Check your credit rating. Straighten out any errors before its too late.
-Determine a comfortable monthly budget for your new purchase, including down payment and monthly mortgage payment.
- Find a loan program that you are comfortable with, meets your needs and gets you qualified.
- Choose a REALTOR® that you trust, understands your needs and really knows the area you are interested in living.
- Determine where you want to live if you are not sure a REALTOR® will be able to assist you in recognizing the area that best fits your needs.

Q: I want to buy investment property is now a good time?

A: Investing is good but there is always a risk. Most investors want to rent or lease and some want to fix it up and resale. It''s all about location and demand. Is there a need for what you want to do with your property. There are a lot of empty buildings with lease signs on it. Residential rentals are sitting longer, can you carry that mortgage for a few months? This is a buyers market so homes for sale are staying on the market for 90 days and up, will you be able to handle this? Bottom line is that you need to do a lot of demographic research as well as Financial research to make sure that the decision you make is a well prepared and informed one.

Q: When is the best time to buy a house?

A: I believe the best time to buy a house is when you are mentally and financially ready. There are times when financially a person can be ready to purchase a home but mentally they can't get their minds around the responsibilities of owning one, therefore they end up wasting a lot of their time and the REALTOR®. I suggest doing research by asking homeowners. The same goes for buyers who are not financially ready to buy.

Shake off the Winter and Spring Into Action!

2011-04-02T08:47:00.004-05:00

A no cost way to prepare your home for Spring !

- 1
  
  **Clear Out the Clutter**
  Get a large contractors bag and walk through your home. Start from the front door of your home and make your way towards the back door. If you don't have a back door, start from the back of your home and make your way to the front. Doing this allows the flow of bad energy to leave the space. Anything that is collecting dust toss it in the bag. Dump it. Get rid of it. Forget about it. Don't think twice about throwing things out. Don't even think about eBaying your items because you know it's going to sit there and not be touched for another year. Getting the clutter out of the way is (1) a jump start to organizing each room, (2) good for the brain because you now do not have this burden of the "to do list," and (3) allowing good energy to flow throughout the home.
- 2
  
  **Rearrange Furniture**
  Start with the room you use least, for example the guest room. After you have thrown out all of the useless junk and organized, make sure you give the room a good scrub-down. Rearrange the furniture. Try something new. Spin the bed around, get rid of a table, add a chair, etc.. After you're done with the room you use least, go on to your kid's bedrooms, and then your own bedroom. Switch things around. Make your way towards the kitchen.
- 3
  
  **Lose Weight**
  Lose the drapes. They are too heavy for the Spring. Don't just push them to the side. Take them completely off. Store them until the Fall. Remove some area rugs. Doing this allows your space to feel light and refreshing.
- 4
  
  **Wash the Windows**
  Spring is a beautiful season. Let the beauty shine through without water spots and streaks in the way. When you're done cleaning them, open all the windows in your home and let the cool breeze flow through. Allow the stale air to leave and the fresh air flow in. Fresh air is good for the mind.
- 5
  
  **Eat Differently**
  Throw away the junk food, even if you have children. Add vegetables to your diet. If you eat vegetables as part of your dinner every night already, add more. The more green you eat, the better you'll feel.
- 6
  
  **Leave Your Home**
  Get out and enjoy the change in season! Make it a point to walk around for at least ten minutes everyday and observe the green get richer and richer. Spring is a new beginning...make it yours, too!

Get House buying healthy by getting Credit Ready

2010-08-10T13:07:00.006-05:00

Healthy credit scores have never been more important. As banks tighten their lending standards, it's important to have your score as high as possible.

A FICO score is a number, in general from 300 to 850, that is formulated from your payment history, including such things as amounts of money owed, length of your credit history, new credit accounts open, and how you have used your credit. Age, salary, race, education, and religion do not affect your score. You can't buy a good score; you can only build one over time by demonstrating that you are a responsible borrower.

To improve your credit score, start with these steps.

1. Pay your bills on time. This seems like a simple enough feat, but in hard economic times, more and more borrowers are finding themselves hard-pressed with the decision of what bill to pay. If you find yourself having a hard time paying bills, be sure to talk with the lender or company you owe. They may have programs or suggestions that will help you avoid having your bill sent to collections.

2. Don't let items go to collections. Once an item is sent to collections, your credit report will suffer. This ding will stay on your report for seven years.

3. Don't open other new credit lines when applying for a home loan. You may want the new car or living room set, but the home buying process is not the time to open multiple new accounts. This is a sure-fire way to temporarily reduce your credit score. If you do this before finalizing your mortgage, you many find yourself stuck with a higher interest rate.

4. Monitor your report on a regular basis for errors and cases of identity theft. Errors do happen. To get them corrected quickly, be sure to contact both the organization that provided the erroneous information, as well as the credit bureau. Identity theft happens. And it is your responsibility to identify it and address it!

5. Pay down credit cards. Carrying high balances on credit cards can severely affect your credit score. Think of it this way. If you have a grand total of $10,000 worth of credit limits available, but you owe $5,000 on all of your cards put together, you are using half of your available credit!

The best loans and mortgages are available to borrowers with FICO scores 700 and above. Experian, one of the major credit reporting agencies, reports that the average credit score is 693.

For a look at your credit report, visit the government sponsored site, myannualcreditreport.com. You may access your report three times a year free of charge.

by: Realty Times

2010-08-05T12:01:00.000-05:00

Tax Benefits of Homeownership

The tax deductions you’re eligible to take for mortgage interest and property taxes greatly increase the financial benefits of homeownership. Here’s how it works.

Assume:

$9,877 = Mortgage interest paid (a loan of $150,000 for 30 years, at 7 percent, using year-five interest)
$2,700 = Property taxes (at 1.5 percent on $180,000 assessed value)
______

$12,577 = Total deduction

Then, multiply your total deduction by your tax rate.

For example, at a 28 percent tax rate: 12,577 x 0.28 = $3,521.56

$3,521.56 = Amount you have lowered your federal income tax (at 28 percent tax rate)

Note: Mortgage interest may not be deductible on loans over $1.1 million. In addition, deductions are decreased when total income reaches a certain level.

2010-08-03T22:57:00.001-05:00

Five Surprising Reasons to Buy a Home Now

Low mortgage rates serve as an equity shock absorber. When buyers borrow at today's record-low rates, they start building equity as soon as they close. That means they can absorb a few ups and downs as the still-recovering housing market gains traction.
Houses are in move-in condition. Home owners have continued to spend on maintenance and repair, according to the Harvard Joint Center on Housing. As these houses enter the market, they are in marked contrast to tattered foreclosures.
Terrific houses are coming on the market. Foreclosures are finally starting to clear the system, and they are being replaced by some very attractive properties.
Appraisal regulations are finally aligned with market realities. Fannie Mae has adjusted its appraisal guidelines, giving appraisers more flexibility to set values that reflect the current market.
Plenty of programs. Many programs that encourage middle-class families to buy homes continue to exist, despite market downturns. Buyers who qualify can get a big boost by combining one of these programs with today's low mortgage rates.
Source: ForSaleByOwner.com (07/29/2010)

2010-05-20T08:25:00.000-05:00

House Approves Home Star Energy Rebates

The House of Representatives passed H.R. 5019: the Home Star Energy Rebate Act, sending the bill to the Senate for its consideration. The bill would establish the voluntary "Home Star" energy efficiency program to offer financial incentives including rebates to homeowners who choose to make energy-related home improvements.

Obama Administration Announces Enhancements to HAMP

2010-05-03T11:03:00.001-05:00

The Obama Administration, announced changes to the Home Affordable Modification Program (HAMP) and enhancements to the FHA's refinance program. The Federal cost of these changes will be funded through the $50 billion allocation for housing programs under the Troubled Asset Relief Program (TARP).

Under the HAMP enhancements, unemployed borrowers meeting eligibility criteria will have an opportunity to have their mortgage payments temporarily reduced to an affordable level for at least 3 months and up to six months for some borrowers while they look for a new job. Eligible homeowners under HAMP must live in an owner occupied principal residence, have a mortgage balance less than $729,750, owe monthly mortgage payments that are not affordable (greater than 31 percent of their income) and demonstrate a financial hardship.

Tax Credit Deadline : what you need to know

2010-03-03T10:04:00.001-05:00

What You Need to Know

As part of its plan to stimulate the U.S. housing market, Congress last fall approved the Extended Home Buyer Tax Credit. This extended the deadline for the First-Time Home Buyer Tax Credit from Nov. 30, 2009, to April 30, 2010, and expanded it to include repeat buyers.

What’s the deadline?

To qualify, first-time and repeat buyers must have a binding written contract by April 30 and close by July 1.

How much money is available?

The maximum allowable credit for first-time home buyers is $8,000. The maximum for repeat buyers, also referred to in the legislation as "long-time residents," is $6,500.

What properties are eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including single-family homes, condos, townhomes, and co-ops.

How do buyers get the benefit?

Buyers can apply the credit to their 2009 tax return, filed on or before April 15, 2010; file an amended 2009 return; or apply the credit on their 2010 return, filed on or before April 15, 2011.

Who qualifies?

To qualify as a first-time home buyer, the purchaser or his or her spouse may not have owned a residence during the three years prior to the purchase. To qualify as a repeat buyer, current home owners must have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

Are there income limits?

The new law raises the income limits for people who purchase homes after Nov. 6, 2009. The full credit will be available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers. Those with MAGI between $125,000 and $145,000—or $225,000 and $245,000 for joint filers—are eligible for a reduced credit. Those with higher incomes do not qualify.

Short Sales the ups and down, down, downs

2009-10-02T23:51:00.002-05:00

Unfortunately, there's nothing short about the process of buying a short sale. In fact, the chance of closing a deal on this type of home sale is a long-shot. If you'd like to make an offer on a short sale listing, you should be ready to wait several months for all the parties involved in the process to approve or reject your offer.

What is a Short Sale?

A short sale listing is one in which the seller still owns the property, but owes more money on his mortgage than he will get from selling the property. Most often, more than one bank holds a mortgage on the property and each bank has to approve the sale. These banks and lenders will be evaluating multiple offers at once, many coming from wealthy investors with all cash offers and the patience to wait it out.

How are Short Sales Different Than Foreclosures?

Short sale homes are still owned by the home-owner, while foreclosures are owned by banks. If the home-owner cannot sell the home through a short sale, the bank initiates foreclosure to try to sell the home directly, often in an auction. If the auction fails to turn up a buyer willing to pay at least what the bank was owed on the home, the home becomes Real Estate Owned (REO), where the owner is the bank. The bank then typically sells the property through a real estate agent.

How Do I Know If a Listing is a Short Sale?

MRIS requires listing agents to disclose that the property is a short sales in the listing.

However, it can be missed . So you may not realize that the property you are trying to buy is a short sale. When you schedule a tour to go see homes or submit an offer I'll confirm that the homes you are looking at are not short sales.

The Problem with Short Sales

The ownership of the mortgage on a short sale home usually belongs to more than one party, so you'll likely have to convince multiple banks and lenders to take a loss on their original loan. This is why it takes so long to approve a short sale offer.

Here's the typical life cycle of a mortgage loan on a short sale:

The customer buys a home and secures a mortgage loan for financing.
The customer's mortgage lender then sells the original loan to a secondary mortgage market.
That loan gets bundled together with a bunch of others to be sold again as mortgage-backed securities.

This complicated scenario makes it nearly impossible to figure out who has authority over approving a short payoff on any one mortgage. Loan servicers also complicate the situation: they could care less whether an offer actually goes through and are dealing with thousands of these cases at once.

Recent Short Sale Drama

T Here are some recent posts from frustrated buyers:

"We've been waiting since January for the bank to say yes or no on our offer. Apparently, no one cares, even though the homeowners haven't paid their mortgage for over 1 1/2 years. We are renting, awesome credit, and have money (50% to put down)...one would think the bank would be anxious to sell it to us. But noooooo, we're still waiting...

"I bid $440K on a short sale. I was told my offer was second over a $380K all cash offer. When the cash offer fell through the listing agent said we could revise our bid to $380K since the bank had already accepted that. It seemed weird, but how could I pass that up? So I resubmitted the bid at $380K only to be told later that my $380K bid was submitted alongside a $420K bid to the bank, which was lower than my original bid...

The Bottom Line...

If you still plan to make an offer on a short sale, be prepared for a long haul. In the meantime, we suggest that you continue touring and considering other homes in case the short sale doesn't go through. Keep in mind that even if your offer is accepted, the banks will usually ask you to buy the home as-is and won't pay for any repairs discovered by an inspection.

$8000 Homebuyer Credit ending soon!

2009-09-29T07:16:00.004-05:00

Until November 30th the federal government is giving, yes that is correct giving first time homebuyers $8,000 to buy a home. This is not a loan or a deduction on next year's taxes. A first time homebuyer also means someone that has not owned a home for the past three years so if you are a former owner and haven't owned a property in the past three years you may very well qualify. Again this is a dollar for dollar tax credit. So if the amount of the approved tax credit is greater than the amount owed in taxes you are mailed a check for the difference, Which means you could actually get the whole $8000 back.

Why give away $8000, it's there for you.

If your in the position to purchase a home and want to take advantage of this great opportunity give send me a e-mail Keisha@dcurbanliving.com or Give me a call so we can get you started! I assist Buyers in Virgina, District of Columbia and Virgina. Visit www.dcurbanliving.com

First-Time Homebuyer Credit Questions and Answers: Basic Information

Q. What is the credit?

A. The first-time homebuyer credit is a new tax credit included in the recently enacted Housing and Economic Recovery Act of 2008. For homes purchased in 2008, the credit operates like an interest-free loan because it must be repaid over a 15-year period.

The credit was expanded in 2009 for homes purchased in 2009, increasing the amount of the credit and eliminating the requirement to repay the credit, unless the home ceases to be your principal residence within the 36-month period beginning on the purchase date.

Q. How much is the credit?

A. The credit is 10 percent of the purchase price of the home, with a maximum available credit of $7,500 ($8,000 if you purchased your home in 2009) for either a single taxpayer or a married couple filing a joint return, but only half of that amount for married persons filing separate returns. The full credit is available for homes costing $75,000 or more ($80,000 if purchased after Dec. 31, 2008, and before Dec. 1, 2009).

Q. Which home purchases qualify for the first-time homebuyer credit?

A. Any home purchased as the taxpayer’s principal residence and located in the United States qualifies. You must buy the home after April 8, 2008, and before Dec. 1, 2009, to qualify for the credit. For a home that you construct, the purchase date is considered to be the first date you occupy the home.

Taxpayers (including spouse, if married) who owned a principal residence at any time during the three years prior to the date of purchase are not eligible for the credit. This means that you can qualify for the credit if you (and your spouse, if married) have not owned a home in the three years prior to a purchase. If you make an eligible purchase in 2008, you claim the first-time homebuyer credit on your 2008 tax return. For an eligible purchase in 2009, you can choose to claim the credit on either your 2008 or 2009 income tax return.

Q. Can I apply for the credit if I bought a vacation home or rental property?

A. No. Vacation homes and rental property do not qualify for this credit.

Q. Who is considered to be a first-time homebuyer?

A. Taxpayers who have not owned another principal residence at any time during the three years prior to the date of purchase.

Q. Can a dependent on someone else’s tax return claim the first time homebuyer credit if they otherwise qualify?

A. Yes. There is no limitation under section 36 that a first-time homebuyer cannot be a dependent. However, taxpayers who do not otherwise qualify for the credit do not become eligible for the credit simply by using a minor child’s name. In addition, under state law children under the age of 18 generally are not bound by any contract they sign and cannot be required to comply with the terms of the contract. Thus, it is extremely unlikely that a seller of a home, or a lender if financing is required, would enter into a bona fide sale of a home to a child. Merely using the child’s name to purchase a home does not qualify the child for the credit if, in substance, the child is not a bona fide purchaser of a home.

Q. When do I have to buy a new home to get the credit?

A. The home must be purchased after April 8, 2008, and before Dec. 1, 2009, in order to obtain the credit. For a home you construct, the purchase date is considered to be the date you first occupy the home.

Q. Are there income limits?

A. Yes. The credit is reduced or eliminated for higher-income taxpayers. The credit is phased out based on your modified adjusted gross income (MAGI). For a married couple filing a joint return, the phase-out range is $150,000 to $170,000. For other taxpayers, the phase-out range is $75,000 to $95,000. This means that the full credit is available for married couples filing a joint return whose MAGI is $150,000 or less and for other taxpayers whose MAGI is $75,000 or less.

Q. Can a taxpayer claim the first-time homebuyer credit after entering into a contract for the purchase of a residence but before closing on the purchase?

A. No. Taxpayers cannot claim the credit before there is a completed sale and purchase of the residence. The sale and purchase are generally completed at the time of closing on the purchase. (New 7/2/09)

Q. Can a taxpayer claim the first-time homebuyer credit if the purchase is pursuant to a seller financing arrangement (for example, a contract for deed, installment land sale contract, or long-term land contract), and the seller retains legal title to secure the taxpayer's payment obligations?

A. If the taxpayer obtains the "benefits and burdens" of ownership of a residence in a seller financing arrangement, then the taxpayer can claim the credit even though the seller retains legal title. Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property. (New 7/2/09)

Q. I purchased a home that qualifies for the first-time homebuyer credit. I will be renting two of the bedrooms and reporting the rental income on Schedule E. Will I still qualify for the credit if I use the home as my principal residence?

A. Yes, if you meet all first-time homebuyer eligibility requirements.

Q. I purchased a duplex home with two separate dwelling units. I will live in one dwelling and will rent out the other dwelling unit and report the rental income on Schedule E. May I qualify for the first-time homebuyer credit, and what amount do I use for the purchase price to determine the amount of the credit?

A. Yes, you may qualify for the credit for the dwelling unit that you use as your principal residence. To determine the amount of your credit, you must allocate the purchase price of the duplex between the two separate dwelling units. Your credit is 10% of the portion of the purchase price of the duplex allocated to your dwelling unit that you use as your principal residence, up to a maximum credit of $8,000. You may not use the entire purchase price of the duplex to determine the amount of your credit.

Q. If two unmarried people buy a house together, how do they determine how much each may take of the credit?

A. IRS Notice 2009-12 provides guidance for allocating the first-time homebuyer credit between taxpayers who are not married.

Q. I am a single co-owner of a home. How do I get this credit?

A. Depending on the year of purchase, you will claim the credit on either your 2008 or 2009 federal income tax return.

Q. I don’t owe taxes and/or my income is exempt from tax and I do not have a filing requirement. Do I qualify for the credit?

A. The credit is fully refundable and, if you qualify as a first-time homebuyer, having tax-exempt income will not preclude eligibility. Although there are maximum income limits for qualifying first-time homebuyers, there are no minimum income criteria. Thus, someone with no taxable income who qualifies as a first-time homebuyer may file for the sole purpose of claiming the credit for a refund.

Q. Would I be considered a first time homebuyer if I owned a principal residence outside of the United States within the previous three years?

A. Yes. A taxpayer who owned a principal residence outside of the United States within the last three years is not disqualified from taking the credit for a purchase within the United States.

Q. Who cannot take the credit?

A. If any of the following describe you, you cannot take the credit, even if you buy a new home:

Your income exceeds the phase-out range. This means joint filers with MAGI of $170,000 and above and other taxpayers with MAGI of $95,000 and above.
You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.

Q. Does previously inheriting a home and living in the inherited home automatically disqualify an individual as a first-time homebuyer with respect to a different home that is purchased within the prescribed 2008 and 2009 time frames?

A. Yes, an ownership interest in a prior principal residence would preclude the taxpayer from being considered a first-time homebuyer. As long as the taxpayer owned and used the prior home as his principal residence, then he is not a first-time homebuyer. There is no exception for taxpayers who did not buy their prior residences. (05/06/09)

Q. If I claim the first-time homebuyer credit in 2009 and stop using the property as my main home before the 36 month period expires after I purchase, how is the credit repaid and how long would I have to repay it?

A. If, within 36 months of the date of purchase, the property is no longer used as the taxpayer's principal residence, the taxpayer is required to repay the credit. Repayment of the full amount of the credit is due at that time the income tax return for the year the home ceased to be the taxpayer's principal residence is due. The full amount of the credit is reflected as additional tax on that year's tax return.

Q. If a person does not actually make the payments on a home that’s their primary residence, but the deed and mortgage documents are in their name, can they be considered a first-time home buyer?

A. Yes. If a taxpayer purchases a home to be used as a primary residence from an unrelated person and has not owned a home within the previous 36 months, the taxpayer is eligible for the first-time homebuyer credit regardless of who makes the mortgage payment. (05/06/09)

Buyer's Market, Also 'Buyers Beware' Market

2008-08-15T18:28:00.001-05:00

by Broderick Perkins

More home buyers have a better chance now than at any other time in nearly a half decade to negotiate a home-buying deal that costs less and comes with some concessions thrown in.

In many locations, buyers will find a glut of new homes, more motivated sellers, foreclosures, auctions, short sales and other market conditions that can make it a really good time to buy.
That doesn't mean throw caution to the wind.
The same conditions that lure buyers to market also lure misfits looking to cash in on your unfettered haste and the waste left from a boom market gone bust.
No matter what the market conditions, it's also always a buyers beware market, now perhaps more than ever.
Here's how to begin to navigate today's housing market, step-by-step, and make a good deal without getting taken.
Begin with making a personal "right-time-to-buy" decision. If you stretch financially beyond your means to go after lower-priced homes, foreclosures or short sales, you could be setting yourself up for failure. Today's housing market is littered with home owners who borrowed more than they could afford.
On the other hand, if you wait for prices to fall further you could miss out on a good deal. No one knows when the market hits bottom until it begins a sustained upward turn and you can look back and actually see bottom.
Buy now because it's the right thing to do for you, because you need a roof over your head, because it's more affordable than renting and because you plan on sticking with the home long enough to make the deal pay off. Buy because homeownership is integral to your budget, your lifestyle and your goals.
Get to know the many facets of home buying.
You've got a lot to learn, but obtaining a broad base of knowledge about the home-buying process is a relatively easy task, requiring only your time and attention. A glut of information is available on the Internet, from real estate industry-sponsored seminars and workshops and through a vast library of real estate guide books. You can also sit down with real estate agents (including exclusive buyers' agents, who never represent sellers), mortgage brokers, loan officers and accredited home ownership counselors. Post-secondary education at colleges and universities is also available.
Next, get to know your local market or the market where you plan to buy, because that's where your action is.
Accept national news for what it is, a broad brush stroke of current events. You want housing news and information that really hits home. Get your housing market information from credible publications and broadcasts covering your market.
Part of your homework should include learning the boundaries of your buyer's market. Your market can be designated by a ZIP code, a small neighborhood, a greater community or some larger region.
Whether it's a new home, resale property, foreclosure or short sale, learn the true value of any property you are considering. Uneducated buyers tend to low-ball sellers and ask for too many concessions. That can alienate the seller, especially those less motivated with top-value homes. Likewise, knowledge helps prevent you from spending too much.
In both cases, use a real estate agent schooled in the history of local market trends and statistics. See comparables, track sale prices in your shopping area, use the local newspaper, online listing and for sale sites and other sources, to keep tabs on asking prices. Also visit open houses.
Check your credit. Your credit report is free from AnnualCreditReport.com, the only federally regulated source. You may have to pay a nominal fee for your credit score (a numerical scoring of your creditworthiness) depending upon your state law and other factors. But see both your score and your report. You may need to request corrections or adjust your credit habits to generate the best report and score -- before you start home loan shopping.
Get your cash in the pipeline. Get approved -- in writing -- for a mortgage. Use your newly gained knowledge to shop around -- a lot -- for a home loan. Shop online and off. Shop mortgage brokers, loan officers, credit unions and other lenders. Shop where you bank, shop where you don't. The key is exhaustive comparison shipping to get the most money at the cheapest rate.

Selling Your Home In a Market Full of Foreclosures

2008-08-15T18:24:00.000-05:00

by Phoebe Chongchua

Take a look in just about any neighborhood and you may find the sign of distressed times. Foreclosures are on the rise and that can cause a lot of panic for sellers who aren't in the same financial crisis.

"We're in a very price-sensitive market and obviously in any buyers' market that's the case," says Chris Heller, President of The Heller Real Estate Group, Inc. at Keller Williams.
The increase of awareness about foreclosures is stimulating buyers to keep fishing and pushing for even lower prices for homes.
"So the sellers who are not in foreclosure or who are not in distress have to compete with those properties with the same pool of buyers. So there are two things that they can do; the two things are: pricing the property so it is competitively priced … and they have to make sure that the property shows in absolute perfect condition," says Heller. He adds, "The more choices the buyer has, the more critical the showing condition."
Get clear about your market-length time. Having an accurate picture of how long you can have your home on the market will help you to price it correctly. Remember, that buyers aren't going to pay a premium price out of sympathy simply because the seller owes more on the mortgage. Price your home based on its worth, not on what you owe.
Work with an agent. Now more than ever, an experienced agent can help provide the advice and knowledge sellers need to get their home sold. Agents can also help to aggressively market your home so that it doesn't get lost in a sea of foreclosure homes.
Price your home correctly from the start.
All too often sellers end up taking a humble ride down and diminishing their possible gain. "They end up chasing the market down -- whether they realize it or not," says Heller. Price is critical. When determining price, don't just look at computer screen shots of homes that are selling in your neighborhood, get in the car and take a ride around to view the exterior and interior of properties that your home will be competing against -- that's exactly what buyers will do. Overpricing your home will cause it to sit on the market for an extended period. Eventually your listing will become stale and you may receive many lowball offers from buyers who are simply fishing to see how low you'll go. If a home is slightly underpriced you can generate more attention and improve your chances of getting a qualified offer.
Choose the best methods to promote your home. "Nowadays, advertising isn't really important because every buyer has access to almost complete information via the Internet -- everyone can find the properties," says Heller. "Advertising used to be important when buyers didn't have access to the property or a way of finding the property, but now buyers can do their own shopping, searching, and finding. They're going to do that based on their perception of value and how it's priced based on the other properties that they are looking at," explains Heller. However, that doesn't mean you shouldn't have virtual tours and lots of pictures loaded on websites that feature your home -- buyers like to preview before they actually see the home in person.
Make your home the best value "Buyers are going to look at all their options. We have to make it painfully obvious that we're the best value. It doesn't always mean the lowest price. It may mean a nicer house for the same price. It may mean having more goodies for the same price. It may mean having a lower price, but the buyers have the information and prices of what's available and they will choose the one that is the best value -- and we're either going to help sell the other homes or the other homes are going to help sell ours," says Heller.

Real Estate Investment Basics

2008-04-16T09:00:00.001-05:00

Real Estate Investment Basics
by Broderick Perkins

Here's the rub:

Just like buying a home to live in, taking the real estate investment plunge requires taking stock of your financial goals, planning and lifestyle before taking the plunge.
Pretty much like buying any property.
If you've got the time, the money and the lifestyle that lends itself to managing a real estate investment, you are just about half way there.
However, both halves are pretty big halves.
The National Real Estate Investors Association says you've still got a lot of work to do.
Here's what.
Buy your own home first. Buying a home will not only put a roof over your head, but also teach you the true cost of property ownership beyond the monthly mortgage payment; give you a primer on financing; school you on how location and changing market conditions affect property values; give you the angle on tax and other home-owning benefits; help you learn about property maintenance; introduce you to a host of professionals who could prove invaluable when you really get into investments; and otherwise get you grounded for higher studies in real estate investments.
Even before home ownership, the involved process of buying a home provides basic information that later could prove invaluable to you as an investor. What's more, your first home could later become your first investment property, a property in a market with which you are familiar.
Go back to school. A booming real estate market that pushes your home value up by double digit percentages in the first year doesn't make you a market mogul any more than a housing bust should scare you off. After you buy your own home, turn to the Internet, libraries of books by reputable authors, successful, credible investment groups, college and university level courses, even your state's real estate license program. Become your own expert. You aren't required to sell homes just because you have a real estate license, but what you'll learn getting one will certainly give you a leg up on your investment moves.
Individual real estate investors, salespeople and others who you met on the way to home ownership may also be valuable resources, both for information and perhaps as a mentor. Using more than one resource will help you cancel out the bad information and ferret out the good.
Get professional help. The same way you find any competent, trustworthy and honest professional is the same way to look for a mentor, investment partner with prior knowledge or investment group. Seek referrals from friends, family, professionals with whom you already conduct business, co-workers and others you trust who've recently had a satisfactory, successful experience investing in real estate.
Someone who already knows the ropes will come in handy when you are on the ropes.
And chances are, no matter how hard you study, you'll need professional help to acquire your investment and later, beyond the buying stage, when questions arise, property management issues surface or you get bogged down by your new endeavor.
That's particularly true if you invest from a distance and buy investments away from your primary residence.
Learn your investment market. One market's bubble could be one investor's boom and another investor's bust. A home in one market could give you vacation rental income in a half year sufficient to cover the cost of principal, interest, taxes, insurance, home owner association dues, upkeep and other costs, but still not appreciate. Another home in another market may not bring you sufficient rent in a year's time to cover the cost of owning the property, but might appreciate more than enough to make up for your carrying costs over the long term.
The variables are endless and you'll need to measure your capacity for risk against market conditions.
This is where education and professional help come in. Your education should teach you not only by rote, but also how to find the answers you need. The pro is your point person and backup to help you fill in the gaps with experienced guidance.

2008-01-10T16:11:00.000-05:00

RESIDENTIAL STYLES

Learn about the home styles in your market and beyond. Our Residential Styles guide includes detailed descriptions about popular styles.

Art DecoA vertically oriented design includes flat roofs and metal window casements.
NeoclassicalNeoclassical homes exist in incarnations from one-story cottages to multilevel manses.
BungalowA forerunner of the craftsman style, you'll find rustic exteriors and sheltered-feeling interiors.
PrairieOriginated by Frank Lloyd Wright, this style can be house boxy or low-slung.
Cape CodA true classic, Cape Cod homes have gabled roofs and unornamented fronts.
PuebloFlat roofs, straight-edge window frames, and earth-colored walls typify Pueblos.
ColonialAn offshoot of the Cape Cod style, it features a rectangular design and second-floor bedrooms.
Queen AnneEmerging in the Victorian era, the style features inventive floor plans and decorative chimneys.
ContemporaryUnmistakably modern, this style has odd-sized windows and little ornamentation.
RanchRanch homes are set apart by pitched-roof construction, built-in garages, and picture windows.
CraftsmanFull- or partial-width porches are framed by tapered columns and overhanging eaves.
RegencyThe style borrows the Georgian's classic lines, yet eschews ornamentation.
CreoleA front wall recedes to form a first-story porch and a second-story balcony.
SaltboxIts sharply sloping gable roof resembles old-time boxes used for storing salt.
Dutch ColonialGerman settlers originated this style, which features a broad, barn-like roof.
Second EmpireThis Victorian style features mansard roofs with dormer windows.
FederalThis style arose amid a renewed interest in Greek and Roman culture.
ShedA subset of the Modern style, Shed houses are asymmetric with sloping roofs.
French ProvincialBalance and symmetry define the French Provincial style, which has a steep hip roof.
ShingleAn American style that echoes Queen Anne, it has unadorned doors and large porches.
GeorgianWith paired chimneys and a decorative crown, this style was named after English royalty.
ShotgunTradition says that a shotgun blast can trace a straight path from the front to back door.
Gothic RevivalEnglish romanticism influenced this style, marked by Gothic windows and vaulted roofs.
Spanish EclecticThis style has details from Moorish, Byzantine, Gothic, and Renaissance styles.
Greek RevivalEntryway columns and a front door surrounded by rectangular windows are characteristic.
Split LevelA Modern style, Split levels sequester living activities, such as sleeping and socializing.
InternationalThe International style exposes functional building elements, including elevator shafts.
StickDecorative horizontal, vertical, or diagonal boards are typical of this Victorian style.
ItalianateThis style has symmetrical bay windows in front, small chimneys, and tall windows.
TudorTudors have half-timbering on bay windows and upper floors, and steep cross gables.
MontereyThe Monterey style updates the New England Colonial style with an Adobe brick exterior.
VictorianBuilt during the rise of the machine age, Victorian architecture incorporated decorative details such as patterned shingles.
NationalRooted in Native American dwellings, the National style is rectangular with side-gabled roofs.

2007-10-17T11:10:00.000-05:00

10 Questions to Ask Your Lender

Be sure you find a loan that fits your needs with these comprehensive questions.

1. What are the most popular mortgage loans you make? Why?

2. Which type of mortgage plan do you think would best for us? Why?

3. Are your rates, terms, fees, and closing costs negotiable?

4. Will I have to buy private mortgage insurance? If so how much will it cost and how long will it be required? NOTE: Private mortgage insurance is usually required if you make less than a 20-percent downpayment, but most lenders will let you discontinue the policy when you’ve acquired a certain amount of equity by paying down the loan.

5. Who will service the loan? Your bank or another company?

6. What escrow requirements do you have?

7. How long is your loan lock-in period (the time that the quoted interest rate will be honored)? Will I be able to obtain a lower rate if they drop during this period?

8. How long will the loan approval process take?

9. How long will it take to close the loan?

10. Are there any charges or penalties for prepaying the loan?

2007-10-10T08:06:00.000-05:00

5 Property Tax Questions You Need to Ask

What is the assessed value of the property? Note that assessed value is generally less than market value. Ask to see a recent copy of the seller’s tax bill to help you determine this information.
How often are properties reassessed and when was the last reassessment done? Generally taxes jump most significantly when a property is reassessed.
Will the sale of the property trigger a tax increase? Often the assessed value of the property may increase based on the amount you pay for the property.
Is the amount of taxes paid comparable to other properties in the area? If not, it might be possible to appeal the tax assessment and lower the rate? For information about real property tax in the District of Columbia Visit: http://otr.cfo.dc.gov/otr/cwp/view,a,1330,q,594366,otrNav_gid,1679,otrNav,%7C33280%7C.asp
Does the current tax bill reflect any special exemptions that you might not qualify for? For example, many tax districts offer reductions to those 65 or over.

Mortgage Mondays

2007-07-17T08:41:00.000-05:00

Here is a great "money guy" I like to go to for information concerning finances in real estate.

Question 1)

What is the difference between a pre-qualification and a pre-approval for a home loan?

A pre-qualification is usually what a loan officer does first. A loan officer will run your income to debt ratios, check your credit, and find a loan program that meets your needs to get you pre-qualified. Once a complete loan package has been put together, it can be submitted for approval. A pre-approval is usually an approval of the borrower’s credit package and subject to the property appraisal, escrow, title and purchase contract.

Thank you for joining Mortgage Mondays with Chekeim Wymes, I look forward to receiving and answering your questions.

See you next Monday.

Chekeim Wymes
Mortgage Loan Officer
Bank of America Mortgage
2936 Chain Bridge Road Suite 300
Oakton, VA 22124
Tel: (240)-375-9803- Cell
Fax: (301)-560-6695
chekeim.wymes@bankofamerica.com

Worth The Investment

2007-05-30T09:51:00.000-05:00

Is Now a Good Time to Invest?

The housing market may have slowed, but being a real estate investor can still be profitable — if you readjust your strategies.

High prices, rising inventories, and skittish buyers have driven several speculators from the marketplace. But some investors aren’t going anywhere. Only if you’ve been listening to policymakers such as Federal Reserve Chief Ben Bernanke and David Berson, chief economist for Fannie Mae, you might be hearing otherwise. They predict that investor involvement in housing will continue to recede, causing the housing market to soften further. True, it's no longer possible in most of today’s markets to flip a home to another buyer at a substantial premium, but investors can still make money in real estate. For investors who love the challenge, you’re in luck — it can still be a good time to buy a home, improve it, and sell it at a profit. The reasons for my optimism?

Homes in move-in shape are always in demand by home buyers who wish to take advantage of tax benefits, neighborhood amenities, and the other joys of owning their home.
Investors can target their investments in burgeoning, up-and-coming markets such as Austin, Texas, which could be the next Silicon Valley.

While the outlook for existing-home sales, new-home sales, and housing starts will likely fall slightly this year, a gradual rebound is expected and the market looks promising in 2008, according to NAR statistics.Investor Market Conditions Investors, as defined by the NATIONAL ASSOCIATION OF REALTORS®, are nonoccupying home buyers; they represented as much as 20 percent of home buyers in 2005, the biggest sales year on record. In fact, in 2005, investor demand for housing was at a premium, largely because rising home values in many parts of the country all but guaranteed a return on investment. In some areas, investors purchased as many as 40 percent of the homes for sale. A sobering one-third of homes nationwide were purchased by nonoccupying home owners, either as second homes or as investment properties. That alone almost guaranteed a recession in housing would be just around the corner, as those properties came flooding onto the market for a cash-out. However, sales in 2006 were still the third best on record. Sure, the precipitous 17.3 percent drop in volume from the all-time high achieved in 2005 represented the largest decline since 1990. And price gains in 2006 were anemic, rising 1.1 percent to $222,000, from a median price of $219,600 in 2005, so investors no longer were looking for quick equity gains.But investors evidently haven’t fled the market, since housing sales are still in recent-record territory, although they may be changing to a longer term strategy. Adjusting StrategiesAs long as investors have financial staying power, they’ll be around. So as the market rebounds over the next few months, investors can:
Take advantage of tax benefits. A slowing market allows investors to become occupying home owners, so they can take advantage of tax benefits themselves. The Tax Relief Act of 1997 allows anyone to buy a home, occupy it for at least two years as a homestead, rent it for three years, and sell it tax-free up to a ceiling of $500,000 gains for married couples and $250,000 for singles. Under those provisions, investors can purchase with conforming loans, which have a lower interest rate and more generous down payment terms than the stricter investor-oriented loans. It's the slower route to wealth, but it will get you there.

Snatch up good deals. In fact, investors stand to gain in markets where other sellers are panicking. They can pick up choice properties at better prices.
Buy and hold. What's missing for investors, at least temporarily, is the momentum of price appreciation, which allowed investors and speculators quick capital gains that they weren't seeing in other forms of investment. Therefore, investors in the current market are moving from flipping homes to buying and holding. The strategy is to take advantage of high inventories, choose wisely, and hold longer term. Then, cash-in at the next seller's market. The only problem for statisticians is distinguishing which home buyers are investors in homesteaders clothing and which aren't.