The "818" on Real Estate

I wanted to share some information regarding the FHA loan. The FHA loan is government insured and has been a real driver in the housing market. Please click this link http://www.washingtonpost.com/wp-dyn/content/article/2009/12/02/AR2009120200025.html , or read my summary below: Historically, the FHA has played a critical role in propping up the housing market by insuring lenders against default after the mortgage market failed. Currently, the agency guarantees approximately 30 percent of all home loans and 20 percent of refinancing. In the past, the FHA has resisted raising down payments or insurance premiums, fearing it would be shutting out qualified borrowers and stunting the housing market’s recovery. The FHA is hoping that the proposed changes, including requiring that borrowers bring more cash to the closing table, will ensure that borrowers are less likely to default on their loans. Officials at FHA have yet to determine how much cash will be required. Up-front cash can inclu...

Individuals who were in escrow on or before April 30th 2010 and close on or before June 30th are eligible for the $8,000/$6,500 tax credit. The extension you have been hearing about is only for the same individuals who were already in escrow by April 30th. The House passed a stand alone extension to September 30th. The Senate has NOT passed the bill yet.... Stay tuned and stay informed! http://http//www.irs.gov/newsroom/article/0,,id=204671,00.html http://http//www.youtube.com/watch?v=BqF0osZG650

I wanted to remind everyone that the federal tax credit of $8,000 will be up December 1st 2009. This tax credit is awarded for your 2009 tax return and is only for first time buyers. A first time buyer is an individual who hasn’t owned in the last three years. There have been rumors of the credit is being extended and also that it could be used as your down payment. There is also a $10,000 tax credit for Californians who purchase new construction. $24 million in tax credit certificates have already been awarded and these funds are limited. I will update you with the progress. Until then, please never hesitate to inquire about: selling or buying a home this year. I am always available either by cell phone or email.

How much return is your equity bringing? Investors and homeowners could both benefit from putting their equity to use. CALL ME FOR #4 (market value – what’s owed) 1) Annual Gross Income (Monthly rent x 12) = $ 2) Annual expenses (Annual mortgage payments, taxes, insurance, maintenance and any other expense) = $ 3) Annual NET income (subtract 2 from 1) = $ 4) Estimated NET Equity = $ 5) Cash on Equity Return ( #3 divided by #4) = % Two Solutions for better cash flow: 1) Refinance to acquire additional investment properties for better ROI and ROE 2) Sell and acquire superior properties via a 1031 Tax Deferred Exchange. Jesse James 818-326-0945

Current local sales trends at: http://www.srar.com/node/244 Summer has reached its end and the holidays are quickly approaching. This is usually a slow time for real estate, but with all the favorable conditions it may remain steady through the season. The $8,000 tax credit is still around for those of you who close escrow before November 1st 2009. Take advantage of these low prices, excellent interest rates and generous federal tax credit. Qualifying for a loan is easier than you think. ..

So, you are pre-approved for a home loan and are ready to start looking for your slice of America . Well, be prepared but not discouraged. Remember that any home you purchase today is over 50% off in most areas. So what’s the problem you say? There isn’t a problem with prices or financing. The problem is the competition that buyers face, MORE buyers. In order to combat this you must be stronger and more determined than the next. The major component for being stronger is price….bottom line. You may not get a home for 50% off but 30% still isn’t bad! You are buying your home, not stocks. Offer well above the list price and your chances increase exponentially. Being determined must come from the inside while never sacrificing your character. Do you remember the story of Tortoise and Hare? Be the tortoise that persevered. Don’t let impatience or greed propel you into a home that will be yours forever. Easy does it. There is no secret….

This link will determine if you qualify for Obama's new Making Home Affordable plan: http://www.financialstability.gov/makinghomeaffordable/refinance_eligibility.html This link is for a HUD approved organization to assist with the process: http://www.lanhs.org/index.php?section=calendar&subsection=view_event&event_id=16