Thursday, April 29, 2010

Fed remains cautious despite good economic news

Deciding once again that the economy remains too fragile for higher interest rates, a cautious Federal Reserve kept increases on hold Wednesday and repeated that conditions requiring low rates were likely to remain for an extended period.

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Monday, April 26, 2010

Time is running out to get the Home Buyer Federal Income Tax Credit!

Time is running out to get the Home Buyer Federal Income Tax Credit!

You must be under contract by April 30, 2010 to be eligible for this $8,000 tax credit for first-time buyers. Previous homeowners, you may be eligible for a $6,500 tax credit....but you must act soon!

Contact us today for more information, and visit our website to view our great listings.

Our Team of Preferred Real Estate Consultants would be happy to assist you with finding the home of your dreams!

Tuesday, April 13, 2010

FHA Property Flipping Requirements

With certain exceptions, FHA has prohibited insuring a mortgage on a home owned by the seller for less than 90 days. This restriction was imposed in 2003 to prevent property flipping (reselling for profit with an artificially inflated value). On January 15, 2010, HUD announced a temporary (1 year) waiver of the prohibition with strict conditions to ensure against predatory practices.
Effective April 1, 2010, will allow the 90-day waiver for all properties acquired directly from a lender, but prohibits FHA financing for properties owned less than 90 days if the sales price is greater than or equal to a 20% increase over the seller's acquisition cost. The 90 days is calculated from the seller's acquisition date to the purchase contract date of the new transaction.
If the resale occurs within 0 to 90 days, the following requirements must be met:
1. All transactions must be arms-length; no identity of interest between buyer, property seller or third parties. Specific ways to ensure an arms-length transaction include:
Property seller currently holds title to the property. LLCs, corporations or trusts serving as property sellers must meet all applicable state and federal law.
No pattern or previous flipping activity exists on the property (as evidenced by multiple title transfers within 12 months.
The property was marketed openly and fairly (Any sales contracts with "assignment of contract of sale" may be a red flag).
2. Transactions with sales price greater than or equal to a 20% increase over seller's acquisition cost are not allowed.

Thank you for your business.

Monday, April 5, 2010

Pending Home Sales Rise in February

Pending home sales rise 8.2 % in February The biggest month-to-month increase was in the Midwest where pending sales jumped nearly 22%. Evidence that the Home Buyer Credit is stimulating the purchase market.

Just a reminder you have until April 30th to secure a contract and June 30th to close. I am sure there will be a large number of last minute contracts coming in. DONT WAIT UNTIL THE LAST MINUTE as you may get bogged down in underwriting.

Call Keith Stewart today to get Pre-Approved 773-529-7000

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