Tag Archives: first time buyer

7 Reasons To Own A Home

31 Mar

If you have never owned a home you may not be aware of the benefits. Here is a list of 7 good reasons:

  1. Tax breaks. The U.S. Tax Code lets you deduct the interest you pay on your mortgage, your property taxes, as well as some of the costs involved in buying your home.
  2. Appreciation. Real estate has long-term, stable growth in value. While year-to-year fluctuations are normal, median existing-home sale prices have increased on average 6.5 percent each year from 1972 through 2005, and increased 88.5 percent over the last 10 years, according to the NATIONAL ASSOCIATION OF REALTORS®. In addition, the number of U.S. households is expected to rise 15 percent over the next decade, creating continued high demand for housing.
  3. Equity. Money paid for rent is money that you’ll never see again, but mortgage payments let you build equity ownership interest in your home.
  4. Savings. Building equity in your home is a ready-made savings plan. And when you sell, you can generally take up to $250,000 ($500,000 for a married couple) as gain without owing any federal income tax.
  5. Predictability. Unlike rent, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own the home longer. However, keep in mind that property taxes and insurance costs will increase.
  6. Freedom. The home is yours. You can decorate any way you want and benefit from your investment for as long as you own the home.
  7. Stability. Remaining in one neighborhood for several years gives you a chance to participate in community activities, lets you and your family establish lasting friendships, and offers your children the benefit of educational continuity.

Million Dollar Smile

24 Aug

Well, look-y here. It’s Jeffery Hodges wearing the million dollar smile of a man that just bought his first house! It’s always so exciting for me to be a part of this dream that many people have. I love my job! Congratulations Jeff!

Jeff just bought his first home!

Marvin’s First Home!

15 Mar

Congratulations to Marvin Phidd. We found a great little historic property downtown, that was built in the late 1800’s. I was able to negotiate lots of upgrades and updates, so Marvin got everything he wanted. He really lucked out! Marvin utilized a loan program called Dream Maker, which is sponsored by the City of Savannah. Marvin had his entire down payment paid by Dream Maker and I got the seller to pay all of his closing costs.

16 Belfair Drive ~ REDUCED

13 Oct

Erin Rowley | Coldwell Banker Platinum Partners | 912 224 0460
16 Belfair Drive, Savannah, GA
First Time Buyer Tax Credit Ready! Get your $8,000 here….REDUCED
2BR/1BA Single Family House
offered at $109,000
Year Built 1987
Sq Footage 800
Bedrooms 2
Bathrooms 1 full, 0 partial
Floors Unspecified
Parking Unspecified
Lot Size Unspecified
HOA/Maint $0 per month

DESCRIPTION

Super cute cottage style home is waiting for you! It would be perfect for a student or first time buyer. The property does have a sturdy rental history, so even you investors out there should consider it.

This home is located just minutes from both malls, hospitals, schools and universities. Just around the corner from Hunter Army Airfield too!
It’s hard to beat the convenience of this location.

This house has exceptional value. For the money you get a deep one car garage with tons of storage space and laundry area , nice sized privacy fenced back yard, an adorable eat in kitchen with appliances and a cozy floor plan. and a neighborhood where children still play in the streets….close to malls, schools, and hospitals.

Owner will let you pick your new carpet!

https://savvyinsavannah.wordpress.com

see additional photos below
PROPERTY FEATURES

– Central A/C – Central heat – High/Vaulted ceiling
– Living room – Breakfast nook – Dishwasher
– Refrigerator – Stove/Oven – Yard

ADDITIONAL PHOTOS


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Photo 6
Contact info:
Erin Rowley
Coldwell Banker Platinum Partners
912 224 0460
For sale by agent/broker

powered by postlets Equal Opportunity Housing
Posted: Feb 2, 2010, 8:15am PST

First Time Buyer Tax Credit: Advance Topic “Monetization”

14 Aug

creditI’m sure by now, everyone has heard about the Federal First Time Buyer Tax Credit. You know, the free $8,000 you can get back at tax time if you purchase a home as a first time buyer? There are a few other pieces of information that are worth a mention. But first, let me recap the basics of the Federal First Time Buyer Tax Credit, aka American Recovery and Reinvestment Act of 2009:

  • The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
  • The tax credit does not have to be repaid.

  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.

  • The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.

  • Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

So now that we’ve gone through the refresher, let’s talk about some “advanced” topics regarding the credit. Have you heard of monetization? In relation to the credit, it’s the idea that we can turn the credit into actual cash money. An advance on the anticipated credit. On Friday, May 29, HUD issued Mortgagee Letter 2009-15, which outlines the requirements that must be met in order to monetize the first-time home buyer tax credit.

The tax credit can be monetized in two ways:

  • Qualified individuals (Government) may advance the anticipated credit by creating a second lien (a second “loan” against the property to be purchased).
  • FHA-approved lenders may purchase the anticipated tax credit from a home buyer.

SO LONG AS,

  • The borrower does NOT get cash back
  • The second lien cannot be greater than the sum of the down payment, closing costs, and prepaid expenses.
  • Payments to repay the advance do not have to be counted in the home buyer’s qualifying ratios as long as the payment is deferred at least 36 months from closing.

Which means  you will be able to use the advance to pay closing costs or other expenses, like escrows.

The Downside

The FHA’s required 3.5 percent minimum down payment must still come from the home buyer’s own funds and cannot include any of the money from advancing the credit. Which means you have to get together your own cash for a down payment when using an FHA loan. The only way to get around it is getting a “gift”.  That’s a whole other topic, though. 😉

So as always, I encourage you as a home buyer, to do your homework. Get with a lender and a Realtor. Realize that some people may tell you no along the way, but if you don’t A-S-K, you don’t G-E-T.

Good Luck!

The USDA Loan Program

13 Aug

USDA-RD_web

The first time I heard someone mention a USDA loan, it threw me for a loop. I thought about it for a second, and the only inference I could make is that the USDA is the government regulatory agency for farmers. So, I assumed it was a loan program just for farmers and acreage. I was wrong.  Actually, the USDA loan program is one designed to stimulate the development in “rural” areas, but it’s open to anyone who wants to buy a single family home.

By definition, the USDA loan is a government insured loan program that is designed to make qualifying areas more affordable. In relation to Savannah, anything in Chatham or Effingham County, so long as it’s West of I-95, qualifies.  Stop and think about that folks. That means that a huge chunk of Pooler qualifies, as well as Port Wentworth, Rincon, Guyton, and Springfield. Now that you know where you can get this loan, let’s look at some other qualifications.

  • The USDA loan is considered “100% financing“, which means you don’t have to put any money down. This has the potential to be great! In many cases, you can buy a home for less than what you pay in rent.
  • There is no mortgage insurance premium, like there would be with an FHA loan. ( This is money that is paid into escrow to insure your lender against loss or default on your loan).
  • There is no maximum loan amount. As long as your income and credit can support it, there is no cap on the amount of your loan.
  • Think your credit score is in the can and you can’t qualify? All you need is a credit score of 580 to qualify.
  • ALL USDA loans are 30 year FIXED at whatever the current market rate is.  Today is 5.26% for example.
  • You can purchase re-sell or new construction properties.
  • You may even get approved with Chapter 7 bankruptcy!

There are some downsides to the program:

  • There are income limitations. These limitations are based on your income, and number of people in the household.
  • Also, I think it’s wise to plan to stay in your home a minimum of 3-5 years. At that point, you may have enough equity in the home to move up.

Not to worry though. It’s a great opportunity for many people to purchase a home that aren’t cash friendly. Despite what the media reports, real estate is still a very sound investment, as long as you go about it the right way. Be responsible. Do some investigating. Speak to lenders and get the help of a Realtor!

http://eligibility.sc.egov.usda.gov/eligibility/incomeEligibilityAction.do

USDA Home Loans in Washington