On May 29, the Department of Housing and Urban Development (HUD) announced that FHA will allow first-time buyers to apply their up-to $8,000 tax credit toward closing costs when buying their home. (To see the news release, go to http://www.hud.gov/news/release.cfm?content=pr09-072.cfm.)
Purchasers will still have to pony up 3.5% out of their own pocket for the down payment. But they can take whatever money they would receive in the form of the tax credit and apply it toward closing costs or add it on top of the 3.5% they’ve already put down.
Closing costs can be a deterrent to homeownership, so this is good news. Of course, it’s a government program, so there are lots of rules to follow. But if you have a qualified lender, they’ll be able to help you navigate the maze and come out of it with a home and maybe even some cash left over in your bank account. Looks like a win-win to me.
Tiny Varner is a licensed Realtor© in Virginia, Maryland, and the District of Columbia. She loves her job.
Thursday, June 4, 2009
Friday, May 15, 2009
FHA Myths and Misconceptions
Homebuyers, FHA is back in vogue. Back in the bubble years, FHA financing was the red-headed stepchild of the mortgage world because borrowers could get better interest rates and terms using conventional financing. But as underwriting standards have tightened, FHA is more Christina Applegate and less Marla Hooch.
Because it’s been so long since we’ve paid attention to FHA, I’d like to clear up some myths and misconceptions concerning the program. One myth: that FHA is for first-time buyers only. Yes, a lot of first-time buyers are utilizing the program because the down-payment requirement is just 3.5%, but everyone is welcome to join in the party.
Another misconception is that FHA is only for buyers with questionable credit. It’s true that your FICO score can dip a little lower with FHA, but again, no one is excluded for having a great credit score. Seriously, how silly would that be?
Some folks also think you have to go through some sort of homebuyer educational program to qualify. Again, not true. Any idiot can apply for FHA financing.
FHA financing being more expensive than conventional financing is another (sometimes) myth. At high loan-to-value ratios, conventional financing can be more expensive due to the rising costs of conventional mortgage insurance, says Jim Semeyn, a loan officer for Bank of America. At lower LTVs, conventional may be the way to go if you have more than 3.5% for the down payment, but check out both options before committing to any one loan program.
I’m sure there are many other FHA myths floating around out there. For more information about FHA financing, go to http://www.hud.gov/buying/loans.cfm. And if you still have questions after visiting the site, any good loan officer should be happy to get you some answers.
Tiny Varner is a licensed Realtor in Virginia, Maryland, and the District of Columbia. She loves her job.
Because it’s been so long since we’ve paid attention to FHA, I’d like to clear up some myths and misconceptions concerning the program. One myth: that FHA is for first-time buyers only. Yes, a lot of first-time buyers are utilizing the program because the down-payment requirement is just 3.5%, but everyone is welcome to join in the party.
Another misconception is that FHA is only for buyers with questionable credit. It’s true that your FICO score can dip a little lower with FHA, but again, no one is excluded for having a great credit score. Seriously, how silly would that be?
Some folks also think you have to go through some sort of homebuyer educational program to qualify. Again, not true. Any idiot can apply for FHA financing.
FHA financing being more expensive than conventional financing is another (sometimes) myth. At high loan-to-value ratios, conventional financing can be more expensive due to the rising costs of conventional mortgage insurance, says Jim Semeyn, a loan officer for Bank of America. At lower LTVs, conventional may be the way to go if you have more than 3.5% for the down payment, but check out both options before committing to any one loan program.
I’m sure there are many other FHA myths floating around out there. For more information about FHA financing, go to http://www.hud.gov/buying/loans.cfm. And if you still have questions after visiting the site, any good loan officer should be happy to get you some answers.
Tiny Varner is a licensed Realtor in Virginia, Maryland, and the District of Columbia. She loves her job.
Monday, April 6, 2009
Dulles Metrorail Information
For those of us who live/play/work in and around Tysons Corner, Va.
Unless you’ve been in a coma for the last few years (and if you have been, my sympathies, but I’m glad you’re back), you’ve heard about the Dulles Metrorail project that is happening in Tysons Corner.
You’ve probably already sat in worse-than-usual traffic along Route 7. I didn’t think worse traffic was possible, but it turns out that ripping up the service roads did the trick. We now have lunchtime rush-hour delays. I am limited to running errands from 8pm–10pm. Sweet.
If you’re like me, you’re wondering what’s going on and what’s going to happen as the project progresses. For information, go to www.dullesmetro.com.
Here you’ll find maps (I love maps) showing the locations of future stations and recent news about the project. If nothing else, visit the site for the traffic advisories.
We’ll have to live with a few years of growing pains, but here’s hoping it makes Tysons a better place to live/play/work. Until then, sit back and enjoy the ride.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
Unless you’ve been in a coma for the last few years (and if you have been, my sympathies, but I’m glad you’re back), you’ve heard about the Dulles Metrorail project that is happening in Tysons Corner.
You’ve probably already sat in worse-than-usual traffic along Route 7. I didn’t think worse traffic was possible, but it turns out that ripping up the service roads did the trick. We now have lunchtime rush-hour delays. I am limited to running errands from 8pm–10pm. Sweet.
If you’re like me, you’re wondering what’s going on and what’s going to happen as the project progresses. For information, go to www.dullesmetro.com.
Here you’ll find maps (I love maps) showing the locations of future stations and recent news about the project. If nothing else, visit the site for the traffic advisories.
We’ll have to live with a few years of growing pains, but here’s hoping it makes Tysons a better place to live/play/work. Until then, sit back and enjoy the ride.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
Wednesday, March 18, 2009
Avoiding Foreclosure
Anyone who has been watching the news or reading anything to do with the economy and/or real estate knows that we’re living in a bleak economic time. I won’t rehash all the gory details here as it’s not my intent to bring anyone down.
So for everyone out there who is staring foreclosure in the face, please know that it doesn’t have to be a foregone conclusion that you’re going to lose your home. If you lie awake at night and worry about becoming one of the newly homeless, there is some hope. HopeNow.com, to be exact.
HopeNow “is an alliance between HUD approved counseling agents, mortgage companies, investors and other mortgage market participants that provides free foreclosure prevention assistance,” according to the website.
You can thank the Department of the Treasury and the U.S. Department of Housing and Urban Development for this little nugget. They encouraged lenders, investors, and non-profits to form this alliance to try to stem the tide of foreclosures that has been inundating your local housing market.
In addition to the website (http://www.HopeNow.com) they also have a phone number you can call: 888-995-HOPE (4673).
If you’re facing foreclosure, quit dilly-dallying and ask for help. And if you have a friend or family member who is facing foreclosure, please along this information. Now.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
So for everyone out there who is staring foreclosure in the face, please know that it doesn’t have to be a foregone conclusion that you’re going to lose your home. If you lie awake at night and worry about becoming one of the newly homeless, there is some hope. HopeNow.com, to be exact.
HopeNow “is an alliance between HUD approved counseling agents, mortgage companies, investors and other mortgage market participants that provides free foreclosure prevention assistance,” according to the website.
You can thank the Department of the Treasury and the U.S. Department of Housing and Urban Development for this little nugget. They encouraged lenders, investors, and non-profits to form this alliance to try to stem the tide of foreclosures that has been inundating your local housing market.
In addition to the website (http://www.HopeNow.com) they also have a phone number you can call: 888-995-HOPE (4673).
If you’re facing foreclosure, quit dilly-dallying and ask for help. And if you have a friend or family member who is facing foreclosure, please along this information. Now.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
Tuesday, March 3, 2009
New Stuff for 2009
Exciting new stuff is going on for homeowners in 2009 (if you consider tax credits exciting).
First, the recently passed stimulus plan gives first-time home buyers a tax credit of up to $8,000. The IRS defines a first-time home buyer as someone who “has not owned another home at any time during the three years prior to the date of purchase.” And it’s good for your principle residence only, not investment properties.
Unlike last year’s tax break, which gave a credit of up to $7,500 but requires the credit to be paid back over time, this tax break is yours to keep. No need to worry about having to shell out $500 per year to Uncle Sam until the “credit” is paid back.
The credit is offered only to those who purchase in 2009. They didn’t make the credit retroactive, so if you bought last year, you’re out of luck. You’re stuck with the “credit” that’s really a loan in disguise that has to be paid back.
Income limits do apply. For singles, your adjusted gross income must be less than $75,000, and less than $150,000 for married couples. If you earn more than the limits, you may be eligible for a reduced credit, so be sure to check with a tax professional.
Other restrictions are in place as well. For example, you’ll have to keep the house for three years. If you sell before then, you’ll be on the hook for the money. The IRS will consider some exceptions (say, death or divorce) but check with a tax professional first. When it comes to the IRS, don’t assume because…well, you know.
Other good news for homeowners is the raised cap on credits for energy-efficient improvements that you make to your home. The limit was raised from a maximum of $500 to $1500. Some examples of improvements that qualify are new windows, adding insulation, roof replacement, and more. For a complete list, visit http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.
Hopefully, these credits will make tax time a bit more bearable. Until next time, here’s wishing you many happy returns!
Tiny Varner is a licensed real estate agent in Virginia, Maryland, and the District of Columbia. She loves her job. She can be reached at Tiny@TinyVarner.com.
First, the recently passed stimulus plan gives first-time home buyers a tax credit of up to $8,000. The IRS defines a first-time home buyer as someone who “has not owned another home at any time during the three years prior to the date of purchase.” And it’s good for your principle residence only, not investment properties.
Unlike last year’s tax break, which gave a credit of up to $7,500 but requires the credit to be paid back over time, this tax break is yours to keep. No need to worry about having to shell out $500 per year to Uncle Sam until the “credit” is paid back.
The credit is offered only to those who purchase in 2009. They didn’t make the credit retroactive, so if you bought last year, you’re out of luck. You’re stuck with the “credit” that’s really a loan in disguise that has to be paid back.
Income limits do apply. For singles, your adjusted gross income must be less than $75,000, and less than $150,000 for married couples. If you earn more than the limits, you may be eligible for a reduced credit, so be sure to check with a tax professional.
Other restrictions are in place as well. For example, you’ll have to keep the house for three years. If you sell before then, you’ll be on the hook for the money. The IRS will consider some exceptions (say, death or divorce) but check with a tax professional first. When it comes to the IRS, don’t assume because…well, you know.
Other good news for homeowners is the raised cap on credits for energy-efficient improvements that you make to your home. The limit was raised from a maximum of $500 to $1500. Some examples of improvements that qualify are new windows, adding insulation, roof replacement, and more. For a complete list, visit http://www.energystar.gov/index.cfm?c=products.pr_tax_credits.
Hopefully, these credits will make tax time a bit more bearable. Until next time, here’s wishing you many happy returns!
Tiny Varner is a licensed real estate agent in Virginia, Maryland, and the District of Columbia. She loves her job. She can be reached at Tiny@TinyVarner.com.
Wednesday, February 18, 2009
A Simple Overview of the Home-Buying Process
You’ve decided to take the plunge and pursue the American dream of homeownership. The first thing you should do is speak to a lender and discover your buying power. No point in wasting many a Sunday afternoon at open houses if you can’t get a loan, right? I mean, unless you enjoy that sort of thing, then go ahead. Knock yourself out.
But what next? Figure out what you want and where you want it. Drive through neighborhoods that you’re interested in on the weekend or in the evening after work. You’ll get a real feel for the community. You can also make a trip from the areas you like to your place of employment during rush hour to see what your commute will be like. You might think you like an area, only to find that every weekend the high school marching band back-up reserves practice in the park starting at 7am. Or that your commute will take you 2 hours each way.
Once you’ve picked an area, it’s time to find a competent Realtor and start looking at available properties. Ask friends, family, and co-workers for recommendations. Or call me if you’re looking in VA, MD, or DC. (C’mon, I HAD to put in a plug for myself!)
After you’ve found the home you want, it’s time to write an offer. Depending on your situation, there will probably be contingencies. In this current market, I recommend that all my clients include a minimum of a home inspection contingency, financing contingency, and an appraisal contingency. Each situation is different, so be sure to thoroughly discuss all of your options with your Realtor. If there’s anything you don’t understand, ask questions! We Realtors love to flaunt our knowledge and explain things that might not make sense to you the first time around. It makes us feel important, and who doesn’t like that???
Once the offer is accepted in writing by all parties, then the fun really begins. Inspections are scheduled and you’ll sign your first born away to the lender. You’ll also have to select a settlement attorney, obtain hazard insurance, and let the utility company know you’ll be moving. Your Realtor will be able to suggest inspectors, attorneys, and anyone else you’ll need to get the deal to the settlement table. If you already have someone you like to work with, that’s great. The choice is yours.
Hopefully, you’re able to work through all the contingencies, and then a day or two before settlement, you’ll do a pre-settlement walk-through inspection. Here, you’ll look to make sure that any negotiated repairs have been completed and that the seller did not knock any softball-sized holes in the walls while they were moving. If there are problems, your agent will notify the other party and you’ll have some more negotiating to do. Hopefully, this goes smoothly and won’t make your ulcer flare up. Or mine.
On the day of settlement, be prepared to sign A LOT of papers. Everything will be explained to you as you go through the paperwork, but ask questions about anything you don’t understand. Settlement attorneys do so many closings that they go on auto-pilot through the paperwork, so you’re bound to have questions. We want them to feel important, too, so don’t hesitate with the questions.
And when it’s all over, you’ll get the keys to your new home. Then it’s off to Lowe’s to pick up your new orange day-glo paint for the living room. After all, it’s yours now. Do with it what you want.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
But what next? Figure out what you want and where you want it. Drive through neighborhoods that you’re interested in on the weekend or in the evening after work. You’ll get a real feel for the community. You can also make a trip from the areas you like to your place of employment during rush hour to see what your commute will be like. You might think you like an area, only to find that every weekend the high school marching band back-up reserves practice in the park starting at 7am. Or that your commute will take you 2 hours each way.
Once you’ve picked an area, it’s time to find a competent Realtor and start looking at available properties. Ask friends, family, and co-workers for recommendations. Or call me if you’re looking in VA, MD, or DC. (C’mon, I HAD to put in a plug for myself!)
After you’ve found the home you want, it’s time to write an offer. Depending on your situation, there will probably be contingencies. In this current market, I recommend that all my clients include a minimum of a home inspection contingency, financing contingency, and an appraisal contingency. Each situation is different, so be sure to thoroughly discuss all of your options with your Realtor. If there’s anything you don’t understand, ask questions! We Realtors love to flaunt our knowledge and explain things that might not make sense to you the first time around. It makes us feel important, and who doesn’t like that???
Once the offer is accepted in writing by all parties, then the fun really begins. Inspections are scheduled and you’ll sign your first born away to the lender. You’ll also have to select a settlement attorney, obtain hazard insurance, and let the utility company know you’ll be moving. Your Realtor will be able to suggest inspectors, attorneys, and anyone else you’ll need to get the deal to the settlement table. If you already have someone you like to work with, that’s great. The choice is yours.
Hopefully, you’re able to work through all the contingencies, and then a day or two before settlement, you’ll do a pre-settlement walk-through inspection. Here, you’ll look to make sure that any negotiated repairs have been completed and that the seller did not knock any softball-sized holes in the walls while they were moving. If there are problems, your agent will notify the other party and you’ll have some more negotiating to do. Hopefully, this goes smoothly and won’t make your ulcer flare up. Or mine.
On the day of settlement, be prepared to sign A LOT of papers. Everything will be explained to you as you go through the paperwork, but ask questions about anything you don’t understand. Settlement attorneys do so many closings that they go on auto-pilot through the paperwork, so you’re bound to have questions. We want them to feel important, too, so don’t hesitate with the questions.
And when it’s all over, you’ll get the keys to your new home. Then it’s off to Lowe’s to pick up your new orange day-glo paint for the living room. After all, it’s yours now. Do with it what you want.
Tiny Varner is a licensed Realtor® in Virginia, Maryland, and the District of Columbia. She loves her job.
Thursday, January 22, 2009
Happy Belated New Year
OK, so I'm like 3 weeks late with this post. I've been super busy, and that's a great thing.
Over the last few weeks that I've been MIA, I've been reading a lot about how horrible 2008 was for real estate, and how 2009 isn't going to be much better. But my year is starting off great. I live in a market that has fared well through the downturn. I can't ignore all the negative articles out there about how hard it will be. But I can read each and take it with a grain of salt. And I will. And I won't let all the negativity bring me down.
Over the last few weeks that I've been MIA, I've been reading a lot about how horrible 2008 was for real estate, and how 2009 isn't going to be much better. But my year is starting off great. I live in a market that has fared well through the downturn. I can't ignore all the negative articles out there about how hard it will be. But I can read each and take it with a grain of salt. And I will. And I won't let all the negativity bring me down.
That's my first resolution. Now, I don't normally make resolutions. We all know the success rate of resolutions. But this year, instead of making unattainable resolutions, I'll keep it simple.
My second resolution will be to provide even better service to my clients. When my phone rings at 10pm (if I'm not already asleep), I'll answer it with a smile. Face it, chances are I'll be asleep. I'm not exciting anymore.
My third resolution will be to get more education to be able to provide better advice to my clients.
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