Although the government is often viewed a carefree spender of taxpayer money, even the FHA is feeling the pinch these days, and so, has developed some new rules which will impact Liberty Hill buyers. Come spring, buyers will have to have higher credit scores to get in on FHA's low downpayment requirements, as well as pay higher mortgage insurance fees and possibly more closing costs.

FHA, which has traditionally backed about 3% of homes, has been overwhelmed with lending requests these past few years. Currently, FHA backs 30% of mortgagees and 20% of refinancing deals for homes up to $729,750.  FHA reserves are at their lowest reserves in 35 years and projected delinquencies will take them even further down.  The agency wants to keep itself in a position to help homeowners, especially disadvantaged ones, while managing it risks and supporting economy recovery.

The new policies flesh out HUD Secretary Shaun Donovan's concern voiced in October that borrowers need to put more "skin in the game" and contribute more to the cost of acquiring their home loan.  To accomplish this, the first measure is to require higher credit scores from potential buyers who will now need scores of 580 or above to be able to put down the minimum 3.5%. Anyone with lower score will need a 10% downpayment. This requirement might be a burden to some marginal potential buyers who are struggling to get 3.5% together, but in reality, most banks have required scores of 620 or above for some time from buyers who hope to get a loan.

What will affect all Liberty Hill buyers are increased mortgage insurance premiums (MIP's).  Currently set at 1.75% of the loan, the new premium will be 2.25%. The money will be due upfront, though in future years, it is expected to be spread out over the term of the loan.  Unlike some other provisions of the plan expected to go into effect in late spring or early summer, the increase in MIP's takes effect April 5, during the last few weeks the home buyer's tax credit is in effect,   Buyers who close between April 6 - June 30, 2010 may get the tax credit but will have to come with an extra $1,000 on a $200,000 loan.

Within a few months, buyer will no longer be able to count on sellers contributing  6% of their closing costs; 3%, which is actually the maximum in private lending, will be the norm. While buyers might regard this as a bargaining tool with sellers, the practice lead leads to higher than market value appraisal on property. In the long rule, this could help buyers when they were ready to sell., but hurt htem when they were buying and strapped for cash.

The final part of the policy tightens requirements for banks to make loans to credit-worthy borrowers, increase their reserves, and be accountable for bad loans.  Non-complying banks will be dropped from the program.

FHA Commissioner David Stevens defends the new policies: "When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency's history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market's recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities."

He continues, "Striking the right balance between managing the FHA's risk, continuing to provide access to underserved communities, and supporting the nation's economic recovery is critically important..."  For that reason, FHA is committed to developing policies that address current the housing situation, including distress and underwater homeowners, while making FHA more stable.

It's hard to argue with the intent of the new policies but in the short run, they may throw an unplanned curve ball to homeowners hoping to buy over the next few months.  We at the Shane T. White Team encourage you talk to us today to time buying so you can avoid higher fees  AND reap tax credit dollars.

If you've been waiting for the right opportunity to get into the market, now's the time.  The tax credit is an important incentive that will help stabilize our local housing market, stimulate the economy, and create new jobs in central Texas.   Call the Shane T. White Team at ReMax Town and Country Realty today to get started in buying your LIberty Hill new home.  We can even sell your existing home.

 

The home owner’s tax credit now applies to repeat buyers now, so many people who put off selling because the market was bad now have a $6,500 incentive to move up. You want to sell quickly for a decent price so you can move on.  Here’s some tips for how to do it.

Make home improvements now.

Trying to fix up your home before you move?  Or trying to improve it to make it work better for you?  Low financing costs, reduced construction materials costs and lower contractor costs make rehabs more affordable. For households with access to credit, now may be the best time in years to update your home, either for a potential sale or simply for the sake of better living.  Repairs that typically yield the highest returns are kitchen and bathroom makeovers with an emphasis on counters and cabinets. Get three different estimates. Then, factor in an additional 10 percent for hidden surprises that inevitably crop up. See home improvement strategies and checklists at Homegain.com.

Hire real estate agents and home inspectors wisely.

When you’re selecting an agent to list your home, you want someone who is well-connected with other agents, lenders and other fellow industry pros. The same diligence should apply to hiring a home inspector or appraiser. It’s a great idea to have a home inspection before you sell, but make sure your inspectors s experienced.  If you're hiring an appraiser, make sure he or she is a veteran with at least five years of experience who's appropriately state-licensed or state-certified. Conduct reasonably brief phone interviews with at least two or three before you choose. We here at ReMax Town and Country Realty have proven credentials, references and great performance histories to ensure the reliability of anyone who we work with or recommend .

Price accordingly.

This should be on every real estate seller's priority list. In most of the U.S., there are few reasons that a house doesn’t go under contract in 60 days or less. Be sure to compare the prices of homes in your area. The reason some sellers end up sitting on their property watching it gather dust while others generate faster activity, is because they neglected to price their home according to their area. That doesn't mean you should drop your price outrageously on your well-maintained home just to undercut the poorly-conditioned foreclosed home. It just means "price to the present," not to a dream market.  Your agent can show you comparable sales price in your area and evaluate your home to make sure your price is in line with market values.

Don't wait out the recovery.

Yes sellers!  Housing prices have been re-adjusted, and by the looks of things, it will take years for values to return to their highs of two years ago. The figures may only appear to be bad on paper. Example: Take a move-in-ready house that appraises for $250,000. Because there's competing inventory, your agent advises you to take 10 percent off the price. Now you'll be selling for $225,000. "Ouch," you might say. But consider that you only paid $175,000 for the place in 2000. So how is a $50,000 profit a loss? What's more, if you're planning to move up in the same or a similar market, you will likely realize that same 10 percent discount on your move-up purchase.

Don't take or make it personal.

Our homes have such a personal connection to us that it seems sad to watch our homes lose their personalities when we sell. It may feel heartbreaking but, it is always best to remove personal effects such as pictures, knickknacks, mementos, trophies, greeting cards and the like before showing your house. (A good agent or a professional home-stager should emphasize this.) As a rule of thumb you should count every item, in every room, of a for-sale home and eliminate or store 50 percent of them.

The buyers want to imagine themselves in the house for years to come and you need to be able for them to picture their own personality in the home. Any decor and whatnots of yours will only distract from their vision. Don't get defensive about colors, design patterns or flooring that you love. It's OK to grit your teeth, remember you will be smiling all the way to the bank.  Let Shane T. White and his Team be the buffer to ensure you get the most from your sale… while keeping your sanity.

If you've been waiting for the right opportunity to get into the market, now's the time.  The tax credit is an important incentive that will help stabilize our local housing market, stimulate the economy, and create new jobs in central Texas.   Call the Shane T. White Team at ReMax Town and Country Realty today to get started in buying your new home.  We can even sell your existing home.

 

All of us here at ReMax Town and Country Realty say…Go ahead!  Take your piece of the pie out of the tax credit program while it lasts. Although the $8,000 first-time homebuyer and the $6,500 current home owner’s tax credit have been expanded, it won’t last forever. Taking advantage of this now will benefit you in the future.  This is great advice but we also wanted to share with you other opportunities available to future and current homeowners. These tips are very useful no matter if you are looking to buy or sell, and the Shane T. White Team wants to let you in all the secrets for success.  We have compiled a list of real estate trends for 2010 that might influence how you approach buying or selling a home this year. Today, we’ll talk about buyers. Watch our blog for Part 2 on Sellers.

Find down payment assistance

 

There are several down payment assistance programs for first-time homebuyers at the federal and local levels. There are also other down-payment assistance programs at the city, county and state level that can piggyback the federal programs. Just conduct an Internet search for “down payment assistance programs” with your locality's name added so you can find the programs available in your area.

 

Think long term

 Buyers, don't settle for home you don’t like just because you're getting a bargain! . Examine functionality, neighborhood, location, access to services, highway access, work routes, nearness to work and school, availability to mass transit, not simply price. Especially if the home is your first one, it probably won’t be your home for life so it doesn’t have to be your dream home – but you should LIKE it! If you can spare the time, give yourself an extra month or two to make a decision…doing a little research will pay off in the long run.  Shane T. White and his Team want you to be happy not only now, but years down the road.

 

Think Green

Think energy efficiency when you buy a home – or at least make energy saving features one of your first upgrades. With the Federal Tax Credits for Energy Efficiency through Dec. 31, 2010, homeowners who buy and install specific energy-efficient windows, insulation, roofs, doors and heating and air-conditioning equipment can get a 30 percent tax credit for up to $1,500 of their costs. If you want to take it a step further, you can buy greener (and more expensive) energy-saving products, including solar energy systems, geothermal heat pumps, small wind systems, residential fuel cells and micro-turbine systems, and get the 30 percent tax credit with no spending limit on each system, through 2016. Go to EnergyStar.gov's for a complete summary.

Consider rent-to-own deals

The current market has driven many former homeowners into rentals, where they have nothing to show for their payments. Rent-to-own or lease-to-own deals allow buyers to get the chance to test out a home for a designated period before actually committing to it. This gets renters vested in a home while they repair their credit and also helps frustrated sellers generate an above-market revenue stream. Make sure to draft a very specific contract that spells out all the options.  ReMax Town and Country Realty would be happy to help with your rental needs whether searching for rental property or putting you own property up for rent.

 

If you've been waiting for the right opportunity to get into the market, now's the time.  The tax credit is an important incentive that will help stabilize our local housing market, stimulate the economy, and create new jobs in central Texas.   Call the Shane T. White Team at ReMax Town and Country Realty today to get started in buying your new home.  We can even sell your existing home.

 

If you’ve already fallen in love with Liberty Hill for its beauty and its spacious lots, the school system is one more reason to love it here. Our schools don’t just meet the State’s Standards, they exceed them. 

When searching for a place to live, a good school system is an important factor choosing a home when you have children.  Making sure your children are in a great school is very important to parents, and Liberty Hill schools have very high ratings, based on parent reviews and state tests. 

The Texas Assessment of Knowledge and Skills (TAKS) is a standards-based test, which measures how well students are mastering specific skills defined for each grade by the state of Texas. Liberty Hill school district exceeded the standard on all academic testing by TAKS.

Texas also uses the Gold Performance Acknowledgments (GPA) to recognize schools and districts for performance on a range of indicators including, among others, test results in specific subject areas, college admission test results and attendance rates. To be considered for the GPA, schools must have an Accountability Rating of "Academically Acceptable" or higher and must meet the acknowledgment criteria for one or more of the indicators. For example, to receive a GPA for attendance, Academically Acceptable high schools must meet the state's minimum acknowledgment threshold of 95% attendance rate.

In 2007-2008 our district was acknowledged by GPA for the following indicator(s):

• Commended Performance: Reading/English Language Arts
• Commended Performance: Mathematics
• Commended Performance: Writing
• Commended Performance: Social Studies
• Texas Success Initiative - Higher Education Readiness Component: Math
• Texas Success Initiative - Higher Education Readiness Component: English Language Arts
• Advanced Placement/International Baccalaureate Results
• Attendance Rate
• Recommended High School Program

In the composite score, which is an average of the English, math, reading and science Liberty Hill had a rating of above excellence, not only for the State but, we scored higher than the nation.

We here at, ReMax Town and Country Realty, are confident that you will not only love living in our community but your children will too. Call the Shane T. White Team, today to find a Liberty Hill home that your whole family will love.

The Worker, Homeownership, and Business Assistance Act of 2009 has expanded the former First Time Home Buyer's Credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010, (and closed by June 30, 2010, so long as a binding sales contract is signed by April 30, 2010). The previous tax credits applied only to first-time home buyers, who can still qualify for up to $8,000 under the extension.  If you have lived in your home for at least 5 consecutive years of the eight years prior to the purchase date, you qualify for this credit as an existing home owner purchasing a principal residence. If you occupy the home for three years or more, you do not have to repay the tax credit.

The tax credit is an important incentive that will help stabilize our local housing market, stimulate the economy, and create new jobs in central Texas.   It is a great investment for our country AND one that can help you right here in Liberty Hill.

The new tax credit extensions are a great thing to take advantage of.

Under the Extended Home Buyer Tax Credit, you can receive the credit for homes purchased for up to $800,000. If you are a repeat home buyer, you do not have to purchase a home that is more expensive than your previous home to qualify for the tax credit, which opens the door even wider for more options if you are looking to downsize.  As long as you meet the residency requirements, you can even rent out your current home and buy a new primary residence in Texas Hill Country. This is a great time to move into a great area with lots of acreage.

Another nice addition to the extended bill is that the new income limits increased to $125,000 for single taxpayers and $225,000 for married couples filing joint returns. This means people with larger incomes can benefit from lower housing prices and historically low interest rates - with a bonus for doing so.

The substantial rise in home sales that we've seen over the past few months throughout the country just proves that the tax credit is working.  The new credit allows buyers in Liberty Hill, Bertram, Leander, and Georgetown to move up to a new existing home - including one of the beautiful newly constructed homes right here in the area.

If you've been waiting for the right opportunity to get into the market, now's the time.  The tax credit is an important incentive that will help stabilize the our local housing market, stimulate the economy, and create new jobs in central Texas.   Call the Shane T. White Team at ReMax Town and Country Realty today to get started in buying your new home.  We can even sell your existing home.

Don't forget about the Liberty Hill, TX Christmas Parade and Festival this weekend.  Starting around 2pm Sunday, there will be a parade through downtown Liberty Hill that will be led by the Fellowship Baptist Church Praise Band followed by lots of other great floats and candy.  There is also a 5K that will be run prior to the parade.  All this ends at Foundation Park where the rest of the festivities will begin...community booths, Santa will be there, 2 live bands, a message from Pastor Micheal Wright, and then the lighting of the poles throughout the park.  It will surely be a fun time for all...hope the Liberty Hill comes out in support of Christmas this Sunday!!

Check this out...a great 1/2 acre lot for sale in downtown Liberty Hill.  This lot has access to the new city sewer and is zoned high density residential.  That means you could build from a single family residence to a duplex or fourplex on this lot!  Their is also a fixer upper house on almost another 1/2 acre next door that could be purchased at the same time.  You can get more information by CLICKING HERE.

Our team just put a nice fixer upper on the market in downtown Liberty Hill.  This home for sale sits on almost an 1/2 acre lot and has access to the new city sewer.  With a little TLC, this could be a great first time home, or rental property...it has been a rental for the current owner and has brought in around $600/month.  You can see more by CLICKING HERE!  If you would like to see this property for sale, please call us at 512-515-5263 or email at shanetwhite@remax.net