Why Consider an FHA Loan?

There are many reasons for homebuyers to investigate an FHA home purchase. First time homebuyers should explore FHA loan options because it’s easier to qualify for an FHA home mortgage. Your loan is guaranteed by the government, making your application more attractive to lenders. An FHA home mortgage often costs less and is more forgiving of indiscretions with credit and payments.

FHA home loans don’t require a big down payment at closing time. For first-time homebuyers this can be a real plus. The FHA mortgage requires a low 3.5% down payment, and that money can come from a variety of sources including HUD down payment assistance grants.

For first time buyers, closing costs are another issue that can be a financial drain; typical closing costs for FHA home loans are around 2% or 3% of the total mortgage. One advantage when taking out an FHA loan? FHA mortgage terms may allow you to build in closing costs into your mortgage.

By serving as an umbrella under which lenders have the confidence to extend loans to those who may not meet conventional loan requirements, FHA's mortgage insurance allows individuals to qualify who may have been previously denied for a home loan by conventional underwriting guidelines.

Resources:
FHA Loan Limits for New York State
FHA Mortgage Calculator
FHA Guidelines
Down Payment Grants

Every situation is unique; contact a lender to discuss your options.

Forecast Hopeful With First Time Buyers Leading the Way

According to the National Association of REALTORS, the outlook for housing and the economy appears headed for a sustainable recovery, aided by the homebuyer tax credit.

The credit is working better than first projected, according to Lawrence Yun, NAR Chief Economist, who predicts that nationwide we will have 2.3 to 2.4 million first-time buyers in 2009. The 2009 National Association of Realtors® Profile of Home Buyers and Sellers, shows first-time buyers accounted for a record 47 percent share of home sales over the past year, up from 41 percent in the 2008 survey. The share has risen steadily since a cyclical low of 36 percent in 2006.

Dr. Yun forecasts the 30-year fixed-rate mortgage will probably average 5.3 percent in the fourth quarter of 2009, rising gradually to 5.8 percent by the end of next year. "With expansion of the tax credit to additional buyers through the middle of next year, and no major unforeseen events impacting the economy, home prices should rise between 3 and 5 percent in 2010, but with wide geographic differences,” Yun said.

The Rochester market has been relatively unaffected by the recent housing crisis experienced in other parts of the country. Sales have dipped slightly but median price has held fairly steady. While other parts of the country experienced dramatic appreciation at the height of the market, Rochester was not as affected. So while others crashed, we did not have as far to drop. Across New York State in October, prices were up 2.4% and sales up 8% from October 2008.

The tax credit has been extended for first-time buyers through April 30, 2010 and now expanded to include repeat buyers. Income limits have been increased as well, now allowing many buyers who didn't qualify previously to be eligible for the tax credit. New income limits are $125,000 (single filers)/$225,000 (married filing joint).

The credit is equal to 10% of the purchase price, up to $8,000 for first-time buyers (defined as someone who has not owned a residence for the past three years) and $6,500 for repeat buyers. Qualifying repeat buyers must have lived in their home and used it as their primary residence for five consecutive years out of the last 8.

Eligible buyers must be under contract by April 30, 2010 and close by June 30, 2010. See earlier blog posts or visit FederalHousingTaxCredit.com for a list of frequently asked questions about the credit.

Remembering Our Troops on Thanksgiving

Agents from the Penfield branch recently got together to put together care packages to send over to our troops in Iraq. The office thought it would be a great way to remind our soldiers that we're thinking about them and grateful for the sacrifices they are making for us being so far from home and their families during the holidays. On November 19th, the office manager received the following message via email:

Dear Penfield Sales Staff:

Greetings from beautiful Iraq. Thank you so much for thinking of us and sending such wonderfully useful items. I will disperse the goodies to my Marines this evening.

We are a unit based out of Camp Lejeane, North Carolina. We have been here a few months so far and will be here for Christmas and beyond. Your treats will bring smiles to everyone's faces.

I am from Canandaigua and went to high school at McQuaid (not too far from you all) so I truly appreciate the hometown support. Thank you once again.

Sincerely,
Captain Justin Muchard, USMC

Nothnagle Relocation - Moving You Anywhere!

Nothnagle's Relocation division received among the best scores of all Preferred Brokers on the 3rd Quarter 2009 SIRVA Relocation Broker Score Card. Nothnagle Realtors is affiliated with SIRVA, Inc., which provides end-to-end relocation services worldwide. From home purchases and sale services, to moving, mortgage services and program management, Nothnagle and SIRVA can do it all! Nothnagle's Relocation division exceeded goals for home sales, average days listed (15 vs. 90), and average days on market (66 vs. 120) during the 3rd Quarter.

Whether you are moving across the country or around the globe, Nothnagle Realtors can help you achieve your goals through affiliations with partners like SIRVA. SIRVA conducts more than 300,000 relocations every year and operates in more than 40 countries with an extensive network of agents and other service providers in over 175 countries.

In need of relocation services? We have experience moving individuals as well as entire companies to and from Rochester. Contact Nothnagle's Relocation division today.

As a repeat buyer, how do I qualify for the $6500 tax credit?

As of November 7, 2009, "repeat" or "move up" buyers now may qualify for 10% of the purchase price, up to $6500, in the form of a federal tax credit. This is part of the home buyer's tax credit that previously was only available to first-time buyers but now has been expanded. To qualify, a "repeat" buyer must have resided in a home they used as their primary residence for a minimum of five consecutive years out of the past eight years. The purchase price of the new home cannot exceed $800,000 and annual income cannot exceed $125,000 (single filers) or $225,000 (married filing jointly). The new home must be used as the buyer's primary residence and the cost of the new home being purchased does NOT have to be higher than the previously owned home. The buyer must be under contract by April 30, 2010 and close before July 1, 2010.

The tax credit is still available to first-time buyers of 10% of the purchase price up to $8000. A first-time buyer is defined as anyone who has not owned a home in the past three years. The April 30th deadline and income limits described above also apply to first-time buyers.

There are some exceptions for active duty U.S. military personnel, granting those deployed an extra year to claim the credit. For more information, visit Federal Housing Tax Credit.

It is a great time to buy and sell in Rochester! Our market continues to rank among the healthiest in the country - prices are stable, interest rates are low, homes are affordable and there's a good supply of inventory. Contact a Nothnagle agent today to discover how both buyers and sellers Get More using Nothnagle Realtors.