Minnesota Housing Finance

Renter Resources For Emergency Services That Might Help With Rent

In today’s economic environment, tenants are feeling the pain of a recession as well-or even more-than the rest of the population. This might mean their job loss or lesser wages. It is hard to pay the rent without an income. Therefore, as a landlord, your consider learning about and sharing resources with your tenants that provide emergency services in the Twin Cities. I have put together a few ideas on services/programs that might be able to help with food, utilities and even the rent. Besides the greater possibility and likelihood of getting your rent, you are being a friend and showing that you care. What goes around comes around.

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2012 is going to be a year of change in the residential market

My phone has been ringing off the hook with buyers and sellers getting ready to “get ready”. I hope it continues! Let me tell you that the sentiment may have turned. If I can help you, and you’ve been on the fence, the time is now. One of my resources that I follow is Alex Charfen from the CDPE Institute. Watch what he has to say about some MAJOR money entering into the residential marketplace:

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Kung Hei Fat Choy

Happy Chinese New Year-Officially on January 23rd. Some of my family members are from China. We often will celebrate Chinese New Year with a tremendous meal and good company. This is the year of the Dragon. 2012 is going to be an exciting year-count on it! I hope it is your best.

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In the middle of the Winter we all need some “Summer Madness”

I could listen to this song over and over. It has nothing to do with real estate or mortgage-but what the heck-it’s a great tune. Sit back and enjoy!

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Something to think about starting the New Year

This video was sent to me today. I wanted to share it because I believe it is powerful. The meaning is up for your interpretation, as is(are) the message(s). Best wishes for a wonderful 2012.

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Certificates Of Rent Paid – 2011

Don’t forget to give your tenants their CRP’s by the end of January 2012. If you are a tenant, don’t forget to ask. These are useful to a tenant that qualifies for a tax deduction.

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Happy Holidays from Minnesota-See the Flash Mob at Carlson School

This is simply awesome-watch and enjoy! May 2012 be your best year yet. I know it will be exciting!

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2012-will it be just another year or is it YOUR year of transition?

I recently gave a Toastmasters speech on this topic. Key to answering the question is whether or not you have written goals in mind regarding what you want or intend to accomplish. Unless there are specific goals that require you to plan and live with a purpose and focus, life will just happen. Either way is fine as long as you know what to expect. Many people are frustrated when they expect something different. Mastering time and focusing on goals may more create a more fulfilling life. Soon, I will begin my annual project of goal setting. I intend to plan my year with measurable goals. I find I’m much happier when I’m focused on where I’m going. As such, I just came across this PDF called The Tower. I thought it was interesting and wanted to share it here. It is a short e-book about a man who is achieving his goals and living the dream. He’s living life on his terms and creating a legacy. He became more focused after he analyzed a video game he was playing. It is a pretty interesting book. Maybe one of your goals involves real estate-buying a new home or investment property. If this is a goal of yours, I can help. Give me a call and let me help you figure out how we can make real estate goals become your reality in 2012.

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Short Sales Vs Foreclosures Vs Traditional sales

We need to understand that while the current economy is really a “Tale Of Two Cities” in that some people have no idea we are in a recession whereas others are in deep pain, the real estate market as a whole is being impacted by distressed properties. Based on the current backlog of homes, it may be this way for some time. That being said, why are short sales being embraced by everyone as the most economical way to move markets forward? When you look at a comparison of the loss incurred by the lender, you will see that losses are generally worse with a foreclosure. Larger losses via lower sales prices ultimately impacts everyone who is buying, selling or refinancing. I have a report and flyer I’d like to share. Both provide you with opinions and resources so you can draw your own conclusions. Solving the housing problem starts with understanding the problem as well as exploring viable solutions.

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Thanks To Veterans-We’re All Free

11-11-11 Veteran’s Day-We owe you guys/gals a lot. Thanks for your service & dedication!

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HUD Home Tips

Recently, a representative from Best Assets came to speak in Minnesota about how they are handling the disposition of HUD homes in conjunction with the asset managers, agents, and the website http://www.HUDHomeStore.com . The process of buying and selling a HUD home is very similar to that of “traditional transactions”, but there are some small differences and nuances. I have attached a sheet that covers some of items that you should be aware of.

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Minnesota HUD Homes

Most properties that become lender owned are generally available through our online MLS. HUD homes are listed in our online MLS as well. That being said, HUD maintains a site at http://www.HUDhomeStore.com that lists all their properties for all states and provides you a lot more information about specific homes. I would encourage you to go there and see what is available. As an agent, I am able to show and help you purchase a HUD home. Just let me know what you’d like to view. I can set up a specific search for you within our Online MLS and see that listings that meet your parameters are emailed to you daily. Attached you will see that process that occurs once you’ve purchased a HUD home. It will provide you with a flow chart so you know what happens. Did you know that HUD allows you to put $100 down on a full price purchase offer of a HUD home utilizing FHA financing? These terms and conditions are subject to change at any time. Keep up to date at http://www.HUDhomestore.com

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Expanded HARP Mortgage Refinance Option-Available Soon!

Today, the government expanded the HARP program and qualifications. Attached is the news release. Qualifying for a new loan to lower your rate may now be a possibility even if you are upside down-ie underwater on your loan. Terms/conditions always apply-see the release and call me if you think you fit the parameters. We can take it from there.

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National & Minnesota Foreclosure Trends

The market is still slow, but this is the opportunity for those who want to roll back the clock and purchase at price levels combined with interest rates that we haven’t seen in years. See the newsletter for more information. Also, I have MUCH more information to share. Simply give me a call or send me an email to get started. Let me show you how I can help.

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VA-Veteran Loans Funding Fee & FHA Maximum Mortgage Changes

Starting October 1st, 2011, the maximum FHA loan limit for single family loans is being lowered from $365K in the Twin Cities to $318,550. See the attached form. This is not a good thing, but reflects the reality of declining value of much of the real estate. Unfortunately, underwriting of all loans continues to tighten. On a positive note, the VA funding fee is being lowered. This would be due to less losses and a lesser need to collect as much insurance premium to protect against defaults. So, the question I have pondered is: Why are VA loans-typically financed at 100% loan to value-not experiencing the same loss ratios as other mortgage programs. VA 100% financing has been around forever. It works-and well. The problem of our mortgage crisis is not the loan to value or a required minimum down payment or tighter underwriting as some would have you believe. Imagine all the new homeowners if we actually took what we’ve learned from decades of underwriting VA loans and applied it to a new “stimulus mortgage program”. Instead, we are becoming a nation of renters. Somebody in congress needs to talk to the people who have their boots on the street for real solutions to our mortgage and real estate problems.

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Using A Reverse Mortgage To Purchase

With some of the major lenders leaving the reverse mortgage business-possibly just on a temporary basis-you might find it more difficult to find a lender offering the program. At the same time, it is worth your time to look. If you are 62 years old and have approximately 50% equity in a home, you can obtain a reverse mortgage. You can use this loan for a purchase as well. So, if you put down 50% of the value of the home, you can obtain a reverse mortgage. Remember, the reverse mortgage doesn’t have a monthly payment associated with it. While you are still responsible for the taxes and insurance, you pay off your loan when you sell the home. The attached PDF will give you some examples of how much is required to buy a home using a reverse mortgage at various age groups. This is a unique opportunity for seniors to consider, especially if they are on a fixed income.

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An Economic Blog/Resource For You

I just found this blog at http://www.CalculatedRiskBlog.com It is a cool economic blog. Go there and read articles to see what is happening in the world. Then, go to the graphs gallery. Simply amazing. It is worth your time if you want a macro view of the world and environment in which we live today.

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What’s happening in the Twin Cities Real Estate market?

Are you wondering what’s happening out there? Well I have my “boots on the street”. Here is where I see it and where I see it going in the short term. Overall, sales are slow, but not dead. We are now in the fall market. In as early as 30 days, we could have snow on the ground. Then, you have Thanksgiving and all of the other holidays. Combine all these events and this tends to be the slowest time of the year. This means it will likely get slower over the next 90 days for traditional home sales. I’ll keep you posted about the Spring market when we get there. That being said, I am keeping very busy-thankfully!. Many of my transactions today are involving investors. The deals are just too good to pass up. I would be happy to show you what I mean and give you actual examples involving investor transactions I’ve been involved with. If you believe that values will increase in the future, now represents the best buying opportunity I have seen in my 26 years. Is it all uphill from here? Absolutely not! In fact, depending on the community and property type, it might get worse before it gets better. Yet, if you are a long term investor, purchasing for the long term, this is a golden opportunity. Interest rates are at 50 year lows, the banks will soon have to do something with their inventory of properties. Banks are actually accelerating their foreclosure procedures. This means more homes will be available for sale or even possibly for rent. The government is thinking about solutions-so we’ll have to stay tuned. Will they become landlords? Will they raise the LTV loan limits for underwater mortgage refinance opportunities and expand eligibility beyond Fannie and Freddie loans? Will there be write downs of principal and equity sharing going forward for existing underwater homeowners? These are all ideas being talked about. Stay tuned for more!!

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Amazing Video-Wouldn’t Believe It If I hadn’t Viewed The Video

Amazing message-mortal enemies can get along! What an example for the rest of us!

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Great Cartoon from 1948

Human beings are human beings. Only the names change. When we refuse to understand history, psychology, and human nature we end up repeating mistakes that could be avoided. Re-learning lessons is getting mighty expensive. Definitely worth watching.

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VA financing their foreclosed properties for Investors

This is pretty exciting.  It is a way that investors can buy VA foreclosed homes with VA loans.  I personally have not participated in this yet, but I wanted to make sure everyone knew that it was an option and might be available.  See the flyer for more info

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Foreclosed Homes Might Be Turned Into Rental Homes

Soon, the government will be announcing their plans for upwards of 250K homes that are owned by Fannie Mae, Freddie Mac, and HUD. It is possible that they are going to be turning them into a pool of rentals and sell them later as the market improves. How this will be managed or created is anyone’s guess. Watch the FHFA- Federal Housing Finance Agency for more information. On the one hand, it will allow for revenue to be generated from an asset that is vacant. It also allows for inventory control which might mitigate price declines. We’ll have to wait and see.

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Real Estate Investment Opportunities within the Twin Cities

To better serve the needs of real estate investors in Minneapolis & St Paul as well as surrounding areas within the Twin Cities, I have recently earned the Certified Investor Agent Specialist™ (CIAS) Designation. With the CIAS, I have the training, tools and calculations to effectively serve the five investor types: First-Time Investor, Move-Up Investor, Portfolio Investor, Performance Investor, and Rehab and Resell Investor.

Real estate represents a consistent and stable way to build wealth, brings liquidity to our housing market, and stimulates our local economy. In fact, in the past year, investment and second-home properties represented approximately 27% of all residential sales. It’s also worth noting that nationwide, 43% of real estate investors earned less than $75,000 per year.

Today, real estate is quite literally on sale! There is an unprecedented opportunity to build wealth through real estate, and I specialize in helping all investors achieve their goals.

Contact me today at 952-929-2577 to learn more about investing in real estate.

In my 26 years of real estate sales, I can tell you the values are extreme. Don’t let this opportunity pass you by. Now is the time to purchase real estate.

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Twin Cities Fence Requirements

Recently a client purchased a home and was contemplating installing a fence. They found this link. While it is an advertisement for a fence company, they have PDF’s of each cities respective fence codes http://www.tcfence.com/city-codes

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Minnesota Foreclosure Activity-monthly report from Realty Trac

The report provided shows statistics and information both nationally and locally here in Minnesota. I have access to additional information and reports that will help add clarity to the news stories you are hearing. Things are tough, but not the same everywhere. Call me for my detailed opinion on where we might be headed.

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Short Sales, Foreclosures, Bankruptcies, Judgements All in one Transaction

I just had a short sale blow up because of undisclosed tax liens and judgements. The title couldn’t be cleared and we ended up with a mess. Everyone involved has to dismantle and start over again. I couldn’t help but be disappointed. But, in today’s real estate world this is common. It is all about attitude. When life throws you lemons, learn to make lemonade. Yes, it is more complicated than that. Take a look at this video and share it with someone who may have had a set back. It is really powerful and inspirational

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First Time Buyer Down Payment Assistance-Now In Minnetonka

See the guidelines about this new program for Minnetonka. These programs exist in other communities as well. I will help you find programs-just like this-in other communities within the Twin Cities. NOW is the time to take advantage of these programs. If lack of a down payment has held you back, now is the time to take a look at these special programs. WelcometoMtkaguidelines.doc

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Search Twin Cities Foreclosures

Use this link to find foreclosed homes in the Twin Cities:

http://www.minnesotahousingfinance.com/search-foreclosures/

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How To Find Money To Buy A Home

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So You Think You Want To Fix & Flip Homes

Follow some of the tips in this video so you don’t get financially destroyed. It is harder than you think!

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Why Use A Realtor?

Today, more than ever, you don’t want to buy or sell a home on your own. You need an expert. Let my 25 years of experience help you make the right decision.

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Twin Cities Real Estate-Investment Property In Minneapolis St Paul

This is a recent power point I’ve just put together. It gives you some ideas and information before you begin investing in real estate.

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Learn More About 203K Loans For Home Fix Up Upon A Purchase As Well As Home Improvement

These guys do a pretty good job of explaining the process. Check it out. WE do have outlets for the 203K loans at this time-both streamline and FULL 203K loans. Call us today-952-285-4319 NMLS #373115 Venture Development http://www.VentureLoanApp.com

203k Home Improvement Loans Part 2 of 2

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Funny Video That Explains The Banking System & Our Economy Of Today

You will find it funny, you will find it sad, but you will find it very similar to where we are today. It is called the American Dream. It explains a lot. Watch it once, then watch it again. History repeats itself because we are such poor students of history.

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Insured Conventional Loan Vs FHA-Which Is Better

There are many factors that go into a loan decision-credit scores, down payment, debt ratios, etc. One big question is whether you should consider buying a home with an insured conventional loan using 5% down or applying for an FHA loan with 3.5% down. The information below might make that decision easier. In fact, if FHA continues to raise the cost of their monthly mortgage insurance-known as MIP-the decision may start to favor conventional loans with PMI-private mortgage insurance. Remember, everyone’s situation is different. This information just gives you one more way to look at financing your purchase.

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How Does RE/MAX Compare? Let’s look at 2011

The numbers are now out! RE/MAX is a top producing company. In many markets, RE/MAX is the leader-often head and shoulders above the competition. I have been with RE/MAX for 16 years. Prior to that, I was with another large company for 10 years. Before you select an agent, interview a RE/MAX agent. I think you will agree that there is a difference. If you’re in the Twin Cities Metro-consider my services.

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Twin Cities Market Report 2010

Have you ever wished you had all the metrics of the marketplace in once nice concise report? Well now you do. Our board of Realtors compiles an annual report showing comparative data. While each home is different, pricing trends are trends. The data since the end of 2010 going into 2011 has gotten worse. If you’d like me help you interpret the information as it might pertain to your home sale or potential home purchase, just let me know. Enjoy the report.

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Underwater Homeowner Refinance Programs Extended For 1 More Year

FHFA Extends Refinance Program By One Year

Washington, DC — Federal Housing Finance Agency Acting Director Edward J. DeMarco has announced an extension of the Home Affordable Refinance Program (HARP), a refinancing program administered by Fannie Mae and Freddie Mac, to June 30, 2012. The program was set to expire on June 30 of this year. In addition, Fannie Mae and Freddie Mac will make the following adjustments to their programs: Freddie Mac will exempt HARP loans from their recently announced price adjustments and Fannie Mae will conform their eligibility date to May 2009.

The program expands access to refinancing for qualified individuals and families whose homes have lost value. HARP has grown over the past year. In 2010, Fannie Mae and Freddie Mac purchased or guaranteed more than 6.8 million refinanced mortgages. Of this total, 621,803 were HARP refinances with LTVs between 80 percent and 125 percent. This is up from 190,180 in 2009, when HARP began.

For more information on Fannie Mae and Freddie Mac refinance activity, see FHFA’s Fourth Quarter 2010 Foreclosure Prevention & Refinance Report. Additionally, homeowners can visit www.MakingHomeAffordable.gov for more information on the program.

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The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks. These government-sponsored enterprises provide more than $5.9 trillion in funding for the U.S. mortgage markets and financial institutions.

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WHY Pick RE/MAX?

There are lots of reasons why you might choose to select one agent or company vs another. Unless you have a best friend or relative who you “have” to use, I would like to show you how I am different. I believe I have an excellent value proposition as to why you would select me as your agent and RE/MAX as your company. I would welcome the opportunity to meet with you and discuss how I can help you meet your housing goals-whether it be buying or selling. Interview a couple of agents, you will see there is a difference. You may wonder how does RE/MAX stack up within the Twin Cities. The attached PDF’s will give you some market share information as well as agent productivity-based on a 2010 compilation of the numbers. While these are just some of the metrics on which to base your decision, success does leave clues. How can I help you?

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Down Payment Assistance Synopsis

Where there is a will, there is a way. There are many many programs today that are city specific. So, the attached synopsis is a multi county foreclosure down payment assistance pool. Basically, there is money available for purchasers of distressed homes. If you want to buy a home and are flexible in which area you make your purchase, we can try to find you some programs.

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Gifts and Grants can be considered towards borrowers funds on certain 3% down conventional loans

Yes, you read that right. I just got an email today from a leading mortgage insurance company that is willing to underwrite this loan. You will need at 740 or better score. But, what an opportunity. In many ways, this is like FHA, but with a little higher credit threshold. The KEY difference, besides credit score, is the lack of an upfront MI (mortgage insurance) premium and as well as a smaller required monthly premium. This product could be a game changer for the MI company and conventional loans.

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Purchase 80/10/10 and 80/5/15 STILL exists

As of this post, the 80/10/10 and 80/5/15 can still be done. While underwriting has allowed it, it has been very difficult to find a second mortgage product that would write a 5 or 10% second mortgage. Well, after many phone calls, we have sourced two lenders who at this time are willing to offer the second mortgage. One is a bank and the other is a credit union. As with EVERY program, the rules can and do change at any given moment. The key to both product is extremely high credit scores and a file that utilizes conservative ratios. If you don’t have at least a 700 score, this might not be something you can utilize at this time. For the 80/10/10, you will need a 740 or better score.

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What Is Your Home Worth Today?

I found a cool resource at http://www.FHFA.gov. If you go there, in the middle of the page you will find something called the Home Price Calculator. You input your home purchase information in terms of State, quarter in which you purchased and the quarter in which you’d like to get the valuation. Next, you hit calculate, and it will show you a chart. While it isn’t specific to YOUR exact home, it does give trends for your area. If you want specific information-specific to your home-within the Twin Cities metro-give me a call and we can discuss your situation. I can then give you guidance on what the value might be.

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Did you know-Current & Future Housing Data

Watch this video-then call me to help you buy or sell a new home or investment property.

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8 Tips For Finding Your New Home

A solid game plan can help you narrow your homebuying search to find the best home for you.

House hunting is just like any other shopping expedition. If you identify exactly what you want and do some research, you’ll zoom in on the home you want at the best price. These eight tips will guide you through a smart homebuying process.

1. Know thyself
Understand the type of home that suits your personality. Do you prefer a new or existing home? A ranch or a multistory home? If you’re leaning toward a fixer-upper, are you truly handy, or will you need to budget for contractors?

2. Research before you look
List the features you most want in a home and identify which are necessities and which are extras. Identify three to four neighborhoods you’d like to live in based on commute time, schools, recreation, crime, and price. Then hop onto REALTOR.com to get a feel for the homes available in your price range in your favorite neighborhoods. Use the results to prioritize your wants and needs so you can add in and weed out properties from the inventory you’d like to view.

3. Get your finances in order
Generally, lenders say you can afford a home priced two to three times your gross income. Create a budget so you know how much you’re comfortable spending each month on housing. Don’t wait until you’ve found a home and made an offer to investigate financing.

Gather your financial records and meet with a lender to get a prequalification letter spelling out how much you’re eligible to borrow. The lender won’t necessarily consider the extra fees you’ll pay when you purchase or your plans to begin a family or purchase a new car, so shop in a price range you’re comfortable with. Also, presenting an offer contingent on financing will make your bid less attractive to sellers.

4. Set a moving timeline
Do you have blemishes on your credit that will take time to clear up? If you already own, have you sold your current home? If not, you’ll need to factor in the time needed to sell. If you rent, when is your lease up? Do you expect interest rates to jump anytime soon? All these factors will affect your buying, closing, and moving timelines.

5. Think long term
Your future plans may dictate the type of home you’ll buy. Are you looking for a starter house with plans to move up in a few years, or do you hope to stay in the home for five to 10 years? With a starter, you may need to adjust your expectations. If you plan to nest, be sure your priority list helps you identify a home you’ll still love years from now.

6. Work with a REALTOR®
Ask people you trust for referrals to a real estate professional they trust. Interview agents to determine which have expertise in the neighborhoods and type of homes you’re interested in. Because homebuying triggers many emotions, consider whether an agent’s style meshes with your personality.

Also ask if the agent specializes in buyer representation. Unlike listing agents, whose first duty is to the seller, buyers’ reps work only for you even though they’re typically paid by the seller. Finally, check whether agents are REALTORS®, which means they’re members of the NATIONAL ASSOCIATION OF REALTORS®. NAR has been a champion of homeownership rights for more than a century.

7. Be realistic
It’s OK to be picky about the home and neighborhood you want, but don’t be close-minded, unrealistic, or blinded by minor imperfections. If you insist on living in a cul-de-sac, you may miss out on great homes on streets that are just as quiet and secluded.

On the flip side, don’t be so swayed by a “wow” feature that you forget about other issues—like noise levels—that can have a big impact on your quality of life. Use your priority list to evaluate each property, remembering there’s no such thing as the perfect home.

8. Limit the opinions you solicit
It’s natural to seek reassurance when making a big financial decision. But you know that saying about too many cooks in the kitchen. If you need a second opinion, select one or two people. But remain true to your list of wants and needs so the final decision is based on criteria you’ve identified as important.

G.M. Filisko is an attorney and award-winning writer who has found happiness in a brownstone in a historic Chicago neighborhood. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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4 Tips to Determine How Much Mortgage You Can Afford

By knowing how much mortgage you can handle, you can ensure that home ownership will fit in your budget.

Here are six surefire ways you can get your finances in order before you buy a home.

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Instead of just taking out the biggest mortgage a lender qualifies you to borrow, consider how much you want to pay each month for housing based on your financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Still not sure how much you can afford? You can use the same formulas that most lenders use, or try another of these traditional methods for estimating the amount of mortgage you can afford.

1. The general rule of mortgage affordability
As a rule of thumb, you can typically afford a home priced two to three times your gross income. If you earn $100,000, you can typically afford a home between $200,000 and $300,000.

To understand how that rule applies to your particular financial situation, prepare a family budget and list all the costs of homeownership, like property taxes, insurance, maintenance, utilities, and community association fees, if applicable, as well as costs specific to your family, such as day care costs.

2. Factor in your downpayment
How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which costs hundreds each month. That leaves more money for your mortgage payment.
The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

3. Consider your overall debt
Lenders generally follow the 28/41 rule. Your monthly mortgage payments covering your home loan principal, interest, taxes, and insurance shouldn’t total more than 28% of your gross annual income. Your overall monthly payments for your mortgage plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 41% of your gross annual income.

Here’s how that works. If your gross annual income is $100,000, multiply by 28% and then divide by 12 months to arrive at a monthly mortgage payment of $2,333 or less. Next, check the total of all your monthly bills including your potential mortgage and make sure they don’t top 41%, or $3,416 in our example.

4. Use your rent as a mortgage guide
The tax benefits of homeownership generally allow you to afford a mortgage payment—including taxes and insurance—of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example. If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, consider what amount would be comfortable and use that for the calcuation instead.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

G.M. Filisko is an attorney and award-winning writer who’s owned her own home for more than 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics.

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Two Special Twin Cities Home Buying Programs

One program is called FPP-Foreclosure Partnership Program, and the other is NSP2 Homebuyer Assistance Program.  Both programs offer incentive money for a purchase.  I can use these financing programs with one of our mortgage investors.  Consider checking them out to see if they’d work for you.

HennipenCounty-Non-forclosedHomes-overview

HennipenCounty-Nsp2-overview

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Rebuilding Credit To Get A Mortgage

Often, especially in this market due to the recession, we find potential home buyers who have had a life event or “bump in the road” that affects their ability to obtain a new loan. If you want to buy a home, you will have to have a certain number of reporting trade lines and for certain length of time. MOST mortgage programs require 3-5 trade lines and a minimum of two years of reporting. The other criteria is the actual credit score-which generally has to be 620, 640 or even 660 as it is all lender dependent. A manual underwriting where they use alternative credit such as rent payments, cell phone bill, utility bills, and the cable bill might be able to be used-but only with a few certain programs and lenders. So, the best bet is to re-establish credit as quickly as possible. HOW ABOUT NOW!! Don’t wait-it will only extend the time until you are going to be eligible. I have put together a list of resources that might be helpful. This list is only a starting place for your research. If you find another good resource please post it in the comments below so that the list can be expanded upon.

TOP IDEAS FOR CREDIT RE.doc

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Buying Rental Property In The Twin Cities

Have you ever wanted to own rental property, but were unsure where to start? I teach a class on the topic. I’ve decided to make the outline into a PPT. I cover the information in my class in much more depth and breadth, but this will give you a lot of useful information. If you are interested in discussing purchasing a rental property as an investment, just give me a call and we can set up a time to meet and review how I can help you become a “real estate mogul”.

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Mortgage Insurance May Still Be Deductible For Some Buyers

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Is There An Opportunity Right In Front Of YOU

I just watched an amazing video which I’ve posted below called the Money Tree. There are so many different interpretations. One that struck me was that people are oblivious to opportunity that is right in front of them. How many of us are looking for something that we already have or is within our reach? How many people are NOT buying real estate today when they could be looking at this as an incredible wealth building opportunity for what it is over the long term-assuming properties rise again in value? I was showing homes this past weekend. It was incredible to see townhomes in great communities selling for 40-60% less than they had sold for just as little as 5 years before. Luckily for my client, we are going to make an offer and ACT. Watch this video and don’t let the opportunities in your life pass you by. Don’t let life pass you by. Happy New Year and may 2011 be your best yet!

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December Is The Time To Reflect

Are each of us doing all we can to make the world a better place? Many of us have our favorite charity and organizations we support. RE/MAX is a very large sponsor of Children’s Miracle Network. Many people don’t realize how much has been given. Each time I sell a home, I automatically donate a portion of my commission to this organization. Other RE/MAX agents like myself contribute from their commission checks as well. Together, with RE/MAX we have collectively given over 100M. I would encourage everyone to consider finding an organization they believe in and make giving a part of their life. Just imagine what the world could look like?

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Getting Ready to Sell Your House

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HUD Has A YouTube Channel-Here Is There Vid On Buying A Home

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Google lets you create cool templated websites

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Can Home Ownership Contribute To Your Wealth?

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Minnesota Foreclosure And Distressed Home Fact Sheets PLUS Twin Cities First Time Buyer Special Programs

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Twin Cities Foreclosure Update

Here is our latest newsletter that has updates on foreclosures in the Twin Cities.

Also, watch the video below

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Minnesota First Time Home Buyer Tips

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Top Seven Tips For Home Buyers

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Home Buyer Programs in the City of Edina

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

I called the City of Edina they told me to visit this website

Here is a Link to the Nonprofit Edina Housing Foundation

www.comehome2edina.org

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Home Buyer Programs in the City of Bloomington

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

http://www.ci.bloomington.mn.us/cityhall/commiss/hra/fhip/fhip.htm

Foreclosed Home Improvement Program (FHIP)
Funds available for improvements to foreclosed homes

Up to $20,000 is available for Bloomington residents purchasing and improving foreclosed homes.
If you are purchasing or have purchased a foreclosed home within the last 12 months, you may be eligible for up to $20,000 in loan funds to make improvements.

One half of the amount borrowed will not have to be repaid if the owner lives in the home for 5 years. The remaining half will consist of a 5% deferred loan that does not have to be repaid until the owner sells, transfers title or no longer lives in the home.

To be eligible for FHIP funds, properties must be located within the designated area of Bloomington, see map below. The area is bordered by American Boulevard on the north, E. Old Shakopee Road on the south, Old Cedar Avenue on the east and I-35W on the west.

All FHIP applicants must be purchasing or have purchased a foreclosed home within the designated area within the last 12 months.

Click on the links below to view the brochure and download an application.

• FHIP brochure (289KB, 2-page PDF)
• FHIP application (80KB, 2-page PDF)

For more information, contact:
Brian Duerwachter
Bloomington Housing and Redevelopment Authority
1800 West Old Shakopee Road
Bloomington, MN 55431-3027
PH: 952-563-8939 TTY: 952-563-8740
E-mail: bduerwachter@ci.bloomington.mn.us

Homebuyer financing

What type of loan is ideal for you? There are many options out there.

• For a quick overview, provided by the Mortgage Bankers Association, go to www.homeloanlearningcenter.com/MortgageBasics/MortgageTypes.htm
• VA loan eligibility – loans for those who have served in the Military. For answers to frequently asked questions, go to homeloans.va.gov/faqelig.htm

First-time home buyer programs

You can own a home! The Minnesota Mortgage Program (MMP) is a First Time Homebuyer loan program that helps low to moderate income Minnesotans buy a home. The affordable, low, fixed interest rates are available to eligible homebuyers statewide. Find out today how you can be on the road to successful homeownership with the Minnesota Mortgage Program.

• To read more on what the Minnesota Housing Finance Agency has to offer, go to www.mnhousing.gov/consumers/home-buyers/loans/index.aspx

What about assistance for down payment and closing costs? The Minnesota Housing Finance Agency provides the opportunity for eligible homebuyers who qualify for a Minnesota Housing loan to receive an interest-free, deferred loan to help with downpayment and closing costs through the Homeownership Assistance Fund (HAF) and the HOME Homeowner Entry Loan Program (HOME HELP).

• HOME HELP Frequently Asked Questions (FAQs)
• For more information, go to www.mnhousing.gov/consumers/home-buyers/loans/MHFA_003407.aspx

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Home Buyer Programs in the City of Minneapolis

Minneapolis Community Planning and Economic Development Department
Home Ownership Works Program

The City offers first-time homebuyers the opportunity to purchase homes, either remodeled, older homes—offering charm and character with modern conveniences—or newly built, through the Home Ownership Works Program (HOW). The HOW homes, located in Minneapolis, are for sale at affordable prices and to those homebuyers with incomes below 80% of the metropolitan median income.

Interested in purchasing one of these homes? Contact Erin Green, HOW marketing representative, at 612-721-7556 ext. 12.

General Guidelines:
If you are interested in one of these houses contact Erin Green, HOW marketing representative, at 612-721-7556 ext. 12.

The HOW marketing representative will show you available homes that are affordable to you and explain the HOW program requirements. The HOW marketing representative will work with you one-on-one throughout the purchase process or you may obtain your own agent to represent you.

Prior to purchasing a home through HOW you will need to complete two Home Buyer Education Workshops.

The Pre Purchase Workshop coordinated by the Home Ownership Center, 651-659-9336, provides comprehensive information about the home buying process and prepares you for home ownership Counselors will work with you to determine how much home you can afford, counsel you with credit issues and refer you to a lender.

The Housing Maintenance Workshop conducted at Northside Neighborhood Housing Services, 612-521-3581 provides training on general property maintenance such as furnace function and minor plumbing repairs.

For more information, contact CPED by calling 612-673-5229.

The Home Ownership Program

The Home Ownership Program, a partnership with the Greater Metropolitan Housing Corporation offers affordable home ownership opportunities to buyers with incomes at or below 80% of the metropolitan median income (MMI).

This program is funded using federal Community Development Block Grant (CDBG) funds. In addition to funds available to the developer for the construction gap, the City provides up to $30,000 in affordability gap financing to the homebuyer in the form of a deferred loan due and payable at the time of sale of the property.

Staff from CPED and GMHC review and discuss development opportunities and select sites to pursue.
Contact Person: Earl Pettiford, (612) 673-5231
Earl.Pettiford@ci.minneapolis.mn.us

Minneapolis Community Planning and Economic Development Department
Seeking Home Ownership in Minneapolis?

The City of Minneapolis works with for-profit and non-profit development partners to provide ownership opportunities that offer easy access to schools, services and public transportation.

Below is a list of partners who have worked with the City on recently developed projects and currently have homes for sale in Minneapolis. These projects offer urban amenities and home-ownership opportunities for low-to-moderate and upper-income households.

Need mortgage financing? Check out the City of Minneapolis CityLiving Mortgage Loan program or call 612 673-5282.

Follow the links below to find your first home – or your next home – in Minneapolis!

City of Lakes Community Land Trust
City of Minneapolis, CPED Housing Division
Humboldt Greenway Development, LLC
Greater Metropolitan Housing Corporation
Heritage Housing, LLC
PRG, Inc.
Prima Land, Inc.
Project for Pride in Living
Urban Homeworks

Resources

OwnAHomeMN.org is another online resource for finding quality affordable homes in the Twin Cities. OwnAHomeMN.org is a pilot initiative by the Metropolitan Consortium of Community Developers working in collaboration with members and partner organizations.

Minnesota Home Ownership Center offers home ownership education and foreclosure prevention counseling.

The City also encourages homebuyers to “Buy Smart, Buy Near Transit” to save money, deliver a better return on their investment, and ensure a higher quality of life for themselves and their neighbors.

Minneapolis Community Planning and Economic Development Department
Single Family Housing Development

CPED’s Single Family Housing Department administers the Home Ownership Works, Century Homes, and Vacant House Recycling programs which are funded by Federal CDBG, HOME, MHFA, Met Council, Family Housing and Development Account funds. Our success with these efforts has helped return vacant lots and vacant/boarded homes to the city’s housing supply. We acquire and demolished vacant structures to provide new housing opportunities, serving as the catalyst for new home development.

Home Ownership Works (HOW) Program

CPED remodels older homes in Minneapolis and brings the property up to code.  Through this program, homebuyers can move into a home that offers the charm and characteristics of a remodeled older home.

Century Homes Program

The Century Homes Program is a partnership between the City of Minneapolis and the Greater Metropolitan Housing Corporation (GMHC) to build new single-family homes on city owned vacant lots.

Vacant Housing Recycling Program

Vacant Lot For Sale List (pdf)

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Home Buyer Programs in the City of New Hope

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

The City of New Hope gave me the the following websites :

www.mnhousing.gov

www.capsh.org

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Home Buyer Programs in the City of Burnsville

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

Low Interest First Time Homebuyer Loans Available
Dakota County Community Development Agency Releases Over $41 Million in First Time Homebuyer Financing [Additional info...]

Homeownership Connection
Programs & Resources For Homebuyers

First Time Homebuyer Program
Downpayment & Closing Cost Assistance
Home Stretch® Homebuyer Education
Pre-Purchase Counseling
First Time Homebuyer Program
In the market for your first home? Whether you are buying an existing home or building a new one, the Dakota County CDA’s First Time Homebuyer Program provides a financial resource to make your purchase successful.
Current interest rate: 4.75%
Program Eligibility

• Homebuyers must be first time homeowners or someone who has not owned their primary residence in the last three years.
• Eligible properties include existing single family homes, townhomes, condominiums or duplexes in Dakota County.
• New construction is eligible in Apple Valley, Burnsville, Eagan, Empire Township, Farmington, Hastings, Inver Grove Heights, Lakeville, Mendota Heights, Rosemount, South St. Paul, Sunfish Lake and West St. Paul.
• Homebuyers must occupy the home as their primary residence after purchase.
• Buyers must have a minimum credit score of 620.

Income Limits

• 1 or 2 person households: $84,000
• 3 or more person households: $92,400

Maximum Purchase Prices

• $276,683 for single family homes, townhomes or condominiums
• $389,205 for duplexes (not eligible for additional Downpayment Assistance)

Eligible Financing

• The First Time Homebuyer Program may only be used with 30-year amortizing fixed-rate FHA or VA mortgage loans.

Fees & Requirements

• An application fee of $225 is paid at closing. Mortgage lenders may also charge a $150 transfer fee as part of closing costs.
• Home Stretch Homebuyer Education certificate required prior to loan closing.

To apply, contact a participating mortgage lender. They have all the necessary paperwork to qualify homebuyers for the First Time Homebuyer Program and Downpayment Assistance.
Questions? Call (651) 675-4442.
Downpayment & Closing Cost Assistance
Homebuyers accessing the Dakota County CDA First Time Homebuyer Program can also apply for downpayment and closing cost assistance loans up of up to $10,000 depending on household income.

Loan Terms

• Zero percent interest
• No monthly payments
• Loan must be repaid when the primary mortgage is paid off, the home is no longer the primary residence, or when the home is sold or refinanced.
• Borrower must contribute a minimum of $750 of their own funds toward the purchase of the home.
• Home must meet the minimum housing standards for FHA or VA mortgages.

Maximum Loan Amounts & Income Limits

• 10% of the first mortgage amount up to $10,000 for households with incomes at or below 50% of the area median income.
• 5% of the first mortgage amount up to $7,500 for households with incomes between 51% and 80% of the area median income.
• 2.5% of the base mortgage amount for households with incomes between 81% and the First Time Homebuyer Program income limits.

Household	10% Income	5% Income	2.5% Income
Size	Limit	Limit	Limit
1	$29,400	$45,100	$84,000
2	$33,600	$51,550	$84,000
3	$37,800	$58,000	$92,400
4	$42,000	$64,400	$92,400
5	$45,400	$69,600	$92,400
6	$48,750	$74,750	$92,400
7	$52,100	$79,900	$92,400
8	$52,100	$85,050	$92,400

Questions? Call (651) 675-4442.

Home Stretch® Homebuyer Education Program
Purchasing a home may be the biggest investment you ever make. The first step in making a sound investment is to learn about the homebuying process by attending Home Stretch.

Home Stretch teaches homebuyers about the entire homebuying process and the responsibilities of homeownership. Topics covered include: Budgeting and Credit Issues, Financing and Qualifying for a Home, Shopping for a Home, The Purchase Process, Closing on a Home and Life as a Homeowner.

Home Stretch is taught by professionals in the homebuying field including a certified Home Stretch educator, mortgage lenders, realtors and home inspectors.

The Dakota County CDA holds Home Stretch classes monthly and is a HUD-Approved Housing Counseling Agency. Upon completion, participants receive a Home Stretch certificate.

2010 Dakota County CDA
Home Stretch Schedule

July 15, 20 & 22 closed
July 17 closed
August 21 8 a.m. – 4:30 p.m.
September 16, 21 & 23 6 – 9 p.m.
October 14, 19 & 21 6 – 9 p.m.
November 208 a.m. – 4:30 p.m.

The cost to attend the class is $15 per household for Dakota County residents and $25 per household for non-residents.

Pre-registration is required either by phone or online.

Online Home Stretch Registration

To register by phone, contact Shannon Kehoe (651) 675-4472.
For a list of other metro area Home Stretch class dates, visit the Home Ownership Center’s Web site at www.hocmn.org

Pre-Purchase Counseling

The CDA’s Pre-Purchase Counseling services provide free individual counseling to Dakota County homebuyers and can be accessed anytime during the homebuying process, whether you are buying a home now or in the future.

This program assists homebuyers in creating a plan to become successful homeowners. The plan may include: credit repair, creating a household budget in order to save for a downpayment on a home, identifying mortgage loan products that best meet the household’s needs and/or examining and answering questions about loan documents.

If you have questions about the homebuying process or would like to schedule a Pre-Purchase Counseling appointment, contact Shannon Kehoe at (651) 675-4472.

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Home Buyer Programs in the City of Plymouth

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

FIRST TIME HOME BUYERS

The Plymouth Housing and Redevelopment Authority offers a zero interest deferred loan up to $25,000 for qualifying first time homebuyers purchasing a home in Plymouth.

• Financial assistance can be used for up to 50% of the required down payment, 100% of allowable closing costs up to $5,000 and for reduction of the mortgage principle.
• Repayment of the loan is required if the home is sold or no longer homesteaded within the first 30 years of ownership. After 30 years, the loan becomes due and payable.
• Applicants will be accepted on a first-come, first-serve basis.
• Program guidelines and income requirements are subject to change.

Eligibility Criteria

• Must be a first time homebuyer — have not owned a home in the last three years or have been displaced due to a divorce.
• Must buy a home in Plymouth.
• Must register and attend all homebuyer training sessions with Community Action Partnership of Suburban Hennepin prior to closing.
• Must use only a participating lender for your primary mortgage.
• Household income must not exceed the maximum income limits by household size. This is based on your gross earnings and includes all income received, such as wages, child support, alimony, etc. Income limits are revised yearly.

Household Size	Maximum Household Income
1-Person Household	$45,100
2-Person Household	$51,550
3-Person Household	$58,000
4-Person Household	$64,400
5-Person Household	$69,600
6+ -Person Household	Call

• Authorization to Release Information (PDF)
• First Time Homebuyer Application (PDF)
• First Time Homebuyer Brochure (PDF)

Contact
Housing Division
Plymouth City Hall | 3400 Plymouth Blvd. | Plymouth, MN 55447-1482
P 763-509-5410 | F 763-509-5407 | housing@plymouthmn.gov

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Home Buyer Programs in the City of Minnetonka

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

Homeownership programs

• First-time homebuyer programs
• Downpayment and closing cost assistance
• Homebuyer education
• Other affordable housing programs
• Foreclosure prevention
• Reverse mortgage

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Home Buyer Programs in the City of Hopkins

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

First Time Home Buyers

Mortgage programs

More information on first time home buyer mortgage funds is available through the Minnesota Housing Finance Agency.

Information including the following is available:

• Minnesota City Participation Program
• Minnesota Mortgage Program
• Accessibility Home Fund
• Calculating a monthly mortgage payment

Housing Rehab Loans & Grants

The City of Hopkins provides funding to assist low and moderate income homeowners in improving their homes.

Who is eligible?

To qualify for a loan or grant the following requirements are necessary:

• Must be a Hopkins’ homeowner residing in the property to be improved.
• Must not exceed the income limits as listed below.
• Must have equity in the property equal to or greater than the loan or grant amount.

Income Limits (effective 5/14/10)

Number in HouseholdGrant	Grant	Half	Loan
One	$29,400	$37,250	$45,100
Two	$33,600	$42,575	$51,550
Three	$37,800	$47,900	$58,000
Four	$42,000	$53,200	$64,400
Five	$45,400	$57,500	$69,600
Six	$48,750	$61,750	$74,750
Seven	$52,100	$66,000	$79,900
Eight	$55,450	$70,250	$85,050

Terms

The maximum grant or loan is $25,000. The grant/loan is filed as a second mortgage on the property and is not assumable upon the sale of the home.

Loans are offered at 3% interest over a 12-year period. Grants do not require repayment, provided the homeowner lives in the home for ten years after the work is completed.

Eligible improvements

Improvements must be permanent. Such improvements include alteration or repairs to the property which correct defects or deficiencies in the property that affect the safety and habitability of the home. Work can also include upgrading the home’s energy efficiency. Examples of eligible improvements include:

• furnaces
• roofs
• windows
• electrical
• hot water heaters
• structural repair
• plumbing
• insulation

The program is funded through the Community Development Block Grant program under the Department of Housing and Urban Development.

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Home Buyer Programs in the City of Crystal

Recently I called the city to find out what might be available in the way of first time home buyer funding or home buyer programs in general.  This is what I found.  This information comes from their website or from a phone call I had with someone at the city.  As such, this information can and will change over time.  Make sure you call and verify guidelines and programs for yourself.  Of course, I can and would certainly like to help find your new home.  Visit my main real estate site at http://www.MinneapolisStPaulHomes.com

Do you have technical questions about a potential home repair or remodeling project? Are you interested in financial assistance for home repairs, improvements and remodeling? The HousingResource Center – Northwest is available to help!
2148 44
th Ave N Office Hours:

Minneapolis MN 55412 9 a.m. – 5 p.m. Mon-Thu
tel (612) 588-3033 9 a.m. – 1 p.m. 4
th Sat of
fax (612) 588-3028 each month
http://www.housingresourcecenter.org/
The Housing
Resource Center is operated by the non-profit Greater Metropolitan Housing Corporation in partnership with the business community, financial institutions, and the cities of Brooklyn Center, Crystal, New Hope,

Downpayment Assistance Program for FHA 203K Purchase-Rehab Loans

Homebuyers using a Federal Housing Administration loan program called “203K” to purchase and rehab a vacant house in Crystal may be eligible for downpayment assistance for 3% of the total purchase and rehab costs (maximum $5,000). To qualify, the buyer cannot own any other residential property and their household income may not exceed $83,900 (if a one or two person household) or $96,489 (if a household of three or more people). The downpayment assistance would be a deferred, no-interest second mortgage to be forgiven after five years if the buyer owns and occupies the house throughout that time. For more information, call the Housing
Resource Center at (612) 588-3033 or click on the “Downpayment Assistance Program” link at
http://www.gmhchousing.org/crystal_apps.htm.

U.S. Dept. of Housing & Urban Development Neighborhood Stabilization Program

The federal Neighborhood Stabilization Program (NSP) was adopted in summer 2008 to help local governments deal with foreclosed and abandoned properties. One strategy is to provide downpayment assistance for new homeowners to purchase these properties. Hennepin County is administering NSP homebuyer programs for several cities including Crystal. For more information, please review the materials at http://www.hennepin.us/neighborhoodstabilizationprogram

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Data.gov – A Cool Site With Lots Of Great Info

http://www.Data.gov I just found this site and wanted to share it.  It has a ton of info and reports.  If you have a project or just an “inquiring mind”, this is sure to be a hit.  Check it out and get the data you need.

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Balance Transfer and Housing Finance

By Addi Vardhaman

The Indian immovable property has come of ages. Consumer is the King now and gone are the days of monopolistic behavior. And definitely, if you are the one with sound financial background and impeccable credit record you can strike a better deal with the banks in terms of interest rates and other payment conditions and purchase your dream property without any hassle.

Interestingly, the same criteria is equally applicable on those, as well, who have already availed a loan from a bank. Near about all the major public and private sector banks in the Indian banking system are now offering the option of ‘Balance Transfer’ on housing finance. Often, banks in the housing finance sector tend to increase the interest rates when the benchmark interest rates increase. But, such alacrity is not shown by them in decreasing rates whether the Repo rate comes down or not. In such circumstances, balance transfer help the customer a lot. He can replace the higher rate loan and avail a lower rate one by paying some extra charges. These charges are lower compared to the total payable interest.

What is Balance Transfer and how is it relevant in the housing finance?

There are times you find that the interest rate on your home loan is at a higher level. Take an example. Suppose you were paying at the rate of 10.5 per cent per annum. This rate is quite high in comparison of 9 per cent offered by some other bank. In such cases balance transfer of housing finance comes into rescue. You can trigger off the balance transfer option with your existing bank or lending institution, under which the unpaid portion of your housing finance would get transferred to your desired bank, thereby taking benefit of the difference in the housing loan interest rate.

Things to take care of at the time of balance transfer:

* Tenure of loan amount should be taken care: Ideally, you should consider taking the balance transfer option when the remaining part of your payment period is more than 5-years and in such a case you have the time for speculative gains. There is no profit in transferring the home loan from one bank to another if you end up paying early payment penalty and other processing charges even more than the difference of housing loan interest rate and the amount you had to pay towards interest in the normal condition.

* Early Payment Charges associated with the housing finance scheme: Banks like State Bank of India, IDBI and ICICI offer benefits like exemption of the early payment charges to your existing bank if you transfer the balance. So you must confirm the same with the new lending institution that are they ready to deal with this matter. Otherwise, the deal is not profitable.

* Additional charges involved with the loan amount: You must confirm that the desired amount for your home purchase loan is perfectly at par with the balance you had in your previous bank. It may be the case that that your new bank pays all early payment penalties and processing charges on your behalf and later add the amount to the principal of your housing loan. So, in such case your total owing remain the same and the transfer is not profitable. In this situation, you have to suffer the impact of debt compounding, which does not favour you in the long run.

Seeking balance transfer as a burden reduction option needs the similar degree of caution and study that you undertake while taking housing finance. Definitely with balance transfer, you can save a considerable amount of interest charges under this option once you strike the right chord!

About The Author: For more information about home loans. Please visit our website: http://www.paisawaisa.com/

Article Source: http://EzineArticles.com/?expert=Addi_Vardhaman
http://EzineArticles.com/?Balance-Transfer-and-Housing-Finance&id=1337511

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Housing Finance – A Revolution In The Market

By Aditya Jaiswal

The housing finance in India is growing at a fast pace. The home loans or housing finance is a huge industry in itself. A lot many people are trusting home loans in India to purchase property. This is the best and affordable way of realizing your dream of buying your own home. These finance options are open for all salaried individuals, self-employed individuals, partnerships, and even NRIs. The home loan can be availed for various purposes like loan for building a house, purchasing a piece of land, buying an existing house or apartment, and renovating a house.

The home loan can be availed for all kinds of properties like residential, commercial, and industrial. The loans for industrial and commercial property are of huge size and are normally taken by organizations. People also take home loan for the purpose of investment in property rather than for their own use. These properties are later on sold in the market at good profit.

Apart from a normal housing loan one can also get home equity loan, a unique concept wherein the borrower can mortgage his existing property to avail loan that can be used for any kind of purpose as desired by the buyer. Generally, people avail home equity loan facility for the purpose of marriage, education, or to meet medical expenses. The maximum loan amount that banks normally offer is about 60% to 65% of the market value of the property. The home equity loan is generally provided on difference amount of the actual market value of the property and the amount the customer already owes to the bank. At one time this concept of borrowing was not much known but today it has become quite popular as the funds can be put in use as per the wish of the customer.

The housing finance companies follow a very strict process while providing loans to the customers. The loans are disbursed in line with the credit policies of the bank and financial institution. As part of their process, banks verify the credit history of the borrower to ensure safety of the funds. It is important to check whether the customer is a defaulter with some other financial organization or if he has misused any of the banking products.

The housing finance sector is being promoted in a big way in India. The banks and financial institutions are offering home loans at attractive terms. Even people find it advantageous to purchase property by availing home loan as they get tax benefits and easy repayment options. This is the best way to buy a property especially if you belong to service class. The banks and housing finance companies are also being professionally managed. They are always ready to assist the customers regarding queries related to the prevailing rate on interest, the various tenures available for repayment, conditions or the eligibility criteria for various categories of customers, the documentation required etc. It will not be wrong to say that housing finance in India has caused a revolution in the market and has motivated purchase of properties.

Aditya Jaiswal, advisor of home loans for NRIs, is an associated editor with the site: www.guide2homeloan.com The site is an online portal to provide home loan advice on home loans in India including types of home loans in India, home loan interest rates in India provided by home loan providers in India.

Article Source: http://EzineArticles.com/?expert=Aditya_Jaiswal
http://EzineArticles.com/?Housing-Finance—A-Revolution-In-The-Market&id=397589

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Check Out Energy Rebates

EnergyStar.gov –  Check Out Energy Rebates

This is a government site that offers lots of energy saving tips as well as explains what energy saving grants or credits might be available.

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Foreclosure Trends Newsletter

Here is the latest issue of my foreclosure trends newsletter.  As you can see, the trend is not our friend, in the sense that the housing market has not recovered.  Until jobs come back and people are employed and feel safe in their employment, they will tend to avoid making a committment.

ForeclosureTrends.pdf

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Twin Cities Foreclosure Trends-From our MLS & Realty Trac

Besides the board of realtor sites:  http://theThing.mplsrealtor.com and market data posted elsewhere at http://www.MplsRealtor.com I have a subscription to Realty Trac.  My subscription gives me additional data about foreclosures and trends within certain zip codes.  This is in addition to my daily subscription to Finance & Commerce (a business newspaper that prints all the foreclosure information as well as very timely articles regarding the business community).  If you are looking for someone who has experience and access to information about distressed sales, we need to be working together.  Whether buyer or seller-I can help you understand the market we are in and the options and opportunities available to you.  Give me call today.

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Real Estate Information

These are a couple of my newsletters that have a ton of valuable information. Go check them out.

Foreclosure Market Trends Newsletter
http://www.realtytrac.com/MarketTrends/NewsLetter.aspx?guid=131bd355-1b69-4bd1-99cd-2f0c9a936810

Real Estate Cyber Space Tips
http://www.REcyber.com/cybertips/r11627

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Minnesota Mortgage – What to Expect When Buying a Home in Minnesota

By Jessica Elliott

Maybe you’re buying your first home in Minnesota, or perhaps you’re relocating to Minnesota from another state. Either way, it’s important that you educate yourself on Minnesota home loans before shopping for a home and mortgage. This article explains what you’ll need to know before buying a home in Minnesota:

The median price of a home in Minnesota is $122,400. The price of homes in Minnesota varies widely between zip codes. For example, in Minneapolis, Minnesota, the median price of a home in the summer of 2005 was $320,000; however, in Plymouth, Minnesota, the median price of a home was $214,000, and in Forest Lake, Minnesota, it was $225,000. Average interest and job growth rates in South Dakota are both below the national average.

Minnesota law prohibits the financing of points and fees on a mortgage that are more than 5% of the loan amount. Additionally, Minnesota limits the ownership of agricultural land to U.S. citizens and permanent residents, and corporations owned at least 80% by U.S. citizens and permanent residents.

The state of Minnesota does not regulate home radon levels. This means that home buyers must test for radon levels in the home they are purchasing and decide for themselves how much radon is acceptable in their home.

Jessica Elliott recommends that you visit Mortgage Lenders Plus.com for more information about Minnesota Mortgage Rates and Loans.

Article Source: http://EzineArticles.com/?expert=Jessica_Elliott
http://EzineArticles.com/?Minnesota-Mortgage—What-to-Expect-When-Buying-a-Home-in-Minnesota&id=263529

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Outstanding Video-An Inspiration To All-Be The Best You Can Be!

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Twin Cities Home buyer book

Thinking about buying a home but don’t know where to start? Why not start by reading the home buyer hand book that we have provided below. It is a great place to start to get the information you need. When you’re ready, we would love to help you find and finance a new home.

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Tax Credits for Solar Water Heaters

Article From HouseLogic.com

By: Donna Fuscaldo
Published: October 22, 2009

A federal tax credit makes energy-efficient solar water heaters a more affordable and sustainable option for many homeowners.
A solar water heater uses the renewable thermal energy produced by the sun to warm water for your shower, washing machine, and dishwasher. Better yet, it does it at a fraction of the price of a conventional storage tank water heater. If you take the plunge and purchase a solar water heater, expect to see your home’s water-heating bill cut in half.

The financial attraction doesn’t end there. A federal energy tax credit that’s available through the end of 2016 allows homeowners to shave 30% off the cost of a solar water heater. Even new homes and second homes qualify.
How solar water heaters work

Solar water heaters operate (http://www.energystar.gov/index.cfm?c=solar_wheat.pr_how_it_works) in one of two ways: either as a direct system or as an indirect system. A direct system warms water by circulating it via pipes through rooftop solar collectors. An indirect system, also known as a closed-loop system, relies on a non-freezing heat transfer liquid.

The liquid is heated in the solar collectors and returns through pipes to a storage tank, where a heat exchanger inside the tank transfers the heat to the water. Most systems rely on electric pumps to move water (or a transfer liquid) between the storage tank and the rooftop solar collectors.

In general, solar water heaters can be used anywhere as long as your roof gets direct sunlight for most of the day. The rooftop collectors should face south. A direct system makes sense in warm climates where temperatures don’t fall below freezing. The non-freezing liquid used in an indirect system makes it better suited for cold climates.

You’ll need to retain your conventional water heater as a back-up at night, on cloudy days, or anytime a solar water heater’s capacity is exceeded. An average person uses about 15 to 20 gallons of water per day, so a family of four would likely need an 80-gallon water heater tank.

The cost of a solar water heater

A solar water heater starts at around $4,000 including installation, though the price tag could double depending on the size, quality, and complexity of the system. Figure it’ll take two to four days to install.

There’s no cap on the 30% federal tax credit, which applies to systems placed in service between Jan. 1, 2009, and Dec. 31, 2016. Solar water heaters must be certified by the Solar Rating & Certification Corp. (http://www.solar-rating.org/) to qualify. States may offer additional incentives. Check the DSIRE database (http://www.dsireusa.org/).

To earn the federal tax credit, at least half of your household’s energy for water heating must come from the sun. You can only count money spent on the solar water heater, not the entire heating system. You can’t claim the credit if the solar water heater is for a pool or hot tub.

Take the credit on IRS Form 5695 for the year you install the solar water heater. Remember to save receipts and manufacturer certification statements. The credit can’t exceed the total amount you owed in federal taxes for the year.

The savings can add up

According to Energy Star, a federal program that promotes energy efficiency, a solar water heater can lower the average household’s water-heating costs (http://www.energystar.gov/index.cfm?c=solar_wheat.pr_savings_benefits) by 50%. If you use a gas water heater, that translates to savings of $190 a year. You’ll save $265 annually if you have an electric water heater.

Savings are greater for large families that use a lot of hot water. How quickly you recoup your total investment depends on how much water you use, the amount of sun you get, the performance of your solar water heater, and how much it costs to heat up your water using your existing system.

If you’re building a new home or refinancing your mortgage, consider lumping in the cost of a solar water heater with the loan. By spreading the cost (http://www.energysavers.gov/your_home/water_heating/index.cfm/mytopic=12860) of the system over the life of your mortgage, you can take advantage of the tax deduction (http://www.houselogic.com/articles/deduct-mortgage-interest-home-equity-loans/) for mortgage interest.

According to the U.S. Department of Energy, you’ll pay an extra $13 to $20 per month to include the cost of a solar water heater in a 30-year mortgage. With the mortgage interest deduction that cost gets reduced by $3 to $5. The difference is about what you should save on your monthly energy bills.

Long life, little TLC

Solar water heaters have a life expectancy of 20 years or more, double that of conventional storage tank water heaters. They typically don’t require replacement parts for the first 10 years. It’s prudent to hire a qualified contractor to conduct annual inspections, as you might do with a furnace.

You can do your part by making sure the collector is clean, sealings aren’t cracked, and fasteners connecting the collector to the roof are tight. Whether for installation or maintenance, look for contractors certified by the North American Board of Certified Energy Practitioners (http://www.nabcep.org).

Solar water heaters not only save money-they save the environment. The DOE says a solar water heater can cut the electric load of your water heater by 2,500 kilowatt hours annually, which prevents 4,000 pounds of carbon dioxide from entering the atmosphere. That’s equal to not driving your car for four months a year.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Donna Fuscaldo has written about alternative energy for Dow Jones, the Wall Street Journal, and Fox Business News for more than a decade. She’s currently renovating her house with an eye toward energy efficiency and green technologies.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

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