Get Real Tacoma

I get so many questions about Rehab loans, especially for Foreclosures in Hilltop and around Downtown Tacoma, that I took a few minutes to talk to Sean Werner of Wells Fargo about how exactly how FHA 203k Streamline loans work.  If you have any further questions, post them in the comments and we’ll get you an answer.

What is an FHA 203k loan? This  a loan which can be used to renovate a previously occupied home back to acceptable living conditions of the buyers choice. The 203K renovation loan is limited to 35K in improvements. The cost of the impovements are added the loan which is financed. Read the rest of this entry »

The President of the Washington Realtors, Greg Wright just shared this interesting article on Facebook. I know, he’s so hip!

Answering criticisms that all of the relief for the housing and economic crisis have been targeted at big banks and other large corporations, lawmakers are working on a bill that would make it possible for buyers to apply their $8,000 tax credit to their downpayment.

The proposal would make a federal tax credit for first-time homebuyers go farther by allowing it to be put toward the actual home purchase. A provision of the federal stimulus package offers a credit of up to $8,000 to buyers who haven’t owned a home in the past three years — buyers must also have incomes of no more than $75,000 for an individual or $150,000 for a married couple to qualify — but it’s a refundable credit. In other words, you don’t get the money until weeks or months after the home purchase has closed.

A budget proviso authored by the state Treasurer’s Office and pushed by Sen. Steve Hobbs (D-Lake Stevens) and the state Realtors would set up a mechanism to get the tax-credit money to buyers at closing, removing the lack of a sufficient down payment as an obstacle. 

This is really exciting news.  The article goes on to talk about how the state will be ensuring that they get their money- but I thought this was interesting:

The state Realtors would put up $400,000 as security against unforeseen losses.

Now I know why my Realtor Dues are so high. Ah well, that’s a good use for them!

“Now is the time to buy.”  This is something that I hear a lot out there.  Most people look at the low interest rates and  huge price redutions going on in the housing market and say this.   In my opinion, whether or not it’s the time to buy depends entirely on your situation.  Are you planning to move in the next 2 years?  How secure is your job?  Is your family going to be growing or shrinking in the next couple years?   

Trulia has a great rent vs. buy calculator that can help you answer the question for yourself here.  These caluculators are fun and can be a great jumping off point for starting your decision making process.

View from Cliff Street Loft #405

With the huge number of condos on the market right now, it’s always worth paying attention to the ones that sell.  This Studio Loft at Cliff Street Lofts on 1120 Cliff Ave Downtown was a bank owned foreclosure.  It was listed for $131,900 and sold for $131,000.

It has a great view of the Mountain and the City.  It’s a studio, with super high ceilings and an open modern kitchen with newer appliances.

The homeowners dues are $151/month on this unit, so if you were getting an FHA loan your payment with everything would probably be between 1100-1200 month.   Read the rest of this entry »

$169,950 Townhouse 3 Beds 3 Baths

These days, it seems the majority of my time looking at homes with buyers is focussed on homes that are priced under 200k.  

There are a lot of reasons for this, most of them having to do with how much buyers want to be paying for their mortgage each month.  

A lot of my clients are buying their first or second house and would prefer that their monthly payment not exceed $1,500.

The great silver lining of the whole housing kurfuffle is that there are finally some really great homes under $200,000 in Tacoma.  There are even some great homes under $150,000.  Not suprisingly, this has become the most popular price range, and the good houses in this group tend to sell more quickly than homes in other price ranges.  Below you’ll find the stats on the under 200k price range in Tacoma, as well as some examples of what you get for the money!

Read the rest of this entry »

Homebuyers, Rejoice.  Buying a house in 2009 just got even easier.

The President signed the American Recovery and Reinvestment Act of 2009 this week.  The bill is a $780 billion package, with about 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010. 

The major part that agents have been watching for, (especially agents like me- 80% of my clients are buyers) is the tax credit.  Previously, there was a credit of $7500 that had to be paid back. Not anymore!

 – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.  The credit does not require repayment.  Most of the mechanics of the credit will be the same as under the 2008 rules:  the credit will be claimed on a tax return to reduce the purchaser’s income tax liability.  If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.      Source: Realtor.com

This is very exciting.  I have a client right now who just bought a 3 bedroom, 1 bath house for $120,000.  The seller (a bank) is paying his closing costs.  His downpayment is $3,600.  His house payment will be $897.00/month including taxes, insurance, and everything else.  When he receives his tax return this year, he will be getting an extra $8,000 back that he will NOT have to repay.  Thats enough for him to pay his mortgage for almost 9 months, or make some improvements to his house, or….put 6 months expenses in the bank like Suze Orman tells us all we should!