The government branch known as HUD is foreclosing on more and more homes nationwide and Southwest Idaho is no exception. Starting this month there is a new site to use when searching for HUD Homes. Visit www.HUDHomeStore.com to view all the new listings in Southwest Idaho. This site will give you all the information on the inventory of homes owned by HUD and will announce any special finance programs etc.
Can any real estate agent represent a buyer on a HUD Home? The answer is no. Your real estate agent must be a HUD approved agent who's office has met the requirement for handling HUD transactions. My office is a HUD approved office and I have been selling HUD homes since the mid 90's. If you have any questions as to the procedure in buying a HUD home please email me at george@tallabas.com or call me at 208-880-2333.
The Boise Idaho Home Market is alive and well and just keeps getting better with the new low interest rates that have hit the market. I warned many a few months ago that mortgage rates would likely rise because of inflation caused by our government pouring billions of dollars into stimulous programs. Historically this kind of practice causes inflation and causes interest rates to rise.
The exact oposite has happened and Boise Home Buyers now have the best of both worlds. The number of Boise Homes for sale at prices not seen in years along with mortgage rates that have not been seen since the 1950's! This week (July of 2010) a mortgage lender quoted me 4.5% for a 30 year loan and 3.75% for a 15 year loan. It does not matter that the $8,000 federal tax credit has expired because the new low interest rates more that make up for it.
If you have any interest at all in becoming an Idaho Home Buyer please don't pass up the incredible opportunity that exists in the Boise Idaho Home Market. This is a rare opportunity in the history of our country that may not repeat itself for decades and decades. By going to the home page of Search Idaho homes you can click the "Search MLS Listings" page and search over 9,000 homes currently for sale in the Boise Idaho MLS Service which includes Ada, Canyon, Owyhee adn Payette Counties.
Good luck and please contact me at 208-880-2333 with any questions.
Idaho First Time Home Buyers and first time home buyers across the country have had it pretty smooth for years when it comes to securing an FHA insured loan. The lower down payments of 3.5% and low mortgage insurance made the loans very attractive. What is mortgage insurance? Mortgage Insurance is a premium buyers pay on their loans which insures the lender against any loss in the event of a foreclosure. With the amount of homes FHA and other private lenders have ended up with the last few years FHA said new changes were required to streamline it's operation and remain solvent while at the same time rewarding buyers that have their financial home in order. Here are the changes FHA has announced:
Up front mortgage insurance goes to 2.25% from the current rate of 1.75%
Minimum down payment increases to 10% for credit scores of 580 and below
For credit scores of 580 and above the down payment remains at 3.5%
Reduces seller allowed contributions from 6% to 3%
The two biggest hits here are increased down payments for credit scores of 580 and below and the reduced seller contribution. Sellers in the past have been allowed to pay 6% of the loan amount to assist buyers in paying closing costs. This new rule will require Idaho First Time Home buyers to pay for more of the up front closings costs to secure an FHA loan. The up front mortgage insurance will go into effect on April 5, 2010. FHA will also seek legislation to raise the annual mortgage insurance premium to a level above the current cap of .55%. This is the amount that is added to loans over the life of the loan.
Bottom line is FHA is rewarding buyers which have taken care of their credit and penalizing those that have not. I have been telling Idaho First Time Home Buyers for years of the importance of taking care of their credit. This is so important and cannot be overstated. If your credit is not good please take measures to work on it and get it improved. You will be rewarded in many ways.
Questions? Call me directly at 208-880-2333
The Boise Real Estate market and the surrounding Treasure Valley has been hit by something that we have not seen for a few years. All of a sudden we have been hit by the "Multiple Offer Effect". Many of the REO's or "Real Estate Owned" by mortgage lenders have hit such low prices that it has attracted many Idaho Home Buyers after the same property and it has caused a bidding war on many of these homes. Not only has the low prices of many of these homes caused such a frenzy but the Federal Tax Credit is in it's final months of existance has caused many Idaho Home buyers to take action because of the looming deadline.
So how do buyers handle this new market that has seen the Boise Real Estate market and the Treasure Valley real estate market change from what was a depressed real estate market flooded with Idaho Short Sales and Bank owned properties to this new multiple offer frenzy? First make sure that when you obtain a list of homes from your Idaho Real Estate Professional that you have your agent call in advance on all listings that say "Active". The reason for this is that many banks will accept offers but the change may not go into the computer for several days later. This is because banks have their own documents that need to be signed but it make take them days to get those documents to the buyer. Regardless, when the banks commit to an offer verbally in their mind the property is sold. I recently phoned on an REO home that was advertised as "Active" in the MLS but had 4 offers on the table and one of the offers had been accepted by the bank one day prior.
I have also recently seen many buyers that have been exposed to great deals on some of these REO homes but still want to "Bargain" because everyone wants a good deal right? The problem with this is that if the home is already a great deal several other buyers will see that it is a great deal as well and will submit reasonable offers. If one or more buyers submit reasonable offers and you submit a low ball offer who do you think will win out? If buyers play this low ball offer game too long they could easily get discouraged and feel they are never going to buy a home. So how do you know if a home is a good deal or not? Have your Idaho Real Estate Professional run comparable sales for the past 6 months on any home your are interested in. This report will show you the average days on the market, average selling prices and average selling prices per square foot. By looking at these reports you can easily see if you are paying a fair market price for any home.
Theare are many Boise ID homes for sale that are still a great buy and these great buys extend across the Treasure Valley. Just do your homework, be patient and smart and you will find one of these great deals that still exist. To get started on your own home search click Boise Real Esate Search
Questions? Call me directly at 208-880-2333
Boise ID homes for sale benefit from from a drop in the National home sales? No I did not bump my head up against the curb. This week the National Association of Realtors announced the sale of previously occupied homes fell for the second month in a row in January, 2010. The sales of previously occupied homes fell 7.2% surprising economists and reafirming the glut of homes on the market and the lack of jobs.
So why is bad economic news good for Boise Home sales? Any weak ecomic news and especially real weak economic news confirms the economy is weak and still needs to be stimulated with lower interest rates. Yes, "bad ecomomic news" strengthens the bond markets and puts downward pressure on mortage rates. Simply put, when enough bad economic news is reported the Federal Reserve will lower interest rates in an attempt to stimulate a weak economy. Mortage rates were sitting at sub 5% levels for weeks and just recently surpassed the 5% mark which is still awesome. This surprising economic news regarding Idaho home sales assures us at least for the immediate future mortgage rates should remain very stable and may even go lower if more bad economic news is reported, ie: durable goods orders, auto sales, retail sales, etc.
I have been saying for weeks and months that this is an incredible time to buy real estate in Idaho. When you add the lowest mortgage rates in years, the Federal Tax Credit and the price of homes retreating to levels seen in the early 90's it is simply one of the best times to buy a home this country has ever seen. Speaking of the Federal Tax Credit; the deadline for qualifying is fast approaching. Go to My Federal Tax Credit to read more about this tax credit which benefits Idaho first time home buyers and second time home owners.
The Boise Real Estate Market still offers great opportunities but waiting too long may prove costly to procrastinators. If you need assistance with with financing or any other part of the home buying process contact your Boise Realtor
Boise ID Home Sales could benefit from a recent announcement from Boise based Micron Technology that it has formed a partnership with Australian company Origin Energy. Origin generates and retails energy to about 3 million customers.
Origin Energy produces commercial solar panels using a new silicon water called "silver" technology at a facility in Austrailia. The company announced in January of this year it has been testing the manufacturing of these unique chemically etched silicon cells at Micron in Boise Idaho according to sources close to the company. Australia National University experts say the payback for investing in solar power could drop from 20 years to to 5 once the technology is perfected and in production.
"It was clear that combining our semiconductor manufacturing expertise with Origin Energy's solar experience could result in a powerful partnership," Micron Chairman and CEO Steve Appleton and Chief Operating Officer Mark Durcan said in a memo.
A year ago Micron announced its interest in converting idle buildings in Boise and Nampa to manufacture solar panels and high-efficiency lighting components known as LEDs. A few months later, it began developing LED manufacturing facilities with $5 million in state and federal stimulus dollars.
"One of the keys to solar is a lot of the customers are big customers," said Mike Howard, a senior analyst with iSuppli and former Micron employee. Origin makes the technology and could, ostensibly, use it in its power generation. Even while Micron's involvement in solar and LEDs is far behind its memory operations, Howard expects both of them to grow.
"Micron isn't just getting into this to keep people busy," Howard said. "They want this to be a significant revenue generator." Hundreds of millions of dollars Micron invested in its now-obsolete silicon memory plants in Boise offer it a chance to develop state of the art manufacturing on both solar and LED technology, he said.
Micron Technology announced that a profit in December of 2009 of $200 million is due to an impoved market for computer chips. Micron once employed more than 11,000 people in the Treasure Valley and was Idaho's largest private employer. Today it has about 5,000 employees. The improved computer chip market and the new partnership with Origin Energy could be what the Boise Real Estate and Treasure Valley real estate markets need. A the unemployment levels in the valley could see significant reversals if Micron and Hewelett-Packards renewed profits prove to be consistent for the months to come.
Boise Idaho Home Sales could see a shot in the arm if recent announcements by Hewlett-Packard provide stability and even possible growth in the Boise job market. HP recently announced first quarter net revenues of $31.2 billion, up 8%, or $2.4 billion from a year earlier.
"HP is well-positioned to outperform the market," said Mark Hurd, HP chairman and chief executive officer. "The strength of our portfolio, leaner cost structure and accelerating market momentum give us the confidence to raise our full-year outlook."
"Solid performance across teh business and disciplined execution on our cost initiatives contributed to strong growth in cash flow and EPS," said Cathi Lesjak, HP executive president and chief financial officer. "We will continue to invest for growth and leverage our scale and global position to take advantage of an improving demand environment."
HP first opened for business in Boise Idaho in 1973 and moved to its' campus off of Chinden Blvd. in 1976 when it opened it's printer division which as part of a growing high-tech field. HP employed 4,000 at it's peak and currently employees approximately 3,000 employees. HP's presence in Boise Idaho helped launch a tech industry that now accounts for 11% of the Treasure Valley's work force.
If this recent growth by HP is any sign of a true tech recovery the Treasure Valley could see continued job improvement from a tech sector that has been hard hit by the recession. The Treasure Valley has seen record levels of Idaho Short Sales and Idaho Foreclosures which have caused real property values to plummet to levels seen in the late 80's to early 90's.
Boise Real Estate home buyers and the entire Treasure Valley was recently informed about the extension of the $8,000 Federal Tax Credit and the new $6,500 credit for home sellers. It has now been extended through the end of June, 2010. Idaho homebuyers must sign a real estate purchase and sale contract before April 30, 2010 and close by June, 2010. The income limits have now been raised: Single buyers can now earn up to $125,000 and still get the full credit while married couples can earn a maximum of $225,000.
The new current bill also makes more homeowners eligible to claim the credit on their income taxes. Idaho First-time buyers, those who have not owned a home in the past three years as defined by HUD still qualify for an $8,000 rebate. Now, those who want to trade up also qualify. Those who have owned a home and have occupied it as their primary residence for at least five years out of the last eight can claim a $6,500 tax credit if they close on a new purchase by the end of June, 2010.
The expansion of the tax credit comes as a big surprise and gives many more the opportunity to take advantage of the great home prices seen in the Boise Idaho Real Estate market. With interest rates sitting at amazingly low rates there has rarely been a better time to buy a home.
If you have any questions regarding the tax credit program please contact your CPA or real estate attorney. If you dont' have a CPA or real estate attorney let me know and I will give you some great names.
Want to start your Idaho Home Search now? go to Idaho Real Estate Search
Boise Idaho Real Estate home buyers and the entire state of Idaho just got a big boost. Fannie Mae just announced a program where they will pay a 3.5% incentive to any Idaho Home Buyer that purchases and closes on a Fannie Mae owned home between January 28, 2010 and April 30, 2010. Buyers purchasing in this time frame may receive up to 3.5% of the final sales price for:
Buyers closing costs
The purchase of new Whirlpool appliances, a the buyer's discretion, up to the maximum 3.5%
A mix of closing costs and appliances, at the buyer's discretion, up to the maximum 3.5%
For Idaho Home Buyers to be eligible for this incentive:
Offers must be accepted on or after January 28, 2010
Property sales must close before May 1, 2010
Buyer's must occupy the home as their primary residence and investors are excluded
Fannie Mae sold 89,691 foreclosed homes in the third quarter of 2009, up from 39,864 in the previous quarter it said in it's most recent quarterly filing. Fannie Mae had 72,275 foreclosed homes called REO's or "Real Estate Owned" homes as of September 30th, 2009.
Fannie Mae has been trying to trim it's inventory of foreclosed homes, an inventory that has risen amid a three-year housing slump in which home prices have plummeted. The move is designed to spur sales in a still-weak housing market said Terry Edwards, Fannie Mae's executive vice president of credit portfolio management.
This announcement by Fannie Mae is in addition to the $8,000 and $6,500 Federal Tax Credit that is scheduled to also expire on April 30th of 2010. This is simply a win-win environment for Idaho Home Buyers considering the low mortgage rates that are still available.
How do you find Fannie Mae REO properties? Fannie Mae lists all of it's REO homes at www.HomePath.com and it is a site that is easy to navigate through. Once you have located a Fannie Mae REO that catches your attention you need good representation that is representing YOU ONLY in the transaction. To view one of these Fannie Mae homes email me at george@tallabas.com or call me directly at 208-880-2333 to schedule a showing.
Idaho Short Sales
Now well into 2010 where are we with Short Sales in Idaho ? Idaho Short Sales are alive and well and more than 85% of all listings in the Intermountain Multiple Listing Service of southwest Idaho are either short sales or Idaho Foreclosures also known as REO's or "Real Estate owned" by banks. In a recent report Idaho was one of top 5 states around the country that had an 18% or higher increase in the amount of short sale and REO listings in 2009. Until the country's employmet picture improves one cannot expect the level of Idaho Shorts Sales and REO's to cool off.
So what should consumers do? If you are facing a Short Sale in Idaho it is important to note what your options are and where you need to turn for assistance. All Short Sale Realtors in Idaho are created equal right? WRONG! In 2008 the Idaho Statesman wrote an article about the importance of using an Idaho Certified Short Sale Specialist. I became a Certified Short Sale Specialist in 2008 by going through extensive training. In addition to having 15 years experience in Idaho Short Sales my Short Sale listing partner, Yuri Blanco and I attended a seminar in Boise where the speaker was Lee Honish who had been a loss mitigator with Indi Mac for 17 years. Lee gave us valuable insight into how banks think when working with short sales which was invaluable.
What does this mean to you? I will give you a little example: There is a lot of free data available to licensed Realtors via the Intermountain Multiple Listing Service. Much of this valuable data is not used properly by the average Realtor. Most Realtors think that when the banks make up their minds that is it and we need to accept it. This could not be further from the truth. I advised my listing partner, Yuri Blanco recently to use a market graph from the MLS service and add it to an email she had composed. The result was that she convinced Wells Fargo to reduce what they had called their final offer by $20,000!
Just last week one of my clients was anxiously waiting for an answer from Flagstar on a second mortgage. The first mortgage company had already given us approval and the second lien holder, Flagstar was taking it's time in giving us a decision. I used the graphs from the MLS service and sent several creative and factual emails to Flagstar over a period of a week and a half. At the end of last week we received written approval from Flagstar and the entire approval time frame to obtain approval from the first lien holder and the second from Flagstar was a total of 6 weeks. Of course we cannot assure you of a 6 week approval but my point is that an aggressive Certified Short Sale Specialist knows what can and cannot be done with working with mortgage lenders and will do everything we can to negotiate and use all the tools available to us.
Facing a short sale in Idaho? go to Idaho Short Sale Assistance and then call me at 208-880-2333 for your private consultation.
FHA recently announced a temporary (1 yr) relaxation of its "90-day" anti-flipping rule, which prohibits the use of FHA insured financing if the contract for sale was executed within 90 days of the seller's acquisition of the property. What this rule said is that if an investor purchased a rehab home, remodeled it and wanted to resell it, they could not use FHA funds until a 90 day period had expired from the time the investor took title.
This waiver, which takes effect on February 1, 2010 and is for one year is limited to those sales meeting the following criteria:
1. All transactions must be arms-length, with no identity of interest between the buyer and the seller or other parties participating in the sales transaction. Some ways that the lender can insure that there is no inappropriate collusion or agreements between the parties is to assess and determine the following:
The seller holds title to the property;
LLC's, corporations, or trusts that are serving as sellers were established and are operated in accordance with applicable state and federal laws;
No pattern of previous flipping activity exists for the subject property, as evidenced by multiple title transfers within a 12-month time frame (chain of title information for the subject property can be found in the appraisal report.
The property was marketed openly and fairly, via MLS, auction, For Sale by Owner offering, or developer marketing (any sales contracts that refer to an "assignment of contact of sale," which represents a special arrangement between seller and buyer may be a red flag).
2. In cases in which the sales price of the property is 20 percent or more over and above the seller's acquisition cost, the waiver will only apply if the lender:
Justifies the increase in value by retaining in the loan file supporting documentation and/or a second appraisal which verifies that the seller has completed sufficient legitimate renovation, repair, and rehabilitation work on the subject property to substantiate the increase in value or, in cases where no such work is performed, the appraiser provides appropriate explanation of the increase in property value since the prior title transfer; and
Orders a property inspection and provides the inspection report to the purchaser before closing. FHA-approved inspectors or 203(k) consultants is not required. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection from any party other than the lender. Also, the inspector may not compensate anyone for the referral of the inspection. Additionally, the inspector may not receive any compensation for referring or recommending contractors to perform any repairs recommended by the inspection, and may not be involved with performing any repairs recommended by the inspection.
FHA finds that by eliminating the 90 day resale restriction for buyers it will give FHA a greater opportunity to dispose of it's single family REO properties in a way that maximizes return to the FHA's mortgage insurance fund; also, permitting buyers to use FHA-insured financing to purchase other bank-owned properties, or properties sold through private sales for resale, will help create market conditions that will allow homes to resell as quickly as possible, thus helping to stabilize real estate prices as well as helping to stabilize neighborhoods and communities where foreclosure activity has been high.
With all the talk about Idaho Short Sales and Idaho Bank Owned Real Estate there has also been talk about how anyone selling a home using the short sale process would have their credit damaged and would be unable to buy a home for 3 years using any kind of government financing after executing an Idaho Short Sale. This has been drilled into us by Realtors and mortgage lenders right?
Well along comes FHA with a new announcement. Click FHA Short Sale Guidelines for new purchases to read the sweeping changes.
Actual language from the guidelines reads:
FHA Guidance on Short Sales Borrowers are not eligible for a new FHA mortgage if they pursued a short sale agreement on his or her principal residence to take advantage of declining market conditions, and purchase, at the reduced price, a similar or superior property within a reasonable commuting distance. Reference: see 4155.1 4.E.4.g
And here is the FHA allowed exception:
Guidance on Borrowers current at the time of Short Sale Borrowers are considered eligible for a new FHA-insured mortgage if they were current on their mortgage and other installment debts at the time of the short sale of their previously owned property, and the proceeds from the short sale serve as payment in full. Reference "Short Sales" at 4155.1 4.C.2.1
To put this in simple terms FHA is basically rewarding borrowers by allowing them to purchase a home using FHA financing immediately after doing an Idaho Short Sale if they made their payments on time and did not miss any scheduled payments. Many short sale sellers have been advised to stop making the payments on their homes. If a seller desires to pursue FHA financing they may want to reconsider this advice of not making payments based on this new sweeping FHA Guideline.
Borrowers CAN use a new FHA insured mortgage if they were current on their previous loan, all other debts at the time and the short sale was approved by their mortgage lender.
The bottom line is this: missed payments equals no FHA financing for 3 years. FHA will make an exception to the rule if the default was due to circumstances beyond the borrower's control such as the death of the primary wage earner.
Anyone eligible for the Home Affordable Foreclosure Alternative Program (HAFA) would not be eligible for a new FHA-insured mortgage for three years because to qualify for HAFA offers incentives only for seriously delinquent borrowers.
Have questions? Always consult a qualified Attorney and or Certified Public Accountant for advice.
The house, senate and president Obama recently gave Idaho Real Estate and the nation an early Christmas gift. The popular $8,000 homebuyers tax credit was recently extended. Not only was it extended but it has been expanded and here are the highlights:
The $8,000 homebuyer tax credit that was alive and well in 2009 was scheduled to lapse on December 1, 2009. It has now been extended through the end of June, 2010. Idaho homebuyers must sign a real estate purchase and sale contract before April 30, 2010 and close by June, 2010. The income limits have now been raised: Single buyers can now earn up to $125,000 and still get the full credit while married couples can earn a maximum of $225,000.
The new bill also made more homeowners eligible to claim the credit on their income taxes. First-time buyers, those who have not owned a home in the past three years as defined by HUD still qualify for an $8,000 rebate. Now, those who want to trade up also qualify. Those who have owned a home and have occupied it as their primary residence for at least five years out of the last eight can claim a $6,500 tax credit if they close on a new purchase by the end of June, 2010.
The expansion of the tax credit comes as a big surprise and gives many more the opportunity to take advantage of the great home prices seen in the Boise Idaho Real Estate market. With interest rates sitting at amazingly low rates there has rarely been a better time to buy a home.
If you have any questions regarding the tax credit program please contact your CPA or real estate attorney. If you dont' have a CPA or real estate attorney let me know and I will give you some great names.
Want to start looking for homes now? go to Idaho Real Estate Search
In my over 29 years as a licensed Idaho Realtor I have never seen a better opportunity for anyone interested in purchasing Idaho Real Estate. Mark my words when I say, those that don't buy Idaho Real Estate in the next few months will kick themselves for not doing it years from now! Here are the 3 main reasons I see for buying Idaho Real Estate as soon as you can:
Interest rates are near historic lows
Many homes are selling at 50-60% of what it cost to build them!
There is a tax credit of up to $8,000 for qualified first-time home buyers
Interest rates have softened
Mortgage rates have been on a little roller coaster ride for most of the past several months but have settled under the 5% mark as of today! When you look at the history of mortgage rates you can clearly see that mortgage rates have rarely been this attractive. When the economy starts to improve and it will, all interest rates will rise to cool inflation. Current mortgage rates are simply too attractive to pass up!
Home prices are falling
Many homes listed in the Intermountain Multiple Listing Service are now selling for 50-60% of the cost to build them. The high number of aggressively priced REO's (Real Estate Owned) bank foreclosures has driven home values down all across the valley. When one factors in the cost of the home and an average sized lot you can find many bank owned properties selling for as little as $50/square foot! This has simply blown my mind when you think of what homes were selling for just 2-3 years ago.
A tax credit gift from Uncle Sam
Unless you are living under a rock you can hardly avoid hearing about the new First-Time Home Buyer Tax Credit recently approved in the "American Recovery and Reinvestment Act of 2009". This new act will lower a tax payers tax liability by up to $8,000. First time home buyers may see benefits years down the road when they purchase a home. If you have any questions regarding this act make sure and see a reputable Certified Public Accountant that can assist you with any questions you may have.
So get pre-approved for a mortgage loan which will give you bargaining power when you find the home of your dreams and then start the search for your Idaho home.
Call me with any questions at 208-880-2333 or email me at george@tallabas.com
Did you know that mortgage rates took nearly a 1% drop last Friday the 28th of November 2008? This is great news for those looking to buy a home. Home buyers now have awesome interest rates to go with incredibly low prices on homes which include record numbers of foreclosures.
The federal reserve announcement last Tuesday the 25th of November, 2008 that it would spend 600 million dollars to buy up mortgage-backed securities and this news sent mortgage rates plummeting nearly 1 full percentage point on Friday, the largest single day drop in years.
One lender in my area quoted as low as 5.25% for 30 year conventional loans and 5.5% for FHA 30 year loans. With mortgage rates hovering in the 6-6 1/2% range for most of the year this is big news and a huge shot in the arm to a struggling real estate market.
I have been saying for months that mortgage rates needed to fall even below 5% to help our Idaho real estate market. With some of the best prices on Idaho homes in years this has to be one of the best home buying opportunities I have seen in my nearly 29 years as a licensed Realtor in the state of Idaho.
There is no guarantee this opportunity of low mortgage rates and bargain prices on homes will last long. Start your search for a home which includes bank owned foreclosures by going to Find My Idaho Home and contact me to get approved for a new loan. I have put my money where my mouth is and have recently purchased a bank foreclosure. Don't wait!