The National Association of Home Builder's is stating that the banking industry is making it extremely difficult for builders of single-family homes to obtain credit for their financing needs. Lack of funding will continue put a damper on new home sales recovery.
Lenders are cutting off loans for viable new housing projects and producing unnecessary foreclosures and losses to builders of single-family homes.
Even with the extension of the $8,000 first-time home buyer tax credit, the banking industry credit crunch threaten to halt any positive developments that the housing market in coming months. Single-family home builders who build several homes a year are finding that it is impossible to obtain loans, even thou they have been in good standing prior to this newly created credit crunch. In effect, putting these home builders out of business.
A majority of home builders have stated that the availability of credit for single-family construction loans worsened in the second quarter of 2009 and looks as if it will continue on the downward spiral for the upcoming months.
A majority of new home builders stated that construction of single-family project are being put on hold until such time as the banking industry changes the deteriorating credit conditions being imposed by the banks.
There seems to be a conflict of who is responsible for the tightening of credit to home builders. The federal banking regulators state that they haven't instructed banks to stop making loans or to tighten the requirements. The banks state that they are following the guideline set by the federal banking regulators. A catch 22 situation.
The National Association of Home Buildersrs believe that regulators and lenders should provide more meaningful rules and processes which would provide residential construction borrowers who have loans in good standing by providing flexibility on re-appraisals, loan modifications and perhaps more leewayon loans to give builders time to complete and sell their inventory.
Beautiful home on a beautiful piece of ground! 360 degree views. Updated, well maintained home w/spacious kitchen with island, informal dining area, family room with clerestory windows, skylights everywhere. Huge master with office/sitting/nursery area, bath w/double sinks, garden tub, large shower. Formal dining room, living room with wood burning stove. Washer/dryer included. Garden area, greenhouse, oversized 3-car detached garage.
Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify
President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. "The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules," said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. "Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify." Consider these three examples:
Example 1: Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.
Example 2: Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.
Example 3: Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.
The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. "If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010," Nicholas said. "It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit."
The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. "This means that more people will qualify for the credit - especially in parts of the country with higher costs of living," Nicholas said. "This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit."
There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:
-The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence - you could live in one unit and rent out the others
-If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).
-The credit applies even if you have co-signers on your mortgage loan
This beautiful home, sits on 1.19 acres with fantastic panoramic views of the Bradshaw Mountains. This 2,608 sq, ft. multi-level home is offered at $395,000. Main level living with 3 BR's, 2 BA's. The lower level had been used as a mother-in-law apt. It has a large combination living room/dining room/kitchen as well as a nice size BR and a BA.The lower level has interior of exterior access. A buyer could go to the county for rezoning to make the lower level into a rental unit, paying your mortgage. The deck has Italian Tile, with an enclosed Arizona Room, which is great for parties and gatherings. Remodeled kitchen with granite counter's, unique appliance garage. Dining area off of the kitchen. Living room has a vaulted ceiling, gas fireplace. Large master suite with a Jacuzzi tub in the master bath. Oversized 3-car garage. A 238 sq. ft. workshop is under the front deck, with a garage door for easy access for your tools or toys. RV pad on the side of the home with electrical hookup. Raised garden area, plus a shed that could be used as a green-house.
View the Virtual Tour of this property by going to:http://tourfactory.com/idxr435565
CNN said that the House of Representatives passed legislation today to extend and expand the current first-time homebuyer tax credit. The House action follows the Senate's approval on Wednesday and we anticipate President Obama will sign the bill in very short order.
The bill extends the current $8,000 first time homebuyer tax credit (which was due to expire at the end of November) through April, 2010. It also includes a tax credit of up to $6,500 for qualified move up buyers and increases the borrower income limits for both credits to $125,000 for individuals and $225,000 for couples.
Homebuyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction by June 30, 2009. The tax credit is limited to homes with a purchase price of $800,000 and below.. The bill also includes anti-fraud language that gives the IRS the authority to do greater oversight during the processing of the return.
In addition, the legislation waives the recapture provision for members of the armed forces who are called on extended duty. These members of our military and uniformed services, who are out of the country for at least 90 days, will also be eligible to use the tax credit upon their return through April 30, 2011.
The extension and expansion of this tax credit is a major legislative victory for MBA and its single family members, and culminates months of MBA advocacy activity (along with some allied trade associations) working to educate policymakers on the critical role the credit has played in stabilizing the housing and mortgage markets
This 3 BR, 2 Ba, 1864 square foot home has been reduced to $298,900. Fabulous curb appeal with steps up to front entry. Rear entry garage. Unobstructed views from the front porch of the mountains and golf course. Uupgrades include stacked cabinets, under counter lighting, Jenn-Aire appliances, executive height vanities, cabinets/sink in laundry room, pocket doors, plantation shutters, vinyl windows, granite counters, tiled and screened back porch, custom master closet, fountain in the back yard. Quality throughout. You will love it!
Outstanding views from this beautiful custom home which is on 1.19 acres. This property is listed at $495,000. Three car garage, with a separate RV Pad, electric hookup. Italian tiled deck, with enclosed Arizona Room. Main level living, with 3 BR, 2 BA's, Spacious lower level 1-BR, 1 BA apt with interior and exterior access. The lower level can be a mother-in-law apt or with county permitting, a rental. Remodeled kitchen, granite counter tops, unique appliance garage. Large living room with vaulted ceiling, fireplace. in living room. Large master suite, with jacuzzi tub, shower.
This beautiful Prescott AZ property, located in The Ranch is yours for only $625,000. Elegant single level home on wood sub-floor with automatic ventilation fan in the crawl space. Level lot. Wonderful curb appeal. Lovely entry. warm oak flooring. Gourmet kitchen with Cambria Quartz counters. GE Profile appliances, maple cabinets. Formal dining room. Living room with vaulted ceilings, 3-sided gas fireplace. Executive height counters in all baths. Large master bedroom with oak flooring. Interior fire sprinkler system throughout this beautiful home. Over-sized 2.5 car garage. Level lots that extends beyond the backyard landscaping. Gorgeous views. You won't be disappointed!
The Prescott and Prescott Valley market continue to show a decline in the average prices compared to the same period of 2008. Average price per square for Prescott AZ was $136, a decrease of 15.5% compared to the same period last year. The median sales price for homes in Prescott AZ for July 09 to Sept 09 was $249,248 based on 327 home sales. Compared to the same period one year ago, the median home sales price decreased 16.5%, or $49,232 and the number of sales increase 18.5%. As of he week ending 10/28/09, there are 2,226 resale and new homesThe average listing price for homes for sale in Prescott AZ was $456,456, which represents an increase of 0.2% or $874 compared to the prior week.
Average price per square foot for Prescott Valley was $99, a decrease of 18.2% compared to the same period last year. The median sales price for homes in Prescott Valley AZ for July 09 to Sept 09 was $153,250 based on 302 home sales. Compared to the same period one year ago, the median home sales price decreased by 20.8% or $40,250 and the number of home sales increase by 3.1%. As of he week ending 10.28.09 there are 720 resale and new homes in Prescott Valley. The average listing price for homes for sale in Prescott Valley was $238,437 for the week ending 10/28/09, which represents an increase of 0.9% or $2,054 compared to the prior week. Popular neighborhoods in Prescott Valley include Prescott Valley units and Stoneridge (the Master Planned Golf Community) with average listing prices of $171,383 and $283,077.
Visit our blog to learn more about this wonderful Northern Arizona communities of Prescott AZ and Prescott Valley AZ. Prescott and Prescott Valley are located 90 miles north of Phoenix. We have mountains, forests, lakes, clean air, almost perfect weather with 300+ days of sunshine a year, entertainment, shopping, with many different types of communities to meet your needs.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Fabulous curb appeal,extremely well maintained pet & smoke free, 1-owner home. Living/great room w/fireplace, kitchen/dining combo w/bay window. Lg master/walk-in closet/garden tub/separate shower, double sinks. Split bdrm plan, other 2 rooms spacious & light. Storage cabinets in garage & laundry. Leased water softener, dryer & stove plumbed 4 both gas & elec. Pleated horizontal blinds, ez care landscaping,RV parking w/small bit of wall/gate needed. Newly painted exterior w/15-yr warranty paint.
Beautiful home on a beautiful piece of ground! 360 degree views. Updated, well maintained home w/spacious kitchen with island, informal dining area, family room with clerestory windows, skylights everywhere. Huge master with office/sitting/nursery area, bath w/double sinks, garden tub, large shower. Formal dining room, living room with wood burning stove. Washer/dryer included. Garden area, greenhouse, oversized 3-car detached garage.
This beautiful home, sits on 1.19 acres with fantastic panoramic views of the Bradshaw Mountains. This 2,608 sq, ft. multi-level home is offered at $395,000. Main level living with 3 BR's, 2 BA's. The lower level had been used as a mother-in-law apt. It has a large combination living room/dining room/kitchen as well as a nice size BR and a BA.The lower level has interior of exterior access. A buyer could go to the county for rezoning to make the lower level into a rental unit, paying your mortgage. The deck has Italian Tile, with an enclosed Arizona Room, which is great for parties and gatherings. Remodeled kitchen with granite counter's, unique appliance garage. Dining area off of the kitchen. Living room has a vaulted ceiling, gas fireplace. Large master suite with a Jacuzzi tub in the master bath. Oversized 3-car garage. A 238 sq. ft. workshop is under the front deck, with a garage door for easy access for your tools or toys. RV pad on the side of the home with electrical hookup. Raised garden area, plus a shed that could be used as a green-house.
This 3 BR, 2 Ba, 1864 square foot home has been reduced to $298,900. Fabulous curb appeal with steps up to front entry. Rear entry garage. Unobstructed views from the front porch of the mountains and golf course. Uupgrades include stacked cabinets, under counter lighting, Jenn-Aire appliances, executive height vanities, cabinets/sink in laundry room, pocket doors, plantation shutters, vinyl windows, granite counters, tiled and screened back porch, custom master closet, fountain in the back yard. Quality throughout. You will love it!
This beautiful Prescott AZ property, located in The Ranch is yours for only $625,000. Elegant single level home on wood sub-floor with automatic ventilation fan in the crawl space. Level lot. Wonderful curb appeal. Lovely entry. warm oak flooring. Gourmet kitchen with Cambria Quartz counters. GE Profile appliances, maple cabinets. Formal dining room. Living room with vaulted ceilings, 3-sided gas fireplace. Executive height counters in all baths. Large master bedroom with oak flooring. Interior fire sprinkler system throughout this beautiful home. Over-sized 2.5 car garage. Level lots that extends beyond the backyard landscaping. Gorgeous views. You won't be disappointed!
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