First-Time Home Buyer Tax Credit Ending, But Not For All Potential Buyers

The House of Representatives passed a bill yesterday aiming to extend the First Time Home Buyer Tax Credit.  Before you get to excited, it appears that it will only be extended for veterans of our armed forces for up to 6 months.  To qualify, the veteran must have served overseas for 90 days in 2009.  If you are a first time home buyer looking to take advantage of the up to $8000 tax credit, the clock continues to tick.   It is set to expire after November 30th so get your application in with your lender. 

5 Bedroom 3 Bath expansive 1997 Manufactured Home on 4.61 acres, bordering meanderland and Beaver Creek.  Private well (222 feet) and septic.  Hide away in this light and open, split floor plan home with vaulted ceilings and picture windows in rural setting.  Two sided wood fireplace and front and rear wooden decks and rear concrete pad ready for your hot tub or gazebo.  Front acreage fenced (electric) for horses, animals or for possible garden.  Freshly painted inside and out. A/C and Heat.  Walk to Beaver Creek for a swim or to fish.  Property may be split.  Paved access planned for October! Website: www.1015ReayRoad.com  Priced at $225,000 Agent: Phil DePasquale-Assoc. Broker, Prudential Northern Arizona Real Estate, 1725 W. Hwy. 89A, Sedona, Az. 86336 928.399.9902

5 Bedroom/3 Baths, 2071 s.f. on 4.61 acres!

Centrally located in Cornville/Page Springs between Sedona and Cottonwood (10 minutes either way) this creekside retreat is off the beaten path yet close to everything.  Complete privacy, endless days and evenings listening to Oak Creek from the home or from one of two decks that overlook the creek.  This 3 Bedroom + Office, 2.5 Bath home is spacious and light.  Updated kitchen with stainless appliances and tile countertops.  Tree top views from every window where you can watch the hot air balloons drift by or watch bald eagles, hawks and herons as they search for food in the trout stocked creek.  Entry level offers expansive Master Suite and Bathroom, Great Room, Dining Room, Kitchen and Powder Room.  Covered Patio from Kitchen offers views of Page Springs Ranches, Pastures and Vineyards.  Downstairs offers large Family Room, Large Guest Room and Third Bedroom, Full Bathroom with double sinks, Office and large Storage Room/Wine Cellar.  Walk out onto concrete patio and then to first of two wooden decks that overlook Oak Creek.  Follow aggregate walkway past  rose bushes and boysenberry patch, through the gate to the lower wooden deck.  Tile floors throughout home except for 2nd and 3rd Bedrooms and ceiling fans in every room.  A/C, evaporative cooler and forced gas for heat.  Private well, septic and propane.  Home and decks are not in the flood zone and road is maintained by the Forest Service and the County. Mature trees and landscaping complete this one‑of‑a‑kind property that is fenced and gated.  Complete privacy with gorgeous views and creek access.  Star gaze from the hot tub while listening to the creek rush by.  Endless hiking and horse trails as property is surrounded by State Forest land.  Zoned for horses.  Potential Bed and Breakfast.  Cat 5 Wiring.  This home is a must see!  Reduced to $725.000, Owner/Agent: Phil DePasquale-Assoc. Broker, Prudential Northern Arizona Real Estate, 1725 W. Hwy. 89A, Sedona, Az. 86336 928.399.9902 Website: www.1140WillowPoint.com

3/2 Impeccable home overlooking creekfront, gated community of Oak Creek Valley.  Lovingly used as a vacation home, fully furnished, in move-in condition. 3/2 1400+ s.f. home on approx. .50 acre overlooking Oak Creek Valley.  Cathedral ceilings and niches, split-floor plan, gas fireplace and inviting fenced back yard with redwood decks for entertaining or relaxing.  Back yard plumbed for spa.  Walk to creek, fishing, hiking, community pool, tennis courts, billiards and clubhouse.  Need to store your boat or RV?  Storage lot available. Like to travel? ... home under "neighborhood watch program" so just "lock and go."  Offered at $279,000  Phil DePasquale-Assoc. Broker, Prudential Northern Arizona Real Estate, 1725 W. Hwy. 89A, Sedona, Az. 86336 928.399.9902 Website: www.10600ValleyView.com

Creekfront Retreat, 3+/2.5, 2840 s.f. home on 2.34 acres on Oak Creek.

Centrally located in Cornville/Page Springs between Sedona and Cottonwood (10 minutes either way) this creekside retreat is off the beaten path yet close to everything.  Complete privacy, endless days and evenings listening to Oak Creek from the home or from one of two decks that overlook the creek.  This 3 Bedroom + Office, 2.5 Bath home is spacious and light.  Updated kitchen with stainless appliances and tile countertops.  Tree top views from every window where you can watch the hot air balloons drift by or watch bald eagles, hawks and herons as they search for food in the trout stocked creek.  Entry level offers expansive Master Suite and Bathroom, Great Room, Dining Room, Kitchen and Powder Room.  Covered Patio from Kitchen offers views of Page Springs Ranches, Pastures and Vineyards.  Downstairs offers large Family Room, Large Guest Room and Third Bedroom, Full Bathroom with double sinks, Office and large Storage Room/Wine Cellar.  Walk out onto concrete patio and then to first of two wooden decks that overlook Oak Creek.  Follow aggregate walkway past  rose bushes and boysenberry patch, through the gate to the lower wooden deck.  Tile floors throughout home except for 2nd and 3rd Bedrooms and ceiling fans in every room.  A/C, evaporative cooler and forced gas for heat.  Private well, septic and propane.  Home and decks are not in the flood zone and road is maintained by the Forest Service and the County. Mature trees and landscaping complete this one‑of‑a‑kind property that is fenced and gated.  Complete privacy with gorgeous views and creek access.  Star gaze from the hot tub while listening to the creek rush by.  Endless hiking and horse trails as property is surrounded by State Forest land.  Zoned for horses.  Potential Bed and Breakfast.  Cat 5 Wiring.  This home is a must see!  Reduced to $725.000, Owner/Agent: Phil DePasquale-Assoc. Broker, Prudential Northern Arizona Real Estate, 1725 W. Hwy. 89A, Sedona, Az. 86336 928.399.9902 Website: www.1140WillowPoint.com

A new bill, led by House Representatives Childers (Republican - MS) and Miller (Republican - CA) has been introduced and is currently in committee (Housing Financial Services).

This new bill H.R. 3044, would place an 18 month moratorium on the Home Valuation Code of Conduct (HVCC), which has received a frigid response since being implemented on May 1 of this year.

The National Association of Mortgage Brokers, which has been one of the most outspoken opponents of HVCC, sued the newly formed FHFA (Federal Housing Finance Authority) over the proposed changes back in February, and now supports legislation to halt it.

As you may recall, the HVVC was written up by the OFHEO and NY Attorney General Andrew Cuomo to help combat mortgage fraud and attempt to strengthen the home appraisal process.

The agreement eliminates mortgage broker ordered appraisals, is meant to prohibit appraiser coercion, and to reduce the use of lender in-house appraisals and captive appraisal management companies.

I will note here that this new appraisal law was a result of a 2007 lawsuit involving First American Corp.'s eAppraiseIt unit and alleged overly inflated home values tied to Washington Mutual home loans.

According to Marc Savitt, NAMB President; "the introduction of this legislation is a victory for consumers and members of the industry alike."

As a result of the new law, according to Savitt: "In the period of time since its implementation, the HVCC has increased costs to consumers and decreased the quality of appraisals and has provided a level of uncertainty in an ailing housing market".

Supporting this argument is Lawrence Yun, chief economist at the NAR (National Association of Realtors), and who recently reported that sales numbers are lower than anticipated because poor appraisals are delaying transactions.  "Pending home sales indicated much stronger activity, but some contracts are falling through from faulty valuations that keep buyers from getting a loan".

Mr. Yun went on to state: "In the past month [since the inception of HVCC], stories of appraisal problems have been snowballing from across the country with many contracts falling through at the last moment. There is dangerof a delayed housing market recovery and a further rise in foreclosures if the appraisal problems are not quickly corrected."

No matter where you fall on the argument of whether or not HVCC should exist, you as a realtor, homeowner attempting to refinance, home purchaser or loan officer/mortgage broker, have probably felt (whether you realize it or not) the market disruption that HVCC has created in its short existence.

It is true, and hopefully not too late to help tens of thousands of U.S. homeowners' hold on to their primary residences.

In a release yesterday afternoon, the U.S. Housing and Urban Development Secretary Shaun Donovan  announced an expansion of the Obama Administration's Home Affordable Refinance Program to include participation by borrowers who are current on there mortgage, but up to 125 percent underwater on their mortgage. Under authorization provided by the Federal Housing Finance Agency, borrowers whose mortgages are currently owned or guaranteed by Fannie Mae and Freddie Mac will now be allowed to refinance those loans according to the terms of the Home Affordable Refinance program established earlier this year.

Secretary Donovan made the announcement while touring a neighborhood in Las Vegas with Senate Majority Leader Harry Reid (D-NV) and Congresswoman Dina Titus. Las Vegas leads the nation in foreclosures and approximately 67 percent of the current mortgage holders have mortgage balances that exceed the worth of their homes.

According to Treasury Secretary Timothy Geithner; "This decision is part of our ongoing efforts to maximize the effectiveness of the Making Home Affordable program and adapt to an ever-changing housing market".  "By expanding refinance eligibility, we can bring relief to more struggling homeowners more quickly. It's a crucial step in our broader efforts to get America's housing market and economy on the path to recovery."

With the current plan, only those borrowers whose first mortgage does not exceed 105 percent of the current market value of the property are eligible for the Obama Administration's Home Affordable Refinance Program. For example if the property is worth $200,000, the borrower must owe $210,000 or less. Yesterday's announcement will allow more homeowners to become eligible for the program, by increasing the eligibility to 125 percent.

Is a government subsidized (insured) fixed mortgage rate plan the way to go?  And if so, at what interest rate (assuming a 30-year fixed rate)? What are your thoughts?  What are the positives and negatives?

A recent proposal from Arizona businessman Kenneth Wm. Parker, owner of Parker Properties/Parker Development, has introduced what he calls the "4/40 for Freedom Loan."

It's essentially a government-backed (insured) mortgage set at a four percent interest rate with a 40-year amortization.

"Americans are begging for relief," said Parker, founder of 4/40 for Freedom. "The program benefits are immediate; lower mortgages means increased disposable income, which translates to available cash to stimulate the economy through investments and product and service purchases."

"We have received enthusiastic support from the financial and business community regarding the program," he added.

According to Parker's numbers; expected savings from the program are 33-38 percent per month per household, which would certainly ease pressure on struggling homeowners and move much needed money back into the economy.

"If each homeowner saves an estimated $250 a month on their mortgage, all of a sudden they can make additional purchases and the effect on the economy will be tremendous," Parker said.

Once passed by Congress, the program would be available for one year to both new and existing homeowners; those with a mortgage would receive loan modifications without a credit check or any other qualification.

According to his proposal -- Jumbo loans would also be offered up to loan amounts of $3.5 million.

"As the economy improves and home values go up, homeowners will refinance with conventional programs and the U.S. backed real estate interest loan debt will be repaid, resulting in additional economic capital," Parker's release stated.

Fully rented - annually leased units @ $700 per month. Well maintained property, 1/2 acre,  on propane, septic and well. Built in 1998. Each unit has attached garage with additional parking.  Located off Cornville Rd. across from the Dollar Store.  3 Units @ approx. 964 s.f. each.  

Mortgage Interest Rates Dropping After Weeks of Increases

According to a report just released by Zillow, the weekly average interest rates borrowers were quoted for 30-year and 15- year fixed rate mortgages decreased last week, from the weeks prior. 

This information was compiled by Zillow Mortgage Rate Monitor.

Obviously, thirty-year and fifteen year fixed mortgage rates varied by state.  The states, according to Zillow, with the greatest interest rate decreases (as of Monday) were Pennsylvania and New York.  The states with the highest interest rates were Wisconsin and Massachusetts.

According to its ˜Mortgage Marketplace', the state with the lowest interest rates being charged was Florida.

I will note here: the Zillow Mortgage Rate Monitor is compiled each week using thousands of mortgage rates quoted on Zillow Mortgage Marketplace by mortgage lenders to borrowers who have submitted loan requests. State-level data is gathered for the top 20 states with the highest quote volume on Zillow.

I have used Zillow's data for the purpose of demonstrating that interest rates are trending down, albeit it may only be short term.

Significantly better interest rates (than those quoted by Zillow sponsors) can be found by calling around your local or state marketplace.  I encourage mortgage rate shoppers' not to use on-line search engines as a basis of finding a mortgage, but only as an additional resource to garner information.