I walked out the back door today to go meet client. I looked at my right front tire.......a little puzzled at first.......and realized it was flatter than a pancake.......alas.......I LOVE AAA.....

OK, now I could throw a fit or I could be thankful I was at home and not on the freeway......

I chose to be very thankful I was not on the freeway nor that I had anyone in the car with me.

Moving along, I take the tire to Firestone in Pleasant Hill. Thinking I would drop off that tire(had broken valve-AAA said that there was a bad shipment about year or so ago with valve stems that were defective-I had this tire replace about then) and mosey on with my business......BUT WAIT.....when the customer service rep followed me out to my car we looked at the same time at the other front tire........BIG shiny nail right in the middle of the tread.....not flat.....

OK, looks like I need to rethink my day.......decided to get the front end realigned and have all of the tires rotated and rebalanced.......

BUT WAIT....When they removed the rim from the front tire with the nail hole........OH NO....another issue

There is a huge chunk out on the rim part that fits the wheel......They legally could not remount........

I started out at 12:30PM and by the time my car was done it was 5PM.....

So another brand new tire, one patched tire, re alignment and so very very very thankful that neither tire blew out as I was driving...

Yes, tis the season to be very thankful............when I realized that both front tires had been greatly compromised.

FHA has extended the spot approval til 2/1/10 and spot approvals will be eliminated 2/1/10.

Apparently they will allow currently approved condo projects to be valid for 2 years from 2/1/10.

New approvals are expected to take 8-12 weeks.

Eligible condo projects are considered to be: new construction, existing projects, or condo conversions.

What does this mean for the buyer who is seeking a condo or their loan approval price will only allow for purchase of condo's?

Several Things:

• Buyer if you have been sitting on the fence you need to get out and start looking now .
• Even though there are several approved condo projects , there is also several that are not that will fall into your price range.
• The spot approval will allow for a quicker resolution and acceptance.
• Waiting until 2/1/10 will cause considerable delays and no guarantees your lender will approve these projects. They are costly and can take up to 2-3 months. However once approved they will remain so.
• Being FHA buyer has its advantages and disadvantages.......You lose a lot of clout when you are competing with all cash buyers or those putting down 10-20 %. In particular on short sales and REO's they will migrate to what they consider the strongest buyer, All cash first, large down payment 2nd. So identifying now as many condos as possible that will meet your criteria will give you greater chance of finding one where your offer will be accepted. Do NOT get discouraged if you and your realtor write several offers before you have one accepted. Persistence does pay off.
• Remember depending on your area many of the condos on the market are short sale which will take 2-3 months to process and be approved and then if you want until 2/1/10 you will have an additional 2-3 months for project approval.

Short sales are expected to be around for at least another 2 years even though we have been seeing some more homes come on the market that are not in distress. I am not saying you need to purchase the first thing you see. What I am saying is start looking now, keep your eyes open and jump on those condos that meet your specific needs when they arise.

Obviously price and current market trends in your area will determine what you offer. Have your Realtor pull comps and examine the trend in the area you are seeking and make your best offer based upon those observations as well as any competition your Realtor has been made aware of. Some believe you have to offer asking or above....in some cases that may be very true.......but one of the most important influences is how your offer is written! Keep it simple, straight to the point, with buyer protections for loan, appraisal, inspections etc. Keep your contingency periods as short as possible. Take your cue from your lender in terms of time needed to obtain appraisal and review file for loan approval.

Play it smart! Make sure you have teamed up with an experienced mortgage broker and have completely been pre approved subject to finding home and appraisal and final review of your financial status. In other words your lender should have requested from you up front a copy of your tax returns, pay stubs,verified your credit scores etc and job history etc......

If you do not have a mortgage lender I can refer you to one of several with experience.

I serve the greater Walnut Creek area and surrounding communities........

DRE License #01255032

Per Christina Stratton, Private Mortgage Banker:

TAX CREDIT OVERVIEW

Who Gets What?

First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.
 
What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.

Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer's situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from "step-relatives.")
They do not use the home as your principal residence.
They sell their home before the end of the year.
They are a nonresident alien.
They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008. 
 

Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.

If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

This information from Christina Stratton. If you need a loan now or in the future give Christina a call or email her.   Her information is below:

 Christina M. Stratton
Private Mortgage Banker 1
Private Mortgage Advisors, LLC
An Affiliate Of Wells Fargo Home Mortgage
MAC A0394-011

925-627-3025 Tel

christina.m.stratton@pmahomeloans.com

www.ChristinaStratton.com

 Terry (DRE #01255032)