Last week, the FHA (Federal Housing Authority) announced that the First-Time Buyers Tax Credit can now be used for a down payment on an FHA loan.  This is really great news for first-time buyers!  First-time home buyers can now add the $8,000 (max) tax credit to their down payment and/or their closing costs.
 
FHA mortgage loans require a 3.5% - 5% down payment.  The tax credit may not be used in place of the required down payment for your FHA loan but it can supplement it, which may result in a slightly lower mortgage payment.
 
All mortgage loans have closing costs.  The closing costs for an FHA mortgage loan is about 3% of the sales price.  You can apply the tax credit, 10% of the sales price, to your closing cost.  The tax credit can be applied to the upfront mortgage-insurance premium (MIP), which is 1.75% of the sales price.
 
Here is an example of what this means to you in dollars without the tax credit:

Sale Price: $125,000
5% Down: $6,250
Closing Costs: $3,750
MIP: $2,187
Total Funds Needed: $12,187
Loan Amount: $118,750
Mortgage Payment: $745.81
 
Here is an example of what this means to you in dollars with the tax credit:

Sale Price: $125,000
5% Down: $6,250
Additional Down: $2,063 (paid by tax credit)
Closing Costs: $3,750 (paid by tax credit)
MIP: $2,187 (paid by tax credit)
Total Funds Needed: $6,563
Loan Amount: $116,687
Mortgage Payment: $734.73
 
FHA mortgage loans will allow funds to be gifted to the buyer by certain government entities, by employers and by parents.  The gifted funds can be used as part of the required down payment.  Interest rates are hovering just under 5% at this time.  However, interest rates have been increasing slightly over the past few weeks.  If you are a first-time buyer or have not owned a home within the last three years, now is the perfect opportunity to buy a home with less money out of your pocket.  This is especially true when you choose a home from the many available in West Virgina's beautiful counties of Jefferson, Berkely, Morgan or Hampshire.  But remember, the tax credit expires in a few months (November 30, 2009).  Escrow must close before the November deadline. 

Tommy Underwood, your West Virginia real estate expert

The Treasury Department began implimenting programs last month that they are hoping will bring help and hope to Jefferson County distressed homeowners.  The Making Home Affordable program is part of the American Recovery and Reinvestment Act.  This program offers two options for homeowners.  The loan modification program is primarily aimed at helping distressed homeowners who are falling behind on their payments.  The refinancing program is primarily aimed at homeowners who foresee problems making their mortgage payments in the future.  The refinance program will allow homeowners to refinance their home at today's low interest rates.  The refinance program only applies to homes which are held by Fannie Mae or Freddie Mac.  However, the FHA Hope For Homeowners loan modification program has been expanded.
 
Jefferson County home values have been impacted by the number of foreclosed homes on the market.  The Make Home Affordable programs were implemented to slow and reverse this trend.  Homeowners who have seen a decline in their home's value may still apply for either a loan modification or a home refinance.
 
FHA Hope For Homeowners and Making Home Affordable loan modifications and Making Home Affordable refinancing programs all have guidelines which must be met by the homeowner.  There are free websites that offer online tools to help you determine your eligibility.  Avoid scam artists who charge for their services.  Whether your home loan is FHA insured, Fannie Mae or Freddie Mac owned, you can use the online tools offered at Making Home Affordable website.  This website offers questionnaires and calculators to help distressed homeowners determine their eligibility and what their payment reductions may be as well.
 
The government is offering hope for distressed homeowners in Jefferson County and the nation.  Please take advantage of these free websites, even if you have had a reduction in your income or in your home's value. 
 
Tommy Underwood, Harper Valley Real Estate

Spring fire season officially began yesterday in West Virginia.  Fire restrictions will be in effect until May 31st.  Outdoor burning is prohibited between the hours of 7 a.m. and 4 p.m.  If you are planning to do any outdoor burning, remember to include a 10 foot safety strip around the fire area.  The 10 foot strip is required by law.  In addition, all fires must be attended to until they have been completely extinguished.  Anyone who violates the fire restrictions will suffer a $300 fine.
 
Take care with any outdoor burning, not only to protect our beautiful open space but to protect yourself from financial obligation as well.  Anyone conducting an outdoor burn which results in a fire will be held financially responsible for any property damage and the cost of fighting the fire.  In addition, any property damage and the cost of fighting a fire caused by an outdoor burn will be paid by the person who caused the fire.
 
Be careful out there!
 
Tommy

As part of the new $789 billion economic stimulus plan, first time homebuyers will receive an $8000 tax credit when they purchase a home, an increase over last year's $7500 repayable tax credit.  This new non-repayable tax credit is expected to increase home sales by 500,000 units in 2009 alone, according to the National Association of Realtors.  The previous repayable credit was only good until June 30th.  The new, higher, non-repayable tax credit has been extended to September 1st, 2009.  With more money in the homebuyers' pockets, the $8000 tax credit is expected to generate as much as $62,000 of additional economic activity per house.  This extra generated revenue comes from real estate commissions, moving expenses, new furniture and appliance purchases and remodels.  This will put extra money into the economy, helping buoy local businesses.

In addition to the $8000 non-repayable tax credit, the stimulus package has other incentives for homeowners.  All previous energy-related tax credits have been extended through 2010.  This includes purchasing and installing energy-efficient appliances, windows, doors, heating and air conditioning units and even insulation.  The economic package has also allotted $2 billion to buy up foreclosures and other vacant homes, renovate them and either sell or rent them to help those neighborhoods across the country that have been the hardest hit by the record foreclosures in the recent past.  If you have any questions on how this will effect Jefferson County real estate, please call me at my office (540-665-6570), via cell (304-279-1046) or email me at tommyunderwood@topproducer.com.

Through the combined efforts of local Jefferson County Cub and Boy Scouts, more than 15,000 lbs of food were offered to the food pantry run by the Jefferson County Community Ministries in 2008.  One weekend a year, scouts go out in their neighborhoods and ask for donations to this great cause.  Some scout troops, like Pack 95 with the Mannahoac District of the Shenandoah Area Council, donated 165 pounds of food bought from money they raised through a popcorn sale earlier in the year, even though they only have 13 scouts in their pack.  This is just one of the ways that scout leaders try to instill a sense of responsibility for giving back to their community at a young age.  And the food pantry is happy to have the help.  With many people losing their jobs, the Jefferson County Community Ministries finds that more and more people are coming every week to receive food from the pantry.  The donations given to the pantry from the scouts every year helps alleviate the stress on the pantry to provide food for its patrons.  In fact, last year alone, over 8700 people were fed with the food donated to Jefferson County Community Ministries' food pantry.  If you would like to donate to the Ministries' food pantry, please call 304-725-3186.

Last week it was announced that, through the incredible outpouring of support from the local Jefferson County community, the United Way of Jefferson County has reached its annual fundraising goal of $440,000.  This means that 21 Jefferson County chartitable organizations will be receiving the assistance they need from United Way to help fund programs for food, clothing and youth programs in the area.  This amazing feat was accomplished through the help of donations, volunteers and fundraising efforts of members of the United Way's Board of Directors.  Even though the Ohio Valley has been hit with tough economic times like the rest of the country and many people are in dire need of assistance, the support United Way has experienced from the people of Jefferson County show the extent of the strong spirit of compassion that flows through their veins.  We should all be proud.

O'Be JoyFull is located in Harpers Ferry and offers historical walking tours of both Harpers Ferry and Gettysburg , PA. "O'Be JoyFull" not only offers tours, but in addition, does several outstanding shows throughout the year.

During the winter months, the walking tours for Harpers Ferry  begin in the "O'Be JoyFull" Center's 19th Century styled parlor. There are several sites which are visited during the tour. Each site is introduced with a historical story.

The Harper Ferry tour is just over an hour, presenting the sights and sounds of the past as told by Rick Garland. Rick is a licensed tour guide, assuring you of authenticity and a good knowledge base. Rick is renown as a historical vocalist and storyteller as well as pianist. These qualifications and talents allow him to present history in both voice and musical form.

Not only will you learn about the history of Harpers Ferry, West Virginia and the southern lifestyle, you can also be entertained in evenings by Celtic music at the Secret Six Tavern Restaurant in Harpers Ferry. The Celtic music celebrates the Irish influence on the Civil War music and also features Irish and Scottish pub, love and rebel songs of the past.

Other musical presentations include American Civil War Songs of The Blue and The Gray, General J.E.B Stuart Sings Again as well as The Hose Soldiers' Col. Marlowe Sings.

The tours and shows have been attended by listeners from as far away as Alaska . Whether you are a resident of Harpers Ferry or a visitor out of the area, the "O'Be JoyFull" Center and its various shows and tours should be on your calender of "must-dos" for 2009.

O'Be JoyFull Website for Tour and Show Information

American Military University (AMU), an accredited online university located in Charles Town WV, has been named one of the Top 20 Military-Friendly Colleges and Universities in America in 2008 by Military Advanced Education (MAE).  MAE made this determination by evaluating each school's significance in military education, including number of military contracts, number of military students served, financial aid and scholarship programs available and more "military-friendly" qualities.  Founded in 1991 by a former Marine Corps officer to address the educational needs of the very mobile military, AMU was one of the first online universities.  Its educational system is only one of many great reasons to consider living in Charles Town.

Set in Harpers Ferry circa 1860, Old Tyme Christmas (December 5-7, 13-14 and 20) includes musical performances, storytelling, an arts and crafts show, beautifully decorated streets, puppet shows and, of course, a visit with Santa!  This fun Harpers Ferry Christmas tradition kicks off with a Yule Log Celebration on Shenandoah Street at 7pm on December 5th with caroling up High Street.  St. Peter's Church is hosting a concert by the Archangelus Choir at 7:30pm.  Opening festivities conclude with the lighting of Harpers Ferry's Christmas tree.  For more information on Harpers Ferry's Old Tyme Christmas, please call 304-535-2030 or visit the Old Tyme Christmas website.

For another peak at Christmastime in Harpers Ferry during Civil War times, the National Park Service will be presenting "Prospects of Peace: A Soldier's Prayer" from 11am-5pm on Saturday, December 6th and Sunday, December 7th.  This program will feature local citizens and soldiers dressed in 1864 garb showing what the Yuletide was all about in Civil War times.  There will be a Victorian cotillion, guided walking tours and even a vintage-style Santa all for only $6 per vehicle or $4 per person on foot.  For more info on this fun holiday celebration, please call 304-535-6029.

Harpers Ferry and Martinsburg, West Virginia are the latest cities to be designated as Preserve America areas.  They join Charles Town as the only other West Viriginia city to be named such since the program's inception in 2003.  Preserve America is an Administrative initiative that was created to help preserve our country's culture and heritage.  The First Lady, Laura Bush, is Honorary Chair of Preserve America.  This prestigious designation means that Harpers Ferry and Martinsburg are eligible to receive federal grants that were previously unavailable to them to help the cities with their dedication to preserving both their natural and cultural history.