Real Estate Information Archive

Conventional loans

·         Max of a 90-95% LTV for primary residences in Florida with a max loan amount of $417,000 on any conventional loan in the surrounding counties

·         Max of a 80-90% LTV for second home purchases

·         Max of a 75-80% LTV for investment property purchase

·         Minimum credit score requirement of a 580-740 depending on the loan program

·         Seller can contribute up to 3-6% in seller concessions on primary residences/second homes and only 2% on investment properties

·         FNMA Approved Condo Site- https://www.efanniemae.com/sf/refmaterials/approvedprojects/

FHA loans

·         Max of a 96.5% LTV for primary residences only with a max loan amount in the surrounding counties is $292,500

·         Minimum credit score with most lenders is at a 580-620 middle score and some investors on a case by case basis will go down to a 540 middle score

·         Downpayment can come out of the borrowers own funds, gift from a family member, qualified DPA programs, and under no circumstances can they be gifted by the seller unless they are a family member to the buyer

·         FHA Condo Approval Site- https://entp.hud.gov/idapp/html/condlook.cfm

VA loans

·         100% financing available on a 30 year fixed with no monthly mortgage insurance with a max loan amount of $417,000 in the surrounding counties and No minimum credit score at this time

·         Seller can contribute up to 6% in seller concessions

·         VA Condo Approval Site- http://condopudbuilder.vba.va.gov/2.2/frames.html

USDA loans

·         1-100% loan on a 30 year fixed with no monthly mortgage insurance with a max loan amount of $417,000 in the surrounding counties

·         Minimum credit score is currently at a 620 middle score and case by case down to a 580 score

·         Seller can contribute up to 6% in seller concessions

·         Borrowers must make less than 115% of the median income for the county they are buying

·         Property Eligibility Site- http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?NavKey=home@1

Pending home sales up 3.2%, housing affordability near record

WASHINGTON – May 4, 2009 – Pending home sales rose in March with many first-time buyers taking advantage of historically good housing affordability conditions, according to the National Association of Realtors® (NAR).

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, increased 3.2 percent to 84.6 from a level of 82.0 in February, and it’s 1.1 percent higher than March 2008’s 83.7.

“This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a downpayment,” says Lawrence Yun, NAR chief economist. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

NAR’s Housing Affordability Index remained near record highs. The affordability index was 166.7 in March – down from an upwardly revised record of 174.4 in February due to higher home prices in March. The index remains 30.8 percentage points higher than a year ago. The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income. Tracking began in 1970.

The Pending Home Sales Index in the South rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago. In the West the index increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008. The index in the Northeast fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago. In the Midwest the index slipped 1.0 percent to 82.3 but is 8.2 percent higher than March 2008.

NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth, said the increase in buying power is quite remarkable. “Compared to a year ago, the typical family can pay much less in mortgage costs for the same home, or buy a better home without necessarily increasing their monthly payment,” he said. “For buyers who’ve been on the sidelines and have good jobs, the market has never looked more favorable. Homeownership has always offered immediate benefits and long-term value, but the advantages in today’s market are unique.”

A median-income family, earning $61,100, could afford a home costing $291,600 in March with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of that amount. The affordable price was notably higher than the median existing single-family home price in March, which was $174,900.

http://www2a.cdc.gov/podcasts/videowindow.asp?f=11226&af=v

QUESTIONS & ANSWERS
Swine Influenza and You
What is swine flu?
Swine Influenza (swine flu) is a respiratory disease of pigs caused by type A influenza viruses that causes regular outbreaks in pigs. People do not normally get swine flu, but human infections can and do happen. Swine flu viruses have been reported to spread from person-to-person, but in the past, this transmission was limited and not sustained beyond three people.

Are there human infections with swine flu in the U.S.?
In late March and early April 2009, cases of human infection with swine influenza A (H1N1) viruses were first reported in Southern California and near San Antonio, Texas. Other U.S. states have reported cases of swine flu infection in humans and cases have been reported internationally as well. An updated case count of confirmed swine flu infections in the United States is kept at http://www.cdc.gov/swineflu/investigation.htm CDC and local and state health agencies are working together to investigate this situation.
Is this swine flu virus contagious?
CDC has determined that this swine influenza A (H1N1) virus is contagious and is spreading from human to human. However, at this time, it not known how easily the virus spreads between people.

What are the signs and symptoms of swine flu in people?
The symptoms of swine flu in people are similar to the symptoms of regular human flu and include fever, cough, sore throat, body aches, headache, chills and fatigue. Some people have reported diarrhea and vomiting associated with swine flu. In the past, severe illness (pneumonia and respiratory failure) and deaths have been reported with swine flu infection in people. Like seasonal flu, swine flu may cause a worsening of underlying chronic medical conditions.

How does swine flu spread?
Spread of this swine influenza A (H1N1) virus is thought to be happening in the same way that seasonal flu spreads. Flu viruses are spread mainly from person to person through coughing or sneezing of people with influenza. Sometimes people may become infected by touching something with flu viruses on it and then touching their mouth or nose.

How can someone with the flu infect someone else?
Infected people may be able to infect others beginning 1 day before symptoms develop and up to 7 or more days after becoming sick. That means that you may be able to pass on the flu to someone else before you know you are sick, as well as while you are sick.

What should I do to keep from getting the flu?
First and most important: wash your hands. Try to stay in good general health. Get plenty of sleep, be physically active, manage your stress, drink plenty of fluids, and eat nutritious food. Try not touch surfaces that may be contaminated with the flu virus. Avoid close contact with people who are sick.

Are there medicines to treat swine flu?
Yes. CDC recommends the use of oseltamivir or zanamivir for the treatment and/or prevention of infection with these swine influenza viruses. Antiviral drugs are prescription medicines (pills, liquid or an inhaler) that fight against the flu by keeping flu viruses from reproducing in your body. If you get sick, antiviral drugs can make your illness milder and make you feel better faster. They may also prevent serious flu complications. For treatment, antiviral drugs work best if started soon after getting sick (within 2 days of symptoms).

How long can an infected person spread swine flu to others?
People with swine influenza virus infection should be considered potentially contagious as long as they are symptomatic and possible for up to 7 days following illness onset. Children, especially younger children, might potentially be contagious for longer periods.

What surfaces are most likely to be sources of contamination?
Germs can be spread when a person touches something that is contaminated with germs and then touches his or her eyes, nose, or mouth. Droplets from a cough or sneeze of an infected person move through the air. Germs can be spread when a person touches respiratory droplets from another person on a surface like a desk and then touches their own eyes, mouth or nose before washing their hands.

How long can viruses live outside the body?
We know that some viruses and bacteria can live 2 hours or longer on surfaces like cafeteria tables, doorknobs, and desks. Frequent handwashing will help you reduce the chance of getting contamination from these common surfaces.

What can I do to protect myself from getting sick?
There is no vaccine available right now to protect against swine flu. There are everyday actions that can help prevent the spread of germs that cause respiratory illnesses like influenza. Take these everyday steps to protect your health:
Cover your nose and mouth with a tissue when you cough or sneeze. Throw the tissue in the trash after you use it.
Wash your hands often with soap and water, especially after you cough or sneeze. Alcohol-based hand cleaners are also effective.
Avoid touching your eyes, nose or mouth. Germs spread this way.
Try to avoid close contact with sick people.
If you get sick with influenza, CDC recommends that you stay home from work or school and limit contact with others to keep from infecting them. What is the best way to keep from spreading the virus through coughing or sneezing?
If you are sick, limit your contact with other people as much as possible. Do not go to work or school if ill. Cover your mouth and nose with a tissue when coughing or sneezing. It may prevent those around you from getting sick. Put your used tissue in the waste basket. Cover your cough or sneeze if you do not have a tissue. Then, clean your hands, and do so every time you cough or sneeze.
What is the best technique for washing my hands to avoid getting the flu?
Washing your hands often will help protect you from germs. Wash with soap and water. or clean with alcohol-based hand cleaner. we recommend that when you wash your hands -- with soap and warm water -- that you wash for 15 to 20 seconds. When soap and water are not available, alcohol-based disposable hand wipes or gel sanitizers may be used. You can find them in most supermarkets and drugstores. If using gel, rub your hands until the gel is dry. The gel doesn't need water to work; the alcohol in it kills the germs on your hands.

What should I do if I get sick? If you live in areas where swine influenza cases have been identified and become ill with influenza-like symptoms, including fever, body aches, runny nose, sore throat, nausea, or vomiting or diarrhea, you may want to contact their health care provider, particularly if you are worried about your symptoms. Your health care provider will determine whether influenza testing or treatment is needed.

If you are sick, you should stay home and avoid contact with other people as much as possible to keep from spreading your illness to others.

If you become ill and experience any of the following warning signs, seek emergency medical care.

In children emergency warning signs that need urgent medical attention include:

Fast breathing or trouble breathing
Bluish skin color
Not drinking enough fluids
Not waking up or not interacting
Being so irritable that the child does not want to be held
Flu-like symptoms improve but then return with fever and worse cough
Fever with a rash
In adults, emergency warning signs that need urgent medical attention include:
Difficulty breathing or shortness of breath
Pain or pressure in the chest or abdomen
Sudden dizziness
Confusion
Severe or persistent vomiting
How serious is swine flu infection?
Like seasonal flu, swine flu in humans can vary in severity from mild to severe. Between 2005 until January 2009, 12 human cases of swine flu were detected in the U.S. with no deaths occurring. However, swine flu infection can be serious. In September 1988, a previously healthy 32-year-old pregnant woman in Wisconsin was hospitalized for pneumonia after being infected with swine flu and died 8 days later. A swine flu outbreak in Fort Dix, New Jersey occurred in 1976 that caused more than 200 cases with serious illness in several people and one death.

Can I get swine influenza from eating or preparing pork?
No. Swine influenza viruses are not spread by food. You cannot get swine influenza from eating pork or pork products. Eating properly handled and cooked pork products is safe.

Last minute tax-filing checklist

NEW YORK – April 15, 2009 – Taxpayers make mistakes each year. “With the Economic Stimulus Act, it will be even easier to make new mistakes (on their 2008 taxes) and lose money to which you are entitled,” says Bob D. Scharin, senior tax analyst, of the tax and accounting business of Thomson Reuters.

To that end, Scharin created this checklist of easy-to-miss deductions:

1. Select the correct filing status. Unmarried taxpayers with a qualifying child may be able to use the tax-saving head-of-household filing status; some widowed taxpayers with dependent children can use the same favorable tax rate schedule as joint return filers.

2. Standard deduction vs. itemizing. With a bigger standard deduction and the additional standard deduction for real estate taxes, you may not need to itemize this year. If you are claiming the standard deduction and have paid real estate taxes, do not overlook the new tax savings.

3. Did you purchase a home? You may be eligible for the first-time homebuyer credit. As a homeowner, you are also more likely to come out ahead itemizing your deductions (e.g., mortgage interest and property taxes).

4. Did you qualify for the maximum stimulus payment last year? If not, you may be entitled to a recovery rebate credit.

5. Is your income down this year? Your tax return may have actually become more complicated, as you may be entitled to deductions and credits that previously were unavailable to you due to income eligibility limitations. These include the child tax credit, tuition deduction and credits, retirement savings contribution credit, and even the earned income credit.

6. Did you receive in 2008 a state tax refund from 2007? Do not include it in income on your federal return if you did not itemize deductions last year.

7. Did you overpay in 2007 and have it applied to 2008? Do not forget to add any 2007 overpayment applied to your 2008 tax in with estimated tax payments when reporting your tax payments.

8. Do you have qualified dividends or capital gains (including mutual fund capital gain distributions)? These types of income should not be taxed at more than 15 percent and, depending on your income, may even be tax free. Be sure to use the appropriate worksheet to figure your tax. The tax rate table does not offer this break.

9. Do you have a capital loss carryover from 2007? If you did, remember to use it to offset your 2008 capital gains plus up to $3,000 of other income.

10. Did you qualify for the maximum stimulus payment last year? If not, you may be entitled to a recovery rebate credit.

11. Are you utilizing all dependent care possibilities? The dependent care credit may be available even if you use a child care FSA, if you have two or more children and spend more than $5,000 on care. Use Form 2441.

12. Did you change jobs during 2008 and earn more than $102,000? You may be entitled to refund of excess Social Security tax paid.

HI!

I am so excited to launch our new Bank Owned Property Website http://www.HotBankBuys.com

Do you or someone you know looking for Bank Owned (REO) properties? 

Please visit our site and tell us.

Thanks,

Nathan

www.NathanBangs.com

Home buyers are often confused by an array of unfamiliar terms used when it comes to  the buying and selling process. Even the greenest buyers, however, can save thousands of dollars in financing by mastering just four words:

    * Interest
    * Principal
    * Amortization
    * Equity
    *

Interest, of course, is the cost of borrowing the money to buy the property. During the first years, the monthly payments are largely interest. A smaller portion of the payment is credited to the loan itself, or the principal. The process of reducing the principal is called amortization. As the loan is gradually paid off, the homeowner’s actual ownership – or equity – is increased.

You can learn more about the real estate process by visiting our website www.NathanBangs.com

Short Sales offer the homeowner many more benefits than going through a Foreclosure.  In the case of a short sale, the benefits to the homeowner are:

• Only late payments on the mortgage show on a credit report and after the sale of the home, the mortgage will be reported as paid or negotiated.  This could lower a homeowner’s credit score by as little as 50 points if all other payments have been made.  The affect of a short sale can be as brief as 12 to 18 months.
• A Short Sale is not reported on a credit history.  There is no specific reporting item for ‘short sale.’  The loan is typically reported as ‘paid in full, settled.’ 
• A Short Sale on its own does not challenge most security clearances whereas a foreclosure does.
• A Short Sale is not reported on a credit report and is therefore does not present a challenge to employment.
• In some successful short sales it is possible to convince the lender to give up the right to pursue a deficiency judgment against the homeowner, (i.e., payment of the shortfall or the difference between what was owed and what the bank received.)
• Under the Mortgage Forgiveness Debt Relief Act of 2007, if a deficiency is forgiven or cancelled, the home is a principal residence, and it is worth less than $2 million, the tax on the deficiency will be forgiven.  This benefit applies to homes that are the subject of a Short Sale and a Foreclosure.

Click the links below for more details about The Mortgage Forgiveness Debt Relief Act of 2007

• A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage after only 2 yrs.

• An Investor who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed investment mortgage after only 2 years.

If you feel you are near foreclosure, please contact Nathan Bangs & Associates.  We can help you decide what your options are and explain what is in your best interest.