Are you looking for a new way to make money? Are you tired of your current career? If so, you may want to look into becoming a real estate investor. Thousands of people have become real estate investors, and have in turn made tons of money. If you want to be the next person to take advantage of this industry you should get started today. Becoming a real estate investor is not difficult to do. This does not mean that it is easy to be a success though.
The first thing that you must do if you want to become a real estate investor is look at your current situation. Do you have enough money to buy homes, and then make the needed repairs? Will you be able to deal with the added stress? Do you have the time to be a real estate investor? These are all questions that you must answer before actually diving into the real estate industry.
If you have come to the conclusion that being a real estate investor is right for you, the next best thing you can do is research the industry. Find out everything that you can about being a real estate investor. Learn about how to make money, the biggest downfalls, and what you should be aware of. Anything that you can learn about real estate investing before you start will help you as your career progresses.
When you are finally ready to start investing you will want to make sure that you move forward with caution. Do everything in your power to minimize the risk that you take your first property. Getting off to a good start is a great way to ensure that your real estate investing career is on track. On your first purchase do not expect to make a lot of money; simply try to make some sort of profit. Again, this will help to get your feet wet and allow you get off to a good start.
Also, make your mind up as to what type of real estate investing you want to take part in. Are you going to buy foreclosures, fix them up, and resell them? Or are you going to buy properties and rent them out to tenants? Knowing what type of real estate investor you are going to be is a very important aspect that you must cover.
Becoming a real estate investor may be the best move that you ever make. There is a lot of money to be had in the real estate industry, and it is up to you to find out how to get some of it. If you need a career change, or want to make a lot of money, being a real estate investor may be the answer. This career change may be a bit of a risk, but the rewards in the end are many times well worth it.
Keyword: real estate investor
To learn more about Real Estate Investments and other Real Estate questions visit us at
http://www.ralphandtricia.com/buyertools.htm
Some hot links
Thursday, December 3, 2009
Saturday, November 14, 2009
Gilbert, Arizona Real Estate
ilbert, Arizona has experienced many changes recently. Gilbert is a large town in Maricopa County that was founded on July 6, 1891 as a rail siding for Arizona Eastern Railway. Gilbert was known as the Hay Capital of the World from 1911 through the 1920's. This Phoenix suburb is no longer the Hay Capital of the World, but as a growing town. Gilbert had a population of 207,550 in 2007 according to the US Census Bureau. It is large and rapidly growing but still considered a town rather than a city. Between 1990 and 2000, Gilbert was the fastest growing place among all cities and towns in Arizona. The real estate market in Gilbert is just beginning to recover from the recession. This means now is the perfect time to purchase your new home in a growing community.
The Gilbert, AZ, real estate environment offers an array of options. These options range from modern apartments that combine the best in comfort, luxury, and convenience to sprawling townhouses nestled amidst enchanting surroundings to single and multi-family homes that suit all your domestic needs to condominiums that spell the ultimate in luxury to foreclosures that you may lap up for amazing bargains. The homes for sale in Gilbert, AZ come in all shapes and sizes and are priced across a wide spectrum to suit every buyer.
Gilbert is a flourishing town. It is a forward-looking, family-oriented community with a small town atmosphere. Gilbert has the resources and desire to grow and develop as a quality community. The well-educated, concerned residents of Gilbert want to manage their future and ensure the area continues to be a quality community.
There are many popular neighborhoods in Gilbert to own a house: Arbor Walk, Bayview, Bella Vista, Bristol Square, Cobble Creek, Coral Point, Durango, Elliot Shores, Tres Vistas, Vist Del Oro, West Lake Estates, and Windhaven. The Gilbert, AZ, real estate scene here is brimming with a multitude of choices, from no-frills budgeted apartments to luxurious villas. Living in the Gilbert area offers the small town life with the big city living of Phoenix very close by.
You can have your pick from the Gilbert, AZ, real estate listings that are posted on various web sites. These sites host tempting choices, complete with the features of the homes and their prices. The information will help you compare the options and arrive at a sound conclusion. Gilbert realtors too stock a wealth of information on the homes for sale in Gilbert, AZ. Just express your wishes and leave the rest to them. They will come up multiple options for you to choose each of which will suit your needs. Taking the help of a Gilbert real estate professional is also a good idea if you are looking for foreclosure and resale homes. They know the real estate market and usually know of the best deals on the market.
Take your house hunting to Gilbert, Arizona. You will find the home you've been looking for at the least expensive price it will be since the market is beginning to recover.
Gilbert Arizona
http://www.phoenixrealtyfinder.com/ Greg Sidoff is a well-known Chandler, AZ, real estate agent. A sound knowledge of the local real estate scenario and years of experience backing him, Greg is a much sought-after professional. He can feel the pulse of your needs and come up with a home that's exactly what you have always wanted. At times, you will feel he understands you and your needs more than you yourself do. He is a maverick with real estate matters and will secure for you, the choicest of deals.
Article Source: http://EzineArticles.com/?expert=Greg_Sidoff
The Gilbert, AZ, real estate environment offers an array of options. These options range from modern apartments that combine the best in comfort, luxury, and convenience to sprawling townhouses nestled amidst enchanting surroundings to single and multi-family homes that suit all your domestic needs to condominiums that spell the ultimate in luxury to foreclosures that you may lap up for amazing bargains. The homes for sale in Gilbert, AZ come in all shapes and sizes and are priced across a wide spectrum to suit every buyer.
Gilbert is a flourishing town. It is a forward-looking, family-oriented community with a small town atmosphere. Gilbert has the resources and desire to grow and develop as a quality community. The well-educated, concerned residents of Gilbert want to manage their future and ensure the area continues to be a quality community.
There are many popular neighborhoods in Gilbert to own a house: Arbor Walk, Bayview, Bella Vista, Bristol Square, Cobble Creek, Coral Point, Durango, Elliot Shores, Tres Vistas, Vist Del Oro, West Lake Estates, and Windhaven. The Gilbert, AZ, real estate scene here is brimming with a multitude of choices, from no-frills budgeted apartments to luxurious villas. Living in the Gilbert area offers the small town life with the big city living of Phoenix very close by.
You can have your pick from the Gilbert, AZ, real estate listings that are posted on various web sites. These sites host tempting choices, complete with the features of the homes and their prices. The information will help you compare the options and arrive at a sound conclusion. Gilbert realtors too stock a wealth of information on the homes for sale in Gilbert, AZ. Just express your wishes and leave the rest to them. They will come up multiple options for you to choose each of which will suit your needs. Taking the help of a Gilbert real estate professional is also a good idea if you are looking for foreclosure and resale homes. They know the real estate market and usually know of the best deals on the market.
Take your house hunting to Gilbert, Arizona. You will find the home you've been looking for at the least expensive price it will be since the market is beginning to recover.
Gilbert Arizona
http://www.phoenixrealtyfinder.com/ Greg Sidoff is a well-known Chandler, AZ, real estate agent. A sound knowledge of the local real estate scenario and years of experience backing him, Greg is a much sought-after professional. He can feel the pulse of your needs and come up with a home that's exactly what you have always wanted. At times, you will feel he understands you and your needs more than you yourself do. He is a maverick with real estate matters and will secure for you, the choicest of deals.
Article Source: http://EzineArticles.com/?expert=Greg_Sidoff
Wednesday, November 4, 2009
Owning your Home Offers Some Tax Advantages
Owning your Home Offers Some Tax Advantages
Whether you own a mansion or a mobile home, many home-related expenses are tax deductible.
Mortgage interest and property tax are well-known deductions. To take advantage of them, you have to file the 1040 long form and Schedule A. For some homeowners, however, it might be better to file the EZ form because standard deductions would be greater than the allowable expenses.
The interest on a home equity loan is fully tax deductible unless the balance on the original mortgage plus the equity loan is greater than the property's value. After that, it's on a sliding scale. If you bought your home after Jan. 1, 2007, mortgage insurance is fully tax deductible if your income is $100,000 or less.
Mortgage interest and property taxes on a vacation home are deductible. But it doesn't even have to be a house. It could be an RV as long as it has cooking, sleeping, and bathroom facilities.
If you paid points to get a better interest rate on any of your home loans, you can deduct the points in the year you paid them. If you refinance the home, points are deducted over the life of the mortgage.
If you changed jobs and had to move more than 50 miles and had to sell a home because of the move, moving expenses are deductible unless reimbursed by an employer.
When your home has been damaged by a natural disaster such as fire, hurricane, or flood, some of the bills for renovating the property that were not covered by insurance can be deducted. Check with your tax preparer for more information.
Do you have a home office used on a regular basis for business? Keep records on the percentage of the house that is used for business and make a proper allocation of expenses. For example, if 20 percent of your house is used for business, you will be able to deduct 20 percent of utilities and basic home repairs.
Keep records that show what you do in your office to constitute a business activity.
See us at:
http://RalphandTricia.com
Whether you own a mansion or a mobile home, many home-related expenses are tax deductible.
Mortgage interest and property tax are well-known deductions. To take advantage of them, you have to file the 1040 long form and Schedule A. For some homeowners, however, it might be better to file the EZ form because standard deductions would be greater than the allowable expenses.
The interest on a home equity loan is fully tax deductible unless the balance on the original mortgage plus the equity loan is greater than the property's value. After that, it's on a sliding scale. If you bought your home after Jan. 1, 2007, mortgage insurance is fully tax deductible if your income is $100,000 or less.
Mortgage interest and property taxes on a vacation home are deductible. But it doesn't even have to be a house. It could be an RV as long as it has cooking, sleeping, and bathroom facilities.
If you paid points to get a better interest rate on any of your home loans, you can deduct the points in the year you paid them. If you refinance the home, points are deducted over the life of the mortgage.
If you changed jobs and had to move more than 50 miles and had to sell a home because of the move, moving expenses are deductible unless reimbursed by an employer.
When your home has been damaged by a natural disaster such as fire, hurricane, or flood, some of the bills for renovating the property that were not covered by insurance can be deducted. Check with your tax preparer for more information.
Do you have a home office used on a regular basis for business? Keep records on the percentage of the house that is used for business and make a proper allocation of expenses. For example, if 20 percent of your house is used for business, you will be able to deduct 20 percent of utilities and basic home repairs.
Keep records that show what you do in your office to constitute a business activity.
See us at:
http://RalphandTricia.com
Saturday, October 24, 2009
The Basics of Foreclosure “Short–Sales
by Attorney William Bronchick
--------------------------------------------------------------------------------
You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.”
Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.
The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!
The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.
Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.
Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.
The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you.
--------------------------------------------------------------------------------
You will likely come across dozens of properties in foreclosure with little or no equity, that is, the seller owes at close to or more than the property is worth. In these situations, lenders are sometimes willing to accept less than the full amount due, commonly referred to a “short pay” or “short sale.”
Negotiating a short sale with the lender is a difficult process, generally because it is a daunting task finding a bank officer who has the authority to accept a discount. You will have to call around to locate the lender’s “Loss Mitigation Department”. More than likely, each lender you deal with will have a separate name for this department, so be patient when calling. Much like getting your phone bill corrected, you can expect the process to involve a lot of waiting on hold and being bounced around an intricate maze of automated voice mail systems. Once you get in touch with the right person, then the negotiating begins.
From the lender’s perspective, a short sale saves many of the costs associated with the foreclosure process - attorney fee’s, the eviction process, delays from borrower bankruptcy, damage to the property, costs associated with resale, etc. In a short sale scenario, the lender gets the property back faster, so it is able to cut its losses. Your job as the investor is to convince the lender that it will fare better by accepting less money now.
The lender will want some information about the property, the borrower and the deal he has made with you. Specifically, the lender wants to know what the property is worth. The lender will generally hire a local real estate broker or appraiser to evaluate the property (called a broker’s price opinion or “BPO”). You can also submit your own appraisal or comparable sales information. In addition you will want to offer as much specific negative information about the property as possible. Also, include some relevant information about the neighborhood and the local economy if things are bad (copies of newspaper articles with “bad news” may help). A contract’s bid for repair estimates should also be submitted, which, of course, should be the highest bid you can obtain!
The lender will also ask for financial information about the borrower. Sort of a backwards loan application, the borrower must prove that he is broke and unable to afford the payments. The borrower must show that he has no other source of income or assets to repay the loan. This process may involve as much, if not more paperwork than an original mortgage application! The borrower should submit a “hardship letter”, which is basically a sob story about how much financial trouble the borrower is in. This may require a little literary creativity, and some help on your part. Don’t lie, just paint a picture that doesn’t look good.
Finally, the lender generally wants to see a written contract between you and the seller. The lender wants to make sure the seller isn’t walking away with any cash from the deal. Generally, the contract must be written so that the buyer pays all costs associated with the transaction, so that the “net cash” to the seller is the exact amount of the short pay to the lender. A preliminary HUD-1 settlement statement is often requested, which can be difficult, since many title and escrow companies simple won’t prepare one in advance of closing. You can prepare your own HUD-1, and simply write “preliminary” on the top.
Don’t be surprised if your first short sale bid is rejected. Lenders aren’t emotionally attached to their properties, so they aren’t as likely to give you steal. Many short sales fall through if the BPO comes in too high, which is often the case. You can’t pull the wool over a lender’s eyes – if the property isn’t is need of serious repair, it is unlikely you can convince the lender the property is worth a whole lot less than the appraised value.
The process of the short sale is not that complicated, but the success or failure of the deal depends upon how you present it to the lender. Many novice investors and realtors give up at short sales quickly because their first deal is rejected. Like any business, short sales takes practice to get good. Generally speaking, loss mitigators are pretty good at spotting an amateur investor. If you know what you are doing, the loss mitigators are more likely to make a deal with you.
Friday, October 16, 2009
Calculating retirement income from Rental properties
Whether you have a 401k or other retirement plan, income from a rental property can make your later years more enjoyable.
After finding one in your price range, the next step is calculating its cash flow. That means determining what your annual expenses will be and deducting them from the rent. The balance is ysour cash flow.
Depreciation sounds like an expense, but it is generally a tax advantage. On a $125,000 property, for example, the depreciation over 27 and one-half years comes to $3,636 per year. This is a tax deduction.
In the early years of your mortgage, interest will reduce earnings on the property so you won't have much of a profit. During this time, the depreciation comes in handy to reduce taxable income from other sources. In later years, it will reduce the amount of tax you pay on rental profits.
When you retire, you can use monthly rental income for normal expenses and travel.
Or you can sell the property and have a lump sum to use for something you always dreamed of, like a luxury RV in which to tour the country. In years to come, your property could double in value.
Some things to consider when looking for a rental property:
* Good location. Today, rents are rising and will continue to rise in stable neighborhoods. The location should be not too distant from where you live now.
* You can often buy a duplex for not much more than a single family home, and rents will be higher.
* Find a building that's not too old so it will comply with building, zoning, and fire codes. And it will have lower maintenance costs. Have it inspected.
* Have your real estate agent tip you off to a building with an out-of-town owner who is eager to sell. Sometimes such owners will take a two- or five-year contract for deed, which means a very small down payment. Be sure to visit http://ralphandTricia.com
After finding one in your price range, the next step is calculating its cash flow. That means determining what your annual expenses will be and deducting them from the rent. The balance is ysour cash flow.
Depreciation sounds like an expense, but it is generally a tax advantage. On a $125,000 property, for example, the depreciation over 27 and one-half years comes to $3,636 per year. This is a tax deduction.
In the early years of your mortgage, interest will reduce earnings on the property so you won't have much of a profit. During this time, the depreciation comes in handy to reduce taxable income from other sources. In later years, it will reduce the amount of tax you pay on rental profits.
When you retire, you can use monthly rental income for normal expenses and travel.
Or you can sell the property and have a lump sum to use for something you always dreamed of, like a luxury RV in which to tour the country. In years to come, your property could double in value.
Some things to consider when looking for a rental property:
* Good location. Today, rents are rising and will continue to rise in stable neighborhoods. The location should be not too distant from where you live now.
* You can often buy a duplex for not much more than a single family home, and rents will be higher.
* Find a building that's not too old so it will comply with building, zoning, and fire codes. And it will have lower maintenance costs. Have it inspected.
* Have your real estate agent tip you off to a building with an out-of-town owner who is eager to sell. Sometimes such owners will take a two- or five-year contract for deed, which means a very small down payment. Be sure to visit http://ralphandTricia.com
Saturday, October 10, 2009
Key indicators from Phoenix's Housing Market
There are some positive signs coming from metropolitan Phoenix housing market. Foreclosures dropped slightly in September while home prices inched up again.
Last month, lenders foreclosed on 3,759 Valley homes, an almost 5 percent drop from August, according to the Information Market. It's the second month in a row foreclosures, or trustee sales, have fallen. Pre-foreclosures also dropped in September, a good sign there will be another decline in foreclosures this month. There were 7,857 pre-foreclosures, or notice of trustee sales, filed by lenders last month. That's an 11 percent drop.
There's been a big push by the government and nonprofits for lenders to do more loan modifications, which could be behind the decline in foreclosures. Whatever the reason, at least for now, it means more people keeping their homes.
The median price of metro Phoenix home sales climbed to $130,000, according to Mike Orr's Cromfort Repord. The median a month ago was $127,000. Home prices, particularly in many of the Valley's edge communities have been slowly climbing since April, reports Orr, who analyzes Arizona Regional Multiple Listing Service data daily.
New Valley home prices are up as well. Real estate analyst RL Brown's Phoenix Housing Market Letter reports the median price of a new Valley home is at $197,948, after hitting a recent low of $184,750 in July.
However, home building fell after showing some gains in recent months. There were 6964 single-family housing permits issued Valleywide. Home sales overall were down slightly from August but are still well ahead of last's year pace.
Last month, lenders foreclosed on 3,759 Valley homes, an almost 5 percent drop from August, according to the Information Market. It's the second month in a row foreclosures, or trustee sales, have fallen. Pre-foreclosures also dropped in September, a good sign there will be another decline in foreclosures this month. There were 7,857 pre-foreclosures, or notice of trustee sales, filed by lenders last month. That's an 11 percent drop.
There's been a big push by the government and nonprofits for lenders to do more loan modifications, which could be behind the decline in foreclosures. Whatever the reason, at least for now, it means more people keeping their homes.
The median price of metro Phoenix home sales climbed to $130,000, according to Mike Orr's Cromfort Repord. The median a month ago was $127,000. Home prices, particularly in many of the Valley's edge communities have been slowly climbing since April, reports Orr, who analyzes Arizona Regional Multiple Listing Service data daily.
New Valley home prices are up as well. Real estate analyst RL Brown's Phoenix Housing Market Letter reports the median price of a new Valley home is at $197,948, after hitting a recent low of $184,750 in July.
However, home building fell after showing some gains in recent months. There were 6964 single-family housing permits issued Valleywide. Home sales overall were down slightly from August but are still well ahead of last's year pace.
HUD Properties, FHA & Title Seasoning
by William Bronchick
With HUD properties, title seasoning, FHA loans, and short sales, investors have had some confusion regarding the rules. This article will clarify all of these issues for you.
HUD is the United States Department of Housing and Urban Development, a government agency whose goal is to increase homeownership, support community development . The Federal Housing Administration (FHA), which is part of HUD, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States.
HUD and FHA come into play in three different scenarios in the investor/foreclosure arena.
HUD Foreclosed Properties
When a person gets an FHA loan, it is funded through a private lender and the loan is insured or backed by the Federal Housing Administration. When the loan is in default, FHA pays out the lender and take an assignment of the loan. When the property is foreclosed, it is owned by HUD. HUD then offers these properties for sale to both owner-occupants and investors. The properties are offered on the local MLS computer database, but you have to submit an offer through a HUD-approved real estate broker. The offer is made under a bid process, under which the HUD will either accept or reject your offer depending on what other offers are submitted. An investor can buy, hold, or flip these properties if their offer is accepted.
FHA Loans and Title Seasoning
Then second place HUD comes into play is the FHA loan. If a buyer of your property gets an FHA loan, there is a title seasoning requirement of 90 days. In other words, if you are selling the property to an FHA buyer, you must have title recorded in your name for 90 days before the closing and funding of the FHA loan. This precludes you from doing a double-closing or a short term (less then 90 days) flip.
Keep in mind that the 90 day seasoning rule has nothing to do with HUD-owned properties as described above. In other words, you can buy a HUD property and flip it 3 minutes later so long as your end-buyer is not using FHA financing.
The third place HUD comes into play is if you are working on a foreclosure short sale on a property that has an FHA loan. In this case the Federal Housing Administration is insuring the loan and must approve the short sale. You can buy a property with an FHA loan on it, then flip it without a title seasoning issue, unless your end-buyer is getting an new FHA loan.
In summary, don't confuse the FHA new loan 90-day title seasoning requirement with the two other scenarios, HUD-owned properties and and existing FHA-insured properties. For more information on HUD properties and FHA loans, visit www.hud.gov.
http://www.ralphandtricia.com/
With HUD properties, title seasoning, FHA loans, and short sales, investors have had some confusion regarding the rules. This article will clarify all of these issues for you.
HUD is the United States Department of Housing and Urban Development, a government agency whose goal is to increase homeownership, support community development . The Federal Housing Administration (FHA), which is part of HUD, provides mortgage insurance on loans made by FHA-approved lenders throughout the United States.
HUD and FHA come into play in three different scenarios in the investor/foreclosure arena.
HUD Foreclosed Properties
When a person gets an FHA loan, it is funded through a private lender and the loan is insured or backed by the Federal Housing Administration. When the loan is in default, FHA pays out the lender and take an assignment of the loan. When the property is foreclosed, it is owned by HUD. HUD then offers these properties for sale to both owner-occupants and investors. The properties are offered on the local MLS computer database, but you have to submit an offer through a HUD-approved real estate broker. The offer is made under a bid process, under which the HUD will either accept or reject your offer depending on what other offers are submitted. An investor can buy, hold, or flip these properties if their offer is accepted.
FHA Loans and Title Seasoning
Then second place HUD comes into play is the FHA loan. If a buyer of your property gets an FHA loan, there is a title seasoning requirement of 90 days. In other words, if you are selling the property to an FHA buyer, you must have title recorded in your name for 90 days before the closing and funding of the FHA loan. This precludes you from doing a double-closing or a short term (less then 90 days) flip.
Keep in mind that the 90 day seasoning rule has nothing to do with HUD-owned properties as described above. In other words, you can buy a HUD property and flip it 3 minutes later so long as your end-buyer is not using FHA financing.
The third place HUD comes into play is if you are working on a foreclosure short sale on a property that has an FHA loan. In this case the Federal Housing Administration is insuring the loan and must approve the short sale. You can buy a property with an FHA loan on it, then flip it without a title seasoning issue, unless your end-buyer is getting an new FHA loan.
In summary, don't confuse the FHA new loan 90-day title seasoning requirement with the two other scenarios, HUD-owned properties and and existing FHA-insured properties. For more information on HUD properties and FHA loans, visit www.hud.gov.
http://www.ralphandtricia.com/
FHA steps up to serve first-time homeowners, more . .
First-time buyers and those who have lower to middle income have an old way, now turned new, to find a mortgage. In the Phoenix Arizona real estate market FHA is becoming the mortgage of choice.
Many are turning to federally-backed Federal Housing Administration (FHA) loans. Mortgage applications increased from 41,530 in December 2006 to 73,444 in June of this year.
When the FHA was established in 1934, it copyright 2008 PAGES Editorial Service buyers to get a home of their own. In 1934 it was difficult to get a home loan because many banks required a down payment of up to one-half of a home's purchase price.
Today, FHA requires a 3.5 percent loan down payment.
As many mortgage companies came up with innovative financing plans for home buyers in recent years, the number of buyers turning to FHA fell significantly. Though there are still some nothing-down loans available from mortgage companies, most require the buyer to have a high credit rating and above-average income to get one.
While the FHA system needs some updating, it still works for many people. One of its flaws is the current maximum for a single-family home, which is $362,790. In San Francisco, however, the average home price is $748,100, according to the National Association of Realtors. Buyers in the Phoenix Metro are able to find some very nice housing that fits into that range.
Because some lenders don't care to deal with FHA paperwork, usually a mortgage broker handles the loan. It usually takes from 90 to 120 days to get approval. Buyers should know what the entire cost of the mortgage will be including the broker's fee.
Meg Burns, FHA's director of the Office of Single Family Program Development says, "Given how many borrowers really could benefit from FHA financing but how few of them do, I would say we are still in the doldrums."
The FHA is anticipating more applications as mortgage companies continue to make requirements more stringent.
To learn more about FHA and other Real Estate questions visit us at
http://www.ralphandtricia.com/
Many are turning to federally-backed Federal Housing Administration (FHA) loans. Mortgage applications increased from 41,530 in December 2006 to 73,444 in June of this year.
When the FHA was established in 1934, it copyright 2008 PAGES Editorial Service buyers to get a home of their own. In 1934 it was difficult to get a home loan because many banks required a down payment of up to one-half of a home's purchase price.
Today, FHA requires a 3.5 percent loan down payment.
As many mortgage companies came up with innovative financing plans for home buyers in recent years, the number of buyers turning to FHA fell significantly. Though there are still some nothing-down loans available from mortgage companies, most require the buyer to have a high credit rating and above-average income to get one.
While the FHA system needs some updating, it still works for many people. One of its flaws is the current maximum for a single-family home, which is $362,790. In San Francisco, however, the average home price is $748,100, according to the National Association of Realtors. Buyers in the Phoenix Metro are able to find some very nice housing that fits into that range.
Because some lenders don't care to deal with FHA paperwork, usually a mortgage broker handles the loan. It usually takes from 90 to 120 days to get approval. Buyers should know what the entire cost of the mortgage will be including the broker's fee.
Meg Burns, FHA's director of the Office of Single Family Program Development says, "Given how many borrowers really could benefit from FHA financing but how few of them do, I would say we are still in the doldrums."
The FHA is anticipating more applications as mortgage companies continue to make requirements more stringent.
To learn more about FHA and other Real Estate questions visit us at
http://www.ralphandtricia.com/
Wednesday, October 7, 2009
I found this fascinating quote today:
As the, so far, jobless recovery continues, the White House is reportedly hunkered down trying to figure out what to do next. Obama administration officials are taking note of programs that have worked and those that have not done as well. biggerpockets.com, First Time Home Owner Tax Credit Likely To Stay; But Current Homeowners Still Face Uncertain Future, Oct 2009
You should read the whole article.
Subscribe to:
Posts (Atom)
