The Success of Real Estate Atlanta Blog

Real Estate Bus Tour

2011-08-03T11:35:00.000-04:00

NEW: Listen to a message from Mayor Kasim Reed

2011-08-03T08:53:00.002-04:00

Up to $40,000 in downpayment assistance is available to qualified buyers. Get pre-qualified by an approved lender now and start house hunting.

1st choice Credit Union Credit Builder Loan Program

2011-07-20T11:57:00.002-04:00

THE CREDIT BUILDER LOAN PROGRAM PROVIDES A COMPLETE PACKAGE:

1st Choice credit Union wants to help you build a strong financial future. In order to do that the Credit Builder Loan Program is the package that offers you the tools needed to build better credit and re-establish your finances by meeting you where you are, in order to meet your unique needs.

THE CREDIT BUILDER PROGRAM INCLUDES:
-A $500 Loan
-Credit Restoration Services
-Checking and savings accounts

CREDIT RESTORATION PROVIDED BY NATIONAL CREDIT EDUCATIONAL SERVICES

Credit reports reviewed and analyzed to identify;

-Remove erroneous information
-Highlight good trade lines
-Dispute inaccuracies
-Improve credit scores

FINANCIAL EDUCATION PROVIDED BY TRAINED PROFESSIONALS CREATED TO SPEAK TO YOU AND YOUR SITUATION

The Credit Builder Loan Program begins with financial literacy courses designed by Financial Life Connection that address the areas of concern and equip you to start a path to economic independence. These dynamic courses help maintain good credit trade lines, creating budgets that work, smart money management and developing a mindset to win:

-Your Finances Your Choice
-Your Credit Your Choice
-Your Budget Your Choice

Oldfield at Grant Park

2011-07-20T11:56:00.000-04:00

Oldfield at Grant Park

955 Mead Street

YOU ARE JUST 1 CLICK AWAY FROM OWNING A HOME IN THE ATLANTA BELTLINE-AND UP UP TO $50,000 IN DOWNPAYMENT ASSISTANCE FOR THESE ELIGIBLE HOMES

Built in 2004, the Oldfield at Grant Park backs up to the Atlanta BeltLine and is eligible for downpayment assistance!

MillTown Lofts

2011-07-20T11:54:00.001-04:00

MillTown Lofts

791 Wylie Street

YOU ARE JUST 1 CLICK AWAY FROM OWNING A HOME IN THE ATLANTA BELTLINE-AND UP UP TO $50,000 IN DOWNPAYMENT ASSISTANCE FOR THESE ELIGIBLE HOMES

The MillTown Lofts in Cabbagetown puts you in the heart of Atlanta’s industrial history. Nestled among classic shotgun-style and bungalow single family homes, MillTown is a collection of brick townhomes on Wylie Street.

Lofts at Inman Park Village

2011-07-20T11:52:00.001-04:00

Lofts at Inman Park Village

245 North Highland Avenue

YOU ARE JUST 1 CLICK AWAY FROM OWNING A HOME IN THE ATLANTA BELTLINE-AND UP UP TO $50,000 IN DOWNPAYMENT ASSISTANCE FOR THESE ELIGIBLE HOMES

The Lofts at Inman Park Village overlook the Atlanta BeltLine, shops, and restaurants, and are eligible for downpayment assistance.

Enclave at Grant Park

2011-07-20T11:50:00.001-04:00

Enclave at Grant Park

YOU ARE JUST 1 CLICK AWAY FROM OWNING A HOME IN THE ATLANTA BELTLINE-AND UP UP TO $50,000 IN DOWNPAYMENT ASSISTANCE FOR THESE ELIGIBLE HOMES

Directly on the Atlanta BeltLine, the intimate townhome community at the Enclave at Grant Park is also just a few short blocks from Grant Park and Zoo Atlanta. Commonwealth Avenue specifically overlooks the Atlanta BeltLine.

A&P Lofts

2011-07-20T11:47:00.002-04:00

A&P Lofts
881 Memorial Drive

YOU ARE JUST 1 CLICK AWAY FROM OWNING A HOME IN THE ATLANTA BELTLINE-AND UP UP TO $50,000 IN DOWNPAYMENT ASSISTANCE FOR THESE ELIGIBLE HOMES

The A&P Lofts are in the former warehouse and bakery for A&P Grocery and listed on Georgia’s Register of Historic Places. With soaring windows, rooftop terraces and garden, and a few steps to the Atlanta BeltLine, you will love coming home!

How to Use the Atlanta BeltLine Downpayment Assistance

2011-07-20T11:29:00.002-04:00

The BeltLine Affordable Housing Trust Fund provides homebuyers with downpayment assistance of up to 20% of the sales price at a 0% interest rate as a soft second mortgage.

You can recieve up to $50,000 in Down Payment Assistance.

Homes that are eligible for the downpayment assistance must be within the Atlanta BeltLine Tax Allocation District (TAD). These can include condominiums, townhomes, and detached single family homes. You can search every home for sale in the Atlanta BeltLine TAD right on this site.

The maximum purchase price cannot exceed $252,890.

Household income limits not exceed $68,300 for households of 1-2 people and $78,545 for households of 3 or more.

2011-07-20T11:18:00.002-04:00

YOU ARE JUST 1 CLICK AWAY FROM OWNING A HOME IN THE ATLANTA BELTLINE-AND UP UP TO $50,000 IN DOWNPAYMENT ASSISTANCE FOR THESE ELIGIBLE HOMES

870 Inman

870 Inman Village Parkway
Nestled in the heart of Inman Park, 870 Inman is in the center of all the energy and excitement of one of Atlanta’s most vibrant neighborhoods, within walking distance of a variety of restaurants, cafés, shops, parks, and art galleries. Welcome to casual city living with real historic significance and a vibe all it’s own.

Luxury Townhomes in Atlanta

2011-07-14T11:50:00.001-04:00

*Downpayment Assistance Available*

Destined to be a promising investment, Brownstones at Edgewood is built for the urban trendsetter. These 3 and 4 bedroom townhomes embody the classic curbside appeal of traditional brownstones, while exuding sophistication and style on the inside.

Brownstones at Edgewood provides gated access to a community of 18 unique homes. Homeowners will enjoy beautiful open floorplans with spacious rooms, gourmet kitchens, contemporary lighting, spa baths, roof-top decks*, private 2-car garages, and secure entry.

With live-work options available, owners can maximize their time by running a business from the comfort of home. Brownstones at Edgewood also offers high-tech home options to control audio, video, lighting and security from any room or floor.

The Edgewood community is on the rise, and Brownstones at Edgewood will undoubtedly pave the next steps for Atlanta Intown living. Located near East Atlanta, Kirkwood, Inman Park, Grant Park and Candler Park – this community is perfectly located in a hotbed of activity near great food and shopping.

Get ahead of the curve. A lifestyle of opportunity awaits at Brownstones at Edgewood.

Castleberry Point starting at $81K

2011-07-14T11:47:00.003-04:00

• High Ceilings & Oversized Windows
• Spacious Balconies
• Advanced Fitness Center
• Rooftop Pool with Downtown Views
• Low HOA Fees

*DOWNPAYMENT ASSISTANCE AVAILABLE*

The Atlantic in Atlantic Station Atlanta

2011-07-14T11:40:00.002-04:00

As a testament to Art Deco glamour, the element of luxury surrounds you. Spend your day poolside, lounging on the terrace. Doorman, porter and 24/7 concierge services cater to your every desire. And the clubroom is here to share, with a private screening room and library for quieter pleasures.

•Full-size pool with hot tub spa
•Sundeck with WiFi, professional grills and park-like landscaping
•Large fitness center with state-of-the-art equipment
•Poolside terrace with stack stone fireplace
•Clubroom with flat screen TVs and Internet kiosks
•24-hour concierge
•Catering kitchen
•Private screening room and library
•High-speed Internet service throughout
•Doorman/porter services
•Concierge-arranged services*: Housekeeping, in-residence chef, dog walking, personal training and dry cleaning

Home Park Atlanta ..Selling Buying and Renting your property...

2011-05-11T09:22:00.004-04:00

As a proud Resident of Home park I understand the value of our neighborhood and that RENTING, SELLING & BUYING in this area is a huge decision in this real estate market.
Home Park is a neighborhood that is located between Georgia Tech (Georgia Institute of Technology) and Atlantic Station, just north of Downtown Atlanta and just west of 75/85. For many years it has had apartment houses and rooming houses serving the Georgia Tech students but with all of the investment in Atlantic Station, Home Park is changing fast!There are Single family and Multi Family homes for sale in Home Park. A few apartment buildings have been converted to condos and some new loft style townhomes have been built in Home Park.

Home Park is an Intown Atlanta neighborhood nestled between Georgia Tech and the Atlantic Station development, west of the Downtown Connector. This is an historic neighborhood of homes, mostly of the 1920′s – 1940′s vintage. Shopping, dining and entertainment in Atlantic Station is just a brief walk from Home Park. Because of this attraction, renovated and new-construction homes are becoming more and more common in this established neighborhood. Home Park is north of Georgia Tech, south of Atlantic Station and west of Midtown.

Suddenly out of the blue you have found out that a new position has opened up within your company and they are asking you to relocate your family to the other side of the country.

The job opportunity is too good to pass up so you decide to take the position. You realize with an impending move you are going to need to either sell or rent your home.

Considerations for renting or selling a home

Anyone who is considering selling a home in 2011 and has bought in the last six or seven years faces the real possibility that they will be losing money on the sale. The thought of losing money is never pleasant but unfortunately is part of today’s Real Estate reality. In my experience the immediate thought process of most home owners is to rent the home and not sell for a loss. This is kind of similar to the stock investor who hangs on for dear life with their losing picks but sells their winners instead.

In many cases they will ride the loser for an extended period of time until they realize it will take a very long time for that stock to come back to where it once was when purchased. Anyone who has ever invested in stocks including myself has been guilty of this. It is hard to give up on a loser because there is always the thought that it will come roaring back. So is renting the home really the best move or should you unload this asset that is working against you?

Where is the local Real Estate market headed?

One of the considerations of whether to sell or rent your home is to find out from a local Real Estate expert where they feel market values are headed both in the near term, as well as longer down the road. A knowledgeable Realtor that has been in the business for a while should be able to help you determine the trend of where the market is headed at least in the short term. Crystal balls are a hard thing to come by in Real Estate. Those that are lucky enough to have one are often times millionaires. Unfortunately knowing exactly when the Real Estate market will turn around requires one.

Most economists believe that once Real Estate markets do hit bottom the climb back up will be a slow and steady one. The opinions of most are that yearly appreciation will return to more normal historic levels of 3%-4%. Of course this is an average and states, cities and neighborhoods that are desirable could rise at a slightly higher clip.

As a home owner what you should be trying to figure out is how long will it take you to get back to a break even point or even something you can financially stomach. You should also be asking yourself is the time it takes to get back to break even worth it to you?

For example, lets say you bought your home for $500,000 and it has dropped in value by 25% and is now worth $375,000. Lets further assume that the Real Estate market beats the economists predictions and rises by 5% yearly. Do you realize it would take seven years to get back to break even?

If you have equity in the home you need to figure out if you would be better off taking the loss and putting your equity somewhere that could potentially earn you more money. If you don’t have any equity you would need to figure out if you have the necessary funds to bring to the closing table or would need to explore other alternatives like a short sale.

What is the local home rental market like?

Should I sell or rent my current home

Again you should consult with a local Realtor to determine how well the rental market is performing. Has the rental market done as poorly as the Real Estate market or is there demand for rental housing? Some areas rental markets have done very well.

There is a good possibility there are folks who would like to rent a nice home rather than commit to purchasing if they feel they could be transferred in a short time period or feel market values are still sliding and don’t want the risk.

The rental home becomes an investment property

Relocating home owners need to remember that a rental home becomes an investment property. Owning a home as an investment property has the potential to help or hurt you tax wise. This is definitely something you would want to consult a tax professional for guidance.

Although you will be taking in rent you need to remember that you will still have principal, interest, taxes and insurance to pay. If the property is a condo you would more than likely also be paying the condominium fees as well. As a landlord you will also be required to maintain the property and fix any necessary issues that come up.

Many landlords that have relocated out of state will also consider hiring a property manager. The typical charge for management services runs around 8-12% of the rent. So if you are charging $2000 a month for rent you can expect to pay a manager in the neighborhood of around $200 a month. There are some excellent tax deductions for rental property that could play a factor in your decision making.

Taking on landlord responsibilities

As a landlord one of the 1st steps is going to be choosing the right tenant. Over the years I have seen a few occasions where the renter did not treat the home the same way an owner would. The owner was left with paying to replace carpets and do quite a bit of painting. These kind of costs can add up fast. Picking a responsible tenant becomes critical.

There are also considerations such as handling tenant complaints, maintenance issues or even legal issues such as eviction. In the end there is a lot to think about when deciding whether selling or renting your home makes the best fiscal and practical sense.

_________________________________________________________________

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metro-Atlanta: Fulton County, Cobb County,Gwinnett County,Paulding County,Douglas County, Dekalb County and Henry County.

Atlanta Beltline Housing

2011-04-13T11:04:00.003-04:00

You may qualify for up to 30 to 40% of the home purchase price or up to $60,578 as a subsidy. For information on this program contact LaMar Campbell at 770.475.1130 or visit www.thesuccessofrealestate.com. Existing or new construction single-family homes, townhouses, condominiums and manufactured housing along the BeltLine are eligible. Maximum purchase price is $252,890.

Also City of Atlanta Employees can qualify for an additional 10% in Down Payment Assistance! This will only last a limited time only! Contact me for Details!

http://myemail.constantcontact.com/Spring-Into-Home-Ownership-with-LaMar-Campbell.html?soid=1104934958511&aid=VCsJ6G2QBTg

2011-03-28T13:27:00.000-04:00

http://myemail.constantcontact.com/Spring-Into-Home-Ownership-with-LaMar-Campbell.html?soid=1104934958511&aid=VCsJ6G2QBTg

Rent vs Selling your Home...

2011-03-24T09:33:00.003-04:00

Suddenly out of the blue you have found out that a new position has opened up within your company and they are asking you to relocate your family to the other side of the country.

The job opportunity is too good to pass up so you decide to take the position. You realize with an impending move you are going to need to either sell or rent your home.

Considerations for renting or selling a home

Anyone who is considering selling a home in 2011 and has bought in the last six or seven years faces the real possibility that they will be losing money on the sale. The thought of losing money is never pleasant but unfortunately is part of today’s Real Estate reality. In my experience the immediate thought process of most home owners is to rent the home and not sell for a loss. This is kind of similar to the stock investor who hangs on for dear life with their losing picks but sells their winners instead.

In many cases they will ride the loser for an extended period of time until they realize it will take a very long time for that stock to come back to where it once was when purchased. Anyone who has ever invested in stocks including myself has been guilty of this. It is hard to give up on a loser because there is always the thought that it will come roaring back. So is renting the home really the best move or should you unload this asset that is working against you?

Where is the local Real Estate market headed?

One of the considerations of whether to sell or rent your home is to find out from a local Real Estate expert where they feel market values are headed both in the near term, as well as longer down the road. A knowledgeable Realtor that has been in the business for a while should be able to help you determine the trend of where the market is headed at least in the short term. Crystal balls are a hard thing to come by in Real Estate. Those that are lucky enough to have one are often times millionaires. Unfortunately knowing exactly when the Real Estate market will turn around requires one.

Most economists believe that once Real Estate markets do hit bottom the climb back up will be a slow and steady one. The opinions of most are that yearly appreciation will return to more normal historic levels of 3%-4%. Of course this is an average and states, cities and neighborhoods that are desirable could rise at a slightly higher clip.

As a home owner what you should be trying to figure out is how long will it take you to get back to a break even point or even something you can financially stomach. You should also be asking yourself is the time it takes to get back to break even worth it to you?

For example, lets say you bought your home for $500,000 and it has dropped in value by 25% and is now worth $375,000. Lets further assume that the Real Estate market beats the economists predictions and rises by 5% yearly. Do you realize it would take seven years to get back to break even?

If you have equity in the home you need to figure out if you would be better off taking the loss and putting your equity somewhere that could potentially earn you more money. If you don’t have any equity you would need to figure out if you have the necessary funds to bring to the closing table or would need to explore other alternatives like a short sale.

What is the local home rental market like?

Should I sell or rent my current home

Again you should consult with a local Realtor to determine how well the rental market is performing. Has the rental market done as poorly as the Real Estate market or is there demand for rental housing? Some areas rental markets have done very well.

There is a good possibility there are folks who would like to rent a nice home rather than commit to purchasing if they feel they could be transferred in a short time period or feel market values are still sliding and don’t want the risk.

The rental home becomes an investment property

Relocating home owners need to remember that a rental home becomes an investment property. Owning a home as an investment property has the potential to help or hurt you tax wise. This is definitely something you would want to consult a tax professional for guidance.

Although you will be taking in rent you need to remember that you will still have principal, interest, taxes and insurance to pay. If the property is a condo you would more than likely also be paying the condominium fees as well. As a landlord you will also be required to maintain the property and fix any necessary issues that come up.

Many landlords that have relocated out of state will also consider hiring a property manager. The typical charge for management services runs around 8-12% of the rent. So if you are charging $2000 a month for rent you can expect to pay a manager in the neighborhood of around $200 a month. There are some excellent tax deductions for rental property that could play a factor in your decision making.

Taking on landlord responsibilities

As a landlord one of the 1st steps is going to be choosing the right tenant. Over the years I have seen a few occasions where the renter did not treat the home the same way an owner would. The owner was left with paying to replace carpets and do quite a bit of painting. These kind of costs can add up fast. Picking a responsible tenant becomes critical.

There are also considerations such as handling tenant complaints, maintenance issues or even legal issues such as eviction. In the end there is a lot to think about when deciding whether selling or renting your home makes the best fiscal and practical sense.

_________________________________________________________________

Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!

I service the following towns in Metro-Atlanta: Fulton County, Cobb County,Gwinnett County,Paulding County,Douglas County, Dekalb County and Henry County.

Via-Bill Gasset

Atlanta Has 25 Million in Down Payment Assistance

2011-03-15T12:16:00.002-04:00

Hot Of The Press!!!! The Atlanta Development Authority has been awarded an additional $25 Million in Down payment Assistance to help First Time Homebuyer as well as move up buyers to assist them in purchasing a home in the City of Atlanta. Did you know that the law still defines a first-time homebuyer as someone who has not owned a primary residence for three years prior to the date of purchasing their new home. Exisiting New Construction single family homes,townhomes, condominiums, and manufactured housing with a maximum purchase price of $252,890. All Properties must be in the City of Atlanta Email us for additional Information.

Prime Time to Buy

2011-03-14T13:34:00.002-04:00

Prime Time to Buy
7 Reasons Why Now Is a Great Time to Buy a Home

Recent history has reframed some of what had long been taken for granted about buying a home. Namely, we’ve learned that even though buying a home remains one of the best and safest investments available, a home should not function as an ATM or a short-term speculation strategy. So, where does that leave us? A lot smarter, able to recognize an opportunity when we see one, and aware of the facts that point to now as the prime time to buy a home.

1. Home affordability is at an all-time high. The median mortgage payment on the median-priced home, as a percentage of the median household income, is lower than it’s been in a generation.
2. Mortgage rates are at rock bottom. It’s hard to imagine interest rates going much lower, and when they start to inch back upward, monthly payments and total loan costs will spike upward.
3. Home prices are back on the rise. After declining for 30 months, home prices are trending back upward. The time to get in the market is now.
4. Sellers are motivated. This means that buyers have the upper hand. Sellers are fiercely competing among an excess of housing inventory, which often means buyers have untold choices and negotiating power.
5. Financing is readily available. Banks are back in the game and ready to lend to well-qualified buyers.
6. Owning vs. renting is increasingly favorable. Since 2009, the average principal and interest payment has fallen below the average rental rates, and the gap is now wider than it’s been in the past 22 years.
7. Homeownership is still at the core of the American Dream. Owning a home is critical to financial stability and wealth building. It’s a forced savings account, a place to live, and a fabulous tax deduction.

Buy a Home in Atlanta with $50,000 In Down Payment Assistance

2011-03-14T13:25:00.001-04:00

Program Structure

The Beltline Affordable Housing Trust Fund provides homebuyers with downpayment assistance of up to 20 percent of the sales price at a zero-percent interest rate as a soft second mortgage.

Who Qualifies?

There is no first time homebuyer requirement for borrowers moving into the incorporated city limits of Atlanta but, current residence must be sold prior to closing on the new home.

Qualifying Properties

Sky Lofts -One, two and three bedroom units from $119,000

Triumph Lofts-Lofts located in the Reynoldstown Community from the mid $200,000

Milltown Lofts-One ,two bedroom units from the $170,000's

Glenwood Park- Condominiums in the Glenwood Park Community from $132,500

Grinnell Lofts- Boutique Condominiums in Inman park

White Provision-Condo living in trendy West Midtown from the $220's

870 Inman-Condos in Inman park Village near the BeltLine from $179,000.

It's Time to Spring Forward

2011-03-11T11:19:00.003-05:00

It’s time to spring forward!

On March 13, remember to move your clocks forward!

Speaking of moves...
Are you ready to make a move?
Do you want to find out if now is a good time to make it?
Not sure what your property is worth in today's market?

If you answered Yes, then simply call us or reply to this email. We will provide you with access to all the current sales in your neighborhood.

Remember
Information is Power
Get Some!

This information can help you in making important decisions regarding insurance coverage, home improvements, and buying or selling.

If you are considering buying or selling we would love the opportunity to earn your business. Let's talk about getting you into your dream home!

Market Conditions

2011-03-08T13:02:00.002-05:00

We at the Success of Real Estate Team have improved the way do things in 2011! This newsletter is full of the latest Real Estate Market Conditions.

Gradual progress in the housing market continues at a steady pace without government support. The market has shown remarkable improvement from the initial drop after the expiration of the home buyer tax credit this past July. Although higher-than-normal distressed sales skew the overall picture of home prices downward, inventory continues to shrink and sales continue to rise. The rock-bottom interest rates of 2010 are likely to trend upward. As economists anticipate rates at or above 6% by the end of 2012, buyers are moving off the sidelines and into the market.

A good sign for long-term market stability is that the median down payment on conventional mortgages has risen to 22%, up from 4% in 2006 and slightly above the 20% standard in the 1990s. This may keep buyers looking in slightly lower price ranges, but it is a good sign of future sustainability for homeowners and banks alike. There are still ample opportunities for those who would like down payments below 20%, including some conventional mortgages and those backed by the Federal Housing Administration, Veterans Affairs, and the Department of Agriculture’s Rural Development loans.

As the economy improves, stimulus efforts by the government and the Federal Reserve Board will gradually wind down, which typically means rising interest rates. Meanwhile, buyers continue to benefit from historically favorable buying conditions and sellers are encouraged by increased market stability.

Home Sales

in millions

The increasing trend in existing home sales activity continued through January, and for the first time rose above year-ago levels when the home buyer tax credit was in effect. This marks the sixth monthly increase since July when the tax credit expired, and indicates a recovery that’s gaining a firmer footing without government support.

Topics For Home Owners, Buyers & Sellers

Preparing your home for sale in a buyer’s market can seem daunting, but these five tips will help you get the best price in the least amount of time.

* Organizing and cleaning is crucial when prepping a home for sale. Potential home buyers have a more positive reaction to homes that are clutter-free and give them the feeling that the home is “move-in ready.”
* Presale home inspection can inform you of any trouble areas within your home that can stand out to potential buyers. An inspection can also help you make any repairs necessary before future open houses.
* Determine replacement estimates before listing your home, even if you are not planning on making the replacements yourself. This information can help buyers to make informed decisions.
* Have your warranties ready – especially for all those home appliances that will stay within the home after the sale.
* Curb appeal is a crucial factor because it determines first impressions. A negative first impression can cloud their entire opinion about the home.

Brought to you by KW Research.

The opinions expressed in This Month in Real Estate are intended to supplement opinions on real estate expressed by local and national media, local real estate agents and other expert sources. You should not treat any opinion expressed in This Month in Real Estate as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of opinion. Keller Williams Realty, Inc., does not guarantee and is not responsible for the accuracy or completeness of information, and provides said information without warranties of any kind. All information presented herein is intended and should be used for educational purposes only. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. All investments involve some degree of risk. Keller Williams Realty, Inc., will not be liable for any loss or damage caused by your reliance on information contained in This Month in Real Estate.

Thank You

LaMar

Did you know that we do luxury leasing?

2011-03-08T12:48:00.002-05:00

Call today if you or anyone you know is interested in luxury lease opportunities between $1,800 - $8,000 in the "nation's best sub-cities” of Buckhead or Midtown in Atlanta Georgia. We can help. We address the desires of the affluent rental market.

Also, if you are a residential rental property owner with a home or condo in either of these communities and you are seeking a qualified lessee for your rental please contact us today.
Sitting atop the exclusive AAA Four Diamond Loews Hotel, 10 Sixty Five Midtown offers fantastic amenities to all residents.
2 & 3 bedroom homes are available. Located in the heart of distinctive cultural surroundings such as the FOX Theater, High Museum and Piedmont Park. Outstanding restaurants and notable shopping. For relaxing, a Spa, club room with outdoor fireplace, gas grill and pool w/dining area. 24 Hr concierge, valet parking, maid/laundry and personal chef are all at your fingertips.

email LaMar@kw.com or call 678-886-0874 to schedule your private preview

Mortgage Industry Status Update

2011-01-18T11:51:00.001-05:00

FHA 203(k) Loans, Catalyst for 2011 Boom ... Foreclosures and Short Sales will dominate as the largest resource of real estate sales in 2011. Estimates place foreclosures at a new high of 10 million plus. Real estate agents who are prepared to market to this opportunity will need to embrace the FHA 203(k) loan to support their clients' need to rahab these foreclosures in order for them to take advantage of great value bargains. Agents using the FHA 2-03(k) loan in conjunction with foreclosures and short sales will see their pipelines boom. The FHA 203(k) can be utilized with Purchases or Refinances and will be a valuable sales tool for resales,foreclosures and short sales. Most consumers are not aware of the benefits and availability of 203(k) Rehab loans.

The FHA 203(k) loan was introduced in 1978 by revision to the National Housing Act (NHA) and desigmned to help America restore and preserve it's existing housing stock. While they enjoyed a brief popularity in the 1990's , they were not widely used for many years. The decline was due to the available easy construction financing, lines of credit and 2nd mortgages offered as home improvement loans but since the mortgage meltdown, these types of loans all but disappeared. The FHA 203(k) loan has made a strong comeback in a big way and will be an eminent tool to support the sale of foreclosures and short sales.

Prime Time to Buy

2010-11-10T13:11:00.002-05:00

Market Update November 2010

2010-11-10T13:07:00.001-05:00

The housing market continues its gradual recovery without the aid of the tax credit. Sales are slower but growing. Although it will likely be uneven at times, slow growth is believed to be the trend moving forward. Interest rates hit a new historic low again, a major factor in helping keep mortgage payments incredibly affordable.

Extended periods of record low interest rates and further plans from the Federal Reserve Board to expedite recovery have some concerned about future inflation. One such investment guru, John Paulson, touted the benefits of owning real estate as a hedge against inflation on Forbes.com. “Your debt and interest payments get locked in at record lows, while the price of your home will rise … If you don’t own a home buy one … if you own one home, buy another one, and if you own two homes, buy a third and lend your relatives the money to buy a home.”

This march back up continues to provide excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates. Experts anticipate both the economy and the housing market will continue their paths on the way to a complete recovery.

Home Sales

Home sales continued to rebound in September, increasing 10% compared to the previous month. This builds on August’s gain of 7.6% that followed a large drop caused by the expiration of the federal tax credit in July. Sales are expected to gradually grow as the market moves toward recovery without government stimulus. The recent foreclosure moratorium has opened up opportunities for short sales. Although it could make the near-term “choppy at times,” industry experts expect the overall trend to continue growing slowly.

Monticello Park Up to $25,000 in Downpayment Assistance

2010-11-09T13:11:00.001-05:00

Amenities: Monticello Park blends the best of both worlds with 2, 3, and 4 Bedroom Townhomes and a Master Planned Enclave of Single Family Homes. This beautiful D.R. Horton Community has a gated entrance and offers great amenities such as swimming pool, tennis courts, tot lots, maintenance-free living and lavish, professionally groomed landscaping. Monticello Park is close to Major Interstates, Downtown Atlanta, and Hartsfield Jackson Airport. Monticello Park with all that it has to offer is sure to meet your lifestyle needs.

Buy a Home on the Atlanta Beltline with up to $50,000 Downpayment Assistance

2010-11-09T12:46:00.008-05:00

Home for the Holidays on The Success of Real Estate Radio

2010-11-04T14:11:00.005-04:00

KISS YOUR RENTAL PAYMENTS GOODBYE!!!Welcome home to to a great Christmas present that will definitely be the gift that keep on giving!! On November 9, 2010 The Success of Real Estate Radio will be bringing you information that can make you a Homeowner by Christmas with almost %50 off the Sales price at HISTORIC WESTSIDE VILLAGE CONDOS http://www.westsidevillagecondos.com

We will be having Kenyatta Stewart from Historic Westside Village to tell us how you can kiss your rental payments good bye and be a homeownwer at his Community! We also will be having Micole Sudduth from America Home Key Mortgage and she will be explaining the criteria needed to qualify for almost $50,000 in Down Payment Assistance for this purchase! Can you imagine living at this beautiful community for less then what you pay in rent? Don't believe me..? Just make sure you tune in on Tuesday November 9th at 10 AM to find out what we have in store for you at Historic Westside Village!!

ONE BEDROOM -$79,000 TWO BEDROOM-$99,000
For a very limited time you can snatch a luxury condo at Historic Westside Village with downpayment assistance. Historic Westside Village features an open floorplan, granite countertops, hardwood floors, stainless steel appliances, and a pool and fitness center.

Historic Westside Village is conveniently located close to downtown shops, entertainment and just blocks from the Georgia Dome.

Down Payment Assistance Available

AAHOP-$10,000
HOAP-10% of Dales Price up to $15,000
Capitol Gateway-Up to $30,000 in DPA available(*)

AHA Downpayment Assistance Capitol Gateway Increased to $30,000 Until 12/31/2010

2010-10-28T15:27:00.004-04:00

The Atlanta Housing Authority(AHA) has increased its Capitol Gateway down payment assistance from $20,000 to $30,000….. for a limited time only! Beginning immediately(10/26/10), until 12/31/10…. this $30,000 dpa incentive is available to qualified buyers. All Capitol Gateway Program requirements still apply.This program can be layered with the ADA Programs and can give you a possible total savings of up $70,000 FREE!!Call me for details.404.732.2656

Additional $25 Million awarded to the Atlanta Development Authority for Down Payment Assistnace

2010-10-26T11:30:00.004-04:00

Hot Of The Press!!!! The Atlanta Development Authority has been awarded an additional $25 Million in Down payment Assistance to help First Time Homebuyer as well as move up buyers to assist them in purchasing a home in the City of Atlanta. Did you know that the law still defines a first-time homebuyer as someone who has not owned a primary residence for three years prior to the date of purchasing their new home. Exisiting New Construction single family homes,townhomes, condominiums, and manufactured housing with a maximum purchase price of $252,890. All Properties must be in the City of Atlanta Contact us at 404-732-2656

Tax Incentives Benefit Younger Households

2010-10-19T15:46:00.001-04:00

Tax Incentives Benefit Younger Households
by Carla Hill

Younger Americans may now have added incentive to enter the housing market. New research reported by the National Association of Home Builders (NAHB) shows that certain mortgage tax deductions may decline with age, and thus favor the younger set of the nation, specifically those aged 18 to 45.

Recently released Statistics of Income (SOI) data from the Internal Revenue Service (IRS) shows, according to the NAHB, that "the descriptive statistics ... demonstrate that the housing-related tax deductions, the mortgage interest and real estate tax deductions, strongly benefit younger households who tend to be recent homebuyers with larger mortgage debt."

These findings could affect how tax codes changes are proposed in coming years, as an ailing housing market needs first-time and Generation Y homebuyers to enter the market.

"Opponents falsely argue that the [mortgage interest] deduction is only for the wealthy but it is clear that the mortgage interest deduction is also of great value to younger homeowners," said Robert Dietz, Assistant Vice President for Tax and Policy Issues for NAHB. "Any tampering with this deduction would have a disproportionate impact, as a share of household income, on younger homeowners who have relatively higher mortgage interest payments. These are households who have growing demand for homeownership due to marriages and children."

According to the research, the average mortgage interest deduction was highest for the 35 to 45 age group, and then declined with age. Those under the age of 35 had the second largest deductions, at around $12,000 average.

The same trend is seen for mortgage insurance deductions. NAHB research shows "as is expected, the largest shares for this deduction, associated with homebuyers with less than 20% of the home price as a downpayment, are for those aged 18 to 45."

These tax advantages, along with more affordable pricing and historically low interest rates are even more reason that new buyers should consider entering the market at this time.

Published: October 13, 2010

Options for Investors

2010-10-13T11:48:00.001-04:00

Not only is it the perfect time to buy a home, but it’s also an excellent time to purchase an investment property. If you already own and are not interested in moving – or you can’t because of the 3-year occupancy requirement to keep your home buyer tax credit – but still want to take advantage of the market, investing can be a great way to do so.

In the current lending situation, lenders often require investor buyers to have six months reserves of mortgage payments and a 25% down payment. This stipulation keeps many would-be investors out of the market.

Here are some little known tips to help investors purchase, regardless of the tighter lending environment:

1. Investors can purchase a Fannie Mae HomePath investment for 3% down.
2. Any investor, not just veterans, can purchase a Veterans Affairs(VA) foreclosure with VA’s Vendee Financing for 5% down.
3. Investors purchasing a VA foreclosure with Vendee Financing can use 75% of anticipated rent to offset the monthly payment if the investor has experience managing rental properties.

Sources: The Wall Street Journal, Inman News, KW Research

For Owner Occupants that Buy Fannie Mae Foreclosures

2010-10-13T11:45:00.002-04:00

Like a car dealership at the end of its model year, Fannie Mae is offering special incentives exclusively for owner occupants that purchase property from its sizable inventory of foreclosures, also known as HomePath properties.

Owner occupants that purchase a Fannie Mae HomePath property by December 31 will receive up to 3.5% toward closing costs and a home warranty. These incentives for foreclosures are unheard of – banks typically sell foreclosures “as-is” without incentives, warranties, or repairs. This could help buyers to view a HomePath property more like a traditional sale, not a foreclosure, during their search process.

Owners and investors can purchase HomePath properties for 3% down and no mortgage insurance. For homes that are not in tip-top shape, Fannie Mae also offers the HomePath Renovation financing, which works similarly to FHA’s 203(k) mortgage by allowing the cost of light renovation to be included in the mortgage. Furthermore, owner occupants get a 15-day “first dibs” on HomePath properties through the First Look program.

Fannie Mae is also offering agents an additional $1500 for representing owner occupants who purchase these properties, helping to compensate them for the extra paperwork and other potential obstacles that come along with foreclosure transactions.

Buyers should be sure to take a second look at Fannie Mae’s HomePath properties before settling on “the one.” It could mean not just a great deal but an excellent one.

To see Fannie Mae’s HomePath homes, check out HomePath.com

Market Update

2010-10-13T11:41:00.002-04:00

The housing market continues its slow recovery without the aid of the now expired tax credit. Sales are slower but growing, and prices remain on par with last year’s levels. Interest rates also hit a new historic low, a major factor in helping keep mortgage payments low, which is expected to spur sales.

The economy shone a bit brighter in September. It grew faster during the second quarter than expected, and companies continued to hire. Experts believe there is now less risk of a double-dip recession. Now, the Federal Reserve Board’s challenge is not if the economy will grow but how fast.

Experts anticipate both the economy and the housing market will continue their path on the way to a complete recovery. This march back up provides excellent opportunities: an ample selection of homes, affordable prices, and historically low interest rates.

Home sales began to rebound in August. This increase follows a large drop caused by the expiration of the Federal tax credit in July. Sales are expected to slowly rebound as the market finds its footing without leaning on the government for support. First-time buyers fell from 38% to 31% in August from July. Over the same time period, investors rose from 19% to 21%. Overall home prices fell slightly in August compared to July, but major markets appear to be bucking trend as the Case-Shiller Index shows an increase of 3.2%.

Distressed properties accounted for a slightly larger proportion of sales in August compared to July. The discount in distressed properties helps explain the slight decline in August prices.

Total inventory came back below 4 million to 3.98 million in August, representing 11.6 months of inventory. While still at a relatively high level, months of inventory dropped by nearly a month in August from the 12.5 month’s supply in July.

Housing remains highly affordable, and prospective home buyers stand to benefit from the lowest mortgage rates in decades, as well as advantageous home prices. The ratio now stands at 14.9%, growing closer to the record of 13.6%.
Source: National Association of Realtors

FALL Into Homeownership Month

2010-10-01T13:27:00.003-04:00

Don't miss out on the opportunity to take part in this great event!!! I will see you on the 16th!!

Oakland Park

2010-08-18T14:49:00.005-04:00

Enjoy a green lifestyle while living in a trendy neighborhood at Oakland Park. As Atlanta’s first LEED Silver certified condominium, homeowners can contribute to sustainability while taking advantage of Oakland Park’s affordability. However, with up to $35,000 in down payment assistance available, homes starting at just $119,900 and FHA approval with only 3.5 percent down, homebuyers must hurry to secure one of the 65 condominiums available.

Oakland Park condominium interiors include 10-foot ceilings, granite countertops, bamboo floors, Energy Star stainless steel appliances and a large, private balcony. Plus, residents will enjoy the amenities including a rooftop sundeck, outdoor grill and fitness center. In addition to these great amenities, residents can savor the breathtaking and expansive views provided by the Atlanta skyline.

This boutique community is located in East Atlanta, within walking distance of popular shopping, dining and entertainment.

News Letter For July

2010-07-07T15:55:00.003-04:00

15 Million in Down Payment Assistance Still Available in Atlanta
Warren Buffet said it best, "When there is fear in the market be greedy, and when others are greedy be fearful."

I would have sent you a happy Fourth of July message but was certain that you would not be reading emails on your Holiday - right?
Want to share a few things with you that may benefit you or someone you may know. These items come from the questions that you, our clients, family, and friends - ask most often of us.
1. "I owe more on my home than it is worth and I MUST sell this house". You may qualify for a SHORT SALE. What is a short sale? A short sale is a sales transaction in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
We have people who can help you! Call 404-732-2656 or email LaMarkw@gmail.com RIGHT NOW - time is of the essence.
2.Special Note for Overseas Military Personnel and Federal Employees (thank you so very much for serving our incredible country) Military personnel and some federal employees serving overseas may still be able to claim the credit on home purchases made before April 30, 2011. Consult the IRS web site for more information on the Extended Home Buyer Tax Credit provisions for qualified military personnel and federal employees. - if this link does not work, please cut and paste the following in your web browser: http://www.irs.gov/newsroom/article/0,,id=215594,00.html

We have partnered with the Atlanta Development Authority to help bring you great opportunities in Home Ownership.!!
If you have a minimum Credit Score of 620 and currently make less than $72,000 p/y you may qualify for up to $60,000 in Down Payment Assistance at some of the great downtown Atlanta Townhomes and Condomiums. If the address is in Atlanta the property qualifies here are a few examples..
Great Downtown Condos available for up to $60,000 in Down Payment Assistance
Castleberry Point
Twelve Centennial Park
Studio Plex Lofts
Tribute Lofts
Central City Condominiums
Historic Westside Village

LaMar C Campbell ABR MBA
Residential-Commercial -Investment-Downpayment Assistance
Your Circle Of Success Real Estate
Solid Source Realty GA
O.678-886-0874
C.404-732-2656
F.404-492-7156
LaMarKw@gmail.com
www.thesuccessofrealestate.com
Find us on Facebook
$20,000 Available from the Atlanta Housing Authority
ahaWhy stop at $60,000 when you can potentially have $80,000? That is correct! You may use the Atlanta Development Authority Downpayment Assistance of $60,000 combined with the Atlanta Housing Authority Downpayment Assistance amount of $20,000 for a total of $80,000. Look at this Video of how one young lady took advantage of the BeltLine Program Click Here Do not miss out on this great opportunity to become a homeowner. Visit our website for all your Atlanta Real Estate Information www.thesuccessofrealestate.com

FREE HOMEBUYER WORKSHOP!

Homebuyer Education Workshop
& Walking Tour
Saturday, July 10, 2010
8:30 am - 5:00 pm
Carver Family YMCA
1600 Pryor Road SW
Atlanta, GA 30315

Space is limited!
Please RSVP to Tracey Powell at (404) 614-8280 or
tpowell@atlantada.com. Reservation is required for free admission.
On-site registration on July 10th is $25.
National Real Estate Needs Serviced

Your Circle of Success Real Estate prides itself on our relationships nationwide and world wide. If you have a family member or friend in another state or even country we can connect them with a great real estate professional or mortgage consultant that will take great care of them!!
Real Estate Needs ANYWHERE in the United States and Bermuda, Panama and Jamaica! Really, we have someone who is uniquely qualified and extremely capable of handling all of your real estate needs - wherever they exist. Give the referral network of Your Circle of Success Real Estate a try: email your requests to LaMarkw@gmail.com
Financing - Mortgage rates hit new records for the second week in a row, with 30-year fixed-rate mortgages averaging 4.58 percent during the week ending July 1. Rates on 30-year fixed-rate loans are down from 4.69 percent last week and 5.32 percent a year ago, and at a new all-time low in records going back to 1971. Down Payments are as low as 3.5% of the sales price. Let me know if you need the name of a Mortgage Consultant - I can help ycosre
.

Thank you again for taking the time forward out my emails, calling me for up to date information me or for just being a friend. We service Fulton, Dekalb , Cobb, Gwinnett ,Henry, Clayton,Douglas Counties as well as all Metro Atlanta Don't forget to take a look at my Special Offer Below we can possibly be at a Housewarming party soon!! Stay cool out there everyone and "always have the perfect state of mind for success.."
Sincerely,

Lamar C. Campbell
Your Circle Of Success Real Estate
Free Housewarming Party!!Your Circle of Success Real Estate would like to thank all of our supporters and referrals! If you close a home with us between now and December 2010 we will throw you a HOUSEWARMING PARTY for you and 25 guests completely catered at no charge to you! This coupon must be printed and presented in person. This coupon is non transferable? Please feel free to share the offer with friends and family members.

.

Offer Expires: December 2010

Buying or Selling a Short Sale

2010-06-29T15:26:00.002-04:00

Short Sales

Short sales are becoming even more common due to the huge increase in the number of foreclosures which are having an effect on home values across the nation. Due to the current subprime and anticipation of the more ARM resets, many people are considering short sales but are not clear on the short sale process and how it can be used to avoid foreclosure. A Short sale is basically a process which allows the borrower to sell the home for less than what is owed on the mortgage loan and allows the seller to avoid having their credit score hit with a foreclosure penalty. Although, there is still a penalty given for short sales, the time to buy a home is shortened with a short sale versus a foreclosure home. A foreclosure can stay on your credit report for up to 10 years while a short sale can range 3 to 5 years. Depending on when you plan to get short sale completed, the IRS may consider your debt forgiveness as taxable income.

The Short Sale Process for Sellers:

1. Contact the lender to discuss the chance of a short sale of the mortgaged property and determine the lender’s process for completing a short sale, successfully.
2. The borrower is to send a lender of hardship to the lender. The letter is to include all financial difficulties, in which the lender can research to validate the seller’s financial situation. Additional documents are to be included with the letter, including bank statements, investment accounts, paystubs and other financial records.
3. A lender will review the settlement package and consider forgiving the remaining loan balance and all expenses (property taxes, etc.), real estate commissions and other expenses associated when closing.
4. A BPO will be ordered by the mortgage lender to determine a Broker Priced Opinion (BPO) to examine the prices of the home in the market by looking at comparables.
5. The lender then will review the purchase agreement and determine if the real estate commission is acceptable.

Short sales can be quite lengthly and need a good real estate agent, a lender willing to work with you on the loan and a buyer.

Success Rate? Success rate can range from 6% to 50% depending on the lender holding the loan, how many loans are on the house and the Realtor’s experience. There are many factors involved in making a successful short sale. The Realtor has be prepared and present to the bank all the required documents to prove to the bank that the owner can no longer afford the house and also prove the home is worth less than the surrounding market.

Tips:

* Be ready for anything. A short sale can be finalized with the bank in 2 weeks or take as long as 5 months.
* If time is an issue. Stay away from short sales, they are unpredictable.
* Be aware that the owner is still living in the home and depending on their situation, they may take things from the home prior to closing. Make sure your realtor is on your side.
* Find out how many loan the borrower has on the home and how much they owe.
* Continue to take additional offers while the bank is reviewing an accepted offer to keep your options opened. The buyer may have an addendum that allows them to back out at any time.
* Consult an accountant, lawyer or real estate with your important decision in deciding on a short sale.

Short Sale Buyers

The Short Sale Process for Buyers:

1. Hire a Realtor to protect your best interests, especially when dealing with short sales.
2. Search for Short Sale Propeties
3. Make an offer on a short sale property and include a Short Sale Addendum which allows you to back out prior to and after a lender has sent written approval of the short sale. This way you can continue looking at homes if the short sale is taking too long or you can back out at any time if something better comes onto the the MLS.
4. Make escrow to start AFTER the lender has submitted written approval to your agent before getting your earnest money tied up in possibly many months into a limbo account.
5. Get an appraisal and home inspection AFTER the lender has approved your offer.

Tips:

* Many short sales fail because the mortgage company is unfamiliar with the local market. Don’t expect a quick answer as they research the comparable home sales.
* The lender may request the real estate agents reduce their commissions to minimize costs.
* The lender may demand the seller to sign a promissory note to pay back the short sale. If the seller refuses, it may sour the deal.
* The mortgage company does not want to own the property, that’s the last thing they want to do.
* Make sure to include an escape provision if the process takes longer than you want or a better property comes along.

Down Payment Assistance not just for First Time Homebuyers

2010-06-29T09:41:00.002-04:00

The Metro Atlanta housing market continues to evolve and Georgia Down Payment Assistance Programs have as well. For years, Georgia Down Payment Assistance Programs were available only to the GA first time home buyer, persons who have not owned a home in the previous three years. In light of the recent housing crises, several programs are now available to Metro Atlanta move-up buyers who do not currently own a property and higher income households that may ease the acquisition process associated with home ownership and make it affordable to a wider consumer base.

These Georgia Down Payment Assistance Programs offer silent second mortgages, interest-free loans with no monthly payment requirement as long as the borrower owns and occupies the property as their primary residence and does not refinance the mortgages. The borrower and property eligibility and redemption periods, the length of time that the second mortgage must encumber the property before the loan is forgiven, vary by product, so call me today for more information on the right non- GA First Time Home Buyer product for you.

Georgia Dream Program

Branded Georgia Dream Recovery, this second mortgage offered by the State of Georgia offers a silent second mortgage of up to $7,500 on new or existing properties in 22 flood-ravaged counties (including 13 major counties in Metro Atlanta) priced up to $300K. The borrower must have a middle credit score of 660, may have liquid assets of no more than $20K or 20% of the purchase price at settlement, must attend a HUD-certified home buying class and must contribute at least $1,000 toward the transaction. Please see the Georgia Down Payment Assistance Recovery Flyer for more details and then call me with questions.

City of Atlanta Opportunity Down Payment Assistance

Borrowers buying within the City of Atlanta may be eligible for a second mortgage of up to ten percent of the purchase price on properties priced at up to $252,890 with a redemption period of ten years. The borrower must have a sound credit history, must attend a HUD-approved home buying workshop and must contribute at least $1,500 toward the transaction. See the Atlanta Down Payment Assistance flyer for more information and then call me for more details.

City of Atlanta Beltline Affordable Housing Trust Fund

Properties located in the Beltline Tax Allocation District may be eligible for purchase by qualified borrowers using Beltline Funds of up to 20 percent of the sales price up to $252,890. There is a fifteen-year redemption period and the buyer must attend a homebuyer class. Call for a list of eligible properties today.

City of Atlanta Vine City

The Vine City/English Avenue Trust Fund is available to borrowers looking to buy properties located within the eligible city boundaries. The product offers down payment assistance of ten-percent up to a maximum dollar amount of $15,000. The borrower must contribute $1,500 toward the transaction and attend a HUD-certified and City of Atlanta-approved home buying class. For more information, please call today.

Neighborhood Stabilization Programs

Counties within the Atlanta Metro Area are offering down payment assistance of up to $25,500 through their Neighborhood Stabilization Programs (NSP). Some of the NSP programs are administered by the Georgia County that has purchased the properties, completely renovated them and placed them on the market while other municipalities are allowing the buyer the opportunity to find their own foreclosures. As an example, please see the Gwinnett County Down Payment Assitance NSP Flyer here. Contracts must be carefully written in accordance with program guidelines so please call today for more information.
Please note that other programs may be available within Metro Atlanta for move up buyers and higher income households.

Down Payment Assistance Programs Available in Atlanta

2010-06-29T09:34:00.003-04:00

Here’s a snapshot of some of the various active Georgia Down Payment Assistance Programs to help the GA first time home buyer determine which program will work for them. Funds are provided through a soft second mortgage (an interest and monthly payment-free mortgage) that is forgiven after a set period of ownership. Most programs are restricted to those whose incomes are at 80% of the average median for their household size while others are offered at 100% of the average median for the household size. See the flier to the left of the screen for details, restrictions and more.

* State of GA First Time Home Buyer Program – Branded Georgia Dream, the state offers soft second mortgages of up to $10,000 to be used to toward the down payment and closing costs on the purchase of single family homes, townhomes, condominiums and more. The borrower must be a Georgia First Time Home Buyer (has not owned a home in the past three years) and must use the first mortgage offered by the state.

* The Atlanta First Time Home Buyer Program – The Atlanta Development Authority offers down payment assistance programs to the Atlanta First Time Home Buyer who is looking to buy within Atlanta City Limits. Qualified borrowers may buy eligible properties using one of or combining a few programs:

o Opportunity Down Payment Assistance Program (ten percent of the purchase price up to $252,890),

o the Atlanta Affordable Homeownership Program ($10,000 toward the purchase price up to $252,890),

o Vine City/English Avenue Trust Fund Program (ten percent of the purchase price up to $15,000)

o Beltline Affordable Housing Trust Fund (Up to 20% of the purchase price up to $$252,890)

* Gwinnett Down Payment Assistance – Branded HOMEStretch, Gwinnett County offers the eligible Georgia First Time Buyer up to $7,500 toward the purchase of single family homes, town homes and condominiums built after 1977.

* Dekalb Down Payment Assistance – Dekalb County offers up to $8,000 in down Payment Assistance to be used toward the purchase of single family homes.

* Neighborhood Stabilization Programs (NSP) - Municipalities are buying foreclosed properties within their areas of greatest need (areas hit hardest by foreclosures), rehabbing them, returning them to the market and then offering soft-second mortgages of up to $22,500 to be used toward the down payment and closing costs. Both the state (temporarily) and some local municipalities allow NSP Funds to be used by borrowers who have identified foreclosed properties within those areas to be used toward down payment assistance. If you are NOT working with an agent, please call for a list of Gwinnett and Henry County NSP properties.

* HUD $100 Down Program – Granted, this is not a traditional down payment assistance program, but owner-occupant borrowers may be eligible to purchase a HUD-owned home for as little as $100 down. Up to one-thousand dollars in earnest money may be still be required, plus the inspection fee, and there may be instances when more than $100 will be required (i.e. multiple bids, etc.), but this program also provides a pathway to home ownership to those with little money for the down payment AND there are no income limits.

Other Georgia Down Payment Assistance Programs are available to the GA first time home buyer at various times throughout the year, but the funds do run out, so be sure to return to this blog frequently for updates. Again, if you are not working with an agent, please feel free to contact us with any questions tha you may have.

Castleberry Point

2010-06-24T20:34:00.002-04:00

LIVE VS. RENT!

Why pay rent when you can own a brand new condo in Castleberry Hill for as low as $786/month? With the low prices and interest rates of today, this is a unique opportunity to buy now!

Studios from $99,900 - Only $786/month*
1 Bedrooms from $134,900 - Only $1065/month*
2 Bedrooms from $199,900 - Only $1577/month*

Castleberry Point is the epicenter of Atlanta’s only true art and loft district, Castleberry Hill. Soaring windows, hardwood floors and expansive windows are punctuated by today’s most popular modern amenities. Very livable, very walkable, and a real find.
DownPayment Assistance Available

Buyers' Advantage with David Tufts - 5/30/10

2010-06-24T20:14:00.000-04:00

Twelve Centennial Park -1BR $150,000

2010-06-24T20:08:00.002-04:00

The skyline is changing. The architecture is awesome. The vision is new Atlanta. TWELVE Centennial Park is a 39-floor residential tower consisting of 517 homes. Glass reflects the sky, the city, and the upfront urban attitude of the people who call TWELVE Centennial Park their home.

DownPayment Assistance Available

StudioPlex Lofts-1BR $120,000 2BR $160,000

2010-06-24T20:05:00.002-04:00

FEATURES
True Lofts
Up to 18' Ceilings
Stainless Steel Appliance Package
Granite Countertops
Designer Wood Cabinetry
36" High Vanities
Tile Backsplash
Sealed Concrete Floors

DownPayment Assistance Available!!

Tribute Lofts-Starting at $145,000

2010-06-24T19:53:00.002-04:00

Tribute Lofts is true loft living in the heart Atlanta's historic 4th Ward. Offering award winning architecture, Tribute has 1 and 2 bedroom lofts with iconic skyline views of Atlanta and Buckhead.

Down Payment Assistance Available!!!!

Central City Condominiums- 2BR starting at $146,000

2010-06-24T19:30:00.002-04:00

Central City offers an amazing value at the cross roads of Virgina-Highlands, Downtown and Midtown.Experience incredible downtown views, Controlled access & Covered Parking , Fitness Center, Swimming Pool and Clubroom.

Downpayment Assistance Available!!!

Historic Westside Village-Kiss Your Rental Payments Goodbye!!

2010-06-24T19:22:00.003-04:00

ONE BEDROOM -$79,000 TWO BEDROOM-$99,000

For a very limited time you can snatch a luxury condo at Historic Westside Village with downpayment assistance. Historic Westside Village features an open floorplan, granite countertops, hardwood floors, stainless steel appliances, and a pool and fitness center.

Historic Westside Village is conveniently located close to downtown shops, entertainment and just blocks from the Georgia Dome.

Down Payment Assistance Available

A Great Time To Buy A Home - HBA

2010-06-22T14:48:00.000-04:00

Georgia Down Payment Assistance

2010-05-04T11:24:00.003-04:00

The Metro Atlanta housing market continues to evolve and Georgia Down Payment Assistance Programs have as well. For years, Georgia Down Payment Assistance Programs were available only to the GA first time home buyer, persons who have not owned a home in the previous three years. In light of the recent housing crises, several programs are now available to Metro Atlanta move-up buyers who do not currently own a property and higher income households that may ease the acquisition process associated with home ownership and make it affordable to a wider consumer base.

These Georgia Down Payment Assistance Programs offer silent second mortgages, interest-free loans with no monthly payment requirement as long as the borrower owns and occupies the property as their primary residence and does not refinance the mortgages. The borrower and property eligibility and redemption periods, the length of time that the second mortgage must encumber the property before the loan is forgiven, vary by product, so call me today for more information on the right non- GA First Time Home Buyer product for you.

State of Georgia Recovery

Branded Georgia Dream Recovery, this second mortgage offered by the State of Georgia offers a silent second mortgage of up to $7,500 on new or existing properties in 22 flood-ravaged counties (including 13 major counties in Metro Atlanta) priced up to $300K. The borrower must have a middle credit score of 660, may have liquid assets of no more than $20K or 20% of the purchase price at settlement, must attend a HUD-certified home buying class and must contribute at least $1,000 toward the transaction.

City of Atlanta Opportunity Down Payment Assistance

Borrowers buying within the City of Atlanta may be eligible for a second mortgage of up to ten percent of the purchase price on properties priced at up to $252,890 with a redemption period of ten years. The borrower must have a sound credit history, must attend a HUD-approved home buying workshop and must contribute at least $1,500 toward the transaction. See the Atlanta Down Payment Assistance flyer for more information and then call me for more details.

City of Atlanta Beltline Affordable Housing Trust Fund

Properties located in the Beltline Tax Allocation District may be eligible for purchase by qualified borrowers using Beltline Funds of up to 20 percent of the sales price up to $252,890. There is a fifteen-year redemption period and the buyer must attend a homebuyer class. Call for a list of eligible properties today.

City of Atlanta Vine City

The Vine City/English Avenue Trust Fund is available to borrowers looking to buy properties located within the eligible city boundaries. The product offers down payment assistance of ten-percent up to a maximum dollar amount of $15,000. The borrower must contribute $1,500 toward the transaction and attend a HUD-certified and City of Atlanta-approved home buying class. For more information, please call today.

Neighborhood Stabilization Programs

Counties within the Atlanta Metro Area are offering down payment assistance of up to $25,500 through their Neighborhood Stabilization Programs (NSP). Some of the NSP programs are administered by the Georgia County that has purchased the properties, completely renovated them and placed them on the market while other municipalities are allowing the buyer the opportunity to find their own foreclosures. As an example, please see the Gwinnett County Down Payment Assitance NSP Flyer here. Contracts must be carefully written in accordance with program guidelines so please call today for more information.
Please note that other programs may be available within Metro Atlanta for move up buyers and higher income households. Please visit the Georgia Down Payment Assistance Blog for updates on Georgia down payment assistance and programs for the GA First Time Home Buyer.

For more information, call me today at (678) 886-0874 or LaMarkw@gmail.com
LaMar C Campbell
REALTOR® / HUD-Certified Affordable Housing Counselor - Keller Williams Realty
Information deemed reliable but not warranted. This post is not intended to provide legal or financial advice.

HUD's Good Neighbor Next Door Program

2010-05-01T12:29:00.001-04:00

Law enforcement officers, teachers (pre-K through 12th grade) and firefighters/emergency medical technicians can contribute to community revitalization while becoming homeowners through HUD's Good Neighbor Next Door Sales Program. HUD offers a substantial incentive in the form of a discount of 50% from the list price of the home. In return, the buyer must commit to live in the property as a primary residence for 3 years. HUD also requires the buyer to sign a second mortgage note for the discounted amount (which is forgiven after all owner-occupancy criteria are met).

The program's properties are generally located in HUD-designated revitalization areas. These areas generally have an above-average rate of FHA foreclosures, below-average incomes and below-average home ownership rates.

Central City Condos | Own for $114,900 Atlanta Condos | Atlanta Real Estate Forum

2010-04-30T16:28:00.000-04:00

Central City Condos | Own for $114,900 Atlanta Condos | Atlanta Real Estate Forum

Realty Times - Real Estate Outlook: Signs of Recovery

2010-04-28T12:49:00.000-04:00

Realty Times - Real Estate Outlook: Signs of Recovery

THE RACQUEL BATTLE SHOW MARCH 29 2010 PART 1

2010-04-25T15:42:00.000-04:00

Book Your Private Functions at Tuscanny Hills-Available for Pool Parties

2010-04-03T19:42:00.002-04:00

Starting in April, Villa Toscana will be available for private
events, and Atlanta-area event planners are welcome to consider hosting the
clubhouse for holiday celebrations. Email LaMarkw@gmail.com or call 678-886-0874 for
additional information and availability.

Tuscany Hills is the latest upscale, fully-customizable real estate development in Douglas County. Surrounded by parks and gardens -- offering families peace and tranquility -- Tuscany Hills is located just minutes from all the vibrancy of Atlanta and the surrounding area. Our community is a secluded enclave with just 100 estate-size lots on 133 acres, situated in the middle of a forest with the Chattahoochee River on one side and Anneewakee Creek on the other. Just outside the gates is an evolving,thriving community (Douglasville) that offers shopping, restaurants, and cultural activities. There is an endless list of nearby outdoor activities at Boundary Waters and Dog River Reservoir Park, the largest park in Georgia. Tuscany Hills lies within close proximity to Hartsfield International Airport and Atlanta's world-class shopping and dining,professional sporting events, culture and the arts.

First Time Homebuyer & Bus Tour with BrockBuilt Communities April 10th Part 2

2010-03-31T13:56:00.005-04:00

Join us this upcoming for part II for an ALL STAR Real Estate Cast as we prepare for our Home Buyer Seminar and Bus Tour with Brock Built Communities on April 10th 2010. March 30th Part 1. On our upcoming show we will be rolling out the Red carpet for you when it comes to real estate and making HomeOwnership a reality!We will have the pleasure of having one of our favorite guests Ms. Tracey Powell of the Atlanta Development Authority along with Ms.Darnetta Penick, New Home Consultant for Brock Built Properties as well as Leah Dekoskie, Loan Officer for Bank of America and a special guest Marcus Purnell from HomeFree USA! Tune in as this All Star Team explains to you the benefits of becoming a Home Owner with Brock Built Communities and how you still take advantage of not only the First Time Homebuyer Tax Credit but the wonderful programs offered by the Atlanta Development Authority that allow possibly up to $60,000 in Down Payment Assistance but how you can qualify for theses programs and take advantage of the opportunities with Brock Built Homes!

Home Buyer Seminar and Bus Tour with BrockBuilt Communities on April 10 2010 Part 1

2010-03-29T13:18:00.005-04:00

Join us this Tuesday AND next Tuesday for an ALL STAR Real Estate Cast as we prepare for our Home Buyer Seminar and Bus Tour with Brock Built Communities on April 10th 2010. March 30th Part 1. On our upcoming show we will be rolling out the Red carpet for you when it comes to real estate and making Homeownership a reality!We will have the pleasure of having one of our favorite guests Ms. Tracey Powell of the Atlanta Development Authority along with Ms.Darnetta Penick, New Home Consultant for Brock Built Properties as well as Jeff Brown, Loan Officer for Bank of America and a special guest from the City Council of Atlanta Ms Ivory Young, City of Atlanta Councilman! Tune in as this All Star Team explains to you the benefits of becoming a Home Owner with Brock Built Communities and how you still take advantage of not only the First Time Homebuyer Tax Credit but the wonderful programs offered by the Atlanta Development Authority that allow possibly up to $60,000 in Down Payment Assistance but how you can qualify for theses programs and take advantage of the opportunities with Brock Built Homes!

March 27th FREE Homebuyer Seminar and Bus Tour

2010-03-19T16:41:00.002-04:00

District 4 Councilmember Cleta Winslow Sponsors

Free Homebuyer Seminar and Neighborhood Bus Tour

Atlanta – Atlanta City Councilwoman Cleta Winslow is sponsoring a FREE Homebuyer Seminar and Neighborhood Bus Tour on Saturday, March 27, 2010 at Atlanta City Hall.

This event is from 8:00 a.m. until 3:00 p.m. The bus tour of southwest Atlanta neighborhoods will start at 11:30 a.m. and is being sponsored by Councilmember Carla Smith and Wells Fargo/ Wachovia. The seminar and tour is open to all metro Atlanta residents. To register, call (404) 330-6047.

Attendees will learn about down payment assistance and first-time homeowner tax credits offered through the Atlanta Development Agency, available homes through the Neighborhood Stabilization Program. Wells Fargo/Wachovia will talk about their mortgage programs including 203K mortgage, reverse mortgage, FHA, VA, and Remodel Express. HUS will discuss their ownership incentives and opportunities.

In addition, Wells Fargo will have a private area and be on hand to discuss their Foreclosure Prevention Program. They will assist current home owners who already have a mortgage with them, who live in zip codes: 30310, 30311, 30312, 30313, 30314 and 30315 and who have already made an appointment . HomeFree-USA counselors will also be assisting. For information on foreclosure prevention homeowners should call HomeFree-USA at (404) 607-0800.

“Not only do we want to put people into homes but keep people in their homes,” said City Councilmember Cleta Winslow. “That's why Wachovia and Wells Fargo are participating.”

“The foreclosure intervention comes at time when we are seeing a spike in foreclosure notices in many communities and it’s impacting all neighborhoods regardless of income level,” Winslow said. “We welcome the assistance and advice counselors Wells Fargo/ Wachovia will provide our attendees. When we prevent a foreclosure, we are not only helping that family remain in their home, but we are also helping to stabilize an entire neighborhood.”

What: Free Homebuyer Seminar and Bus Tour/To register, call (404) 330-6047

When: 8:00 a.m. until 3:00 p.m. – Saturday, March 27, 2010

Where: Atlanta City Hall

Council Chamber, Second Floor

55 Trinity Avenue, SW 30303

The 12 Steps to acquiring Down Payment Assistance

2010-03-18T11:21:00.002-04:00

There’s been a lot of discussion regarding down payment assistance recently. Many in the housing market should know by now that FHA Mortgages, the predominant mortgage product, typically require a down payment in the amount of 3.5% of the purchase price of the home. The buyer in most cases is also responsible for the deposit of earnest money (which also serves as a portion of the down payment), funding the appraisal and the inspection, which all could add up to a sizeable amount of money. This post was written to help readers understand some of the most important parts of working with some down payment assistance programs for owner-occupants.

1. The borrower’s own GA Real Estate Agent should be the first step toward obtaining information on down payment assistance. That agent should be able to assess the buyer’s specific situation and then provide a list of participating lenders that may be the right fit. Please be mindful that Georgia Law prohibits an agent from, among other things, advising someone else’s client on the purchase of a home.

2. The down payment assistance usually is provided in the form of a second lien placed against the qualifying property for a set period of time. Georgia Buyer’s Agents should be able to provide many of the details associated with the right program for that buyer, including resale restrictions, gain on-sale recapture provisions and more so that an informed decision may be made .

3. Some Metro Atlanta Down Payment Assistance Program funds are often available year-round while others are only for a limited time. Those of the greatest demand are often depleted in mid-season, so it is important that the borrower and the agent search for properties with a sense of urgency to increase the likelihood that funds will be available to fund the down payment.

4. The GA Buyer’s Agent and the lenders to whom the buyer has been referred should have sound experience, having actually closed on transactions that involved the program of greatest interest. Both have certain responsibilities in their respective roles that will ensure a smooth transaction if executed properly.

5. Some of the Georgia Down Payment Assistance Programs require that specific language be included in the purchase and sale agreement. Knowledgeable agents know about these clauses along with the risks of entering into an agreement without them.

6. Transactions involving down payment assistance typically will take from 45 to 60 days from the date of binding agreement to close. In addition, some program agencies will require several steps of the borrower before committing to fund the transaction. Buyers, please consider speaking with an experienced Georgia Real Estate Agent prior to searching for your home. Please do not make an offer to purchase a property until you are certain that the entire transaction, including the down payment, can be funded.

7. Please have patience and understanding. Georgia Down Payment Assistance Programs are underwritten by both the lender and the program agency, each with their own documentation requirements. While the borrower should have been provided with a list of items that the lender and agency will likely request, please be mindful that more information, documentation, etc. may be requested right up to the week of closing. Please rest assured that everyone wants the transaction to close and are working diligently to ensure that it does.

8. The programs are offered to qualified buyers. They may be only available to Georgia first time home buyers and they often vary by income limits, minimum credit score limits, the borrower’s industry of employment, location of the property and more, but all of them require some form home buyer education. Your Metro Atlanta Real Estate Agent works with these programs regularly and should know which lenders offer the program that may be right for the buyer.

9. Funds will be required of the buyer in addition to the down payment assistance. The buyer will still be responsible for funding the earnest money deposit, inspections and appraisal, the latter two being non-refundable. An experienced real estate agent will help the buyer manage these expenses as much as possible.

10. Layering, combining multiple programs of down payment assistance, is discouraged unless the buyer plans to keep the property long-term. The redemption periods, the length of time that the second mortgage remains as a lien against the property before it is forgiven, vary by program. If the property is sold, refinanced or is no longer used as the borrower’s primary residence before the expiration of any one of the redemption periods, a portion of the balance may become due and payable. Further, certain programs require that a portion of the gain realized on the sale of the property also be paid to the Georgia Down Payment Assistance Agency.

11. Many down payment assistance programs do not require the buyer to disclose their use of down payment assistance. Therefore, the seller may assume that many of the concessions requested by the buyer are entirely reasonable, never knowing of the buyer’s actual advantage.

12. Experienced Metro Atlanta Buyer’s Agents will also have a back-up plan in place just in case one program will not work after all.

While not all-inclusive, these points should provide valuable insights into the use of Georgia Down Payment Assistance Programs. For more information, feel free to Contact me at 678-886-0874

Home buying checklist: What you need to know...

2010-03-18T10:26:00.001-04:00

1. Understand the difference between what you want in a house and what you need. Just because you want a house with five bedrooms, five bathrooms and a pizza oven in the outdoor kitchen, that doesn't mean you need all that. The concept is to get everything you absolutely need in a property and a few of the things you want -- without breaking your bank account.

2. Identify your neighborhood(s) of choice. Write down what characteristics your neighborhood of choice should have and compare that list with actual neighborhoods in which you might want to live and can afford to buy. Then spend time in that neighborhood, driving around during the day and night. Visit the local schools, see who hangs out in the grocery store and coffee shop, and drive the commute to your office during rush hour.

3. Figure out how much you can comfortably afford to spend. While lenders are more conservative in handing out loans, they may offer you a bigger loan than you're prepared to take. Start by calculating how much you can afford to spend -- and want to spend -- on your mortgage, property taxes and insurance each month. Then add in all of the other expenses you pay for each month (and don't forget to save a few bucks for the upkeep and maintenance expenses you'll have to pay for as well). Once you're done, figure out how much money you have left in your paycheck and whether you want to spend a little more of it on your housing expenses each month. (Remember, part of the housing crisis came about because people bought homes -- and lenders that gave them loans -- that they couldn't afford over the long haul.)

4. Pull a copy of your credit history and credit score. Do this at www.annualcreditreport.com. You'll get a free copy of your credit history from each of the three credit reporting bureaus ( Equifax, Experian and Trans-Union) plus, you'll have the opportunity to pay around $9 for a copy of your credit score.

5. Gather your paperwork together before you shop for a loan. You'll need copies of your W2, bank account and retirement account statements, as well as tax information. I have a full list at ThinkGlink.com (www.thinkglink.com/article/2008/09/11/mortgage-loan-applicants-need-more-documents). You'll need even more documentation if you're getting a jumbo loan or if you own your own business.

6. Shop around for a mortgage. Talk to at least five different types of lenders. Most lenders will offer you a 15-year or 30-year fixed rate mortgage through Fannie Mae, Freddie Mac or FHA.

7. Find an amazing real estate agent. While the information available on the Internet makes buyers feel as though they've got everything they need to negotiate a great deal, they're actually missing the key ingredient: experience. A great agent with years of experience negotiating for buyers and sellers in your neighborhood of choice is invaluable.

8. Understand what "true value" means in your neighborhood(s) of choice. Start collecting information about the local housing stock. Ask your agent to walk you through each home that has recently sold, so you begin to understand the relationship between price, condition and value.

9. Apply for your loan. Try not to chew your nails off while waiting to be approved.

10. Work with your agent to identify the homes for sale in your neighborhood(s) of choice that meet your wants and needs. As you walk through these homes, try to decide if the homes you're seeing meet all of the needs on your list. Is the agent listening to you? Do you need to have another conversation to help you refine what you're looking for? Or, is the agent showing you property that meets your needs and wants better than what you thought you wanted originally?

11. Put together the other pieces of your home buying team. Now that you have the agent, you'll need a few other people to help you buy the right property. Choose your home inspector and your lender (and decide what kind of loan you want). Think about hiring a good real estate attorney (especially if you're buying a foreclosure or short sale, and even if real estate attorneys aren't normally used to close house deals in your state).

12. Understand the true costs of homeownership. You don't want to be stressed out over the monthly expenses of owning a home as well as the other unexpected surprises that come so often with buying a home.

13. Don't let anyone push you around. You should work hard to set your own home buying agenda. If someone demands that you make a decision immediately, politely step back from the situation. Remember, there will always be another house for you to buy -- especially as we continue to work through the glut of homes on the market after the Great Recession.

14. Make a smart offer. Look at how much other homes in the area have sold for, and then build an offer that gives the seller something he or she wants (mostly, that's money, but it might be time) in exchange for whatever you really want.

15. Stay focused until the closing. Schedule the movers. Pack your boxes. Set up utility accounts at the new property and shut off your utilities as of the morning of the move. Put in a change of address notice with the post office, your financial services companies, your employer, etc. And don't forget to buy your homeowner's insurance policy, with enough coverage for the home and its contents. You may also need other insurance that are not generally covered in a policy, such as flood coverage, back-up sewer coverage, coverage for collectibles if you have any or jewelry.

Clip this home buying checklist and keep it in your pocket, so that you're always making a smart move.

Outlook for the Housing Recovery. Why buy now?

2010-03-10T14:44:00.002-05:00

The question is when the first-time buyers will say YES! Some are moving quickly because of the tax credit, some because of a child on the way, or a lease renewal looms. But others continue to take their time, thinking there will be more houses to look at, lower prices. Well here’s the problem. While inventory won’t dwindle soon, and some prices affected by foreclosure pressure may still be bottoming, two factors dominate in support of a buy decision soon: These are attractive interest rates that may not last and the spector of inflation given the overall economic outlook, the deficit and the value of the dollar.

Why does inflation factor into this decision? According to Warren Buffett, the best way to fight inflation for the average consumer is to buy real estate with 20% down and a 30-year fixed rate mortgage. If we get rampant inflation and you don’t own a home, you will find your monthly rent obligations soaring. If you buy a home, your mortgage cost will remain the same as your salary increases resulting in more disposable income — which hopefully you’ll start saving so you’ll have a nest egg for maintenance, repairs and, of course, the down payment on a even grander home in a few years!

Few people actually buy at the very, very bottom. The fortunate buy during that dip, somewhere in the low valley, and do well through the recovery, even a slow one. So my cautious buyers, my recommendation is to sign a contract before May 1st. April 1st may be preferable, but let’s finish looking and decide! I’ve got time this weekend. How about you?

Homebuyer Tax Credit Has Added Benefits for Armed Services Members

2010-03-10T14:04:00.001-05:00

The National Association of Realtors® today thanked the many members in the U.S. military on active duty for their services to America, and reminded them of special benefits for them in the recent extension and expansion of the homebuyer tax credit law.

NAR was the main proponent in getting the homebuyer’s tax credit extended into 2010 and expanded to include present homeowners.

“NAR is the leading advocate for private property and homeownership issues, and firmly believes that those who are in service to their country should be full participants in the homebuyer tax credit law,” said NAR President Charles McMillan, broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “These men and women are often hindered by hardships from full participation in the American Dream of homeownership because their duty disrupts them in the buying and selling of a home.”

Two special provisions in the present tax credit law assist members of the military, intelligence and foreign services in taking advantage of the homebuyer tax credit, said McMillan.

Armed services members, as well as intelligence service and foreign service personnel, who are on active duty and out of the U.S. for 90 days during any part of 2009, get an additional year to buy their homes, to May 1, 20ll.

Another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence and foreign service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business.

First-time homebuyers who are eligible can obtain a tax credit of $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years.

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

ADA Allocated $25 Million in Single-Family Housing Bonds

2010-03-08T11:00:00.001-05:00

On January 12, 2010, the Urban Residential Finance Authority (URFA), a subsidiary of the Atlanta Development Authority (ADA), was allocated $25 million by the New Issue Bond Program (NIBP) to finance 30-year fixed-rate mortgages, with an anticipated interest rate of between 5 and 5.125 percent. This allocation must be disbursed by December 31, 2010. URFA is currently accepting applications from lending institutions that wish to participate in the single-family NIBP.

"In an economically challenging housing market, we are proud to be in a position to make the dream of homeownership a reality for 180 families this year," says Dawn Luke, deputy managing director of housing finance for the ADA.

Eligible properties must be located within the city of Atlanta and can be newly constructed, existing or foreclosed. The maximum purchase price of a home is $374,268 inside the target area and $306,219 outside the target area. Borrowers purchasing homes in the target area do not have to be first-time homebuyers, but they must sell their current residence before closing on the new property. Outside the target area, buyers should be purchasing their first home and should not have had an ownership interest in a principal residence for the past three years. Loans must be FHA, Fannie Mae or Freddie Mac insured loans. Income limits apply.

Buyers may also qualify for the Opportunity Bond or Beltline Affordable Housing Trust Fund mortgage assistance loans, which provide the borrowers with additional downpayment assistance of 10 to 20 percent of the sales price.

URFA has provided assistance to development projects that have contributed $1 billion in construction and mortgage investment to the city of Atlanta since 2002. Using a variety of financial tools such as tax-exempt bonds, federal neighborhood stabilization dollars and housing and homeless opportunity bonds, URFA contributed to the creation of more than 8,600 housing units in the city, where 70 percent are considered affordable for working-class families.

Thursday, February 25, 2010

formspring.me

2010-03-08T09:42:00.001-05:00

Ask me anything http://formspring.me/LCRealEstate

LET'S MAKE A DEAL! @ Historic Westside Village

2010-02-21T15:54:00.003-05:00

Preview Homes Now Until 2/26 Make them an offer and Let's Make A Deal!
CONTACT ME FOR DETAILS AND TO SET UP A TOUR!

BUILDERS WILL BE ON SITE ACCEPTING OFFERS AT HISTORIC WEST SIDE VILLAGE THIS SATURDAY-FEB. 27TH FROM 1-5PM

RECEIVE UP TO $75,000 IN DOWN PAYMENT ASSISTANCE!

1BR CONDOS FROM $99,000
2BR CONDOS FROM $139,000

-Convenient Intown Living -Stainless Steel Appliances
-Onsite marta -Secured Covered Parking
-Granite Countertops -Fitness Center
-Hardwood Floors -Pool and Deck

*Seller reserves the right to refuse offers.
*Information believed accurate but not warranted.
*Prices and offer subject to change without prior notice.

DEAL OR NO DEAL At Sky Lofts Atlanta

2010-02-21T15:34:00.003-05:00

Great news in the West End this weekend for buyers looking to take advantage of the deals and up $57,000 in Down Payment Assistance! BUILDERS WILL BE ON SITE ACCEPTING OFFERS SATURDAY-FEB. 27TH FROM 1-5PM

YOU WILL WANT TO MAKE THEM AN OFFER AND THEY WILL BE READY TO MAKE YOU A DEAL!!! IF YOU ARE INTERESTED FOR IN PREVIEW OF THE PROPERTY PLEASE CONTACT ME.

Take advantage on the great deals on hand
-1 BR Condos from $119,900
-2 BR Condos from $189,900

FHA Approved Hardwood Floors
100% Financing Clubroom/Fitness Center
Tax Abatement Savings Stainless Steel Appliances
Granite Countertops Washer and Dryer

*Seller reserves the right to refuse offers.
*information believed accurate but not warranted.
*Prices and specifications subject to change without prior notice.

Atlanta First Time Homebuyer in The Beltline

2010-02-14T20:27:00.001-05:00

more about "BeltLine Affordable Housing January 2...", posted with vodpod

Atlanta Homebuyer Seminar & Bus Tour

2010-02-14T13:35:00.002-05:00

Join us On Tuesday as we have the pleasure of having our returning guest and the head of the Single Family Division of the ADA Ms Tracey Powell Mr. Marcus Purnell from Home Free USA and the esteem pleasure of having an Atlanta Real Estate Icon Mr. H. J. Russell .H.J. Russell real Estate For over 50 years, H.J. Russell & Company has been a leader in the construction and real estate development industry. Recognized as the single largest MBE real estate firm in the country, H.J. Russell & Company offers a comprehensive range of services including: Real Estate Development, Program Management, Construction, and Property Management. You won't want to miss this show where we will be discussing the Upcoming Homebuyer Seminar and Bus Tour that we will be holding FREE OF CHARGE FOR YOU!! A $60 Value! Next Saturday at the Loft at Castleberry Hill from 9am-4pm. We will be having our round table discussion to fully prepare you for all the awesome information that we will be providing for you on the Tour.Information such as how to access $60,000 in government subsidy to help with the downpayment and closing cost. Atlanta has an outstanding history be a part of the History of Atlanta!

New Policy Guidelines for the FHA

2010-01-27T08:06:00.002-05:00

Article by Laura Everett

New Policy Guidelines for the FHA

One of our best #AREFchat discussions to date was on the proposed changes to the FHA guidelines. Currently, most first-time home buyers take advantage of the FHA loans because of their low down payment requirements, only 3.5%. Well, to prevent foreclosures, the Federal Housing Administration has decided to become more stringent on the lending requirements for these loans. There were many ideas being thrown around, including raising the down payment minimum to 5%. Well, with most of the market being comprised of first-time home buyers, many real estate professionals were not supportive of the down payment boost.

So, we are happy to report that the Federal Housing Administration has passed new guidelines for FHA loans, but they did not raise the down payment requirements to 5%. Instead, they have raised the insurance premium from 1.75% to 2.25%. The way an FHA loan works is that he Federal Housing Administration insures the lenders against defaults on these loans. The FHA is not actually the lender. Due to the FHA-support, the borrower must pay an upfront insurance premium, which is currently set at 1.75% of the total loan amount.

Now, they will be raising the insurance premium to 2.25%, which is the second increase over the past two years.

While the 3.5% down payment will stay in tact for most borrowers, the FHA will require a 10% down payment from high-risk borrowers (those with a credit score below 580).

The new guidelines also have reduced the amount of money seller can kick in for closing costs. The current level is 6% of the sale price, but with the changes to the FHA policy, sellers will only be able to contribute 3%.

All of these amendments are an attempt to boost the FHA’s reserves, which have been steadily declining over the past year. For more details about the reserves and the policy changes, read this article from the Wall Street Journal.

HUD Lifts 90 Day Rule!!

2010-01-21T10:12:00.002-05:00

HUD TAKES ACTION TO SPEED RESALE OF FORECLOSED PROPERTIES TO NEW OWNERS
Measure to help bring stability to home values and accelerate sale of vacant properties

WASHINGTON - In an effort to stabilize home values and improve conditions in communities where foreclosure activity is high, HUD Secretary Shaun Donovan today announced a temporary policy that will expand access to FHA mortgage insurance and allow for the quick resale of foreclosed properties. The announcement is part of the Obama administration commitment to addressing foreclosure. Just yesterday, Secretary Donovan announced $2 billion in Neighborhood Stabilization Program grants to local communities and nonprofit housing developers to combat the effects of vacant and abandoned homes.

"As a result of the tightened credit market, FHA-insured mortgage financing is often the only means of financing available to potential homebuyers," said Donovan. "FHA has an unprecedented opportunity to fulfill its mission by helping many homebuyers find affordable housing while contributing to neighborhood stabilization."

With certain exceptions, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. This temporary waiver will give FHA borrowers access to a broader array of recently foreclosed properties.

"This change in policy is temporary and will have very strict conditions and guidelines to assure that predatory practices are not allowed," Donovan said.

In today's market, FHA research finds that acquiring, rehabilitating and the reselling these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time.

The policy change will permit buyers to use FHA-insured financing to purchase HUD-owned properties, bank-owned properties, or properties resold through private sales. This will allow homes to resell as quickly as possible, helping to stabilize real estate prices and to revitalize neighborhoods and communities.

"FHA borrowers, because of the restrictions we are now lifting, have often been shut out from buying affordable properties," said FHA Commissioner David H. Stevens. "This action will enable our borrowers, especially first-time buyers, to take advantage of this opportunity."

The waiver will take effect on February 1, 2010 and is effective for one year, unless otherwise extended or withdrawn by the FHA Commissioner. To protect FHA borrowers against predatory practices of "flipping" where properties are quickly resold at inflated prices to unsuspecting borrowers, this waiver is limited to those sales meeting the following general conditions:

* All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction.
* In cases in which the sales price of the property is 20 percent or more above the seller's acquisition cost, the waiver will only apply if the lender meets specific conditions.
* The waiver is limited to forward mortgages, and does not apply to the Home Equity Conversion Mortgage (HECM) for purchase program.

Specific conditions and other details of this new temporary policy are in the text of the waiver, available on HUD's website.

Real Estate Outlook: The Numbers Are In

2010-01-13T09:57:00.000-05:00

by Kenneth R. Harney

The drop in the latest pending home sales index got a lot of press attention, but that blip downward shouldn't be your guide on what to expect for real estate in 2010.

The 16 percent decline in November pending sales from October's unusually high index was due almost entirely to buyers' behavior confronting what they thought was an expiring tax credit.

In October the pending sales index went off the charts. Buyers were scrambling to sign contracts before the $8,000 credit program expired at the end of the month.

In November, buyer behavior was just the opposite. When Congress extended the credit through next April 30, the pressure was off. Nobody needed to rush to sign contracts.

Not surprisingly, the November index hit the skids.

Meanwhile, even November's pending sales number was a solid 16 percent above November 2008. That suggests that even without the extra incentive provided by the credit, the home sale market is gaining strength for its own fundamental reasons: huge pent-up demand, low prices and great financing.

But keep this in mind: Those fundamentals are dynamic - and buyers and sellers need to stay on top of them as they change in the weeks ahead.

For example, as we've noted before here at Realty Times, with the economy climbing slowly out of recession, and the Federal Reserve expected to throttle back on its mortgage securities purchases , interest rates are now trending upwards.

Last week's thirty year average fixed rate for new mortgages hit 5.2 percent, according to the Mortgage Bankers Association. That's still very low by historical standards, but it's up nearly a quarter of a percentage point just since mid December.

Fifteen year fixed rates averaged 4.6 percent -- a rise of one third of a point in the past few weeks.

Home prices are also beginning to trend upward in key markets, according to the latest Case-Shiller home price index. In San Francisco and Minneapolis, the index is up by about 15 percent since the low point earlier in 2009, according to an analysis by Bespoke Investment Group.

The same analysis found the Case-Shiller index up 8.3 percent from last year's low point to the latest month in metropolitan Washington DC, 7.6 percent in San Diego, 7.2 percent in Denver, 6.9 percent in Chicago and Phoenix, 6.8 percent in Dallas and 6.1 percent in Boston.

With reports of fewer layoffs plus significant new gains in manufacturing outplut and retail sales don't be surprised to see prices-and mortgage rates -- continue to rise in the months ahead.

Published: January 12, 2010

Real Estate Outlook

2009-12-15T09:05:00.001-05:00

Housing Warmer Than Weather

more about "Real Estate Outlook", posted with vodpod

This Month in Real Estate Video Report & PowerPoint For U.S. Market – December 2009 | A Real Estate Agent Career At Keller Williams Realty

2009-12-08T10:54:00.001-05:00

This Month is Real Estate

more about "This Month in Real Estate Video Repor...", posted with vodpod

REALTOR® Magazine-Daily News-30-Year Rates Hit Record Low

2009-12-05T10:19:00.001-05:00

REALTOR® Magazine-Daily News-30-Year Rates Hit Record Low

REALTOR® Magazine-Daily News-Cities With the Most Overpriced Properties

2009-12-05T10:19:00.000-05:00

REALTOR® Magazine-Daily News-Cities With the Most Overpriced Properties

Pending Home Sales Rise For 9th Month In A Row

2009-12-01T14:33:00.000-05:00

Image via Wikipedia

By Rex Nutting, MarketWatch

WASHINGTON (MarketWatch) - Signed sales contracts on existing homes in the United States rose for the ninth straight month in October, a real estate industry group reported Tuesday.

The pending home sales index rose a seasonally adjusted 3.7% in October from September, the National Association of Realtors reported. The index is up 31.8% compared with last October.

The index rose 6% in September.
AM Report: NBC's Future in View

WSJ's Sam Schechner breaks down the details of General Electic's tentative deal with Vivendi for control of NBC Universal. He talks with Neal Lipschutz and Bob O'Brien in the News Hub. Plus, WSJ's Matt Phillips on what's crossing the wires.

The index tracks sales contracts on pre-owned homes. Typically, it takes a month or two after the contract is signed for the sale to close. At that point, the sale is booked in the NAR's existing-home sales report.

The pending-home sales index has been running ahead of the existing-home sales figures, likely because tight credit conditions and tougher rules on appraisals are killing some deals before they close. Compared with a year ago, existing-home sales are up 23% to a seasonally adjusted annual rate of 6.1 million.

The federal government's first-time home-buyer tax credit could have led to more deals in October. The tax credit has now been extended, but buyers in October thought it would expire on Nov. 30.

Lawrence Yun, the chief economist for the real estate advocacy and lobbying group, said the increase in pending home sales wasn't entirely due to the tax credit. "Based on the demographics of our growing population, existing-home sales should be in the range of 5.5 million to 6.0 million annually," he said.

For 2010, the real estate agents expect sales of existing homes to rise 10.8% to 5.7 million compared with 5.15 million in 2009. New-home sales are projected to rise 42% in 2010 to 561,000 from 394,000 in 2009. Home prices are expected to rise about 4%, according to Yun's forecast.

REALTOR® Magazine-Daily News-Harvard Economist Predicts Prices Will Stay Low

2009-12-01T13:49:00.000-05:00

REALTOR® Magazine-Daily News-Harvard Economist Predicts Prices Will Stay Low

REALTOR® Magazine-Daily News-Parents Should Consider Homes as Gifts

2009-12-01T13:27:00.000-05:00

REALTOR® Magazine-Daily News-Parents Should Consider Homes as Gifts

REALTOR® Magazine-Daily News-Treasury Plans to Push Banks to Modify Loans

2009-12-01T13:24:00.000-05:00

REALTOR® Magazine-Daily News-Treasury Plans to Push Banks to Modify Loans

REALTOR® Magazine-Daily News-Wealthy Investors Are Eyeing Real Estate

2009-12-01T13:16:00.000-05:00

REALTOR® Magazine-Daily News-Wealthy Investors Are Eyeing Real Estate

"A Day of Hope" Giving back in the City of Atlanta

2009-12-01T09:26:00.002-05:00

This week on the Success of Real Estate Radio we want to take the time out to give back to the community, and we have the brain behind an event that we believe will take Atlanta by storm! We have back again to visit us Ms. Tracey Powell from the Atlanta Development Authority presenting a "Day Of Hope!" The Atlanta Development Authority is an integral part of the city of Atlanta. As the economic arm of the city of Atlanta, ADA has an awesome responsibility, and we can change lives for the better. As ADA’s Housing Finance Single Family Mortgage Specialist, I see how ADA makes a difference in people’s lives each and every day by issuing downpayment assistance to families and individuals purchasing homes in the Atlanta city limits. In some instances, we actually build personal relationships with the borrowers, our new city of Atlanta homeowners. We hear from the lenders and realtors, the non-profit homeownership educators, inspectors and attorney about how these programs are creating opportunities for people to change their lives. People are realizing the American Dream of homeownership, even in these tumultuous times. However, there are so many others that are unaware of the opportunities that are available and within their reach. So many people have given up on their dreams – it is time to reawaken those dreams through the power of knowledge. That is why we have created A Day of Hope.

Six Ways To Boost The Resale Value Of Your Home – Even In A Down Market

2009-11-30T10:37:00.001-05:00

Image by Sam Ilic Photography - STAGE88 via Flickr

By David Field
Contributing Writer
Money Morning

It’s no secret that the old real estate adage tells us that only three things determine the value of your home – location, location, location.

But the reality is that there’s plenty you can do with most any piece of property to get a higher selling price in almost any market. Some of the steps you can take are largely cosmetic – and are aimed at improving the “curb appeal” of the property. Others involve extensive reconfigurations, making them costly.

Despite the big differences in both time involved and costs, almost all of these steps actually have a real return-on-investment (ROI). As the U.S. housing market slowly revives, and as the federal tax credit of $8,000 for first-time homebuyers is extended, it’s worth considering the projects you can launch that will boost the value of your humble abode.

A lot of money is at stake.

Homeowner spending on improvements more than doubled between 1995 and 2007 to reach $326 billion, according to a 2009 Harvard Joint Center for Housing Studies research study. More than three-quarters of that money was spent on what the Joint Center labels as “improvements,” with the rest going to maintenance and repairs.

In major metropolitan areas, individual homeowners spent between $3,400 and $4,000 a year. Now, in a tough real estate market, it’s time for these improvements to pay off. Just remember that you won’t necessarily recoup directly what you spend: just because you pour some $10,000 or $12,000 into, say, a Jacuzzi doesn’t mean you’ll get that much back in a sale price, say the experts. Improvements must be targeted to the things people want enough to pay for.

Some of the home improvements cost a lot less than you’d think. Consider some of the basic improvements you can take to make a house or condominium more attractive, more appealing and more saleable: Focus on turning your house in to a brighter, cleaner “postcard” that makes a huge first impression on a prospective buyer.

This includes simple exterior steps such as mowing the lawn, getting the garage cleaned up and removing eyesores from the driveway. Houses in even the most appealing upscale neighborhood have an old clunker that’s been under repair for months, a rusty gutter hanging down, or easy-to-eradicate eyesores like overgrown grass or weeds.

These may sound like simple tasks – in fact, they are – but some sellers are so focused on the interior that they forget that it’s not easy to get a buyer to come inside and look around and look if weeds, long grass and an under-restoration 1958 Ford Edsel are what they see from the curb.

Steve Berges, a real estate investment author who writes about increasing property values through home improvements, says its best to spend on the exterior first – specifically to induce prospective buyers to come inside and look around.
A View From the Curb

Stay on the outside and two opportunities present themselves:

* New windows.
* New siding.
* And a new roof.

New windows and new siding both have solid economic arguments in their favor.

For most homes, new windows are the fastest and easiest step to lower energy costs by making the house hold its shot or cool air more efficiently. They have an ROI that’s estimated at 77% to 80%, meaning you’ll get as much as 80 cents on the dollar back in the form of a higher price. (A federal tax credit of $1,500 also applies to the installation of new energy-efficient windows through next year.)

New windows are unique in that they’re one of the few improvements that provide benefits from both the outside and the inside.

Then there’s the siding, which can be replaced with either a fiber/cement or foam-backed vinyl substitute.

Although not every type of home is a candidate for new siding, and some people object to siding on aesthetic grounds, the ROI potential is strong here, as well. Energy efficiency has become a permanent part of the home-owner’s mindset, meaning it’s a key determinant in deciding the value of a home-improvement project, Remodeling magazine concluded in its most recent annual survey.

This all assumes, of course, that your roof is both in good shape and that it, too, looks good. Just remember that a bad roof, one that looks shabby even if it’s not, is a major part of the first impression that a house makes. Roof repairs can range in complexity from the replacement of a few shingles to replacement of the entire roof, gutters and soffits. The payoff here can come in the form of lower heating-and-cooling bills, the reduced risk of damage from leaks, and one less thing that a prospective buyer can use to negotiate down from the asking price.
Heart of the House

But houses are like people: the important stuff is inside, often deep inside. And it’s inside where the greatest costs and the greatest returns are to be found, says Northern Virginia Realtor Charlotte Jones. These are in the most important, most intimate parts of the house: The bathroom and the kitchen, the two places where the family function is core.

The kitchen is, after all, the ancestral hearth, where meals are shared. The bathroom, too, is important enough for its condition (as well as the number of bathrooms the house actually has) to affect the sale price of the home.

These two areas of the house can be approached as major rebuilds, or just as places to improve, says Northern Virginia home contractor Larry Sweeney.

Depending on the size and amenities of your desired bathroom, you could expect to pay $50,000 or more to tear out walls, repair joists and wall studs, change structural elements and make major layout changes, such as putting in a new shower and commode.

However big the price tag, you can still expect to recoup nearly 71% of the cost (which would be $36,400 if you have a $50,000 bill) when you go to sell. This project has increased in value since 2007, while its sister project – adding a complete bathroom – fell in value.

Kitchens are typically the most frequently used room in a home, so it makes sense that spending money here is going to pay off when it comes time to sell. Fancy cabinet work can be stunningly expensive, but new cabinetry improves appearances enormously. New floors or floor-coverings similarly can give a kitchen a whole new look.

Basic improvements to your kitchen can pay handsome dividends, says real-estate agent Michael C. Murphy in his book “How to Sell Your Home in Good or Bad Times.”

Murphy writes: “For most buyers, (the kitchen) is the heart of the house. Paint, wallpaper, and even re-floor the room if it needs it. Consider sanding, staining or painting worn-looking cabinets. Replace old cabinet hardware like handles and knobs – a low-cost improvement that makes a big difference in appearance.”

While a major kitchen renovation is usually the most time-consuming and expensive home improvement job (averaging more than $110,000), it’s also one of the most profitable. Regardless of the size of your financial layout, you can expect to get a nearly 71% ROI.

The average amount spent on a major kitchen-remodeling job is $55,503 for a midrange update; an upscale designer makeover averaged $109,394, according to Remodeling magazine. The mid-range kitchen overhaul nationally recouped 78% of its cost and 74% of the costs were recovered in an upscale makeover. If you want to keep your project from turning into a bottomless money pit, be extra careful in choosing the new appliances in an era of $6,000 refrigerators, make sure you choose carefully – getting what you really want and need.

Remember also that appliances are very much a personal choice, and a buyer’s taste may differ from yours.
Adding Room(s)

Many homeowners add an extra room if they’re in their house for a long time and raise their family there; the room is often for a child growing into his or her teen years. Not every home has the design or layout for an added room, which can easily exceed $100,000 in cost, but some people convert an attic or even a basement into living quarters for about half of that.

If you’re lucky enough to have a fair amount of land and space, an exterior deck is a way to extend your home’s room for living at a reasonable cost. With people spending more time at home – and entertaining there more, as well – an extra room or a large deck can be attractive investments.

Interestingly, pure wood decks have a lower value than an exterior deck made of a composite material of wood and another material. The price difference is as much as two and a half times for the composites. So you can spend anywhere from $10,000 to $25,00 – and up. Some homeowners spend more than $35,000, but claim that they recoup that investment. Geography, logically enough, plays a major role in determining the value of a deck addition, with exterior decking recouping much more in San Francisco than in, say, Columbus, Ohio, Remodeling says.

To close, here’s a brief note on some improvements that may seem very appealing, but which actually make little financial sense.

The big one is a swimming pool, which many people associate with upscale, luxurious living. But a pool not only adds little to a home’s resale value, it can actually pull it down: Pools require constant costly maintenance and, as they crack and age, those costs can escalate and accelerate. What’s more – in this age of hair-trigger litigation – a swimming pool can add the “fear factor” of legal liability.

As for the other, that fancy garden, it may seem upscale, but forget about it. Exterior gardens, especially an elegant estate-like topiary, add little or nothing to a home’s resale value.

Administration plans new efforts on foreclosures

2009-11-30T10:33:00.002-05:00

By MARTIN CRUTSINGER (AP) – 2 hours ago

WASHINGTON — With the foreclosure crisis showing no signs of relenting, the Obama administration plans to expand a program aimed at helping people remain in their homes.

The goal of the announcement, expected Monday, is to increase the rate at which troubled home loans are converted into new loans with lower monthly payments, Treasury spokeswoman Meg Reilly said over the weekend.

Industry officials said the new effort would include increased pressure on mortgage companies to accelerate loan modifications by highlighting firms that are lagging in that area.

The Treasury is also expected to announce that it will wait until the loan modifications are permanent before paying cash incentives to mortgage companies that lower loan payments.

Under a $75 billion Treasury program, companies that agree to lower payments for troubled borrowers collect $1,000 initially from the government for each loan, followed by $1,000 annually for up to three years.

The government support, which is provided from the $700 billion financial bailout program, is aimed at providing cash incentives for mortgage providers to accept smaller mortgage payments rather than foreclosing on homes.

The program has come under heavy criticism for failing to do enough to attack a tidal wave of foreclosures. Analysts said the foreclosure crisis is likely to persist well into next year as high unemployment pushes more people out of their homes.

Rising foreclosures depress home prices and threaten the sustainability of the fledgling economic recovery.

A report last week from the Mortgage Bankers Association found that 14 percent of homeowners with mortgages were either behind on payments or in foreclosure at the end of September, a record level for the ninth straight quarter.

The Congressional Oversight Panel, a committee that monitors spending under Treasury's bailout program, concluded in a report last month that foreclosures are now threatening families who took out conventional, fixed-rate mortgages and put down payments of 10 to 20 percent on homes that would have been within their means in a normal market.

Treasury's program, known as the Home Affordable Modification Program, "is targeted at the housing crisis as it existed six months ago, rather than as it exists right now," the report said.

Treasury's Reilly said the expanded program would, among other steps, make more aid available to struggling borrowers and expand the number of organizations providing help.

Associated Press writer Jim Kuhnhenn contributed to this report.

Copyright © 2009 The Associated Press. All rights reserved.

Wealthy Investors Plan to Buy More Real Estate, Barclays Says

2009-11-30T10:29:00.002-05:00

By Peter Woodifield

Nov. 30 (Bloomberg) -- Individuals with more than $800,000 to invest plan to increase their property holdings because they foresee better long-term returns than from stocks and bonds, according to a Barclays Plc global survey.

Twice as many people plan to raise their investment in commercial and residential property as intend to reduce it, the Barclays Wealth unit said in an e-mailed statement today. The richer the individual, the greater the proportion of wealth is placed in real estate, the survey found.

“I was surprised how big a share of their wealth property represents,” Mike Dicks, the London-based head of research at Barclays Wealth, said in an interview. “It’s not what I would tell grandma. None of our data suggests that would be a good allocation.”

The global recession pushed down commercial and residential real estate prices in every region except Asia. The value of U.S. shops, offices and warehouses fell 21 percent in the first three quarters of this year, following a 12 percent decline in 2008. Belief that properties are now undervalued was the second most common reason cited for increasing investment.

Real estate investment among wealthy individuals is set to rise to 30 percent of the average portfolio for the next few years from 28 percent now, according to the survey. That excludes properties used as a principal residence. Most rich people, other than the extremely wealthy, should have no more than 10 percent of their assets in property, said Dicks.

‘Emotional Attachment’

“An emotional attachment to bricks and mortar,” can mean that rich investors are often unwilling to sell real estate at short notice and may be less rigorous in measuring its performance as an asset, according to the report.

Investors from Canada and the Persian Gulf were the most likely to increase their property allocations, with an average rise of 4 percent, the report said. Spain was the only country in the survey where more individuals said they would reduce the proportion of real estate investment, said the wealth management division of London-based Barclays. About 60 percent of rich individuals in that country have more than half their assets in property.

Almost 30 percent of British and Indian investors have more than half their wealth tied up in real estate. About 40 percent of the total respondents worth more than 30 million pounds ($49 million) have a similar allocation, Barclays Wealth said.

U.S. Attractive

Three out of four investors surveyed said residential property is looking attractive and two-thirds are keen to explore investing in commercial real estate, the survey said. About 75 percent said they feel hampered by borrowing costs.

The U.S. was the most attractive real estate market for investors outside their home country, the survey showed. The country was seen as having the highest potential for return on investment.

Barclays Wealth surveyed 2,000 people. Forty percent were worth 500,000 pounds to 1 million pounds. An additional 40 percent were worth between 1 million pounds and 10 million pounds. Ten percent had assets of as much as 30 million pounds and the rest were wealthier than that.

To contact the reporter on this story: Peter Woodifield in Edinburgh at pwoodifield@bloomberg.net.

Strong Numbers In South Stoke Sales Of New Homes

2009-11-30T10:24:00.001-05:00

Image by Getty Images via Daylife

By Ruth Mantell - MarketWatch

WASHINGTON -- Sales of new homes rose 6.2 percent in October on strong results in the South, the Commerce Department estimated Wednesday.

The rise in U.S. new-home sales to a seasonally adjusted annual rate of 430,000 was well above the 390,000 pace that economists surveyed by MarketWatch had expected.

Sales rose 23.2 percent in the South. By contrast, monthly sales fell by 20 percent in the Midwest, and by 5.1 percent in both the Northeast and the West.
New Home Sales
A development of new homes is shown in Homestead, Fla. Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

"On the surface, one would have assumed that the surge in sales activity was induced by the rush of first-time home buyers trying to get ahead of the originally scheduled end of the first-time homebuyers' tax credit at the end of October," wrote Millan Mulraine, economics strategist with TDSecurities, in a research note. "However, given the lopsided regional dimension to the increase in home sales we are not entirely convinced that this was the only story."

The government cautions that its housing data are subject to large sampling and other statistical errors, with large revisions common. It can take up to six months for a trend in sales to emerge.

The pace of new-home sales in September also was revised slightly higher, to a level of 405,000. New-home sales are up 5.1 percent compared with a year ago, the government's data showed.

The supply of homes on the market fell to 239,000 in October, representing a 6.7-month supply.

The median sales price in October hit $212,200, compared with $213,200 in the prior year.

Consumer Confidence in U.S. Unexpectedly Increased

2009-11-30T10:20:00.000-05:00

Image via CrunchBase

By Bob Willis

Nov. 24 (Bloomberg) -- Confidence among U.S. consumers unexpectedly rose in November as a brightening outlook masked growing concern over joblessness.

The Conference Board’s confidence index increased to 49.5 from 48.7 the prior month. The New York-based Conference Board’s index, which focuses on the labor market and purchase plans, averaged 58 in 2008 and 103.4 in 2007.

The report showed Americans fretted over jobs, signaling the highest unemployment rate in 26 years may restrain spending and limit the recovery from the worst recession since the 1930s. Target Corp. last week said it remains cautious about sales this quarter and expects to offer incentives spur holiday shopping.

“Labor market perceptions are very weak,” said David Sloan, chief U.S. economist at 4Cast Inc. in New York, who forecast an increase in confidence. “What did drive is up was expectations, optimism that things will get better, not that things have gotten better.”

Other reports today showed home prices rose and the economy grew at a slower pace last quarter as consumer spending climbed less than the government previously estimated.

Stocks Fall

Stocks dropped following the reports on concern over the outlook for household purchases. The Standard & Poor’s 500 Index fell 0.6 percent to 1,099.45 at 10:23 a.m. in New York.

Federal Reserve Chairman Ben S. Bernanke last week said joblessness and limited bank lending were “headwinds” for the economy.

Economists forecast confidence would decrease to 47.3 from a previously reported 47.7 for October, according to the median of 74 projections in a Bloomberg News survey. Estimates ranged from 40.7 to 53.

The S&P/Case-Shiller home-price index of 20 U.S. cities increased 0.3 percent in September from the prior month on a seasonally adjusted basis after a 1.1 percent rise in August, the group said today in New York. The gauge fell 9.4 percent from September 2008, the smallest year-over-year decline since the end of 2007.

The world’s largest economy expanded at a 2.8 percent annual rate in the third quarter, down from the 3.5 percent pace estimated last month, the Commerce Department reported today. The figures also showed corporate profits climbed 10.6 percent, the most in five years.

Job Concerns

The Conference Board’s measure of present conditions decreased to 21, the lowest level in 26 years, from 21.1 the prior month. The decrease reflected growing concern over unemployment with a measure of job availability reaching the lowest level since 1983.

The share of consumers who said jobs are plentiful fell to 3.2 percent from 3.5 percent, according to the Conference Board. The proportion of people who said jobs are hard to get increased to 49.8 percent from 49.4 percent.

The gauge of expectations for the next six months climbed to 68.5 from 67 the prior month.

The proportion of people who expect their incomes to rise over the next six months decreased to 10 percent from 10.7 percent. The share expecting more jobs dropped to 15.2 percent from 16.8 percent.

Buying plans for automobiles and real estate dropped this month, the report showed. Home-buying expectations decreased to the lowest level since 1982.

Less Income

“Income expectations remain very pessimistic and consumers are entering the holiday season in a very frugal mood,” Lynn Franco, director of the Conference Board’s Consumer Research Center, said in a statement.

The U.S. has lost 7.3 million jobs since the recession began in December 2007 and more losses are forthcoming. Goldman Sachs Group Inc. chief U.S. economist Jan Hatzius forecast earlier this month that unemployment would average 10.4 percent next year.

Citing the labor market as an “area of great concern,” Bernanke last week told the Economic Club of New York that “jobs are likely to remain scarce for some time, keeping households cautious about spending,”

AOL, the Internet unit being spun off from Time Warner Inc. in December, plans to cut about one-third of its 6,900 employees over the next several months. The company will begin a voluntary layoff program Dec. 4 and said it’s looking for as many as 2,500 volunteers, AOL spokeswoman Tricia Primrose said in an e-mail last week. The company will make up the shortfall of volunteers through firings, she said.

Smaller Purchases

Saks Inc., the U.S. luxury retail chain, and Target, the second-largest discount chain, last week said they remain cautious about demand after reporting third-quarter earnings that beat analysts’ estimates. Target said average transaction sizes shrank in November and fourth-quarter comparable-store sales may fall after third-quarter earnings rose more than analysts projected.

Target expects a “highly promotional” holiday season, Chairman and Chief Executive Officer Gregg Steinhafel said on a conference call. November sales “provide additional justification for being cautious in this uncertain environment,” he said.

Lending rates near record lows and government incentives such as “cash for clunkers” and first-time homebuyer credits have helped spur purchases of cars and houses in recent months.

To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net
Last Updated: November 24, 2009 10:25 EST

The Case for the $80,000 House

2009-11-30T10:16:00.000-05:00

How much house can you get these days for $80,000?

I started thinking about this a few weeks ago, when Congress extended and expanded the refundable tax credit for homebuyers.

With the credit, buyers can get back 10% of the purchase cost on a home -- up to $6,500 for many who currently own a home, and $8,000 for qualifying first-time buyers. In the season of gift-giving, it's a wonderful present from taxpayers to home shoppers.

Do the math: The best return goes to the first-time buyer who spends 80 grand and gets 10% back. But if you spend, say, $300,000, you still only get the $8,000 – a measly 2%.

So what can you get for $80,000?

In the vast areas in the middle of the country, where space is not really a major constraint on housing, it can go a long way. Obvious point: Many of the cheapest places to buy are cheap for good reason. The neighborhoods may be depressed or worse. Good jobs—any job--may be hard to find.

The National Association of Realtors tags Saginaw, Mich., as the metropolitan statistical area with the cheapest real estate in the country. Median price of a single family home: $61,000. So in Saginaw the full $80,000 will take you upscale. Zillow features this three bedroom, two bath house (1,266 square feet) for $34,900.

At the other end of the range stands the San Francisco Bay Area, where median prices are more than half a million bucks. What does the $8,000 tax credit get you? "It doesn't do much for us here," admits James Caldwell, manager of Prudential California Realty on Union Street in San Francisco.

When I pressed him, Mr. Caldwell said you could get a one-bedroom condo in some cheap but OK areas just outside the city, like Pacifica, for maybe $200,000 or so. An $8,000 credit will at least cover 4% of the costs.

Over the bridge in Oakland you can get something even cheaper.

Real estate Web site Trulia illustrates the range of options in: Cleveland, Dallas, Detroit, Ft. Lauderdale, Fla., Las Vegas, Oakland, Calif., Oklahoma City, Ok., and Tulsa, Ok. See the photos at left for some details.

One obvious standout: Las Vegas, essentially ground zero for the real estate collapse. For $80,000, notes Trulia, you can get a four bedroom, two and a half bathroom house with 1,600 square feet. It is, of course, pure coincidence that Senate Majority Leader Harry Reid (D.-Nev), who faces a tough re-election battle in the state next year, championed the extension of the tax credits.

The other big beneficiary of tax credit stimulus, of course, is over the border in Arizona, where home prices have taken a major haircut since the bubble popped.

Real estate Web site Zillow reports about 450 homes in Phoenix's Maricopa County, Ariz., for sale between $75,000 and $80,000. Spokeswoman Katie Curnutte says "three quarters have at least three bedrooms, and one quarter has at least four."

The comparable figure for Las Vegas was still impressive: 237 homes between $75,000 and $80,000.

But in San Bernardino, Calif., the figure was just 34 and in New York City you'd be laughed out of town.

Looking to make the most of your tax credit? Go west, young man.

Write to Brett Arends at brett.arends@wsj.com

A Look at Case-Shiller, by Metro Area (November Update)

2009-11-30T10:09:00.001-05:00

By Phil Izzo

The S&P/Case-Shiller 20-city home-price index, a closely watched gauge of U.S. home prices, rose 0.3% in September from August in the fifth straight monthly increase, as prices gains slowed and remain below year-earlier levels.

For the 18th straight month, no area in the 20-city index posted a year-over-year price gain. September also marks the quarterly release of the broader National Home Price Index, which posted its second consecutive quarterly increase though it remains 8.9% lower than a year earlier.

“The gains in the most recent month are more modest than during the seasonally strong summer months. Fewer cities saw month to month improvements in September than in August in both seasonally adjusted and unadjusted figures,” said David M. Blitzer, chairman of the Index Committee at Standard & Poor’s.

Analyst Dan Grenhaus of Miller Tabak + Co. said now that evidence of a bottom is clear, the question is what happens now. “The issue going forward relates to how far prices can accelerate given the inventory overhang, level of shadow inventory, continued foreclosures, persistently high unemployment rate and tighter credit standards which require greater down payments and higher FICO scores (as well as removing one’s ability to simply assert they make “X” dollars without proving it),” he said.

Just 10 of the 20 areas saw monthly price gains in September, that’s down from 17 gainers in August. Minneapolis posted the strongest monthly increase at 1.8%, and hard-hit Detroit also managed a 1.8% monthly gain.

Cleveland fared the worst for September with a 1.6% monthly decline, but prices there are only down 3.7% from a year earlier. Las Vegas and Phoenix continue to see annual declines in excess of 20%.

* See the full S&P/Case-Shiller report.
* Read the full story.

Below, see data from the 20 metro areas Case-Shiller tracks, sortable by name, level, monthly change and year-over-year change — just click the column headers to re-sort.

(About the numbers: The Case Shiller indices have a base value of 100 in January 2000. So a current index value of 150 translates to a 50% appreciation rate since January 2000 for a typical home located within the metro market.)
Home Prices, by Metro Area

Metro Area September 2009 Change from August Year-over-year change
Atlanta 111.26 0.0% -9.3%
Boston 155.62 -0.2% -3.3%
Charlotte 119.84 -0.7% -8.1%
Chicago 132.13 1.2% -10.6%
Cleveland 105.75 -1.6% -3.7%
Dallas 120.57 -0.7% -1.2%
Denver 129.45 -0.5% -1.2%
Detroit 72.9 1.8% -19.2%
Las Vegas 104.82 -0.9% -28.6%
Los Angeles 167.93 0.8% -9.0%
Miami 149.69 0.5% -16.2%
Minneapolis 124.96 1.8% -11.2%
New York 174.38 -0.3% -9.0%
Phoenix 109.26 0.8% -21.8%
Portland 149.72 -0.5% -11.8%
San Diego 154.76 0.9% -5.7%
San Francisco 134.16 1.3% -7.8%
Seattle 148.94 -0.4% -13.8%
Tampa 142.57 -0.6% -16.7%
Washington 180.45 0.5% -5.0%

Source: Standard & Poor’s and FiservData

Will your hometown be a boomtown again?

2009-11-30T09:38:00.002-05:00

By Lisa Gibbs, Money Magazine senior writer

Harvard economist Edward Glaeser studies the forces that make some regions thrive and others die ... and what that has to do with the weather in January.

(Money Magazine) -- Since the crash, we've gotten used to thinking of real estate as a market shaped by national forces: Interest rates went down, Wall Street and homebuyers went nuts, regulators fell asleep at the switch, and -- voilà -- we had ourselves a bubble.

But Edward Glaeser, an economist at Harvard University, finds that real estate is still a local business driven by local conditions. In studying the rise of the Sunbelt, Glaeser has found that winter temperatures were one of the best predictors of a region's population growth, but that this has as much to do with regulations as sunshine.

He's stirred controversy by arguing that many "older, colder" cities will never roar back. (By the way, he'd like to scale back the tax break you get on your mortgage too.) Senior writer Lisa Gibbs spoke with Glaeser about what really drives real estate markets, and what that means for prices; edited excerpts follow.

First, let's talk about the big question on everyone's mind. Where do you see real estate going from here?

There are two basic approaches to thinking about this. One is looking at past price patterns, like the long-run tendency to give back price gains and the short-run tendency for prices to have momentum -- that is, to keep moving in the same direction. We've now given up at least a third of the previous gains, and the recent price changes have been positive. From that perspective, it looks like we're close to having hit bottom.

The other approach is to ask, What is the supply and demand? That approach is easiest to use in Sunbelt cities like Phoenix and Las Vegas, where you basically have unrestricted supply.

The price of a home should be the cost of construction plus land plus reasonable developer profit. We're getting there, but it wouldn't be crazy to see more declines just because there was so much overbuilding. The same is true for the Miami condo market, where there were no constraints on building up.

Those places are still growing, though. You've found that January temperatures can predict a region's population growth. So how did those nice warm cities get hit so hard by the crash?

Let's step back a bit. When we talk about the long-term growth of the Sunbelt, it is partly about the demand for housing. The first generation of booming American cities, like Detroit and New York, was built around waterways because of the enormous advantages of moving goods by water. Before the railroads, it cost more to move goods 32 miles over land than to cross the Atlantic Ocean. The big change of the 20th century was the decline of transportation costs. Industry moved, and with that came the rise of cities built where people wanted to live. The rise of California's cities is the first great example of this.

People just followed the weather?

Not exactly. The other part of the story is the supply of housing. In the 1970s in California, a variety of constraints were put on development. Some were wise, some were not, but they made it increasingly difficult to build. Other areas -- Atlanta, Dallas, Houston, and Phoenix -- may have had a less vibrant economy and less comfortable summer temperature, but they had a building environment that could not have been more lenient. Developers built a vast amount of housing that was incredibly affordable.

So low prices actually help drive a lot of the growth. Does that mean you won't necessarily make a lot of money on real estate when an area is booming?

Healthy population growth does not imply that prices will always go up at all. A good climate and a robust economy tend to push housing prices up, but meanwhile an elastic housing supply keeps prices moderate. If housing supply outstrips demand, prices can fall.

And that's what happened in the Sunbelt after 2000.

The bubble hit the Sunbelt in different ways. Dallas basically had no big price increase during the boom and no bust. That's what you expect in a place that had no constraints on building. I would have thought the same logic should have held in Vegas. But perhaps because of Las Vegas's proximity to California, people thought it would become like California. That was belied by the huge amount of building going on.

The harsh reality is that real estate prices that go up come down. I've found that for every real $1 increase in local market prices over a five-year period, prices go down 32¢ over the following five years.

What should the government be doing to stabilize the U.S. housing market?

It's not the job of government to make housing more expensive. Its job is to get rid of distortions in the market that make housing too expensive.

The government has set up an $8,000 tax credit for buyers, which was motivated to push prices up. I'm not crazy about more subsidies for homebuying, but I don't think tax credits would necessarily be such a terrible thing -- especially if you could use them to reform the mortgage-interest tax deduction.

What's wrong with the mortgage-interest deduction?

It's very strangely designed. If the goal were to encourage homeownership, you'd want to target the people on the margin between renting and buying, people early in their lives. But because a tax deduction is worth more to higher earners, we have a policy that gives 10 times more benefits to Americans earning more than $250,000 than to households earning less than $75,000. It's an enormously regressive policy. And its benefit rises with the size of the house and the debt you take on. Why should the government be complicit in urging people to buy larger homes?

Can something so popular actually be taken away?

A not-so-politically-impossible fix would be to lower the cap on what's deductible, currently $1 million of mortgage debt. Reducing it to between $200,000 and $250,000 would eliminate the most regressive aspects of the tax, and it wouldn't touch the majority of Americans. And do it over time, given the delicate condition of the housing market. Ideally you'd get rid of the deduction and replace it with a buyer tax credit. If you want a pro-homeownership incentive, keep it small, keep it targeted.

What's the role of property taxes in the real estate market?

In places that have completely screwed up their assessment processes, like California with its Proposition 13 that freezes assessments, you're creating an incentive for people not to move.

Many places are going to have big fights over those assessments this year, given how much prices have dropped.

We are seeing these fights over assessments because there's a lot of uncertainty over what houses are worth. We could move toward a system where assessments are tied to benchmarks like the Case-Shiller index. Then we don't have to waste countless hours arguing.

The broader issue is that many places are highly dependent on taxes from assets, which has made paying for government harder. Boston is at 8.4% unemployment -- bad, but not Armageddon. But the perspective from the state government is awful because of the precipitous decline in tax revenue.

I was recently in Detroit, where I saw a decent house sell for $6,900. Can Detroit and other industrial cities come back?

Detroit can make itself a more livable, comfortable city and make life better for children growing up there. The mistake is to try to attain some long-held ideal about what Detroit once was. It probably needs to shrink: Focus on which abandoned neighborhoods can be torn down and replaced with more productive space. And consolidate services. Detroit is fascinating, beautiful, and challenging. I recently visited Detroit Dry Docks, one of the places Ford got its start. It's now an empty hulk.

That's the story behind your $6,900 house. This was a city that was one of the most productive on the planet, and they built housing and infrastructure accordingly. Even though the business leaves, the houses and infrastructure remain. To top of page

Housing, Profits, Confidence: The Economic Mending Continues

2009-11-30T09:27:00.000-05:00

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Source: Seeking Alpha | November 25, 2009

Recent days have seen continued rebounds in housing, corporate profit reports and consumer confidence.

Two reports early this week point to continued progress in residential housing resales. On Monday the National Association of Realtors implied that the home-buyer tax credit will likely sustain the housing market throughout next year. In October, first-time buyers used the tax credit and combined it with record low mortgage rates to push home sales to their highest level in 2 1/2 years. Home sales are now 37 percent above their bottom in January and the seven-month supply of inventory is quite modest. We saw bidding wars break out earlier this year in select areas, but now those competitions are becoming more widespread.

On Tuesday, home prices continued to show improvement according to the Case-Shiller report. The report data continued a long strong string of improvements: Year-on-year rates continue to improve; quarter-to-quarter rate shows steady improvement and those areas that were especially hit hard like the West and pockets of Florida have turned markedly higher.

An analysis of corporate profits is also quite rosy. Tuesday's government release shed light on huge corporate profits: up 16% since the end of last year. What is particularly noteworthy is that even though we've just made it through a strong recession, profits in US firms have essentially doubled in the past 8 years.

And a consumer confidence report out on Monday took everyone by surprise. Heading into the holiday season, consumer confidence is back on the rise. The Conference Board consumer confidence index rose to a level not forecast by even the most optimistic forecasters. Most had expected a downturn in confidence.

"Your Credit and what you need to know.."

2009-11-23T18:30:00.002-05:00

This week on The Success of Real Estate Radio we have the pleasure of having Ms. Joyce Mann.Joyce is an Independent Agent in the Credit Restoration industry. She’s part of a champion marketing team; VR-Tech’s “Dream Team Worldwide.” Where they offer business opportunities to enroll customers into a qualified program with United Credit Education Service, a company that uses state-of-the-art technology to help people restore, establish and protect their credit. Joyce received her BA in Finance from Clark Atlanta University. Her financial background has spanned from collections to investment banking to entrepreneurship. She’s been a licensed financial professional for over 15 years. She currently holds a series 7 & series 63 stock broker license; as well as, Life & Variable insurance license. She began conducting retirement seminars in the year 2000 and she started building her credit and financial education network in 2007. Throughout life, Joyce has achieved many accomplishments and has received many awards & recognition. Some of her recent accomplishments include: * The “DTU-Billionaires Philosophy Diploma” * Diamond Life member of Delta Sigma Theta Sorority, Inc * Chair person of the Economic Development committee for Douglas-Carroll-Paulding chapter of ?ST. * 5 Star-High Ranking Presenter; * Certificate of Success for Group Seminar Training * Certificate of Appreciation for Quality Improvement * The World Who’s-Who of Women * 2000 Notable American Women Joyce Mann’s crusade is to: SHARE opportunities for financial freedom; EMPOWER people with useful financial information and ENCOURAGE people to take action; NOW! You won't want to miss this show!!

Real Estate Outlook: Moving Towards Recovery

2009-11-19T11:42:00.000-05:00

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by Kenneth R. Harney

The huge impact of the federal home buyer tax credit program, which is now set to continue and even expand through next spring, dominates the housing resale numbers this week.

Sales of existing houses during the third quarter jumped by 11.4 percent over second quarter sales, according to the National Association of Realtors.

And the increase in sales came in pretty much every part of the country -- in 45 states along with the District of Columbia.

Check out some of these extraordinary increases -- all tied in part to home buyers rushing to complete purchase transactions before the tax credit's original expiration date of November 30th, plus mortgages at rock bottom five percent rates or less.

In North Dakota, sales were up 42.4 percent, Rhode Island 27 percent, Pennsylvania 26 percent.

In some hard hit local markets, sales gains were almost off the charts. In Orlando, they were up 80 percent for the quarter. In Las Vegas sales were 30 percent higher this year over last.

So do you think things are stirring out there? You bet they are, and economists haven't yet even begun to assess the potential effects on future sales flowing from the brand new $6,500 tax credit for "repeat" buyers.

That means people who've owned their house for a consecutive five of the previous eight years, and now want to downsize, move up or just move to a different location.

That credit, which took effect November 6th, will be available for home purchase contracts signed by April 30th of next year and closed by June 30th.

Of course, not all of the developments underway in the economy right now are favorable to housing and real estate.

Start with the unemployment rate, which just jumped to 10.2 percent, the highest in decades. Most economists agree that the true jobless rate, factoring in people who've stopped looking for jobs and those working part time, takes the effective unemployment rate nationally closer to 18 percent.

That's a major negative for home buying prospects.

And the flip side of record housing sales numbers can't be ignored either: Prices are still way down from year ago levels in many areas -- and they're down 11 percent during the third quarter compared with 2008.

So that's all pretty sobering.

Nonetheless the fact is that the only way we're going to move towards full recovery is by selling a lot of houses, at very attractive prices and low interest rates.

That's happening right now in a big way -- and it looks like it should continue well into the spring.

Low Interest Rates Spur Refinancing, Buying Interest

2009-11-19T11:15:00.000-05:00

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by Broderick Perkins

If you purchased a home a year ago and have the equity and creditworthiness to swing it, a refinance today could save you hundreds of dollars a month.

Or, if you are in the market to buy a home, interest rates will make for a more affordable deal.

Freddie Mac's Primary Mortgage Market Survey for Nov. 12 put the average fixed interest rate for 30-year conforming mortgages at 4.91 percent.

Last year at the same time, the 30-year fixed rate mortgage (FRM) averaged 6.14 percent.

"Keeping rates at historically low levels for a sustained period of time has to remain a cornerstone of Fed policy until the economy gets back on track," said Nancy Osborne, chief operating officer of Erate.com.

On a $300,000 mortgage the principle and interest payment at today's average rate would be about $1,594, compared to $1,825 a year ago, according to Erate's calculators.

That's a monthly savings of $231. Put another way, a year's worth of the savings -- $2,772 -- amounts to almost two mortgage payments on a $300,000 mortgage at today's average rate.

Both home buyers and owners who want to refinance may have some time yet to shop around and dicker for the best interest rate deal.

"I don't suspect rates will begin to rise until we see at least three consecutive months of solid employment growth," Osborne said.

Freddie Mac also said the 15-year FRM averaged 4.36 percent, down from 5.81 percent a year ago.

Mortgage rates drop to all-time low

2009-11-19T10:53:00.001-05:00

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By Holden Lewis • Bankrate.com

Mortgage rates dropped to a historic low, but hardly anyone is getting a home loan.

The benchmark 30-year fixed-rate mortgage fell 13 basis points, to 5.06 percent, according to the Bankrate.com national survey of large lenders. A basis point is one-hundredth of 1 percentage point.

That's the lowest rate on the 30-year fixed in the 24-year history of Bankrate's weekly mortgage index. Previously, the all-time low had been 5.13 percent, on April 1 this year. (In case you're wondering, the highest was 12.31 percent -- in the first-ever survey, conducted Sept. 25, 1985.)

The mortgages in this week's survey had an average total of 0.4 discount and origination points. One year ago, the mortgage index was 6.33 percent; four weeks ago, it was 5.34 percent.

The benchmark 15-year fixed-rate mortgage fell 13 basis points, to 4.48 percent. That, too, is a record low. The benchmark 5/1 adjustable-rate mortgage was unchanged, at 4.58 percent. That's a record low dating back to when Bankrate started collecting 5/1 ARM rates at the beginning of 2005. And the benchmark 30-year fixed jumbo fell 29 basis points, to 5.95 percent. It was 5.6 percent in June 2003.

Despite the low rates, fewer homebuyers applied for mortgages last week than at any time since November 1997, according to the Mortgage Bankers Association. The MBA's purchase application index has fallen six weeks in a row to settle at that 12-year nadir.
Weekly national mortgage survey
Results of Bankrate.com's Nov. 19, 2009, weekly national survey of large lenders and the effect on monthly payments for a $165,000 loan:
30-year fixed 15-year fixed 5-year ARM
This week's rate: 5.06% 4.48% 4.58%
Change from last week: -0.13 -0.13 N/C
Monthly payment: $891.82 $1,260.55 $843.89
Change from last week: -$13.19 -$10.98 N/C

When you ask why there has been a collapse in homebuyer mortgage applications (and, you would assume, home purchases), one culprit comes to mind instantly: the first-time homebuyer tax credit. A couple of weeks ago, Congress extended the tax credit into next spring. But before that extension, the tax credit had been scheduled to expire Nov. 30. And to take possession of their homes by that date, mortgage borrowers had to sign purchase contracts by the end of October at the latest.

If people rushed to buy homes in October instead of making offers in November, it seems perfectly natural that there would be a lull in homebuying now. So will the homebuying spree resume now that the tax credit has been extended? Not necessarily. People in the mortgage industry are becoming gloomy, and they aren't counting on a surge of homebuyers.

Dick Lepre, senior loan consultant for Residential Pacific Mortgage in San Francisco, says that in the last six months, three of his clients lost jobs in the middle of the loan process. "Some of the downturn in applications is related to unemployment," he says.

Another factor that depresses mortgage borrowing: disrepair. Foreclosed homes are "selling for all-cash because the condition of the property is such that they cannot qualify for a loan," Lepre says. In other words, there's a chunk of houses that are available only to cash buyers and not to those of us who have to borrow.

On the other side of the country, "purchase business still seems to be flowing. But people are only willing to pay rock-bottom prices," says Brian Peart. Peart, president of Nexus Financial Group, a mortgage brokerage in Atlanta, says he sees "downward pressure on (house) prices for many years to come" because of rising foreclosures and unemployment.
Waiting for the 'urgent call'?
Just about everyone in the mortgage business expects rates to rise over the next four months, as the Federal Reserve winds up its purchases of more than a trillion dollars in mortgage-backed securities and investors take up the slack. The thinking goes that private investors will demand higher interest rates on mortgages than the Fed requires.

Barry Habib, publisher of Mortgage Market Guide, an industry online publication, expects rates to rise in "stepladder" fashion from around now through March. Rising rates, he believes, will provoke more homebuying. Right now, he says, there's no "urgent call" to buy houses because rates have remained so low for months.

"In the absence of an urgent call, people are focusing on Thanksgiving plans and holiday shopping and their lives," Habib says. "But as soon as rates go up, people will get out there and say, 'I'd like to purchase or refinance.'"

Habib's point sounds counterintuitive, but experience backs him up. Throughout this decade, there has been a spike in mortgage applications whenever rates have abruptly risen after remaining fairly steady for a while. It's human nature, Habib says, for borrowers to jump off the fence when rates rise. Hardly anyone gets a loan at the lowest rate in the cycle; people get loans at slightly higher rates once it becomes clear that rates have bottomed out and are heading back up.

Habib believes that home sales will increase in the spring, and rising rates will be a bigger reason than the expiration of the homebuyer tax credits.

But buyers should be cautious, Lepre warns: "The only people who really, really should be buying are a couple who have steady employment and see an opportunity to buy a home for much less than they could three years ago," he says.

If you're in the market for a mortgage or refinance, you can look for the best interest rate by searching Bankrate's rate tables.

The Success in Real Estate Radio

2009-11-17T09:10:00.003-05:00

The week on Success in Real Estate Radio we will have the Honor of having Mr. Jeffery Hicks, President of the Empire Board of Realtists. Today we will visit the History of the Empire Board of Realtist INc and the History, Legacy , and the constant community presence this orginization continues to provide for the community.The Empire Real Estate Board, Inc. (EREB), was organized in 1939 by seven black Real Estate Brokers who were dissatisfied with "status quo" relating to housing conditions in Atlanta for Blacks. Additionally, they were unhappy with the conditions for Black real estate practitioners and were denied membership in the Realtors' trade organization. The pioneers were: W. H. Aiken, John G. Allen, O. T. Bell, Wendell Cunningham, Roger Henderson, J. R. Wilson, Jr. and N. D. Jones. So make sure you tune in for a quick update on the Tax Credit as well other top headline over the past week! You won't want to miss this show!

Ten Tips For First-Time Homebuyers

2009-11-16T08:39:00.001-05:00

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Source: Houston Real Estate Examiner | November 14, 2009

This post is geared for newbies, as well as homebuying veterans who may need a brushup on the basics. Most of these tips come from Eric Bramlett, a real estate broker out of Austin, Texas.

1) Decide whether it's time to move.

Weigh the cost versus the benefit. Are you planning to stay for at least three years in your new home? If your answer is ‘yes’ then you should go ahead and buy. You will be at a break-even on your closing costs after two years and start making money at year three.

2) Home = Money Machine.

After year three, you can really experience the benefits of appreciation.

3) The first step - Pre-approval

Get pre-approved for a loan. This is the scariest part for many buyers, but pre-approval is a very important step. Pre-approval gives you buying power and allows you to make a solid offer on your dream home when you’ve found it. A pre-approval letter also makes the seller more likely to accept your offer.

4) Learn your total housing costs

Pre-approval also lets you know how much your new home will REALLY cost—in monthly payments. A $650,000 or $800,000 home price can be an abstract concept, but $3,000 a month or $4,500 a month are tangibles that everyone can understand. When you meet with a lending professional (call me at 415-577-0809 for the names of some great ones) ask them for a “payment table” that shows you a rough estimate of your TOTAL monthly payment, including taxes and insurance or homeowners fees based on purchase price. Pick your payment and you know the price range to shop in.

5) Call a good Realtor

I know this sounds self-serving, especially when you can find just about every home for sale online, but a good agent will take the spam out of your property showings. I also make it my business to track the market 24/7 and take pride in putting my buyers into carefully selected properties that will hold their value in the short term and offer excellent appreciation in the long term.

6) Hang tough on negotiating terms and price

I’ll also go to the mat for you when negotiating price and terms to make sure you don’t overpay and protect your interests. With the average real estate file running 100 pages or more, one tiny mistake or omission could land you in court or cost you thousands. Having a Realtor handle the paperwork not only eliminates the headache, it also limits your financial and legal risk.

7) The “wants and needs in a home” exercise

Make a list of “Must Haves” and “Wants.” Your search will be easier and you’ll be more confident in your decision if you take a systematic approach. The best way is to make two lists: Your “must haves” and your “wants.” Your “must haves” are the essentials: parking, bedroom/bath count, square footage and the unique odds and ends like room for your kayak or big walls for your art. Your “wants” are the qualities that you would like for your new home to have, but can live without. Great examples of “wants” are hardwood floors, a gas stove, and type of exterior. By taking the time to articulate what you need and want in your new home, you will know exactly what to look for when looking at prospective homes.

8) Figure out the best neighborhoods for your needs

Learn the neighborhoods. The variety of home styles and neighborhoods is astonishing in San Francisco. You can buy a mid-century house in Midtown Terrace, an Edwardian flat in the Western Addition or a sleek apartment condo in South Beach. Sometimes I like to put my buyers in a car and drive the neighborhoods. It gives them an opportunity to learn some of the City’s geography and get a feel for the different areas. You can also read about San Francisco neighborhoods on my website.

San Francisco also has micro-neighborhoods, where housing styles and neighborhood character change within the space of just a few blocks. The 700 block of Waller is vastly different from the 300 block, for example. Weather is also a big consideration. If you’re a sun worshipper, some neighborhoods, like the Outer Sunset, are out of the question.

9) Be a buyer, not a browser

Beware of the “Red Shoe Experience.” This tip comes from Elizabeth Weintraub, of Lyon’s Realty in Sacramento. Women will relate to this. Say, you need a new pair of red shoes. You go to the mall. At the first shoe store, you find a fabulous pair of red shoes. You try them on. They fit perfectly. They are glamorous. Priced right, too. Do you buy them? Of course not! You go to every other store in the mall trying on red shoes until you are ready to drop from exhaustion. Then you return to the first store and the red shoes are gone. Do not shop for a home this way. When you find the perfect home, buy it.

10) Make your decision!

This tip is a corollary to the Red Shoe Experience. Homebuyers often hesitate after they’ve found the right home because they’re not confident about their decision-making process. Your home is probably the largest investment of your life, and it’s normal to feel those butterflies. However, if you have followed the steps above, you will have your bases covered. If you’ve found a home that meets all of your “must haves,” most of your “wants,” is in the right neighborhood, and in your budget - it’s the one for you! Don’t wait and let another buyer take YOUR home!

Tax Credit Creates Home-Buying Mood

2009-11-16T08:35:00.000-05:00

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BY KENT MALLETT • Advocate Reporter • November 15, 2009

NEWARK -- Shaun Hutchinson and Kasi Frenton have not become homeowners yet, but the recent extension of the first-time homebuyer tax credit has kept them looking.

The Newark couple have been searching for a home for more than three months and were relieved when the government extended the federal tax credit deadline from Nov. 30 to April 30.

"We're just tired of throwing money away on rent," Hutchinson said. "We'll get one eventually, even if we don't make the tax-credit deadline. At least now we don't feel as rushed."

Tim Hughes, a real estate agent with Keller Williams Greater Columbus Realty, showed the couple a home Thursday on Neal Avenue in Newark.

"We're happy they extended the credit," Hughes said. "They know I don't want them rushing into something they're not going to be happy with. But, on an $80,000 home, that (credit) is a 10 percent discount. That's big."

Monica Lough wrote, in response to Advocate solicitations for comment, that the tax credit has been a blessing for her family.

"The stimulus money for first-time homebuyers gave the opportunity for my two children to purchase their homes," Lough wrote. "This is a great program, otherwise they would both still be renting and flushing their money down the drain."

Local real estate agents say the housing market has improved in recent months, helped by the refundable tax credit for 10 percent of the sale price up to $8,000.

"It's one of the best things the government could do to help the economy," said Pamela Powell, of Real Living HER. "Real estate is the best investment you can ever make. With the stimulus, I look for people to continue looking."

It will, however, take a late surge in sales this year to match 2008, one of the worst years ever for some agents. The total sales and average price are down compared to last year.

For the first 10 months of this year, there were 2,217 sales in the county, compared to 2,394 through 10 months of 2008. The average price is down from $125,908 to $115,486.

"I had a good October," Hughes said. "The tax incentive is definitely helping with first-time homebuyers. It'll help people on the fence. If homes are under contract by April 30, they still have 60 days to close after that."

Pat Guanciale, of Coldwell Baker King Thompson, said the housing market has hit bottom and is on the way back. But, it won't be a sudden turnaround. He compared it to a U-shaped recovery, not a sharper V-shaped one.

"It'll probably be another year before we can say we're out of this mess," Guanciale said. "Sellers have adjusted to the idea that maybe our home is not (selling for) what we thought it was."

The extension of the tax credit should provide hope for sales during the normally slow winter season.

"There were people rushing to beat the deadline and a lot of people said they're not going to buy a home because I can't get that credit," Guanciale said. "Now, they're back in the market."

Don Ellington, of Pickenpaugh and Ellington Realty Co., said he's excited about the new $6,500 tax credit for existing homeowners. But, he said, it might not give them enough time to sell their home and find another.

"It's tough for existing homeowners," Ellington said. "If their home stays on the market five or six months, then what happens? If they made it until the end of next year, that'd be better."

The glut of foreclosed homes has held back the housing market, agents have said. Lenders are trying to work with homeowners, Guanciale said, but the foreclosures remain at near record numbers.

Foreclosures are slightly behind last year's record, but have topped 1,000 for the fourth consecutive year.

FHA Boss: FHA Is Not The New Subprime

2009-11-16T08:33:00.002-05:00

Source: Associated Press | November 14, 2009
By ALEX VEIGA (AP) – 1 day ago

SAN DIEGO — Federal Housing Administration Commissioner David Stevens said Saturday that concerns the agency is headed for the same financial trouble that snared Fannie Mae, Freddie Mac and the subprime sector are unwarranted.

Stevens made the remarks during a speech at the National Association of Realtors' annual conference and expo in San Diego.

His comments come days after the agency revealed its financial reserves have fallen to a dangerously low level due to more homeowners defaulting on their loans. The FHA does not make loans, but rather offers insurance against default.

That's led to mounting concerns that it will eventually need an infusion of cash like government-controlled mortgage finance companies Freddie Mac and Fannie Mae.

But Stevens sought to dampen those concerns, noting that despite the most severe housing recession in decades, the agency has $31 billion in capital — $3.5 billion more than it had a year ago.

FHA is "the only participant in home financing services in the U.S. economy that hasn't needed a bailout, hasn't needed (funds from the government's Troubled Asset Relief Program), hasn't needed special assistance and is still completely self-sustaining," Stevens said.

"Without FHA there would be no (housing) market, and this economy's recovery would be significantly slower," he said.

The FHA has insured nearly a quarter of all new loans made this year, and about 80 percent of that business is from first-time homebuyers.

The agency's dominant role in first-time home purchases has raised questions about whether it taking on too much risk. Some have drawn comparisons between FHA and the subprime market, which collapsed due to homebuyer defaults on risky loans.

Stevens rejected such comparisons, stressing that the agency has far more stringent guidelines for the loans it insures.

"Nothing could be further from the truth," he said.

FHA's losses have increased with the unemployment rate as more homeowners default on their loans. About 17 percent of FHA borrowers are at least one payment behind or in foreclosure, compared with 13 percent for all loans, according to the Mortgage Bankers Association.

An independent audit shows FHA's reserves have fallen to $3.6 billion, compared with $685 billion in outstanding insured loans for the fiscal year ended Sept. 30. That's a ratio of 0.53 percent and far below the 2 percent threshold required by Congress.

Stevens credited the requirement with keeping FHA on good financial footing.

"That is why we're still standing while many of others did not survive this tumultuous time," he said.

Copyright © 2009 The Associated Press. All rights reserved.

Tax credit could keep housing market moving

2009-11-16T08:27:00.001-05:00

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Economist says expansion will help more people buy, sell homes
By NANCY SARNOFF
HOUSTON CHRONICLE

The newly expanded federal tax credit for home buyers could be a shot in the arm for the Houston-area housing market.

The $8,000 incentive, which was set to expire Nov. 30, will now run through the end of April.

The new legislation also raises the income limits of those who qualify and allows current or recent homeowners to benefit, too.

“The net effect of the extension and expansion of the tax credit will help boost sales,” said Jim Gaines, an economist with the Texas A&M Real Estate Center.

How much, though, is hard to say.

The National Association of Realtors estimates 350,000 homes nationwide were sold to first-time buyers who probably wouldn't have bought without the credit. That's about 10 percent of the sales expected this year, Gaines said.

He estimates the market could be boosted by at least another 10 percent.

“The only reason I think it could be that much is because of the move-up or move-over buyer,” he said.

The expanded legislation, signed by the President Barack Obama last week, allows people who have owned a house for at least five consecutive years over the past eight to qualify for a credit of up to $6,500.

Vicki Fullerton, chair of the Houston Association of Realtors, sees another benefit to the new credit.

Not only will it allow current homeowners to buy something new, it also could help those relocating to Houston sell their homes in slower markets.

The credit applies to homes priced up to $800,000.

“In some of those other high-cost areas, getting the tax credit will help,” Fullerton said.
‘I can close whenever'

Joseph Bell isn't a move-up buyer, but he still has a good reason to be happy the credit was extended.

For the past two weeks, he's been scrambling to close on his new house before the deadline.

He didn't think it would take more than a month, but dealing with the bank, insurance company and real estate agent has been a lengthy process.

“Now it's not a big issue,” said Bell, 27. “I can close whenever, and honestly, the longer we delay everything, the more money I'll have for the down payment.”

Even with the broader requirements, the impact could be minimal.

The first iteration of the tax credit may already have brought everyone into the market who wanted to be there. “We may have grabbed a bunch of them that might have been buyers in 2010,” Gaines said.
‘Back on the fence'

Economic concerns are also creating uncertainty. Houston's jobless rate inched up to 8.5 percent in September.

“It's putting (buyers) back on the fence,” Fullerton said.

Still, the combination of low interest rates, affordable housing prices and the tax credit could make a “once-in-a-lifetime period” to buy, Gaines said.

Unless the tax credit brings in far more buyers than anticipated, prices aren't likely to see much change.

“Houston has always been a competitive market. Pricing will fluctuate like it always does, but I don't see it spiking or going down either,” said Steve VonHofe, division president of Taylor Morrison, which builds homes for a variety of prices around the Houston area.

VonHofe said more than 50 percent of sales have been stimulus-related.

“I can't say all those buyers wouldn't have bought, but they definitely took advantage of it,” he said.

nancy.sarnoff@chron.com

Report: Entry-level home buyers make up biggest share of market ever

2009-11-16T08:24:00.001-05:00

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Source: The L.A. Times

First-time buyers made up a bigger share of the housing market in 2009 than any other year on record, according to a study released this afternoon.

The number of first-time home buyers rose to 47% of all home sales from 41% of transactions in last year’s study, and was the highest on record dating back to 1981, according to the Washington-based National Assn. of Realtors.

Home sales have been fueled in recent months by cheap foreclosure properties. Both investors and first-time buyers have jumped into the market to snap up these heavily discounted digs.

For first-time buyers, one major incentive fueling the spree has been a tax credit extended last week by the Obama administration and expanded to include move-up buyers. The Realtors group lobbied heavily for the legislation. Paul Bishop, vice president of research for the Realtors group, said in a statement that several factors have been at play, including the tax incentives.

Many independent economists, however, contend that the credits are being given to people who would have bought anyway.

Of those first-time buyers, 55% purchased their home with a loan backed by the Federal Housing Administration.

That news comes on a day on which an independent audit of the FHA’s finances shows that its cash reserves have shrunk to a level below its legal limit, meaning that this pillar of the recent housing market upswing might need a taxpayer-funded bailout.

From the Washington Post:

The audit examined the excess cash the agency must set aside to deal with unexpected losses in its flagship home-buying program, which has played a key role in supporting the housing market.

As of Sept. 30, those reserves had an estimated value of $3.6 billion, a sharp drop from the $12.9 billion available a year earlier, the audit found. The current total represents 0.53 percent of all outstanding single-family-home loans insured by the FHA, well below the 2 percent portion set by law. This is the first time reserves have fallen under that threshold since 1994.

-- Alejandro Lazo