Looking to Buy a ‘Fixer-Upper’? The 203K Program Can Help Make it Happen
March 5th, 2010 categories: Buyers, Home Improvements and Design, Money and Mortgages, Real Estate News, Sellers
Today’s real estate market presents a lot of opportunity for interested home buyers- with the growing supply of foreclosure properties and short sales, there are certainly some great deals to be had.
The problem in buying a “distressed” property, however, it is that these homes are often damaged due to lack of maintenance or prolonged vacancy. So while the price tag might be right, the investment necessary to make the home livable might push buyers well beyond their budgets.
As a member of the Top 5 in Real Estate Network, however, I have access to the latest information on mortgage and financing options. One particular option that is providing hope for many of today’s home buyers is HUD’s FHA 203k program, a loan that enables buyers to not only secure a mortgage, but receive the funds necessary to improve the home as well.
Here are five facts about the 203K program to help you determine if it might be the right fit for you:
1. The FHA Section 203k program was originally introduced by HUD in 1978 as a program to rehabilitate and repair single-family homes. The 203k is a single mortgage loan that provides funds to purchase a home and make repairs and improvements. A simpler version, the Streamline 203k, was introduced in 2005. This version offers less documentation and lower loan fees for renovations that don’t exceed $35,000.
2. In today’s market, conventional financing, which often requires 20% – 25% down on a home and a perfect credit score, is often hard to come by. However, with less-than-perfect credit and as little as 3.5% down, you can get an FHA loan, such as the 203K
3. The 203k approval process is a little more complicated than a conventional loan. For example, you’re required to secure renovation costs from an established, licensed contractor and deliver a package of the proper paperwork to the lender to secure FHA approval. Make sure you work with an agent- like a member of Top 5- who is well versed in the 203k program, or who can connect you with a lender that is.
4. The 203k loan is not just for foreclosure or distressed properties. More than 80% of the homes in America were built before 1990- that’s over 100 million homes that are 20 years old or older- and almost everyone is in need of some amount of repair and updating. The 203k loan, therefore, offers advantages for almost any home purchase.
5. The 203k loan is not just for home purchases but can be used to finance a home improvement, as well!
For complete details on the HUD 203k program, you can visit www.fhainfo.com/fha203k. Please feel free to email me, too, since this information can be hard to digest and confusing. -Or you can also comment on this subject on my blog!
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Is Buying a Foreclosure Really a Bargain?
February 27th, 2010 categories: Buyers, Money and Mortgages, Real Estate News, Sellers
Is Buying a Foreclosure Really a Bargain? What You Need to Know
In today’s tumultuous economy, it’s no surprise that there are foreclosure properties to be found in just about every community across America- even ours. While a terrible hardship for homeowners to endure, foreclosures can present a unique opportunity for first-time home buyers and investors looking to purchase a “bargain-priced home” with the potential for building instant equity.
As an experienced real estate professional, I want to advise you to tread carefully when it comes to foreclosures- they might not be quite the bargain you expect. Here are some important facts you need to know before venturing out into the foreclosure market:
* Homeowners faced with foreclosure are understandably stressed and resentful, which can often lead to neglecting routine maintenance on a home. Sometimes, even deliberate damage is done. Assessing the home’s condition, therefore, is a must.
* Foreclosure properties have often been vacant for an extended period of time. Look for problems caused by damp conditions, such as mold.
* Get a thorough home inspection before bidding on the property. Once the damage/disrepair of the home is assessed, factor this in when bidding on the home.
* Contact a real estate professional- like me, a Member of the Top 5 in Real Estate Network -who is well steeped in the community and can provide information about pre-foreclosure properties, that is, homes that have been scheduled for foreclosure but have not yet gone to auction or been sold off. These homes need to be sold quickly as owners are trying to avoid foreclosure and its impact on their credit.
* Last but not least, go to www.hud.gov for information on how to buy homes acquired by the U.S. Department of Housing and Urban Development as a result of foreclosure action on an FHA-insured mortgage. The site also has information on special programs and opportunities for teachers, law enforcement officers and others.
While buying a foreclosure property takes patience and research, the results can be well worth your time and effort. For more information, please email me, and please pass this on to anyone you know who might be interested in exploring a foreclosure purchase.
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A Taste of Oahu at Trader Vic’s
February 24th, 2010 categories: Upcoming Community Events
February 24th from 6:00 – 9:00pm!
Relax to island rhythms through Hawaiian music, culinary delights, fresh lei, prize giveaways and more. Discover vibes of the island of Oahu with live entertainment from Hawaii and a special pupu (appetizer) menu crafted by the Hilton Hawaiian Village Executive Chef Jeffery Vigilla. Hurry! Chef Jeff’s menu will be featured February 22-28th!
Trader Vic’s Lounge – Poolside at the Beverly Hilton: 9876 Wilshire Blvd., Beverly Hills, CA 90210
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Happy Chinese New Year!
February 16th, 2010 categories: Home Improvements and Design, Kathy's Corner, TalkKathy
As a lover of good fortune and feng shui, I wish you a Happy Chinese New Year! It is a must that I share some of the fascinating taboos and superstitions of Chinese New Year. I also confess that I practice many of these traditions in my everyday life too. If you come into my office you’d see Vibrant red, Asian elements throughout. You’ll also find everything arranged according to the precepts of Feng Shui. I love the energy it gives me. Call it superstition or coincidence but it works for me!
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Home Buyers Rush to Take Advantage of Tax Credit
February 12th, 2010 categories: Buyers, Money and Mortgages, Real Estate News
Home Buyers rush to take advantage of Tax Credit before it’s gone! April 30, 2010 is the deadline. As long as you get into a binding written contract by April 30th, you will have until July 1, 2010 to close the deal!
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Top 10 Most Romantic Homes
February 11th, 2010 categories: Buyers
In the Spirit of Valentine’s Day, Here’s a list of the top ten most romantic homes for sale around the country. Don’t forget who to call if you want to buy one of these Lovely homes! Kathy
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Going Green? 3 Tips To Help Make That Happen!
June 12th, 2009 categories: Home Improvements and Design
Today many people are familiar with going green, but a lot of people don’t know 
where to begin. Here are 3 easy tips to help begin that process that wont cost you a lot of money:
- Efficient Lighting - A) Take a look at the lighting in your home and see if you’re using older, inefficient bulbs. BR type bulbs, with the slight bulge designed to focus light where needed, are exempt from efficiency and standards. B) Once you have replaced the incandescent bulbs with CFL’s in your home, consider replacing older specialty lighting with new lamps (a bit more expensive but worth it).
- Stay Warm This Winter – A) Leave shades and blinds open on sunny days, but close them at night to reduce the amount of heat lost through windows. B) A bit more expensive, but worth it! Insulate your water heater with a fitter water heater blanket. Insulate at least the first 6-10 feet of hot water supply pipe with pipe insulation and set your hot water heater at 120 degrees.
- The Great Dishwasher Debate – A) Don’t rinse your dishes under running water, instead scrape them and put them in the dishwasher. Skip the dry cycle and use the “energy saver” or “light wash” setting. B) Install a faucet aerator that can save 3 to 4 gallons per minute when you turn on the tap. If you hand wash dishes, don’t let the tap run. Scrape food off the dishes, soak them in a soapy wash bin and then rinse in another bin.
For more Green tips, please email me at: kathy@kathyvilla.com
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5 Ways First-Time Buyers Could Miss Out On This Year’s Tax Credit
June 11th, 2009 categories: Buyers, Real Estate News
As a leader in real estate, I am repeatedly asked specific questions about today’s market, especially in today’s economy. In an effort to provide more information to my community, I am sending you this Top 5 Real Estate Social Networking System “e-article,” in which I provide useful real estate information to my real estate networks. If you find the enclosed information beneficial to your family and friends, I encourage you to forward it to your “social network” as well.
5 Ways First-Time Buyers Could Miss Out On This Year’s Tax Credit:
The 2009 First-Time Home Buyers Tax Credit passed by Congress this year just might be the best financial opportunity available to qualified home buyers in a generation. The new credit is retroactive to January 1, 2009. Unlike the 2008 package, this is not a loan. Eligible first-time buyers receive an $8,000 tax credit from Uncle Sam that does not need to be paid back.
Sweetening the Pot, the law states that a first-time buyer is not necessarily a first-time buyer; the tax credit is available to any buyer who has not owned a home for the past three years. But the opportunity comes with some caveats. Here are five ways you could potentially miss out on this golden opportunity:
- Miss the buying deadline -The law states a home must be purchased between January 1 and November 30 of this year. But that means the transaction must close – not simply be in progress-before December 1.
- Delay on new construction -Because you must actually close on a home by November 30, 2009, you need to be careful about new construction estimates. If you want to buy a newly-built home, you should buy one that is either already completed or is about to be completed. New construction buyers must occupy the home by the deadline date.
- Misunderstand your eligibility – The right to use the tax credit is gradually phased out as adjusted gross income (AGI) rises from $75,000 to $95,000 on a single return or $150,000 to $170,000 on a joint return. If unsure of your eligibility, check with your tax advisor.
- Fail to plan ahead - There is an exception to the no-pay-back rule: You do have to repay the $8,000 if you sell the house within three years of the time you buy it. The home must be your principal residence and there is a recapture provision if you move out or sell before three years.
- Muss the boat for no good reason – Inertia…fear of rocking the boat…just-too-busy syndrome. Take advantage of today’s buyer’s market and talk to a real estate professional – Call me! and find out if and how the tax credit applies to your particular situation. Time is running out to take advantage of this financial incentive.
As a Member of the Top 5 in Real Estate Network, I am committed to providing the most up-to-date information on the details surrounding the First-Time Home Buyers Tax Credit. Please email me at Kathy@kathyvilla.com with any questions you may have and please forward this article to any family and friends who may qualify for this great opportunity!
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Beverly Hills Lease Reduction! 9166 Hazen Dr, BH, CA 90210
June 10th, 2009 categories: Buyers
REDUCTION: Life.Style.Complete: 9166 Hazen Dr., Beverly Hills, CA 90210 – Reduced: $22,000 from $30,000
The perfect turnkey lease fully-furnished and fully equipped with state of the art amenities. This beautiful light & bright 2001 home was designed by famed architect Richard Landry. The home has large public rooms, mahogany and marble floors, several French doors leading to lovely garden area, a lush pool with waterfall and jacuzzi, an outdoor living room with fireplace, and BBQ area. The grand staircase leads you to the master bedroom with his/her bathrooms and closets and 4 bedroom suites. 6th Bedroom/bathroom downstairs. Experience European tradition with modern amenities.
Click for Virtual Tour – www.9166hazen.com
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Economic Calendar Weekly Update!~
June 9th, 2009 categories: Money and Mortgages
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Weekly Economic Calendar For The Week of June 8– June 12 |
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