The Perfect Storm

October is the month of crazy weather changes and conditions that led to the October Atlantic storm giving rise to the conditions that were featured in the book and movie of the same name. This October is a perfect brew of conditions that are the most favorable that homebuyers have seen in a long, long time!



First time buyers in particular should be out searching actively for their perfect home. Not only can they take advantage of an $8000 tax credit (money in your pocket), but in Maine can possibly qualify for another $5000 towards closing costs through the Green Money program at Maine State Housing. Combine this with rates near and below 5%.......well it should be a no brainer.



If your credit score is above 640 and you have some money saved, get out there. The house you choose must be closed by December 1, 2009. It takes 4 to 6 weeks to close.....

Update on MSHA program

I have done a little more research and have talked to a lender who is as familiar with the program as can be at this point. It is actually a credit of UP TO $5000 but no more than 4% of the loan amount. The borrower must contribute 1% of the loan amount. Under programs such as MSHA/FHA this can be a gift. The program ends November 30, 2009. Hope that is more clear!

I strongly encourage any borrower to consult with a loan officer regarding whether or not this makes sense.

There are income limits ,also, that apply!

Maine State Housing Offers $5000 to 1st Time Buyers

I just learned today that MSHA (Maine State Housing) has finally launched their "Gift of Green" program. This program offers $5000 that can be put towards closing costs, down payment, or escrow funds. There are also coupons for up to $500 for energy audits. The money is limited to approximately 500 buyers. There are upper income linits. This is in addititon to the $8000 tax credit being offered by the Feds. For more information go to www.mainehousing.org.

Where did the time go or Tempus Fugit!

I have been extraordinarily busy with first time homebuyers in the past week. They are all smart as heck to be out there looking and putting houses under contract while the sun is shining and the rates are still low. My little Wall Street prognosticator friends say all signs point to higher rates, sooner rather than later as the economy bumps and jolts out of its latest swoon.

As I have repeated frequently, there is $8000 out there waiting for you if you have not owned a house in three years. Why not take advantage of that? If you need to work out the credit blues, get hooked up with folks who can help you raise the scores. Believe it or not, you can get a 100% loan with a 640 score through RD guaranteed. Find someone who knows how to find out if you qualify!

The sun is out. Summer is around the corner........the time is NOW!

Spring is Here.........The Perfect Storm

....and all thoughts turn to buying that perfect home! That is right. Did you know that in times of trouble, there are always opportunities? While some sellers are taking it hard on the chin, this is the perfect time to buy that house that you have always dreamed about. With many more listings than there are buyers, the selection in the lower price ranges is outstanding.

If you have not owned a house in the last three years, you are eligible for an $8000 tax credit courtesy of the federal government. If you can't use all of that credit because you don't owe that much tax, you can get a check back for the difference. Wow!

If you own a house now and have decent equity, you can buy a house that better fits your needs. Whether it is larger or smaller, in a better neighborhood or closer to work or school, there is a wide selection at outstanding value. Priced and staged correctly, houses are selling in a timely fashion in most price ranges. An expert opinion by a seasoned real estate professional will give you the information you need to get the best price in this market.

Please don't wait too long. The $8000 is good only for those buyers who close on their house by December 1st of this year. The bargains on houses won't last forever, either!

A $270,000 house for $200,000?!

Are you a first time buyer with time to wait for a house? Take advantage of the situation where a seller MUST sell and needs to sell for less than they paid! If you have a good credit score (over 680) and 3.5% to put down, (you can receive this money as a gift from a third party) you can buy a short sale. I have two first time buyers now who are getting great deals (under 130,000 each) on condos which sold for over $170,000 three to four years ago. We have another buyer who is geting a $270,000 house for $200,000! These are NOT foreclosures. They are in GREAT condition. It may take three months to get approval from the lenders and close, but the only way for the values to go are UP! If you have time and credit, take advantage. PLUS....if you haven't owned a house for three years you can get $8000 in a tax credit. (See my other posting) What are you waiting for????????

Uncle Sam has $8000 for you

If you haven't owned a house for three years, the government will give you $8000 if you close on a home purchase by December 1 of this year. I know it sounds too good to be true, but it is! And, even better, HUD is looking at ways for you to use the $8000 as a down payment and NOT have to wait for your tax return.

Here is a description from the National Association of REALTORS:

The temporary credit is only available for
home purchases made from Jan. 1, 2009 to before
Dec. 1, 2009 and is equal to 10 percent of
the cost of the home, up to a maximum credit
of $8,000. (For example, a home purchased for
$80,000 or more would qualify for the full $8,000
credit while a $70,000 home would only qualify
for 10 percent, or $7,000)
Buyers claim the credit on their federal tax return
to reduce their tax liability. If the credit is
more than their total tax liability that year, the
buyer will get a refund check for the balance.
Only first-time homebuyers can take advantage
of the tax credit. A first-time buyer is defined
under the tax credit as an individual who has
not owned a home in the last three years.
For married joint filers, both must
meet the first-time
homebuyer test
to take the credit
on a joint return.
Eligible properties include anything that will be
used as a principal single-family residence—including
condos and townhouses.
There are income guidelines on the credit. Individuals
with an adjusted gross income up to
$75,000 (or $150,000 if filing jointly) are eligible
for the full tax credit. The credit is phased
down for those earning more and is not available
for those with an income above $95,000
(or $170,000 if filing jointly).
The new tax credit does not have to be repaid
if the buyer stays in the home at least three
years. But if the home is sold before that, the
entire amount of the credit is recaptured on
the sale.
People who purchased homes under the 2008
$7,500 tax credit program will still be required
to repay that credit to the government over a
15-year period.
The American Recovery and Reinvestment Act of
2009 features an $8,000 tax credit for first-time
buyers who purchase a home on or after Jan. 1, 2009
and before Dec. 1, 2009.
Details of the tax credit include:
First-Time Homebuyer
Tax Credit
Consult with your REALTOR® or tax advisor
and visit to
learn more about the tax credit and
state and federal loan programs.