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 The Alliance to Conserve Old Richmond Neighborhoods is sponsoring another workshop to give you the financial know-how for a successful renovation. Topics will include:
* Renovation Lending * Tax Benefits
Qualifying for a Mortgage
* Market Equity * Energy Efficiency
The session will also cover the basics of loan programs, credit, cash required, cash sources, and more. Learn the benefits of renovation lending, buying a home in disrepair, and how to fix it up using unique loan programs.
This workshop is free and open to the public. No reservations required.
 Hello, Richmond! Prices are low, interest rates are low, inventory is plentiful, and the IRS will send you a check for $8,000 if you qualify. Don’t miss this — the affordability index for purchasing a home is the lowest it’s been in 30 years.
To qualify for the $8,000 tax credit, you need to have a contract in on your home by April 30, 2010 and close by June 30, 2010. As the housing market has been showing definite signs of improvement and is considered to be on the mend, it is not anticipated that this tax credit will be extended again. Time to write a contract!
Remember, too, that if you’ve lived in your current home for five of the past eight years, you can qualify for a $6,500 tax credit. That will help you price your home to sell and move on up to a home that suits your current needs…
Call or email me to get started.
 As you may have heard, the very popular Home Buyer Tax Credit has been expanded and extended. This $8,000 tax credit for first-time homebuyers (or those who have not owned a home for three years) has been extended to June 30th, 2010, and has been expanded to include a tax credit of $6,500 to homeowners who have owned their current home for at least 5 years. Wow.
How does it work? First you find a home you’d like to buy. This is the fun part. It’s a buyer’s market right now so you have a nice selection of homes from which to choose, and with a fabulous realtor advocating for your interests, you can negotiate to have your closing costs paid by the seller. This makes it a lot easier to buy your dream home, especially if you choose an FHA loan, with its downpayment requirement of only 3.5% of purchase price. Not to mention that interest rates are incredibly low, which saves lots of money on your mortgage payment every month.
After you’ve closed on your new home, you can either file an amended 2008 tax return or wait until January to file your 2009 tax return and claim your credit using Tax Form 5045. The IRS will then send you a refund check for up to $8,000 (minus any taxes you may owe), according to your eligibility. Remember, it works as a refund, even if you didn’t pay in $8,000 in taxes. Please see IRS.gov for more details.
Your lender, bank or mortgage broker can offer you any of the following types of loans:
Conventional Mortgage
A conventional mortgage is a loan to purchase property made between a lending institution and a borrower without a third-party participant (such as the FHA or VA). Most types of conventional loans are paid off over 15, 25, or 30 years. Conventional mortgages can have a fixed rate or adjustable rate.
Terms of a conventional loan vary among lenders, but generally a conventional loan can be obtained with a down payment of between 10-20% of the purchase price. When the down payment is less than 20%, it is often necessary for the loan to have private mortgage insurance (PMI) or be self-insured to protect the lender.
FHA Loan
FHA (Federal Housing Authority) insured loans offer the most liberal credit qualifying with low downpayments and these loans have become quite popular lately! The Federal Housing Authority insures federally qualified lenders against any default payments by the borrower. While the down payment can be as low as 3.5% of the purchase price, the FHA charges the borrower an up-front mortgage insurance premium (MIP) fee. Prepaid interest, called points, may also be charged by the lender.
VA Loan
If you or your spouse is a qualified veteran, you can apply for a VA loan guaranteed by the Department of Veteran Affairs. Under this program, eligible veterans can receive a mortgage loan up to $417,000 with no down payment. Higher loan balances may require a down payment.
VHDA Loan
The Virginia Housing Development Authority (VHDA) is the Commonwealth of Virginia’s mortgage finance agency. Created in 1972 by the Virginia General Assembly, their mission is to help low- and moderate-income Virginians attain quality, affordable housing. VHDA has developed an array of Homeownership Loan Programs designed to remove the barriers of buying a home and meet the changing needs of today’s low- and moderate-income consumer. Home mortgage loans are available for both first-time buyers and repeat homeowners. Most of these loans are originated by private lenders.
Here is contact information for Alicia O’Brien with Prosperity Mortgage, a Wells Fargo company. Alicia is currently President of the Richmond Mortgage Bankers Association and she is such a delight to work with. She is very knowledgeable and will be happy to get you familiar with how the whole loan process works, and remember, she does conventional, FHA, VHDA, VA loans, etc. You can apply online at her website and she will give you a call, or you can email or call her directly. Get pre-approved today!
Alicia O’Brien, Prosperity Mortgage (a Wells Fargo company).
Office: 804-484-6001
Mobile: 804-855-4590
412 Libbie Avenue, Suite 104
Richmond, VA 23226
https://www.homeloans.com/loans/alicia-obrien/index.page
You’ll likely be responsible for a variety of fees and expenses that you and the seller will have to pay at the time of closing. Your lender must provide a good-faith estimate of all settlement costs. Most of these fees are paid at closing, the day you get the keys to your new home! When you find the home you love and write the offer, we can often negotiate for the seller to pay your closing costs. This reduces the amount of money you need bring to the table.
- Down payment (depending on type of loan)
- Loan origination
- Points, or loan discount fees, which you pay to receive a lower interest rate
- Home inspection
- Appraisal
- Credit report
- Private mortgage insurance premium
- Insurance escrow for homeowner’s insurance, if being paid as part of the mortgage
- Property tax escrow, if being paid as part of the mortgage. Lenders keep funds for taxes and insurance in escrow accounts as they are paid with the mortgage, then pay the insurance or taxes for you.
- Deed recording
- Title insurance policy premiums
- Land survey
- Notary fees
- Prorations for your share of costs, such as utility bills and property taxes
A Note About Prorations: Because such costs are usually paid on either a monthly or yearly basis, you might have to pay a bill for services used by the sellers before they moved. Proration is a way for the sellers to pay you back or for you to pay them for bills they may have paid in advance. For example, the gas company usually sends a bill each month for the gas used during the previous month. But assume you buy the home on the 6th of the month. You would owe the gas company for only the days from the 6th to the end for the month. The seller would owe for the first five days. The bill would be prorated for the number of days in the month, and then each person would be responsible for the days of his or her ownership.
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"I feel I need to climb high on my North side rooftop and shout out a recommendation of my real estate agent, Lisa Jones Crowley."
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