New info on $8,000 tax credit.

HUD now allows First Time Buyers the option of using the $8,000 tax credit up front with FHA financing. The Buyer must still come up with the 3.5% downpayment, but the tax can be used to pay any closing costs. The lender would make a bridge loan to the Buyer. In Kansas at this time there are no lenders who give the bridge loan, but that could change and I will let you know.

Water retrictions

Remeber today, June 1st, in Hays watering restrictions go into effct.
You cannot water between Noon and 7 PM. Violators will be ticketed.

USDA Reduces Credit Score Requirements

Wow, what good news!! According to Gateway Mortgage Group the USDA has reduced credit scores (FICO) to 580. Soo, if you have been denied a loan to purchase a home….things have changed! Call me today because interest rates are still low and if you have a credit score of 580 or higher I can get you into a home. Call today 623-1634.

Qualifying criteria is changing

Wells Fargo has changed the FICO Score from 620 up to 720. The total debt to income ratio has changed from 45% down to 41%. So if your going to get a home loan better make sure you have a high FICO score and low debt to income ratio.

Beware of bad contractors

I recently had a door installed in my home and the work was sub-standard. In fact, I am having it re-installed correctly. Beware and take care in selecting a contractor. Even though they give you references take the time and go look at their work. We called the references this contractor gave us and they had high praise. We now suspect they were fabricated customers. I paid $ 900 and now I am paying almost $ 1500 to have it done correctly. Just choose your contractors wisely. We thought we did, but what a BIG surprise.

Student housing in Hays, KS

Buy your FHSU student a home and gain some tax advantages! Deduct your trips to see your student because you will  be checking on your investment property. Rent to some friends and help make the payment on the home. When your student graduates sell the home and make some money. Others are doing it why don’t you? Give me a call Errol Wuertz. I’ll help you out 785 623-1634.

The Hays Market

While the Nation’s real estate is depressed it is not in Hays. We have Buyers, but inventory is low. There are great opportunities for First Time Buyers. First Time Buyers can get grants and tax credits. Interest rates range from 4.75 to 5.5 depending on the loan amount. Now is a good time to buy! Prices in the range of $85,000 to $130,000 appear to be holding steady.

Interest rates are down again!

Depending on your FICO score interest rates are down again. Check with your lender to get the latest rates. FHA has raised their loan limits so consider an FHA loan to buy your dream home. If you are a veteran or a member of the reserves or National Guard you could qualify for a VA loan. Now is the time to buy a home!

Freddie & Fannie

Daily Real Estate News | February 18, 2009 | Share
Fannie and Freddie Plan Big Fee Increases
Fannie Mae and Freddie Mac are both toughening their credit score and down-payment rules as of April 1.

In response, major lenders are already factoring in the higher fees, which reduces the effectiveness of the stimulus efforts.

Under the new guidelines, buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score.

Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a 1 percent add-on.

Refinancers who take cash out will be charged as much as three points if they have a low to moderate equity stake.

Freddie spokesman Brad German says the loan categories and credit risk combinations targeted by these fees “default at four to eight times” the rate of other mortgages backed by Freddie. “We have to manage these risks appropriately,” he says.

Source: Washington Writers Group, Kenneth R. Harney (02/15/2009)

Listen up 1st Time Buyers

President Obama will be signing the new stimulus bill on Tuesday. What that means if you are a 1st Time Buyer is that you will get an $ 8,000.00 tax credit. So get busy, get prequalified by your lender and find the home of your dreams1