It’s very easy for first time home buyers to get caught up in the stream of misinformation floating around on the internet. Unfortunately those that do may be missing the opportunity of a lifetime to own their first home.

Misinformation may be keeping you from owning your first home

Diana Olick from CNBC’s Realty Check shares some interesting facts about how your credit score affects your interest rate and monthly payments. (You might be surprised!)

Zero down payment loans for first time home buyers

We’ve helped thousands of families find the right first time home buyer and down payment assistance programs. They all have one thing in common, they contacted us.

For first time home buyers buying their first home in California may never get any cheaper than this. Several housing experts are predicting that this year will be the last chance for bargain hunters to cash in on the best deals of the weak housing market.

New tax credit for California first time home buyers

If this were information from the National Association of Realtors you would have reason to be skeptical but these predictions are coming from economic “experts” , presumably on salary and don’t have commissions tied to it.

Zero down payment loans for California first time home buyers

Watch this video as one of the experts from Fortune Magazine shares her thoughts on why 2012 will be a good year for first time home buyers

Incentives for California first time home buyers

Many of the bank-owned properties currently coming out of the foreclosure pipeline are being snapped up by investors who are fixing them up and renting them out — often to those who were displaced by the foreclosure of their own home

Home buying much cheaper than renting

According to Trulia.com many cities in Southern California  are seeing rents increase and home prices flattening.

We have helped hundreds of first time home buyers and their families take advantage of the available first time home buyer programs. They all have one thing in common, they called us.

Read the complete article from CNNMoney

If you’re a first time home buyer who has decided your first home will be a new home, here are some first time home buyer tips on how to get the best deal.

Over your lifetime chances are one of the homes that you own will be a new one, so why not the first one?

Buying a new home can be an exciting experience for California first time home buyers. It has that same appeal that buying a new car has, new home smell and everything just like you ordered.
But if you’re going to do it, do it right! so you not only get the best deal you’re also  protecting your interests:

Here are some tips for California first time home buyers who want the best deal possible when buying a new home. Homebuilders have to sell homes to stay in business, but they’re also businessmen and will make their decisions on those grounds, so the better prepared you are the better deal you’ll be able to negotiate.
Tip #1 – Don’t bring a knife to a gunfight – The builder salespeople can be very nice BUT they work for the builder not you. Your first visit to a new home community should always be with your Realtor. This is your first time at the dance and you need a partner who will represent your interest first.

Tip #2 – Buy when the builder most needs to sell – Homebuilders are usually publicly traded companies, so they have stockholders they have to keep happy. You can get the best deal on a new car if you buy close to the end of the month. With new homes the incentives will flow if you can close at their quarter or year end. (It’s their fiscal year not calendar year)

Tip #3 – Don’t grind on price – Builders have more homes to sell and if they dramatically lower their price to you they will have appraisal problems on future sales. Besides if you follow Tip #2 there may have been price reductions already.

Tip #4 – The more flexible you can be the better the deal – Many builders have “standing inventory” (homes that were originally built for someone else) and these homes cost them money every day they go unsold. Some are move in ready, others only need flooring which you’ll be able to choose. Plus they offer you the chance to move into your new home sooner.

Tip #5 – Beware the upgrades trap – For most homebuilders selling you upgraded flooring and countertops etc are their biggest profit makers, but the dollars in upgrades they offer may not match the actual value. We bought our current home and were quoted more than $30,000 for the flooring we wanted. I went to a local flooring contractor and did it all for $7500. The builder will usually throw out the upgrades as a means of enticing you to use their preferred lender and just like with Realtors in Tip #1, using their lender might have you bringing a knife to a gunfight.

Tip #6 – Don’t leave down payment assistance on the table – Many of the homebuilder’s preferred lenders don’t offer the full menu of first time home buyer incentives, 100% financing, first time home buyer tax credits  and down payment assistance programs. If having these programs is important to you remember Tip #5, in other cultures it’s called bribery.

For more information on how to use first time home buyer programs and down payment assistance to buy a new home, contact us.

It’s time to get excited about buying your first home in California!
It wasn’t that long ago that first time home buyers in California were without choices when it came to buying their first home. California’s inflated housing values kept most first time home buyers on the sidelines, as did their lack of funds for down payment.

How times have changed!

In most areas of California first time home buyers can actually own a home for less than they’re paying for rent and they can take advantage of incentives for first time home buyers that didn’t exist just a few years ago:

• Zero down payment loans for first time home buyers
• 1% down payment assistance for California first time home buyers
• Down payment assistance for California teachers
• Down payment assistance for state, county and municipal employees

Now there’s a new tax credit for California first time home buyers!

In an effort to further help first time home buyers, the State of California has just introduced a new first time home buyer tax credit. In 2010 thousands of first time home buyers took advantage of the federal first time home buyer tax credit. Now first time home buyers in California have a similar tax credit.
Here’s how it works:

The best thing about this tax credit? You can claim it for as long as you own or live in your first home. Contact us for details
The budget crisis in California forced many counties to suspend their tax credit program, so the state has stepped in and like those programs there are income limits (based on family size) and sales price limits (for new and resale homes).
I’d like to list all the details but then this would be a book and not a blog. For more information on the first time home buyer tax credit in your area, Contact us.

It’s something we’ve heard before, No Money Down for first time home buyers and most first time home buyers think that no money down went the way of NINJA (No Income, No Job, Assets) loans.

But, First time home buyers in many parts of Riverside County may now be eligible for no money down financing  courtesy of the USDA No Money Down Rural Loan program.

This CNBC video talks about how the USDA program is making a difference in Phoenix and it’s making a difference for hundreds of families in Riverside County as well.

For more information on the USDA No Money Down home loan program, Contact us

Like Diana Olick from CNBC said: “It’s the way to go!”

If you’re wondering what other first time home buyers are thinking, here’s a simple infographic to break it down for you.

See it’s not that tough!

How hard can buying your first home be? First time home buyers have access to the homes for sale on sites like Zillow, Trulia, Realtor.com and almost every Realtor in the country has given you what seems like the “keys to the kingdom” so you can “search for homes like an agent”.

If it were that easy, you would find your first home in the supermarket check out aisle, next to the National Enquirer and candy bars.

Buying your first home is not an impulse buy and shouldn’t be. It requires a commitment to being a homeowner and stepping carefully to avoid the landmines and potholes that await.

I’m not a Realtor, so this not a self-serving post, but one of my favorite resources is AgentGenius and here are their thoughts on “The Modern Value of a Realtor”

First: Making all of the data make sense

We can make sense of all of that data and put it in a meaningful context in a way that makes it easy for a particular client to understand. For an agent that actively tours in their market and engages daily with buyers, sellers, lenders, appraisers, and other real estate professionals it’s so easy that we sometimes don’t realize how valuable it is to take a huge amount of data and distill it to the relevant, essential and important information. This isn’t meant to sound patronizing to home buyers and sellers. They aren’t babies who need to be gently spoon-fed an easy to digest puree of real estate information. But home buyers and sellers have jobs, lives, families, children, pets, travel plans and hobbies – and they can’t put all of those things on pause to buy or sell a home.

Second: Real Estate will always be about People
It’s about people buying and selling homes. Yes, square footage matters. Yes, location matters. Yes, bedrooms, bathrooms, school-districts and plenty of other data points factor into the decision. Research1 has shown that the greater number of data points involved, the worse our conscious minds are at making the decision. It’s the ability to trust your gut, and have someone that you trust – an expert – to cross-check that feeling by being able to turn and say “I can’t put my finger on it, but I really think I like this home. What do you think?” Moments like that are when real estate is more about the people involved than the home itself. While I might ask Siri where to help me hide a dead body (just for fun and games, I assure you), I can’t envision the day when people are comfortable asking her if they should buy this home or that home. There are too many intangibles for a computer program to ever capture the quirky, bizarre, hard-to-describe but important details in buying a home.

Third: Websites only capture the easy data
Beds, bath, Square Feet, Date of Construction, Schools, etc. Those are the easy fields to capture, display, sort, and generally manipulate. But what about those items that are highly subjective, periodic or otherwise hard to easily classify and assign a value to? What’s light and airy to you may be a cave to me. What about the house next to the high school field used for band practice late into the evenings – but only during certain months of the year? Can you imagine the number of data fields it would take to capture every possible aspect of a home throughout a year? And if you can, see point two above.

Fourth: Negotiating and Navigating Escrow
Ever gone white water rafting without a guide? If you have, and you’re still alive to tell the tale, then you are both insane and lucky. It’s common sense to hire a guide when you are negotiating and navigating wilderness that is unknown to you – particularly when your day job involves sitting in a cubicle and wearing stylish shoes. Plunging into the river called escrow without a Real Estate agent to smartly negotiate and navigate on your behalf is inviting disaster. Real estate is filled with wildly unpredictable animals, well-camouflaged dead-ends, and false mirages – the cost of a simple mistake can be far greater than it originally appears. Just like the wilderness!

We’ve helped hundreds of families make the move from renter to homeowner and they all have one thing in common, they contacted us.

Not a day goes by there isn’t some sort of scam that rears its ugly head. This one has nothing to do with getting your first time home buyer loan, but it can affect how much money you will have available.

OK,  SNOPES SAYS OK AND AT&T SAYS SAME FOR THIS ONE WARNING Costly NEW AREA CODE: READ AND PASS ALONG  809 Area Code We actually received a call last week from the 809 area code. The woman said ‘Hey, this is Karen. Sorry I missed you- get back to us quickly. I have something important to tell you.’ Do Not DIAL AREA CODE 809,284, AND 876 from the U.S. or Canada . THIS IS VERY IMPORTANT INFORMATION PROVIDED TO US BY AT&T. DON’T EVER DIAL AREA CODE809 This one is being distributed all over the US … This is pretty scary, especially given the way they try to get you to call. Be sure you read this and pass it on. They get you to call by telling you that it is information about a family member who has been ill or to tell you someone has been arrested, died, or to let you know you have won a wonderful prize, etc.. In each case, you are told to call the 809 number right away. Since there are so many new area codes these days, people unknowingly return these calls. If you call from the U.S. or Canada, you will apparently be charged a minimum of $2425 per-minute. And you’ll also get a long recorded message. The point is, they will try to keep you on the phone as long as possible to increase the charges. WHY IT WORKS: The 809 area code is located in the Dominican Republic . The charges afterward can become a real nightmare.  That’s because you did actually make the call. If you complain, both your local phone company and your long distance carrier will not want to get involved and will most likely tell you that they are simply providing the billing for the foreign company. You’ll end up dealing with a foreign company that argues they have done nothing wrong. Please forward this entire message to your friends, family and colleagues to help them become aware of this scam. AT&T VERIFIES IT’S TRUE : http://www.att.com/gen/press-room?pid=6045 SNOPES VERIFIES IT’S TRUE: http://search.atomz.com/search/?sp-q=area+code+809&x=26&y=15&sp-a=00062d45-sp00000000&sp-advanced=1&sp-p=all&sp-w-control=1&sp-w=alike&sp-date-range=-1&sp-x=any&sp-c=100&sp-m=1&sp-s=0

First time home buyer incentives in 2012, are there any left? If not the number one question we get asked, it’s certainly number two.
First time home buyers who are searching for the first time home buyer incentives available in 2012 are being told NO., but it’s just not true!

The tough economy has certainly changed the landscape for first time home buyer incentives in 2012 , but there are a number of incentives still available to qualified first time home buyers in California
California first time home buyers interested in the first time home buyer incentives in 2012 will find that many of the programs they thought had disappeared are still available.
One of the casualties of California’s budget crisis was the appropriation of the city redevelopment funds by the State. As a result, most city’s first time home buyer programs were left without funding, but the State of California has stepped in with a home loan program that is going to help at least 6000 families this year.

• 3 Myths about first time home buyer incentives

What other first time home buyer incentives are available in 2012 for California first time home buyers?

• Certain areas of California are eligible for 100% financing through the government’s USDA home loan program (and NO it doesn’t have to be a farm)

• California state employees who lost the CalPers Home loan program have a replacement program, as do California teachers who no longer have the CalStrs home loan program.

County and Municipalities who were forced to cut home loan programs, now have options for their employees as well.

If you thought that first time home buyer incentives were for loan income families only:

• First Time Home Buyers in San Diego County, CA a family of 2 can make up to $77,550 a year and a family of 3 can make up to  $86,200.

• First Time Home Buyers in Orange County, CA a family of 2 can make up to $87,200 and a family of 3 can make up to $96,850.

CALHFA has recently announced a first time home buyer tax credit that will be offered in the near future.

Make sure to register or subscribe via the RSS feed, so you’ll be among the first to know about new incentives available for first time home buyers in 2012.

We’ve helped hundreds of first time home buyers take advantage of the first time home buyer incentives available in 2012 and they all have one thing in common they contacted us.

In subsequent posts, we’ll share the first time home buyer incentives available in 2012 at the County and City levels.

Many first time home buyers feel that a bankruptcy is a “life sentence without the possibility of parole” and that owning their first home will be forever beyond their reach.

Did you know you could be in your first home in as little as two years after your bankruptcy?

First time home buyer loans have some of the most lenient guidelines for buying your first home after bankruptcy. Bankruptcy is a major event in a first time home buyers life, but careful planning, credit rehabilitation can make homeownership a reality.

For more information on buying your first home after bankruptcy

For more videos about managing your first time home buyer credit

First time home buyers who are also members of the CalStrs retirement program, found themselves without a first time home buyer/down payment assistance program when CalStrs announced they were suspending all new loan applications.
Read the complete press release
The CalSTRS Home Loan Program began in 1984 as a means to help members find affordable financing for homes in California. Thousands of teachers used the program to buy their first home and many are searching for an alternate source of down payment assistance.

Rents are rising and in many markets homeownership is cheaper than renting, yet many teachers are still renters because they no longer have the down payment assistance that was available under the CalStrs home loan program.

Though the CalStrs home loan program is gone, there is a down payment assistance program that 6000 families will use to buy their first home in 2012 and many of them will be CalStrs members and teachers just like you.

In the interest of full disclosure, this program is not affiliated with CalStrs in any way and is not limited to teachers or administrative employees, but it is sponsored by the State of California Housing Finance Agency (CALHFA) through it’s participating lenders for first time home buyers.

• For more information on down payment assistance for teachers

Highlights of the program for California teachers who are first time home buyers:
1) Loan amounts as high as $729,750 (FHA limit by County)
2) Low down payment requirements – as little as ZERO down payment
3) Can be used with FHA, VA and USDA loan programs
4) Down payment assistance in the form of a “silent second” (no payment) mortgage.

• For more information on down payment assistance for CalPers members

Even though the return of the CalStrs program is still up in the air, teachers and CalStrs members can take advantage of today’s favorable market conditions even if they don’t have enough money for down payment.

We’ve helped hundreds of families make the move from first time home buyer to first time home owner (many of them CalStrs members) and they all have one thing in common, they contacted us.

The suspension of the CalPers Home loan program has many first time home buyers who are also State, County or Municipal employees in California feeling left out.

Rents are rising, homes are very affordable and interest rates are at their lowest levels in 50+ years, yet many CalPers members are still renters  because they no longer have the down payment assistance that was available under the CalPers program.

Even though the CalPers home loan program is gone, there is a down payment assistance program that 6000 families will use to buy their first home in 2012 and many of them will be CalPers members just like you.

In the interest of full disclosure, this program is not affiliated with CalPers in any way and is not limited to state or municipal employees, but it is sponsored by the State of California Housing Finance Agency (CALHFA) through it’s participating lenders for first time home buyers.

The program is available in all Counties in California and qualifying income limits are based on the County where you’ll live. Click Here to see the income limits for your County. You can see by these income limits that many CalPers members who weren’t eligible for other down payment assistance programs now have a program they can use.

Highlights of the program for California first time home buyers:
1) Loan amounts as high as $729,750 (FHA limit by County)
2) Low down payment requirements – as little as ZERO down payment
3) Can be used with FHA, VA and USDA loan programs
4) Down payment assistance in the form of a “silent second” (no payment) mortgage.

For more information on this down payment assistance program

If you’re a CalPers member, who’s tired of renting and is ready to make the commitment to become a first time home owner, then this may be the program you’ve been waiting for.

Even if you don’t need the assistance for down payment it can be used for closing costs and you can save your funds to help make your house a home.

We’ve helped hundreds of families make the move from first time home buyer to first time home owner (many of them CalPers members) and they all have one thing in common, they contacted us.

If you’re a California first time home buyer, there’s a problem and we need your help to to fix it.
The California Housing Finance Agency has millions of dollars for first time home buyer down payment/closing cost assistance and they need your help to spend it.

If you had been a first time home buyer in 2009 and 2010 you had the first time home buyer tax credit. While it may have been panned by the critics, it did exactly what it was supposed to do:
Give first time home buyers a dollars and cents reason to buy their first home and it increased home sales by 20-30%.

But it’s 2012 and we know first time home buyers need help too. If you’re like most first time home buyers in California the NUMBER ONE obstacle for you is the money needed for down payment.

Well, the State of California has a down payment assistance program that is helping hundreds of first time home buyers and their families achieve their dream of homeownership. How many first time home buyers is it helping? Here’s a snapshot from April 11,  455 families who otherwise would have continued to overpay for rent will become first time home owners. CALHFA estimates they will help more than 6000 first time home buyers become first time home owners this year.
It’s Crazy! Homeownership is cheaper than renting

Unlike many of the down payment assistance programs which are intended to help low income first time home buyers, the California down payment assistance program targets moderate income first time home buyers in all California Counties. For more information on the income limits in your County, Click Here

For more information on the California first time home buyer down payment assistance program Contact Us. We have helped hundreds of first time home buyers with down payment assistance and they all took the first step, they called us.

First time home buyers in Temecula, Murrieta and all of Southwest Riverside County and North County San Diego got this bit of good news in their morning paper.

“Monthly payments on a house are now cheaper than monthly rents on a similar house in most of North San Diego and Southwest Riverside counties, according to an analysis of county-supplied and Realtor data by the North County Times.”

According to the NCTimes article: “Some homebuyers get loans backed by the Federal Housing Administration, allowing them to make a 3.5 percent down payment, which means they pay more in monthly payments. Despite that, those homeowners are still paying less than rent in half of all North County ZIP codes.” At least 70% of our market is FHA/VA or USDA loans which reflects the preponderance of first time home buyers who are doing WHAT? THEY’RE RENTING!

“In the French Valley ZIP code (92596), a house rents for a median of $2,055 a month, but a mortgage payment plus taxes on a median-priced house in his ZIP code on his FHA loan would cost $1,232, a 40 percent discount.” That payment might not include insurance and mortgage insurance but even with those included it’s still less than rent.

“No one really knows how long this unusual market will persist. Already a shortage of listings is creating bidding wars that could propel prices up. But the key to the trend is sub-4 percent interest rates, according to Nathan Moeder, a principal at The London Group in San Diego.” Bidding wars have been going on since 2007 but the key is interest rates. Interest rates impact long term affordability more than every other factor, including price. If you’ve been in this business for a while you know that interest rates can turn on a dime (1994 and 2004), so this long term affordability window won’t be open forever.

(Source: Eric Wolff North County Times, Escondido, Calif. (MCT) — The housing market has gone cockeyed.

For more information about down payment assistance programs available for first time home buyers in Southwest Riverside and San Diego Counties, Click Here

On April 1, 2012 the bar was raised for first time home buyers and a credit score of 640 is now the baseline for first time home buyer credit.

You can still be approved for a first time home buyer loan with a lower score, but a little credit restoration can go a long way to making your dream of homeownership a reality at an affordable interest rate.
If you’re not careful restoring your credit can have a lot of land mines which in the end will do more harm than good to your first time home buyer credit. Understanding the difference between “common sense” and “FICO score sense” will save you a lot of time and money.

Watch this video from Linda Ferrari, a credit restoration expert, on the top 10 first time home buyer credit myths

We as lenders want to make loans to first time home buyers, but we want to make those loans to families who will pay us back. Your first time home buyer credit is your history of paying your creditors and is an important part of our decision making.

For more information on first time home buyer credit, watch our video series

Need help with your credit? Contact Us

First time home buyers in today’s real estate market have to be very conscious of their credit. Simply put the better your credit score, the better chance you will have of getting your first time home buyer loan at a good interest rate.

Unfortunately many first time home buyers are using some of the online sites, like AnnualCreditReport.com and CreditReport.com. According to a report by MSNBC, if you’re a first time home buyer using one of these sites, your credit may have been hacked and is being sold.

“Well trafficked websites like AnnualCreditReport.com, Equifax.com, or CreditReport.com are being hacked and consumer data stolen from them.”

“The credit profiles of individuals with strong credit scores (750+) are being pilfered and sold for as much as $80 in underground, online black markets.”

“It shows how people with good credit and a net worth now have a bull’s-eye on their backs,” Clements, from Internet security firm Cloudeyez.com told MSNBC on a virtual tour of a site dedicated to the sale of credit profiles.”

Click here to read the complete MSNBC report

If you’re in the market for your first home the ONLY one who should be running your credit report is the first time home buyer lender you choose. Mortgage lenders use different scoring models than the online sites and it’s our scores that count.

Click here for more information about first time home buyers credit

If you’re a first time home buyer who needs help with credit restoration, contact us and we’ll connect you with a professional who will get your credit on the right track.

First time home buyers in today’s market, among other things, have to pay close attention to how they manage their credit.

Unfortunately combining internet misinformation and advice from well meaning friends and family can have disastrous results on your first time home buyer credit.
It would seem like common sense that if you have an account on your credit report that you’re no longer using, the prudent thing to do would be to close that account.
But common sense and FICO “score sense” can be very different and not knowing the difference can have “unanticipated consequences” on otherwise good first time home buyers credit score.
Buying your first home is the most important financial decision you will make. The long term investment you’re making will shape your financial future for years to come, so “common sense” says to consult with experts when making decisions about your first time home buyer credit.
I asked my business partners at Dedicated Credit Repair to share their advice on whether first time home buyers should consider closing accounts.
“Closing a positive credit line (referred to as a tradeline by lenders) is one of the quickest ways to almost immediately lose FICO score points.”
“First, the FICO score has multiple calculations that are affected negatively by the action of closing an account. 30% of your FICO score relates the idea that a consumer should ideally have 3-5 open tradelines at 35% or lower balances to limit ratios. If you close an account, you can essentially lose all the positive payment history that was being reflected on that account because the account no longer looks good on a credit report.”
“Another reason why your score will be negatively impacted by closing an account is that the FICO score calculates 15% of it’s weight on the idea of account SEASONING or “length of credit history”. So closing older accounts, in effect, shortens your credit history and reduces your score. Read More…

Click here for more first time home buyers credit information

Need help with your first time home buyers credit? Click here and we’ll help you schedule a free consultation with a credit restoration specialist.
We’ve helped hundreds of first time home buyers become homeowners and they all have one thing in common, they contacted us.

There are no lack of predictions for first time home buyers on the bottom of the housing market.

If you’re one of the many first time home buyers who are still sitting on the fence and focusing on short term prices as opposed to the long term investment value of your first home, this video from the Today Show should give you some food for thought.

We have helped thousands of families take the big step of owning their first home and they all have one thing in common: When they were ready they, contacted us.

Visit msnbc.com for breaking news, world news, and news about the economy

First time home buyers have two words for all the “fence sitters” who are still trying to decide if buying their first home in this market is the right decision.

Buying a first home is NOT the right decision for everyone  You shouldn’t buy if renting better fits your lifestyle, if you haven’t made the commitment to owning or are focusing more on short term prices than long term investment.

There are thousands of families who decided that owning their first home was the right decision and they have two words for those of you still sitting on the fence.
The two words?

THANK YOU for sitting on the fence while we looked at all the homes that just a few years ago were beyond our reach.
THANK YOU for sitting on the fence when we wrote an offer on the home that was “perfect for us”.
THANK YOU for sitting on the fence while our offer was being accepted at a price we could afford
THANK YOU for sitting on the fence because your competing offer wasn’t there and the seller agreed to pay a large portion of our closing costs.
THANK YOU for sitting on the fence and not using the down payment assistance funds we were able to get.
THANK YOU for sitting on the fence so we could take advantage of these great interest rates and our new monthly payment will be less than we were paying for rent.
THANK YOU for sitting on the fence so we could finally move out of our cramped apartment and into a home with room for all of us.
THANK YOU for sitting on the fence because we finally have something that is “ours” and will be for a long time.

We have helped thousands of families take the big step of owning their first home and they all have one thing in common: When they were ready they, contacted us.

The number one question asked by first time home buyers about their credit is: How will inquiries affect my credit scores?

First time home buyers, as they search for their first home, are going to get a lot of information and a lot of misinformation. Misinformation about your first time home buyer credit score can have disastrous implications. The best information about first time home buyer credit comes from a credit repair professional.

One of our partners is Dedicated Credit Repair. Watch this video as they explain how inquiries will affect your first time home buyer credit.

For more information on first time home buyer credit – Click Here

If you’re ready for help with your credit scores – Click here for a free consultation

We’ve helped thousands of first time home buyers with their education and cleared up a lot of “mis-education” too. These first time homebuyers all did the same thing: they took the first step and contacted us.

Why does the third richest man in the world (Warren Buffett)  think that first time home buyers like you should get off the proverbial fence? Because owning your first home is the best way to increase your net wealth!
Unfortunately too many first time home buyers pay way too much attention to short-term price changes. They’re so worried that prices might drop a little and feel that maybe they should wait to buy something.
Of course if you think you can predict the future  then by all means roll the dice!
However, the reality is that price, within reason, really should be a secondary matter in your search for a good property to purchase. In 2020 or 2022, you won’t even remember the 2012-2013 price fluctuations. You’ll just be gloating to yourself how brilliant you were buying into the market ten years ago. Not only will you have purchased a great property at the most affordable pricing seen in decades, but you will probably have locked in an outrageously low interest rate.
If it’s good enough for Warren Buffett it might a good enough reason for you.

The main reason that price is less important is that individuals who want to increase their net wealth from real estate ownership, which is the goal of many buyers, should only be purchasing property that they will hold for a long time.

The longer the better and a minimum of five years is probably the breakeven point to start building wealth. It is more likely than not that down the road, years after our economy has sprung back to life, real estate prices should be much higher than what people paid for properties in the next twelve months.
Affordability is now!
But, what if you buy and prices drop a little? Who cares! It won’t matter because you purchased a great property that you love for all the right reasons. You want to own real estate and any slight dip in the next year or two should be a wholly irrelevant short-term blip on the radar of a long term real estate holder.
In addition, in many areas right now, your monthly payment for ownership may be close to or less expensive than renting. That alone is an amazing turn of events in the history of personal residence ownership.

Thanks to Leonard Baron for his insight. Leonard Baron, MBA, CPA, is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including “Real Estate Ownership, Investment and Due Diligence 101 – A Smarter Way to Buy Real Estate”, and loves kicking the tires of a good piece of dirt! See more at ProfessorBaron.com.

We have helped hundreds of first time home buyers in Riverside and San Diego Counties make the right Buy v Rent decision. They all have one thing in common, they took the first step and contacted us.

There’s so much information for first time home buyers to digest when it comes to deciding whether now is the time to buy their first home, it can be very hard to know what would be the best decision for you and your family.

There are plenty of experts and “fakexperts” out there with opinions on buying your first home, but one of the richest men in the world would buy hundreds of them.

We have helped hundreds of first time home buyers in Riverside and San Diego Counties make the right Buy v Rent decision. They all have one thing in common, they took the first step and contacted us.

That is the question!

First time home buyers are bombarded with “buy, buy, buy” or “don’t, don’t, don’t”  when it comes to buying their first home. There are good reasons on both sides and it can be difficult for first time home buyers to know which is best for their family and there’s as much misinformation as accurate information.
Buying your first home is the most important financial decision you will make and unless you’re committed to the lifestyle, ready to make a long term investment and are prepared to take the necessary steps, DON’T DO IT!
On the other hand, if you like the challenge of the daily “recon” mission for a parking place or if Saturday mornings in the laundry room are the highlight of your social week, then apartment living is right for you and you should stay put.
But let’s take a look at this from a more pragmatic point of view: Unless you’re living in your parent’s guest room, basement or casita, you have to live somewhere and pay someone else for the privilege.
So what will you do when your lease expires?
If you decide to continue to rent, you’re looking at a rental market where demand for rental units has rents on the rise and landlords across Southern California are taking advantage of this overheating of demand. So even if you stay where you are, chances are you’ll be looking at an increase in your rent.
If you have to move, hopefully you’ve saved enough to cover first and last month’s rent at your new place. If the rent will be $1500/mo, you’ll need to have at least $3000.
But if you’ve made the commitment to buy your first home in 2012, then that $3000  may be enough for the down payment on your first home.

• The State of California has more than $94 million dollars available for qualified first time home buyers to use for down payment assistance.

• Qualified first time home buyers in Riverside County  and the City of Riverside also have funds available for down payment assistance up to 20%.

•  First time home buyers in San Diego, can take advantage of the City of San Diego down payment assistance program, which provides up to 17% for down payment assistance as well as up to 3% for closing cost assistance.

We have helped hundreds of first time home buyers in Riverside and San Diego Counties make the right Buy v Rent decision. They all have one thing in common, they took the first step and contacted us.

The internet has created an interesting dilemma for first time home buyers. There are seemingly innumerable experts who are touting information about the nationwide housing crisis being over. But how do you know if it’s information or mis-information?

Many of this new breed of experts might better be referred to as “fakexperts”. A “fakexpert”  might be defined as a faux expert.
An expert will SHOW you what the information means to you, to help you make a more informed decision on buying your first home. A “fakexpert” will spin the information in the best possible light, usually for their benefit.

Here are some examples, you decide. Expert or “Fakexpert”?

The National Association of Realtors recently announced that  “Total existing-home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, increased 4.3 percent. (Given the NAR’s recent decision  to revise home sales downward for the last five years, might make them the poster children for “fakexperts”)

Within hours of this information being released, a number of other “experts” came forward to either dispute the numbers or put their own spin on them:

“[It] is not quite as encouraging as it first appears given that it comes at the expense of a 5 percent downward revision to the previous month’s figures. (Capital Economics)

“Sales of U.S. existing homes marched upward in January, maintaining a trend that started in the second half of last year. (Moody’s Analytics)

“Indeed, the market for existing homes is about as strong as it has been in five years, nationally and in all four regions. (IHS Global Insight)

Experts or “Fakexperts”? You decide, but these companies are being paid by someone to reach these conclusions.

What does it mean to you the first time home buyer?
Not much!
Local market conditions are far more important and it takes a local expert to SHOW you those trends and help you make the decision whether now is the right time to buy your first home.

We have helped thousands of first time home buyers get their piece of the American Dream. The one thing they have in common? They contacted us.

It’s official the housing crisis is OVER for Temecula first time home buyers!

How do I know? I saw it on the internet and all it took was $431 to do it!

The end of the housing crisis has been a topic of discussion since before it really began.
As far back as 2008, the Wall Street journal was predicting an end to the housing crisis. “It is very likely that April 2008 will mark the bottom of the U.S. housing market.”

In September of 2008 (9/11 to be exact) CnnMoney said:
“A handful of economists and analysts predict the slump will bottom out, and home prices will level off by next summer – advice worth listening to.”

In fact according to the former Chief Economist of NAR David Lereah, there wasn’t going to be a bursting of the housing bubble. In 2005 authored a book (while still holding that post) titled: “Why the Real Estate Boom Will Not Bust – and How You Can Profit From It.”.  (Is anyone other than me concerned about the ethics of that?)

In February 2011, the Wall Street Journal, once again, proclaimed: 2011 may be the end of the housing crash

Need more evidence the media has no clue? Watch this video:

The latest group to take a stab at it? Capital Economics. How did Capital Economics arrive at their conclusion? “Banks loosen credit standards. Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.”

The national media (the kings/queens of disconnect) picked this up and ran with it at full speed. In fact there are no fewer than 10 newspapers who ran “breaking news” on the subject.

REALLY? On a $200,000 FHA loan that’s a difference in qualifying income of only $431 a month, I’m sure if we as lenders knew it would be that easy, we would have done it years ago.

Interested in the real state of the Temecula real estate market? Click here

For first time home buyers, buying a home in today’s market is the first step on a journey that will likely take you to a number of different houses over your lifetime. It’s inevitable that sometime after moving into your first home and getting that feel for homeownership, you’ll begin thinking about your future home.

What will it look like? How “green” will it be?

Recently the Department of Energy hosted the bi-annual Solar Decathalon in DC and the winning entry is the Water Shed home built by the University of Maryland.

Watch the video to see what lies in store for you sometime in the future.

Click here to see all the features of the award winning Watershed home

You might be wondering what your parents or grandparents thought would be their home of the future? Check out Walt Disney’s vision

If you’re ready to look for your home of today, contact us

Mobile devices have become indispensable for first time home buyers. They can search for homes, find open houses, and check out virtual tours. Mobile devices allow first time home buyers to do virtually everything their home computer does.

But at what price?

This video shares How carriers gather, track and sell your private data

Network from Michael Rigley on Vimeo.

So, we get to pay them each month to have our personal data harvested?

Hmmm!

First time home buyers entering today’s housing market are considered by many to be the best educated first time home buyers in history. The internet has given them access to more information than any generation of first time home buyers.

Unfortunately today’s first time home buyers may also be the most “mis-educated” first time home buyers in history. According to Thefreedictionary.com: mis-educate means to educate improperly.

Maybe a better definition would be to educate with misinformation?

“It must be true, I read it on the internet”, is intended to be a tongue in cheek statement but when that information agrees with something you’ve already been told, especially from friends and family members, it tends to become true in your mind and may be creating unrealistic expectations for you or mis-education.

Mis-education can  also be contagious. The information your parents, friends, family members and neighbors are sharing with you may also be leading to your mis-education.
Here’s an example:
Third party listing sites (Zillow, Trulia and Realtor.com) attract millions of views each month because they give you easy access to homes for sale in your desired neighborhood. These sites are not real estate sites, they’re information platforms and they rely on information from local real estate brokers and use computer models. for their value estimates (weather forecasters use computer models too, and they’re 50/50 at best).

It’s easy to say their data is inaccurate, but here is an example of recent data from Trulia.com. Would you be “educated” after seeing this or “mis-educated”?:
“The median sales price for homes in Temecula CA for Jul 11 to Sep 11 was $1,000,000 based on 1 home sales.”
“The median sales price for homes in Temecula CA for Nov 11 to Jan 12 was $250,000 based on 1 home sales.”
Granted our sales aren’t as “robust” as they were a few years ago, but two sales in six months show that Trulia.com’s numbers don’t actually reflect what’s going on locally and if you’re relying on these numbers you’ve been mis-educated.

These third party sites are not without value, however.

They can save you a lot of time when you are only window shopping and haven’t decided on a location, price or agent. You can view homes, neighborhoods, and just about anything else you want to know while you put together your wish list.

When you’ve made the commitment to buy your first home, you’ll want more than a Realtor, you’ll want a Realtor who understands their local market, the first time home buyer programs available and gives you confidence that they are representing only your interests.
We’ve helped thousands of first time home buyers with their education and cleared up a lot of “mis-education” too. These first time homebuyers all did the same thing: they took the first step and contacted us.

If you’re a first time home buyer who has been waiting for February 1 to arrive, it might feel a little like the night before Christmas with visions of tax refunds dancing in your head.
You’ve received your W-2 for 2011 and you’re ready to jump on line or call your tax guy, so you can get that income tax refund you’re planning to use for the down payment on your first home.
Sir Isaac Newton’s Third Law of Motion says: That for every action there is an equal and opposite reaction.

If your action is to claim employee business expenses on your tax return, the equal and opposite reaction might be you’ll be using that refund for the deposit on your next apartment.
The IRS allows the legitimate deduction of un-reimbursed employee business expenses. This can include mileage, education, uniforms etc. The problem is any amounts deducted on Form 2106 (with very limited exceptions) will be calculated as a dollar for dollar reduction in income for purposes of qualifying for your first time home buyer loan.
Let me share a real life example: I recently met with a first time home buyer who was anxious to buy her first home. As requested she provided her most recent three years of tax returns as required by all first time home buyer programs.

The monthly payment($1150) on the home she way buying was within her budget and she was anxious to get the process started. She had recently gotten a promotion and her new job required extensive travel which she could now deduct on her 2011 Federal Tax Return. Unfortunately the expenses she deducted were more than one third of her income and as a result the payment for which she could now qualify is less than $600 a month.
She will be getting a pretty good sized refund this year but will likely be using it for the deposit on a new apartment instead of the down payment on her first home.

I’m not saying you shouldn’t deduct legitimate expenses, but it’s important you understand how that deduction will affect the qualifying for your first time home buyer loan.

It’s become trendy, almost fashionable to find creative ways to avoid income tax liability, unfortunately you may also be creatively finding ways NOT to become a homeowner.

If you’re counting on your tax refund for the down payment on your first home, you should consider finding a down payment assistance program that will provide the money, instead of counting on a large tax refund.
We’ve helped thousands of first time home buyers take advantage of available down payment assistance programs and they have one thing in common, they contacted us.

If your first time home buyer resolution for 2012 is to become a first time home owner, then it’s important to realize an important fact: Buying your first home is a “road trip” not an event.

On this road trip you’re going places you’ve never been before and Google Maps can’t help you get there.

There are hundreds, maybe thousands of real estate websites that will tell you the first step on the path to homeownership is to contact a real estate agent or get pre-qualified for your first time home buyer loan.

Good advice, but it’s like starting on your road trip about one-third of the way through and you may not even be sure why you’re there, whether or not your car will make it, or what your final destination really looks like.

Like any other road trip, buying your first home requires careful planning and the first step in that plan is deciding if you’re really committed to taking the trip ALL the way to your destination.
The second step in this road trip, is getting a clear picture of your destination and there are two very important rules to remember when first time home buyers are selecting their destination:

• Rule #1 – There is no perfect house for you anywhere. 

• Rule #2 – If you don’t find a perfect home with every item you want, remember Rule #1.

If your budget won’t get you to Hawaii, you can still enjoy a week on the beach in Santa Barbara.
Step Three on your path to homeownership is making sure once you’ve selected  your destination is to make sure your “vehicle” doesn’t need any repairs.

So, go to http://annualcreditreport.com  and get your free credit report and check for errors. Tip: Order a report for your minor children, we’re already seeing cases of identity theft of minors.
If you’ve followed our video series on first time home buyer credit, you know that at least 50% of credit reports contain errors.

Focus on the accuracy of the report and don’t worry about the scores because 1) they don’t provide a score 2) First time home buyer loans use a different scoring model than do your typical on-line report.
Taking the “road trip” to homeownership is not for everyone but remember this:
You have to live somewhere (unless it’s your parent’s guest room) and pay someone for the privilege. So if you’re renting now, you may be paying more than most homeowners and you’re investing in real estate, it’s just not yours.

If you’re looking for help to map out your road trip, contact us. We’ve helped thousands of first time home buyers and their families reach the destination that was right for them.

Buying your first home in today’s Temecula real estate market, can be confusing and frustrating.
There’s so much information and misinformation for Temecula first time home buyers to sort through that it can be difficult to separate fact from fiction.
When you’ve made the commitment that 2012 will be the year you decide that your investment in Temecula real estate will be for you and not your landlord the next step is to determine how you’re going to pay for your first home.
The media and other so-called “experts” would have you believe that all you have to do to get your first time home buyer loan is pick up the phone and call around for the lowest rate. Getting the lowest rate is more fiction than fact for most first time home buyers.
When choosing between lenders for your first time home loan, you should consider Price, Product and Service.
Price – Fact: Federal law says that in order for a lender to give you a rate quote he/she needs at least 6 bits of information to be compliant. Unfortunately for first time home buyers most lenders and on-line resources, like Zillow are ignoring the law and as a result you’re not getting the accurate information the law intends that you be provided.
Why? There are more than 250 overlays that could affect the interest rate on your first time home buyer loan. These overlays affect pricing for credit score, property type and location and loan to value among other things. ALL lenders have overlays, but not ALL lenders have the same overlays, so unless your rate quote takes the applicable ones into consideration, it’s not going to be accurate.
Product – Fact: All lenders have the same basic products, 30 year fixed rate FHA, VA, USDA and conventional loans. Most lenders have niche products too, but the basic products are what most first time home buyers will be using.
When it comes to Product, lender’s differ in their ability to match first time home buyer and down payment assistance programs with the basic programs. You don’t want them “practicing on your dime”, so make sure your loan is not their first experience with down payment assistance.
Service – Auto dealers tout “service after the sale”, while that’s important for mortgage lenders, it’s the “service BEFORE the sale” that makes the difference between a successful closing and a never ending bad dream escrow.

All first time home buyer programs have guidelines that require that you and your lender do the necessary “prep work” BEFORE you start looking at homes.
So, if youre a first time home buyer shopping for loans based on rate, chances are you’ll be making a decision based on incomplete information, which can be a “train wreck waiting to happen”. In short be a Smart Shopper

For more information about first time home buyer programs, click here

Is real estate a good investment for first time home buyers?
If you’re a first time home buyer and asking yourself that question, it’s almost impossible to get an answer that means anything to you and your family.

The disconnected national media (on-line and offline) is no help. Their view from 30,000 feet confuses the issues for first time home buyers who are looking at it from ground level.

How does a first time home buyer evaluate the investment side of buying their first home?

First, let’s define “real estate investment”

A real estate ownership interest, whether a personal residence or rental property, that increases one’s net wealth by a fair rate of return on their invested cash equity; for the corresponding amount of risk they are taking by owning a relatively high risk asset.
What that means is that if you are going to put your invested cash equity into real estate, your net worth should improve by a greater amount than if you invested in a similarly risky asset.

And “invested cash equity” isn’t the property price; it is how much cash you took from your bank account to acquire the property minus down payment, plus closing costs, plus rehabilitation costs.

You have to live somewhere (unless it’s your parent’s guest room) and pay someone for the privilege. So if you’re renting now, you’re investing in real estate, it’s just not yours.

So a good real estate investment is really one that will increase your net worth over time. The longer you own it, the better the chances for that appreciation in value and wealth building.

For more information about real estate investment for first time home buyers, click here

Thanks to Leonard Baron, for the for some of the content. You can see more at Professor Baron.com

First time home buyers in California have a huge opportunity waiting for them and unfortunately many are still paying more in rent than they would for a comparable home because of the misinformation being disseminated.
I’m not sure how these things get started, but I would like to take a few minutes of your time and clarify the down payment assistance programs available for California first time home buyers.

Not all first time home buyers qualify for every program, but most qualify for more than one. Not every home is eligible either, but many  are eligible for more than one program. Only a lender experienced with these programs can find the right match for you and your family.

What down payment assistance programs are available for California first time home buyers?

• No down payment from the federal government using the USDA loan program. Click here for more information

• 1% down payment program from the State of California. Click here for more information.

• First time home buyers in Riverside County have two additional programs that provide up to 20% in down payment assistance with terms as good as “15 years same as cash”. Click here for more information

• First time home buyers in San Diego have their own program that provides up to 17% in down payment assistance. Click here for more information.

• First time home buyers in Riverside and San Diego Counties also have a first time home buyer tax credit. Click here for Riverside. Click here for San Diego

If you’re a first time home buyer who is still overpaying their landlord and missing out on the tax benefits of homeownership and would like more information about the first time home buyer programs available for you and your family Click here.

If you’re a first time home buyer who isn’t quite ready to make that commitment. Then maybe one of the many homes available as “rent to own” might be an option for you.

It will give you an opportunity to “test drive” the lifestyle and find out if homeownership is the right thing for you and your family.

Before you do, however, it’s critical that you know what you’re signing up for. Rent to own, also called a “lease purchase”, is just a euphemism for “lease with an option to buy”. The owner of the home agrees to sell you the home at some time in the future at an agreed upon price. As consideration, you will pay him an agreed upon amount (option money and it’s generally non-refundable) to “hold” the property for you.

Sounds simple enough, but as potential first time home buyers you need to focus on the “own” and “purchase” terms. At some time in the future you’re going to have to purchase this home or risk losing your option money and it’s important to do it right!

You should look at this opportunity from two perspectives: Personal and Property

Personal – If you’re not ready to buy now because of credit, income or down payment problems. Will you be able to improve your situation by the time the option needs to be exercised?
If you’ve put off getting your credit in order, if you’re not going to start now, then rent to own is not a solution.
Sitting down with a mortgage professional or credit repair specialist now might seem premature but there’s no one better equipped to give you a detailed plan on how to prepare yourself to buy your first home when the time comes.

You’ll be purchasing this home and that means qualifying for a loan, so your income, credit and assets will have to meet the qualifying criteria in effect at that time.

Property – The location and everything else about the home are perfect for you and your family. You can picture yourself living there a long time BUT unless you’re a “smart first time buyer” now, this might end up being just another rental home when the option comes due.
NO ONE knows where housing prices will be in two or three years, so it’s critically important that you “buy right” now.
Who’s determining the option price? If it’s the owner and the price is too high now, chances are in a year or two it will still be too high and you’ll only be able to get financing if you can re-negotiate the price or bring in a bigger down payment.

Rent to Own can be an opportunity to “dip your toes in the water” for first time home buyers but you still have to be smart and have a good “exit strategy” when it comes time to exercise your option.

For more information on rent to own, contact us.

In our previous posts about first time home buyers credit and how it could be impacted by divorce, we talked about: Getting a clear picture, How to handle unsecured credit accounts and How to handle secured credit accounts.
Here are some tips from Linda Ferrari, President of Credit Resource Corporation on how to make sure your first time home buyer credit survives a divorce.
1. MAKE SURE THE BILLS GET PAID-NO MATTER WHAT THE JUDGE SAYS:Regardless of what the divorce decree stipulates, it does not override your account agreements with your creditors. Both spouses are liable and responsible for joint debt regardless of who the judge orders to pay the bill. If the bills are not paid and an account defaults, both spouses can be sued, and both spouses can have their wages garnished. Most late pays occur during the divorce negotiations phase. Don’t allow this happen. One 30 day late can drop your score anywhere from 25-75 points, and it takes months to gain those points back.
2. PROTECT YOURSELF IN JOINT ACCOUNT SITUATIONS: The best way to handle joint accounts is to eliminate such accounts whenever possible. Because joint accounts are approved using the information from both spouses’ credit reports, a creditor will not remove one spouse’s name from an account regardless of the presence of court documents declaring a specific spouse responsible for payment and upkeep.
3. IF YOU DECIDE TO LEAVE YOUR NAME ON A SECURED LOAN ACCOUNT, BE SURE THAT YOUR NAME REMAINS ON THE TITLE: Once your name is removed from the title, you no longer own the asset. This means that if the responsible spouse defaults on the loan, and you have to pay it, you’ll be paying for something that you no longer own.
4. FINALLY, putting the action plan to work as early in the divorce process as possible will ensure your credit will be protected to the greatest extent possible. Decisive, quick action will empower you to move forward.

If you’re a first time home buyer who is worried about their post-divorce credit scores and would like a FREE consultation with a credit repair specialist, click here.

Check out our video series on managing your credit

First time home buyers are not immune from divorce, and while an unfortunate circumstance, it’s important to recognize there is a “business” side to it and knowing how divorce affects your credit is as important as the actual legal proceedings.
First time home buyers who let “the chips fall where they may” often times find themselves on the outside looking in when in it comes to owning their first home.
Previously we talked about getting a clear picture of your credit and offered some advice on how to handle unsecured accounts.
Even though your divorce decree gives the other party the responsibility of making the payments, if/when they don’t your credit will suffer because it was an obligation that didn’t get paid and when that happens your credit score is going to suffer.
Thanks to Linda Ferrari from Credit Resource Corporation for this advice for first time home buyers on how to handle secured accounts (loans and mortgages).
B. SECURED ACCOUNTS-YOUR OPTIONS:
• SELL IT: This is the safest and best option. You sell the asset, pay off the loan in full, wipe the slate clean and move on. (The creditors are not always diligent in reporting, so keep copies of the paperwork.)
• REFI IT: If the spouse who has responsibility can qualify for a refinance in their own name, or they have a family member who can assist them with the loan, you can have them buy you out completely and you can walk away without obligation and get your name removed from the account.
• BE CAREFUL: The least desirable option is to keep your name on the loan with certain terms and conditions. This option leaves your credit vulnerable to the responsible spouse’s actions going forward. A late payment or a default on the loan will damage your credit.

If you would like a FREE consultation from a credit repair specialist, click here

Check out our video series on managing your credit

According to a recent report from the National Association of Realtors (NAR) the average down payment made by first time home buyers is 12%. Unfortunately this type of reporting has led many first time home buyers to believe that homes can only be purchased if they have a substantial down payment.

For first time home buyers, especially first time home buyers in California that can be quite an obstacle to achieving their dream of homeownership.But fortunately first time home buyers in California have help from a down payment assistance program that will help them buy their first home with a minimum of 1% down.

This help comes from the California Housing Finance Agency (CalHFA) in the form of down payment assistance of 3%. It’s not free money, but it is cheap. Interest accrues at 3% per year (with no payments required) until you sell or move from your first home.

To qualify for the 1% down payment program, you must:
1. Be a first time home buyer or not owned a home in the last three years
2. Be credit qualified for the underlying FHA first mortgage (minimum credit score of 640)
If you need help getting your credit score to that level, contact us and we’ll get you a FREE credit consultation with a credit professional.
3. Meet the income limits, based on family size, for the County in which you will be living. You might be surprised how liberal these limits are, for more information on your County, contact us.
4. Attend a HUD approved first time home buyer education class.

Unlike many of the other down payment assistance programs for first time home buyers, you can use the 1% down payment program on bank owned homes, short sales, and even new homes are eligible.

For more inofrmation on the 1% down payment program for California first time home buyers, click here

If you’re a first time home buyer facing the prospect of divorce, taking the right steps now will ensure that when the time comes to buy your first home your credit won’t be a stumbling block.
In our first post we recommended  getting a clear picture of your credit by creating a spread sheet of all your accounts (joint and separate).  Your credit consists of two types of accounts unsecured (credit cards) and secured (installment loans) and each needs to be evaluated differently.
Thanks to Linda Ferrari, President of Credit Resource Corporation for this game plan.
STEP 2: ACTING ON THE INFORMATION
Once you have assembled your information in one place, you can now begin to determine the best course of action for handling the accounts. There are two types of accounts you will be dealing with: secured and unsecured. Both are handled very differently during a divorce. Secured accounts are all accounts that have an asset attached to them, i.e. a mortgage or a car loan. Unsecured accounts are debts with no assets backing them, i.e. credit card accounts. Here are my suggestions:
A. UNSECURED ACCOUNTS-YOUR OPTIONS:
• ELIMINATE OBLIGATIONS WHERE YOU CAN: A credit card or a statement with your name on it does not make you a joint owner of the account. Unless the account was originally opened with an application SIGNED BY YOU, you may only be an authorized signer and you can request to have your name removed from the account immediately. Or vice versa, if your spouse is on the account as an authorized signer you will want to have his name removed to avoid any future charges. Be aware however, if negative credit was incurred while you were on the account, the past information will still remain.
• CLOSE JOINT ACCOUNTS: If there is no balance on the account, call the creditor and close the account immediately.
• FREEZE ANY FUTURE CHARGES: If there is a balance that cannot be paid off right away, the creditor typically will not allow you to close the account. In this case, call the creditor and request to freeze the account from any future charges. This will allow you to pay off the balance over time without making you vulnerable to more debt. Such an action will stop BOTH spouses from using the account, so it is important that you make certain you have another credit card in your own name before you take that course of action.
• TRANSFER BALANCES TO RESPONSIBLE PARTY’S INDIVIDUAL CARD: Request that the responsible spouse transfer remaining balances on a joint card to another credit card with available credit that is in their name only. Once this is done, CLOSE THE JOINT ACCOUNT IMMEDIATELY.
Next time, we’ll share Linda’s strategies for handling secured accounts.
If you would like a no cost consultation with a credit repair professional, click here

1 out of every 2 marriages ends in divorce today and unfortunately many first time home buyers see their chances of homeownership go up in smoke because they weren’t aware of the ramifications that divorce might have on their credit scores.
Today most divorces are handled in an almost boiler plate style and based on the settlement agreements we’ve seen, very little consideration was given to how the division of credit obligations would affect our client’s future credit and their ability to buy their first home.
This is the first in a series of posts to help those of you facing divorce handle your credit in such a way that once the dust settles you’ll still be in the market as a first time home buyer..
While a divorce is easy enough to obtain and can be done in a fairly short period of time, the financial and credit issues emanating from the dissolution can linger for years to follow. Confusion or disagreement about who is to pay what bills and who is using specific credit cards can wreak havoc on your credit score. Late pays, no pays and insufficient funds can quickly cause the very best credit scores to plummet–it doesn’t have to be that way. By proactively taking just a few simple steps, individuals who are starting over can ensure that they are doing everything possible to start over with their good credit intact.
Following is an example of a proactive action plan that will help you protect your credit during and after a divorce.
STEP 1: GETTING A CLEAR PICTURE
• Get copies of your credit reports:
Request copies of your credit report from each of the 3 major credit bureaus, Equifax, Experian and Trans Union so you will have full disclosure of your situation.
• Get all of your information into one place:
Make a list of all OPEN accounts and accounts with balances. Then create a spreadsheet with columns for the following information:
? Creditor Name
? Creditor Contact Number (if it’s not listed on the credit report, you can find the customer service number on the back of your statement, or you can always search for it on the internet. Where there’s a will, there’s a way.)
? Account Number (sometimes credit reports do not list the full account number, so you may have to dig up some paperwork, but it will be well worth it.)
? Type of Account (i.e. auto loan, mortgage, credit card)
? Current status of the account (i.e. current, past due, collection, etc.)
? Total amount due
? Monthly Payment Amount
? Vesting of Account (i.e. Joint/Individual/Authorized Signer)

Thanks to Linda Ferarri, President of CRC, for this great information.

If you would like a free credit repair consultation Click Here

For more information on how to strategically manage your credit so you can get the best interest rate on your first time home buyer loan, Click Here

5 Tips to improving your credit score fast

If you’re a first time home buyer or are thinking that 2012 is the year you would like to become a first time home buyer then it’s important to get on the path to homeownership in such a way that you will achieve your goal with a minimal amount of angst (an intense feeling of apprehension, anxiety).

In a previous post, we talked about making the commitment to becoming a first time home buyer.
This is the most important financial decision you will likely make, so it should be treated as such.

Once you’ve made the commitment, step two on the path to homeownership is to keep your expectations realistic.

You may not be old enough to remember the “Wish Book” (ask your parents or older brothers and sisters) that was published each year by Sears. In many ways it was the unofficial start of the Christmas season. When it arrived in the mail we knew it was time to start making our Christmas lists.

Fast forward to today and property searches on the internet are the new “Wish Book” for first time home buyers. You have virtual access to almost every home in the United States that’s listed for sale and therein lies the problem.

When we looked at the “Wish Book” our parent’s budget was never a consideration. We wanted what we wanted and it was up to Santa to figure it out.
When it comes to your first time home “Wish Book”, it’s your budget that will determine what your first home will look like. With the thousands of foreclosed homes on the market selling for less than half of what they did just a few years ago, it’s easy to get caught up in the “bargain hunting” and to forget you still have to have a way to pay for it.

So, even though that 3000 square foot home on half an acre with a pool and spa may be your “dream home”, if it’s not in your budget today it’s not a realistic expectation and should remain just that, “your dream home”.
There are hundreds of homes available today that can be your first step to your dream home, but to get there you have to set realistic expectations and dog ear or circle (that’s Wish Book speak for bookmark) those homes you can pay for.

For help in determining your “Wish Book” budget, Click Here

First time home buyers who have decided that 2012 is the year they will quit paying their landlord’s mortgage and start reaping the benefits of homeownership have a new tool that will bring the best REO deals right to them.
First time home buyers know that searching for homes “just like real estate agents” can be a tedious task and when your time is at a premium, having a tool that will bring the best deals right your desktop can make your home search process a lot simpler.

Fannie Mae is the owner of about 70% of all the REOs nationwide and if you saw our previous post about the steps Fannie Mae is taking to make them the “best deals” on the market, then using the new search tool will deliver those deals right to you.

Before you sign up for the alerts, watch this video that explains why Fannie Mae REOs may be  the answer to your home search questions.

To sign up go to the Fannie Mae HomePath page and enter the zip code where you want your first home to be.

Then just enter your name and email address and you’re set. (It’s a double opt in, so you will be getting a confirmation email)
Fannie Mae homes also have some very attractive financing options for first time home buyers including 100% financing (selected areas), 1% down payments and 3% down payments with HomePath loans. From time to time Fannie Mae offers special incentives to first time home buyers in the form of closing cost assistance. For more information click here

For help to find the right financing for you, click here.
If you aren’t currently working with a real estate agent, click here and we’ll hook you up with one who knows how to help first time home buyers get a Fannie Mae REO.

But WHY?

Renters now spend five percent more of their household budgets on housing costs than do homeowners, and the difference is growing as rents rise.

Since 2005, homeowners’ expenditures for housing have risen from 31.9 percent of their household budget to 33.2 percent, but renters’ costs have risen even more from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.

Since 1985, homeowners have increased their housing expenditure allocation by 12 percent, while renters increased by 22 percent.

For a first time home buyer to buy in this market it will take a very compelling reason(s) to take that big step.

Here are Three:

You already know about the bargain basement prices on homes and the lowest interest rates in half a century, so I won’t repeat those reasons but you can add them in if you like.

Compelling reason #1 – In most markets in Riverside and San Diego Counties renting is more expensive than owning a comparable home. Unless it’s your parent’s basement, you have to live somewhere and pay someone for the privilege, why wouldn’t you be paying yourself?

Compelling reason #2 – Tax benefits when you own your home – SEVEN, Tax benefits when you rent – ZERO. Paying less to Uncle Sam and keeping more of it in your pocket is always a good thing.

Compelling reason #3 – Programs to help first time home buyers with down payment assistance with “15 years same as cash” terms, a Tax Credit, 100% financing, 1% down payments . Programs to help renters? ZERO

For more information on the first time home buyer programs available in Riverside and San Diego Counties, Click Here

The state of the current real estate market has brought out a number of real estate scams that have targeted first time home buyers and renters.

First time home buyers are especially susceptible to scams, because they’ve never been through the process and it makes it easy for scam artists to separate them from their hard earned money.

Here are some tips from the Better Business Bureau on how to avoid scams.

The email addresses they use usually are from yahoo, ymail, rocketmail, fastermail, live, hotmail and gmail, and they also post ads under anonymous craigslist addresses. They frequently change their aliases.

• The deal sounds too good to be true. Scammers will often list a rental for a very low price to lure in victims. Find out how comparable listings are priced, and if the sales price or rental comes in suspiciously low, walk away.
• They use photos stolen from other property advertisements or from home furnishing catalogues or hotel websites.
• They use fake names, often stolen from Facebook profiles or networking sites. Often they assume the identities of previous victims.
• What they all have in common is that sooner or later you get a request to transfer funds via Western Union, Moneygram or some other wire service.
• Never under any circumstances, wire money at the request of any prospective “landlord” via Western Union, Money Gram or any other wire service.  Even if they tell you to wire the funds to a friend or relative’s name “to be safe,” it’s a trap!
• Never send a scan of your passport or other ID.  These thieves will use your identity to scam others. Ask to see the landlord’s ID – record all the information you can from it.
• Use a browser to search for the person’s name who you’re dealing with. Be sure to add quotes around their name. You could add the words “fraud” or “scam” at the end of your search terms.
• Use reverse directory look up if the person has given you their telephone number. It’s important to double check that they are who they say they are.
• Visit the local county courthouse to look up property ownership for the apartment in question. Who really owns it? Is it the person you’re dealing with? Or someone else?
• Scan any provided photographs carefully. Do they match up with what you’ve seen in person? Do they look like they all came from the same place?
• They don’t ask for an application or permission to check your credit? That’s a red flag!
• Considering the current state of our economy and the rise in foreclosures, ask the landlord if they’re current on their mortgage payments, and then get their answer in writing.
• Consider using another method for obtaining a rental, i.e. real estate agent, going through a rental agency, etc.
• Always check bbb.org to see if the “company” has any complaints.

First time home buyers can expect to have their credit and credit score scrutinized even more as lenders try to make sure you’re a good credit risk. Time spent wisely now will make your path to homeownership a lot less bumpy.

Would you try to fix your car for a long vacation while you were on the freeway going 80 miles per hour? Then don’t wait until you’re housing hunting to start.

Here are some great strategies you can utilize right away to give your score a little boost.

Create Some Balance: While paying down installment debt (car, school etc) will definitely boost your credit score. The trick is to get and keep your credit card balances below 30% of your credit limit on each card.
For faster results, attack those cards with balances closer to their respective credit limits first, as opposed to those cards with simply the highest debt.
Remember if you pay off any credit cards completely: Do not close your accounts!

Canceling those cards may inadvertently undo all of your hard work and could lower your score!

Know Your Limits: Make sure that your credit card issuers are reporting the correct limits on your accounts to the major credit bureaus. Without an available limit, your account will appear to be maxed out at its highest reported balance each month. This could cost you up to 80 points in certain instances. Some creditors, such as American Express and certain cards issued by Capital One actually have a policy of not reporting available credit. However, most companies will report your credit limits if you ask them in writing.

Take Some Credit: If you have a credit card account in very good standing, make sure all three credit bureaus know about it. Just like your credit limits, some creditors don’t report your information to all three credit companies-this is why credit scores can vary between bureaus. If this is the case, give them a call to find out why. Correcting this oversight could provide a significant boost to your score.

Protect Your Interests: Your credit score is calculated solely on the information provided by your creditors. If they are misreporting, your credit score will suffer because of it. If you have past credit problems, like a bankruptcy, make sure all items associated with the bankruptcy are being reported correctly, that is with zero balance. This action could increase your score by 50-100 points.

Even the Score: If you find information on your credit report that you believe is inaccurate or incomplete, then you have the right to dispute free of charge. For the fastest results, visit the appropriate credit bureau’s website and file a complaint online. If supporting documents are necessary, you have to file your dispute by mail.

Be careful with this, disputes can take time and if they are still under investigation when you find your first home it can and has created delays.

Buying your first home can be a wonderful experience or a horrific memory. Take some time, make sure your credit is in order BEFORE you start down the path to homeownership.

Click here for more information about first time home buyer credit

November 16, 2011 – Breaking News

Finally some good news for first time home buyers in higher cost areas like San Diego

Congress reached a bipartisan agreement that would increase the maximum dollar amount of mortgage loans that can be insured by the Federal Housing Administration (FHA) back to $729,750 after dropping the cap to $625,500 automatically after a temporary increase was issued for all loans insured by the FHA (and all government-sponsored enterprises). The restored higher limit will remain in place through 2013.

“Higher FHA loan limits are critical to supporting current housing prices and our overall economic recovery, and it doesn’t cost the federal government a dime,” said Representative Brad Sherman (D-CA). “This is the single most important provision in the minibus [appropriations] bill to prevent a collapse of housing prices in high-cost areas like Los Angeles and San Diego.

This still has to pass both houses of Congress and get the President’s signature but help for the struggling housing market has a lot of support (especially with elections around the corner), so it would be a huge surprise if it isn’t passed quickly.

The higher limits coupled with the down payment assistance programs available to first time home buyers in San Diego make is a great time to follow the “smart money”

Click here for more information about first time home buyer financing in San Diego.

First time homebuyers in Temecula, Murrieta and North County San Diego have hundreds of foreclosed homes from which to choose and chances are many of them are Fannie Mae foreclosures (they have 135,000 nationally).

For the longest time Fannie Mae homes also known as HomePath homes were among the worst when it came to property condition.

“The times they are a changin”

This video will give you an idea of how Fannie Mae has changed their approach to REOs  (more than 2/3 are sold to homeowners like you) and instead of looking at a trashed out, run-down typical foreclosure, they’re getting a house they’ll be proud to call home and reap the rewards that homeownership brings.

Click here to find out more about Fannie Mae HomePath homes.

First time home buyers face a number of challenges in their quest to make that big move from renter to first time home owner. But more than 70% of Americans say that owning a home is still a good investment and the tax benefits make it a better choice than renting.

One of those challenges doesn’t have to be lack of down payment and to help first time home buyers the City of Riverside recently announced their first time home buyer/down payment assistance program for homes within the City limits of Riverside.

The City of Riverside down payment assistance program specifically targets “low income families”, those with income at 80% AMI (adjust median income) based on family size.

To qualify:

• You must be a first time home buyer (or not owned a home in the last 3 years)
• You must be a US Citizen or Qualified Alien (contact us for details)
• Attend a HUD approved 8 hour homebuyer education class
• Meet the credit and income criteria for FHA
• Be pre-approved for down payment assistance before you make an offer on a property
• Be purchasing a bank owned (REO), short sale or City of Riverside RDA and Housing Authority owned home

If you qualify you may be eligible for up to 25% for down payment and closing cost assistance up to a maximum of $50,000.

For more details on the City of Riverside first time home buyer down payment assistance program, contact us, funds ARE limited and allocated on a first come first reserved basis

First time home buyers in today’s market have a great opportunity, home prices are affordable and interest rates are the lowest in 50 years.

But how can you know you’ll get the best rate for you?

Here are some tips for smart shopping for first time home buyer loans. But first a reality check:

1. There are some very low interest rates being advertised but the TRUTH is that unless the lender knows 6 key items, those adds are only loss leaders.

2. Those “loss leader” interest rates are for borrowers with credit scores of 740 and higher, who are making at least a 20% down payment. Hardly the profile of most first time home buyers.

3. A lender won’t guarantee a rate for your first time home buyer loan, until you have an accepted offer on your first home with a defined close of escrow date.

The offer to purchase your first home has been accepted and you know that 30-45 days from now you’ll be moving in, NOW is the time to shop and here are some tips on smart shopping:

How to shop for and RECEIVE the Best Loan for you…
We encourage you to shop for the best rate and terms.

Please use this as a guide to ensure that you get what you are promised.
Every reputable company should be able to answer all of the questions below, and should not hesitate to immediately to provide you with these disclosures.
When shopping for the best loan, it imperative that you shop asking the following questions in the exact order as the are outlined below.
You should be shopping all on the same day, and during the same time of the day. Interest rates and fees fluctuate with the publicly traded bond market, so for accurate comparison, do your shopping at the same time of the same day.

1. What is your current rate and total lender’s fees?

2. If I commit my loan to you right now, will you immediately lock that rate and those fees for 45 days and immediately provide me your lock confirmation signed by your supervisor?

3. Will you immediately provide me your Automated Loan Approval signed by your supervisor?

4. Will you immediately provide me your Truth in Lending Disclosure signed by your supervisor?

5. Will you immediately provide me your Good Faith Estimate of Settlement Charges signed by your supervisor?

6. Do these rates and fees apply to first time home buyer programs with down payment assistance?

By following the following these scripts exactly as written each time you talk to another company, you will be able to truly comparison shop.
There should be no hesitancy, no delay in providing you the answers and documentation outlined above.
We can deliver on all of these items right now, so should the other companies.

To contact a first time home buyer specialist, Click Here

We all have a different definition of perfect, but this one has everything needed for first time home buyers in today’s market:
1) It’s been completely rehabbed and is NOT a flip!
2) It’s priced $75,000 BELOW the average sale price for Murrieta at $174,200
3) It has to be sold to a first time home buyer (no investors to swipe it from you).
4) The seller is willing (no make that required!) to accept the RivCo Down Payment Assistance program
5) Qualified first time home buyers are eligible for up to 30% in down payment/closing cost assistance.

Now that’s my definition of perfect!

http://www.mrmlsmatrix.com/DE.asp?k=922462XQSSE&p=DE-88306087-208

For more information, Contact Us

The majority of first time home buyers have said that saving for a down payment is the biggest hurdle for them on their path to homeownership, and contrary to what you might hear from the mainstream media, first time home buyer programs and down payment assistance are alive and well.

But how do American’s feel about homeownership? To find out check out the result of this survey done by Trulia.com

Buying a home is the most important decision a first time home buyer will make in their life (so far!). There are so many factors to consider and the current economy is no help.

According to a recent survey by Trulia.com, “70 percent still say that homeownership is still central to their American dream which is unchanged from January despite declining economic conditions.”

What is your biggest obstacle to homeownership?

If you’re like 51% of first time home buyers, then saving for down payment is your #1 obstacle. Good News?  There a number of down payment assistance programs available to help you leap that hurdle. Even if you think you make too much or don’t really need down payment assistance, it should be part of your financial plan.

Is owning your first home part of YOUR AMERICAN DREAM?

To ask your burning question

Due to the mortgage crisis that our country faced over the last several years, there are continually more and more foreclosure properties that are being put up for sale everywhere you turn. Of course, this can be very tempting for first time home buyers as people can sometimes get properties for 30% or even less on the dollar than they sold for less than five years ago.
However, if you are considering a foreclosure property for your next purchase, then there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. Let’s review some areas to be aware of before making any serious offers.
1. Avoid Making Emotional Offers: Just because you think it’s a deal, doesn’t mean it really is. When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property.
Too many buyers will think that they found a smokin’ deal and fear that they will lose the home to another bidder. So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property that’s only a deal for the seller.
2. Estimate Neighborhood Values: Consider what other comparable properties are selling for and talk to a real estate agent who has a working knowledge of the area. In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Realtor may make:

• Is this neighborhood a desirable location and how are crime rates?
• What schools would be available for my kids or future buyers?
• Were there any other foreclosures or investor sales that could negatively affect the future value of my home?
• How long do I plan on living there and how could that affect things?
• What type of appreciation should I expect?

3. Get Preapproved: Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford. There are a number of first time home buyer and down payment assistance programs available and many families qualify for more than one.

Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step. Show banks that you are a serious buyer and have your financing in place!

4. Get Professional Help: Not only should you seek the expertise of an experienced Realtor, but you may also need guidance from a real estate attorney or financial consultant as well. Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property. Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure.
Therefore, we encourage you to give us a call today to get started. Our agents have years of experience assisting other clients with buying foreclosures for their next home or investment property. Discover how we can help you to make a smart and profitable investment as well!

One of the most important aspects to buying your first home is to ensure that you purchase for a fair price. There are certain key steps that you must follow in order to make a sound decision, so it pays to have a knowledgeable Realtor on your side who will be able to help you obtain the best and most realistic price for your first home.

Determining Market Comparables

For example, one of the first ways that your agent will discover the best price for your first home is by researching local market comparables. In most cases, they will be able to bring up a list of properties sold over the last 6 months within a 1 mile radius. Properties should also not be bigger than 20% of the subject size.
Additional features to consider would be the neighborhood, structural differences, bedrooms and bathrooms, overall condition and other amenities such as a pool. Other factors, such as if a particular home sold for much lower due to foreclosure or substandard condition is something your agent will uncover as well.

Houses That Have Not Sold

Next, many homes could be on the MLS for 6 months or longer without ever selling. Others that are comparable could have been taken off the market after not getting enough offers or being listed for too high. This is valuable information, because you may be able to get a particular property for a substantial discount or it may not even be worth pursuing.

Neighborhood Reputation & Appreciation

When it comes to buying a house, this is one of the most important reasons to work with a Realtor. A good agent will have a familiarity with local market trends and statistics, you will be able to learn what makes a particular neighborhood desirable and also which areas to avoid.
A lot of things can affect a home’s value such as the school district, crime levels, or even other properties located nearby (a neighborhood with a lot of foreclosures). In fact, sometimes these factors can even differ from block to block!
Your agent will also help you to assess the appreciation rates (if any) for various neighborhoods and future development plans that could affect home prices, so that you can get a decent indication of what to expect down the road. This can be extremely valuable information dependent on how long you plan to live in your first home.

Appraisals & Inspections

After you place an offer on a property, you will have the opportunity to get an appraisal and home inspection as further due diligence. Even with an agent, there are sometimes issues that may arise with a property that could affect the home’s value that were not evident at first glance.
Some of these problems could include structural issues, plumbing or electrical, termites or insects, mold or even water damage to name a few. Obviously many of these things could impact the price significantly and would either have to be fixed by the seller or renegotiated to get a fair price.
In conclusion, there are a lot of areas to consider when choosing your first home and getting a fair price on a property. Since this is one of the biggest purchases you will ever make, it is crucial that you protect your interests and ensure that you are getting the best deal possible.
In order to get started researching homes in our local area, contact us right away using the information located above. We look forward to serving you as you search for your first home!

Click here to contact a first time home buyer specialist

In today’s market first time home buyers know most of the reasons why the “perfect storm” of today’s real estate market presents them, even though the media is killing the dream of homeownership.

In most markets across the country everyday, first time home buyers are discovering that buying is cheaper than renting. and there are thousands of foreclosed homes from which to choose. First time home buyers  can also start their real estate investing career with multi-family housing.

But one of the cornerstones of home ownership has always been the tax benefits. In the most simple terms you will pay Uncle Sam less money if you own a home than if you don’t.

Here are 7 possible tax benefits from homeownership:

• Mortgage Interest & Points: If mortgage debt is $1,000,000 or less, married couples filing jointly can deduct the full amount of their interest. Otherwise, those filing separately can write off up to $500,000 worth. This also includes second homes or adjacent land to your main residence. Points on either a home purchase or refinance can also be deducted, but these must be amortized for the latter.
• Property Tax Deductions: All state and local taxes regardless of how many properties you own can be deducted, up to the alternative minimum tax required by law. Funds that are held in escrow accounts can only be written off once the taxes are paid.
• Private Mortgage Insurance (PMI): A portion of PMI can also be deducted if household income is less than $109,000 per year or $54,500 for those filing separately.
• Interest On Home Equity Loans: As long as you have the necessary equity in your home to secure the required debt, you can write off the interest on a loan of up to $100,000 for those who are married filing jointly, or $50,000 when submitted separately.
• Working From Home: That’s right! Even those who use a portion of their home for work purposes are able to deduct a percentage of the home’s depreciation, utility/maintenance costs and insurance. This is one you definitely want to review with your tax professional to make sure you are getting the maximum available to you.
• Home Maintenance Interest: This is a tricky one, as you can write off the interest on any capital improvements made to your home, which will increase value and/or prolong the life of your home. This includes certain types of restorations or additions made to the home with no cap on the investment. However, you will not be able to deduct minor patching or cosmetics made to the home.
• Capital Gains/Selling Costs: As long as you have lived in your primary residence for at least 2 of the last 5 years, you are permitted to sell your property for up to $500,000 of profit for married couples filing jointly, or $250,000 for singles with absolutely no tax penalties. However, if you end up selling for an amount above either threshold, you can subtract the amount of closing/selling costs that you incurred from your total gain. Those who fall outside of the 2 out of 5 year limitation may be granted an exception given certain unique circumstances such as health problems, relocating for work or other such occurrences.

Therefore, it pays to consider the benefits of homeownership and to discuss with your tax professional what you may qualify for. Especially for those who are entertaining the thought of buying instead of renting, it is very important to consider the long-term impact that owning real estate can have on your overall financial future.

There are advantages whether you are buying for yourself or investing in properties for additional income. Contact us today using our information above to start exploring what options may be available for you!

For First Time Home Buyers working with a true real estate professional comes with a lot of advantages over trying to go after it alone.
By working with a pro you’ll get:

• Someone on your side protecting your interests and not the banks
• Someone with Market Knowledge who can help you navigate existing inventory and get you a good deal
• Someone with the industry contacts to help you find the right first time home buyer program for you and your family
• To save time! Avoid common newbie mistakes. Plus you’ll be able to quickly focus in on properties fitting your unique criteria
• A 3rd Party Buffer when it comes time to negotiate. You won’t want too many emotions involved here – having a buffer could make you lots of $$$

First time home buyers don’t need just a Realtor, they need a VERY GOOD Realtor.

It’s a challenging market out there and you’ll need all the help you can get, because after all it’s your money on the table

First time home buyers have to be wondering, “Is it a good time to buy real estate?”
The answer is always, “Yes, but it depends.”
it is always a great time to buy real estate but:
Not for everyone,
Not at any price, and
Not just any property.
In order to make that determination for YOU, we first must understand the three most important words in real estate.
If you asked almost any Realtor today, they would say the same thing they’ve been saying for years: Location, Location, Location!
First of all it’s only one word and “location” does come with a premium, but is the premium worth the price? Maybe, Maybe not?
So what are the three most important words? LONG TERM OWNERSHIP
We buy property, whether a personal residence or for investment, in hopes that we are financially better off down the road than we are today. The chance of that occurring is very low if one does not own real estate for at least five or more years.

The reason is that transaction costs, repairs, monthly ownership costs higher than comparable rent, and ownership hassles dictate that it is better to invest your money elsewhere and stay as a renter if you are not sure you will own long term.

But today’s real estate market has created a “perfect storm” for first time home buyers that presents a once in a lifetime opportunity to own a piece of the American Dream.

• In most real estate markets buying is cheaper than renting
• Interest rates are at their lowest levels in fifty years
• There are thousands of distressed properties selling at huge discounts
• A number of down payment assistance programs to help make the move affordable

Therefore, since you are going to be a long-term holder (the longer the better) you really should not be that concerned with short-term current market price fluctuations because ten years from now the home’s value will likely be more than it is today.

What you should be concerned about is finding a house that you “love”— one that fits all the right reasons you want to own that particular property for a long time!

Find a house you love, that you will own for a long time, is in decent shape, lock in a long-term mortgage and sleep well.

Thanks to Leonard Baron for the for some of the content.
Leonard Baron, MBA, CPA, is a San Diego State University Lecturer, a Zillow Blogger, the author of several books including “Real Estate Investment – Rental Properties, Foreclosures, Short Sales” and “Buying a House, Condo or Townhome – Guide to Smart Purchasing” and loves kicking the tires of a good piece of dirt!

Info  PR: n/a  I: 890  L: 0  LD: 79  I: 68  Rank: 2056657  Age: March 23, 2004  I: 0  whois source Robo: yes Sitemap: yes  Rank: 2004603  Price: 331 Links: 76|10 Density

Let’s see you can own cheaper than you can rent, interest rates are the lowest in 50 YEARS, and home prices are ridiculously affordable.

So why aren’t more first time home buyers buying?

Obviously the state of the economy is causing many families to think twice about the purchase of their first home, but how can anyone make an informed decision with all the misinformation being spread by the disconnected mainstream media and the so-called experts?
As first time home buyers it can be hard to separate fact and fiction.

Let’s take a look at some recent “expert analysis” and compare it to what’s really going on in most markets.

First there’s this gem from the brain trust at Trulia.com:
“Today, many banks are actually less enthusiastic about approving residential mortgage applications, which has dragged out the home buying process,” he added. “Until a middle ground on lending practices can be met, many highly-qualified buyers may be forced to be renters by choice for now.”
The truth: There are dozens of loan programs for first time home buyers and they don’t have to be “highly qualified”. They do have to prove they can and will repay the lender (Hardly a “less enthusiastic” guideline)

And then this from the National Association of Realtors:
Walter Molony, a spokesperson for NAR, fingers tight underwriting practices as another suspect culpable for the upswing in rentals.
Lenders have only been willing to lend to creditworthy buyers.”

What’s with those lenders? They only want to lend to people who will pay them back! Imagine that?

(Thanks to MReport for the “insights” from these “experts”)

I don’t know about other real estate markets but here’s what’s really going on in the Southern California Real Estate market, particularly Riverside and San Diego Counties.

•     First time home buyers can get ZERO down financing with credit scores as low as 580   

•     First time home buyers in all of California can move in for as little as 1% with a credit score of 640

•     Even non first time home buyers can move in with as little as 1/2% with a credit score of 640

•     First time home buyers in Riverside County can get up to 20% in down payment assistance with a credit score as low as 600

•     Veterans can still buy a home with ZERO down with credit scores as low as 600

•     There is still a TAX CREDIT for first time home buyers in Riverside and San Diego Counties

The talking heads in Washington and the media haven’t got a clue about the solution to the housing problem.
The solution will come from the bottom up not the top down.

If we can find ways to put more first time home buyer families in homes who want to and CAN make their mortgage payments (Yeah, that’s important!), we’ll work through the “shadow inventory”, and won’t be turning our neighborhoods into “detached apartments” by selling foreclosed homes to investors.

P.S. Did you know there are at least 10 programs available in our market to help first time home buyers purchase with little or no money down?

I would love to hear your comments, and feel free to share.

In 74% of the real estate markets across the country it is cheaper to own your first home than it is to rent it.

Trulia.com uses the rent ratio formula to determine whether buying is cheaper than renting for first time home buyers, and as you will see in the video below buying is outpacing renting most communities across the country.

For more information on the rent ratio calculation, Click Here

Buying your first home is the most important financial decision you will make in your life (so far).

Sometimes the costs of buying your first home will cause you to consider cutting corners on the costs. That’s one reason why we recommend that you consider using down payment assistance even if you don’t need it or don’t think you will qualify for it.

One of the costs that should NOT be on your “chopping block” is home warranty protection.

A home warranty is a service contract that covers the repair or replacement of home systems and appliances that fail due to normal wear and use during the term of the Plan.  The typical contract provides coverage for 12 months, is renewable, and coverage can be customized to meet the needs of each individual home.

Your home is most likely one of your biggest investments.  Adding a home warranty protects this investment by keeping the covered home systems and appliances in good working order.  It also provides peace of mind and budget protection for the homeowner, since repair or replacement of major systems or appliances in today’s dollars can easily cause financial strain.

In addition to budget protection, home warranties offer a convenient service solution should a system or appliance break down. This is particularly valuable for homeowners who are relocating to a new area.  Most warranty companies take service calls 24 hours a day, 365 days per year, and can immediately dispatch a qualified contractor to perform the required service.  With most claims, the homeowner pays only a nominal service fee to the contractor.

Although home warranty coverage can be obtained for most home systems and appliances, there are specific industry limitations of which the consumer should be aware.  Most home warranty companies don’t cover general maintenance or cleaning, cosmetic defects, inadequate capacity, secondary damage, or service involving hazardous or toxic materials such as asbestos.

Always read the home warranty contract to determine the coverage, and make special note of terms and conditions.

When you purchase a home, you can feel confident choosing Old Republic Home Protection as your home warranty provider.  We have been delivering outstanding coverage and service to the real estate community and consumers since 1974.  Our goal is to provide the best home warranty coverage on the market at reasonable rates, protecting our clients from the high cost of repair or replacement of their home’s major systems and appliances

Thanks to Kathy Lansford of Old Republic Home Protection for the information! For more information contact Kathy:  kathy@orhp.com

For any first time homeowner, it is very important to look into professional companies that can provide you with the very best and most up-to-date home security system. Of course, there are a number of other things to think about… but the most important part of any home is how safe it is for its residents.

With that in mind, here are a few things to think about with regard to home security.

First, before you protect your home from criminals, it is important to consider security from the point of view of those criminals.

Ask yourself what a thief or vandal might think about before attempting to break into a home.

From there, you can go about securing your environment against the specific aims and ideas of criminals, at least as far as you understand them.

Here are a few examples of how this way of thinking about home security can help you:

1.) The first thing that any criminal must do when looking to break into a home is target that home. He or she will likely stake out the property for a few days – generally, larger homes or homes in high income areas are automatic targets – before deciding to attempt a crime. With this in mind, focus on making your property an unappealing target. Make it clear that people are always home by leaving lights on when you leave, for example, And, if you sign with a home security company, be sure to put a sign in your yard indicating that you are protected. This will alert the criminal to the high risk of going after your home.

2.) Limit easy access. Remember, a criminal’s primary goal is to avoid capture. A home invader will go to great lengths to avoid breaking a window or making a loud noise… so, they often look for easy access like unlocked doors or open windows. Simply making sure that doors and windows are closed and locked at all times may deter most criminals from trying to invade your home.

3.) Criminals startle easily. Again, the primary objective of any thief or vandal is not to get caught. So, by equipping your home with alarm systems, motion detectors, and other security features, you can greatly decrease the likelihood of a successful break-in. In many cases, if a person breaks into a home only to hear an alarm triggered, he or she will immediately turn and run. The wealth gained from a break-in is not worth jail time to very many criminals. Ask your home security company about installing these devices, and your home should be about as secure as possible.

First time home buyers who are in a real estate market with an abundance of foreclosures, not only need to exercise “due diligence”, they also need to make sure they don’t get caught with GDS (Great Deal Syndrome) and make sure this particular home is still the right one for you and your family.

In most real estate markets across the country, first time home buyers have their choice among hundreds of foreclosed homes.

But what makes a foreclosure a good deal?  It’s not just the lowest price because that could be a reflection of property condition. Nor is it the best terms, if the terms are “too good to be true” they probably are.

It’s a good deal if, after doing your due diligence, you’ve determined it’s the best home available for you and your family.

“Due diligence” is a term normally reserved for real estate investors, but first time home buyers should perform their own due diligence as well.

The first step in performing your due diligence is hire a good real estate agent. It’s a good idea if the agent represents only you and not you and the seller. There’s negotiating to be done and you want someone who has your best interest first.

After closing you’re the one who will be living there and making the payments, so you’ll want to make sure you know as much about the home and the process of buying it as you possibly can.

To get your Due Diligence Property Checklist – Click Here

Other Related Posts:

• How to get out of Credit Score Jail
•  First time home buyer loans not one size fits all
•  First time home buyers are following the smart money

It’s no secret that getting a first time home buyer loan in today’s market requires better credit histories than in the past.
But bad credit doesn’t have to be a life sentence, but it’s up to you to get your financial house in order to make that dream of owning your first home a reality.

Did you know that more than 30 million Americans are contacted each year by collection agencies regarding unpaid medical bills?

In June 2011, a bill titled the Medical Debt Responsibility Act was introduced to Congress by a bipartisan group. This bill would require the three national credit reporting agencies, Equifax, Experian and TransUnion, to remove medical collection records of $2,500 or less from credit reports within 45 days of being paid or settled.

Reasons to Support the Bill

1. Medical bills are sent to collections too quickly by medical professionals
2. Collections can have a major impact on interest rates
3. To improve credit scores so that Americans can buy homes and stimulate the economy
4. Medical bills are not considered a planned event and are usually a necessity or an emergency
5. Some medical bills are disagreements over co-payment
6. Some consumers may not be aware that the hospital or doctor turned the bills over to collections
7. Some consumers don’t know collections are on their credit report until they apply for a loan

To contact a first time home buyer specialist about your credit scores

To ask your burning question for a first time home buyer specialist

Other related posts:

First Time Home Buyer Myths – Busted!

Another First Time Home Buyer Myth – Busted!

And Another First Time Home Buyer Myth – Busted!

Landlords got some great news – renters? not so much!
First Time home buyers?

When it’s cheaper to own than rent, that has to be great news!

It seems that almost daily first time home buyers are getting information that makes that buy vs. rent decision a little  easier. According to a new report released by real estate search site HotPads.com residential rental rates have risen 6.7% since June of 2010, far exceeding industry experts predictions.
We are seeing renters flocking to their chosen social networks, flustered that their landlord is screwing them over and are being met with the harsh reality that it isn’t their landlord, it is the entire market. (AgentGenius)
It’s estimated that rents in San Diego will rise 10% in 2011 alone.

So how do you know if buying is the right decision for you and your family?
Forget the financial part for just a minute and ask yourself if you’re ready to assume the lifestyle.
If you think you’re ready to settle in fand can handle the additional responsibility that comes with homeownership, then  you might want to use this handy tool to help analyze the financial part of your decision.

If you find two similar houses, one for sale and the other for rent and divide the sale price by the annual rent, you can call the result the Rent Ratio.
It’s a formula similar to the price-to-earnings ratio that savvy stock investors use.

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

But there’s more to the decision than just the monthly payment.

If your lease expires at the end of the month, how much would you need to move into your next apartment or housse?

In California a landlord, for an unfurnished rental unit can legally charge an amount equivalent to two months rent (first month plus security).
So if the rent will be $1500 you would need a minimum of $3000.

Will you be able to do that?  if so, check this out!
If you were buying your first home, using the California first time home buyer program you might be able to move for as little as 1% of the purchase price.

• Compare the rent ratio figures for Southwest Riverside County

For more information on how this program might work for you and your family

Other related Posts:
Save thousands on move in costs with down payment assistance 

Down payment assistance even if I don’t need it? 

First Time Home Buyer Blunders to Avoid

“A first time home buyer can get a “smokin” deal in this market because of all the foreclosures!”

MYTH! (sort of)

If, by “smokin’ deal” you mean as compared to the prices of 2,3,4 or 5 years ago, then ABSOLUTELY!

But if you mean, you’re going to offer 20, 30, 40, or 50% below current asking price, well then you have three chances! 1) None 2) Fat 3) Slim left town.

There’s no lack of sound byte reporting that is telling you how much less foreclosures sell for than regular or standard sales.

The truth is: traditional media is disconnected from the realities of local housing markets.

All first time home buyers would love to get a “smokin deal” on their first home but the realities of today’s market are driven by “supply and demand” not by your desire to get a “deal”.

If your first home will be in a market that is dominated by distressed sales, then the supply is controlled by the banks and major lenders. Their sole purpose is to sell the house for as much as the market will bear. That’s why the department you’ll be dealing with is called “Loss Mitigation” or in layman’s terms: “Cut our losses department”.

The banks spend a lot of money determining the market value for each one of the homes they own (REOs) or might own (short sales).

They might hire an appraiser to determine market value and/or a local real estate broker to do a BPO (Broker Price Opinion). Using this information is how they arrive at what will be an acceptable selling price.

The banks also have to answer to the investor(s) who own/owned the loan that is/was on your “dream home”. If the banks have already repaid the investors, once again they have to mitigate their losses, because their investors demand it and very often will not approve anything less than their perception of value.

You might have heard that up to 70% of all home sales are to first time home buyers. That creates demand, so you will be in competition with other first time home buyers and thus “the bidding begins”

Almost every market has a “tipping point”. Homes above that price point generally have less competition and below it there’s more competition.

So, your approved target price will determine your competition and whether or not a below market offer will be accepted.

If you’ve hired a Realtor who specializes in helping first time home buyers, they will know that “price point” for your market and can advise you on the amount of competition you might be facing and help you write a competitive offer.

Even if every offer you write is competitive, in most markets you’ll probably be writing more than one before you’re the winning bidder. Writing a “lowball” offer does absolutely nothing to move you along the path to home ownership.

Other related posts:

• First Time Home Buyer Myth #1

• First Time Home Buyer Myth #2

• Blunders to avoid when buying your first home (Video)

California first time home buyers will be getting another layer of protection starting July 1.
On that date the provisions of the Carbon Monoxide Poisoning Prevention Act of 2010 become law.
All residential dwellings in California will be required to have them installed whether they are being sold or not.
Unlike the snakes in the snake house, carbon monoxide is an colorless and odorless gas that has rightfully earned the name “Quiet Killer”.

Carbon Monoxide Poison Prevention Act of 2010
Details: As of July 1, 2011, Carbon Monoxide detectors will be REQUIRED in all houses (1 – 4 units) if they have any of the following:

• Any gas appliances such as a gas stove, gas furnace, gas fireplace, gas water heater, etc.

• A fireplace (even if it only burns wood, pellets, or any other material).

• An attached garage (even if there are no gas appliances in the house!). Cars continue to emit CO even after they are shut off.

• ANY rental dwelling that meets the criteria listed above. Yes this means that if you own a house, condo, or townhouse that you rent to another human being, you are REQUIRED to install Carbon Monoxide detectors.

• As of January 1, 2013, ALL multi-family dwellings including multi-family dwellings that meet the criteria listed above will be required to have Carbon Monoxide detectors. Even those that are not being sold will be required to have them just like smoke detectors.

If you think this is just another layer of government, think again!
Watch this video and you’ll learn more about the “Quiet Killer”

Be sure the home you are buying is safe. A qualified home inspector will provide the information you need to feel confident about your home buying decision. Don’t compromise when choosing a home inspector. Be sure to ask if they will check for this.

Other Related Posts:

• Home Inspections? We don’t need no home inspections!
• First Time Home Buyer Myths – Busted
• First Time Home Buyer Myths – Busted #2

Buying your first home can be a daunting experience and many first time home buyers, in an effort to save money on their closing costs are opting to waive their right to the inspections that are in place specifically to protect them.

If you’re a first time home buyer in one of the many real estate markets dominated by foreclosed homes, it’s important to know that those homes are sold “as-is” without any represntations as to potential defects.

In fact Fannie Mae out of the goodness of their heart will let you waive a home inspection, termite report and appraisal on their HomePath properties.
Isn’t it ironic that Fannie Mae, the promoter of first time home buyer housing, will let a prospective home buyer waive the three inspections that BEST protect  them?

Watch this video about a family who bought a home in Idaho, that had a little gartner snake problem. By the way, this is the street view of that home.

A recent episode of the Animal Planet program Infested touted:
Three families fight for their homes as they are overrun by vermin. In New Jersey, a dream home becomes a battleground as a family goes to war against an ever-growing number of bedbugs. A single mother defends her home and children against an invading army of rats. And in Arizona, a family discovers their new home is a haven for deadly scorpions

When a first time home buyer is purchasing a home where a property condition  disclosure is not legally required by the seller, it’s important that you do an extra level of homework and a thorough home inspection is the first step to make sure there aren’t anymore surprises.

Before you write an offer, “Google” the property address to see if anything in the public domain shows up. If your future home has a history you’ll probably be able to find it there.

Buyer beware is a term that’s been in play for years but the one great thing about the internet is that it can be a fantastic and necessary tool to do additional research on a potential property beyond mechanical inspections. (AgentGenius)

Other Related Posts:

Why first time home buyers need a Realtor

Should first time home buyers consider a new home?

First Time Home Buyer Myths – Busted

First Time Home Buyer Myths – Busted #2

First Time Home Buyers can find the best interest rates on the internet

MYTH!

Just like the myth about buying a home on the internet, you can look at interest rates but you CANNOT find the best interest rates or the right first time home buyer program for you and your family.

Many home loan lenders have gone to great lengths to convince first time home buyers that getting a loan for your first time home loan can be had with a few mouse clicks.

Sure, you can get an interest rate “quote” but it’s worth as much as the epaper it’s printed on. They even give you the ability to “qualify yourself” with a few more mouse clicks and that has a value equal to the quote you just got.

Advertising mortgages on the internet has only one purpose: Make the phone ring or the inbox fill up.
Like many auto dealers and big screen TV sellers, on-line lenders may be advertising a “loss leader” to attract your attention. I’m not saying the rate and terms aren’t available but they need a lot more information from you before they can really offer it to you.

In case you hadn’t heard, home loans are more difficult to get today. It’s not the wasteland that traditional media makes it out to be, but they’re difficult nonetheless.

ALL lenders have “overlays” or loan-level-pricing adjustments that can impact your interest rate and cost based on the type of home you may be purchasing, your credit score, how much of a down payment you will be making and even the state in which you’re buying your first home.

Just as a local Realtor is crucial to helping you find the right home for you and your family, a local lender who specializes in first time home buyer programs is a “must have” to make sure that your first home is a place you will be able to enjoy for many years.

Other Related Posts:
The future of first time home buyer loans (Video)
First Time Home Buyer blunders to avoid (Video)
6 Tips to understand first time home buyer programs

How long will negative history appear on your credit report?

Sometimes life circumstances can cause negative items to show on your credit report.

It’s important that you know that these are not a “life sentence” and that “time does heal all wounds”

Watch this short video (less than a minute) to get some general guidelines to the life span of negative credit.

The farther behind you these negative items become the less impact they will have on your score.

If you have negative items on your credit score your first time home loan lender may require one or more of the following:

1) A letter of explanation for the negative item or inquiry

2) If you have collections or charge offs, they MAY require you pay them off before you can get your first home loan.

3) If you have a bankruptcy, foreclosure or short sale they may ask for documentation and a letter of explanation regarding the circumstances.

• To ask your burning question about your credit or credit scores

Other related posts:

• First Time Home Buyers Credit Course 6

• First Time Home Buyers Credit Course 5

• First Time Home Buyers Credit Course 4

• First Time Home Buyers Credit Course 3

• First Time Home Buyers Credit Course 2

• First Time Home Buyers Credit Course 1

First time home buyers can get the best information about their market on-line

MYTH!

First time home buyers can get information about the real estate market on-line but it’s not the BEST information.

Buying your first home is the most important decision you will make and relying on the major news outlets is trusting that decision to sound byte reporting.

They only have a few seconds to grab your attention to entice you to read/watch further. To cram as much information in as short a time as possible they will generalize and make conclusions based on one set of data, without talking about the other pieces of the puzzle.

The fact is that traditional media is disconnected from the realities of housing.

Regardless, talking heads are saying in one day that permits are up so housing must be stabilizing yet on another day saying that builder confidence is down and we’re in for a bumpy ride. The truth is that the pendulum is still swinging and there are signs of national housing stabilizing but we’re still experiencing the bounce so we can’t say for sure one way or another (although we can say housing is currently a mess). (AgentGenius)

or how about Foreclosures? from the same AgentGenius article
Various news anchors continue to point to foreclosure data as a sign of a recovering housing market and continue to fail to see all of the moving pieces…The number of homes actually repossessed in May fell 4% from April and 29% year-over-year…
These numbers look good, but don’t take into account why this process has slowed down.
We’ll give you a hint- it isn’t because employment is any better or because consumer confidence is up. No, it’s because the big banks have kinked the hose of the flow of foreclosures in light of the robosigning debacle (where banks didn’t manually review documents before foreclosure leading to illegal foreclosures on wrong addresses, homes paid in full and various other mistakes) as many states attorneys general and federal agencies are investigating the banks’ processes, putting a hamper on how quickly papers are/were being processed.

Where can you get the best information?
Local industry professionals (Realtors & Lenders) will have the best information.

Here’s a first time home buyer tip that will help you find the right professional.
Just ask “How’s the market?”
If they start talking about “their market” i.e. “I’m sooo busy” or “it’s a great time
to buy” keep looking, they aren’t going to give you the important information you need.

• To contact a first time home buyer specialist

Other Related Posts:

• First Time Home Buyer Blunders to Avoid (Video)

• New Cop on the beat to protect first time home buyers

• 6 Tips to understanding first time home buyer programs

• 3 Myths about first time home buyer programs

First time home buyers will have a new cop on the beat effective July 1.
The Consumer Finance Protection Bureau (CFPB) has been charged with
protecting first time home buyers from the fraudulent activities that  fueled the financial meltdown.

Ron Howard (that’s right Opie!) will explain how the CFPB will be policing the activities of a number of industries that affect you every day.

The goal of CFPB is to insure that all consumers are treated fairly and all costs associated with a number of financial transactions are disclosed clearly and in an easy to understand manner.Other related posts:

For first time home buyers your credit score can be the “deal breaker” if you’re not careful in how you manage your credit throughout the entire process.

Too many first time home buyers have seen their credit scores tumble because they took the advice of family or friends, rather than that of their first time home buyer lender.

A good lender who specializes in first time home buyer programs will give you the best advice on how to manage your credit scores.

Here are: 5 Credit Score Myths for first time home buyers

For more information on first time home buyers credit

Other Related Posts:

• Credit Course 5

• Credit Course 4

• Credit Course 3

• Credit Course 2

• Credit Course 1

First time home buyers on the path to homeownership are going to have their credit history examined thoroughly by the lender of their first time home loan and credit history is a very important part of that examination.

Having a solid credit scores will tell your lender that you seriously the repayment of your credit obligations and are therefore a better risk than someone who has an “erratic” repayment history.

Watch this short video, it shares a couple of ideas on building a stronger credit score.

To discuss your credit score with a first time home buyer specialist

Other Related Posts:
Credit Course 4
Credit Course 3
Credit Course 2
Credit Course 1

First time home buyers have so much at stake when buying their first home that in the attempt to “do it right” they might forget some of the basics.

Here are some tips for first time home buyers that while basic do form the foundation of a successful home buying experience.

If I were going to add one more first time home buyer tip, it would be: Rely on the experts you have chosen for the right information, not friends nor family members.

The changes in today’s market seem to happen daily, and you need the advice of someone who is in this market everyday to guide you through to a successful closing.

To contact a first time home buyer specialist

Other Related Posts:

6 Tips to understanding first time home buyer programs

I thought I made too much to get first time home buyer assistance!

Down payment assistance if I don’t need it?

For first time home buyers the first step in getting and maintaining a good credit score is reviewing your credit score for errors.

First Time Home Buyers Credit

It’s estimated that up to 70% of credit scores contain some errors and fixing those errors can have a positive impact on your credit scores which will make qualifying for your first time home loan that much easier.

Watch this short video (90 seconds) on the simple (and FREE) first step to insure the accuracy of your credit.

• Click here to ask your first time home buyer credit question

Other related posts:

First Time Home Buyers Credit – Credit Course 1

First Time Home Buyers Credit – Credit Course 2

First Time Home Buyers Credit – Credit Course 3

First time home buyers in today’s market are faced with an interesting dilemma.
Cheap homes and record low interest rates have made owning a home more affordable than renting.

The dilemma becomes do I buy as much home as I qualify for or one that I can afford?
Warren Buffett has some advice for you.

Check out this short video (90 seconds) it offers some pretty good advice.

Even if you don’t have 20% for down payment, you can take advantage of the first time home buyer incentives to help you make that move from renter to homeowner.

• To contact a first time home buyer specialist

Other Related Posts:

• Down payment assistance if I don’t need it?

• Click here to watch Credit Course 1

• Click here to watch Credit Course 2

• Click here to watch Credit Course 3

First time home buyers in today’s real estate market have the opportunity of a lifetime.
Overstatement? Maybe or Maybe not?

Looking back, you will see that the real estate market has resembled a roller coaster ride more than a train ride.

Like a roller coaster ride, buying your first home is not for the faint of heart, but the “rush” you feel when you finally move from renter to homeowner is unlike any other.
To help you achieve your goal, there are a number of first time home buyer programs and incentives.

But the question remains, why would you use down payment assistance if you don’t really need it?

Reason #1 – It’s NEVER a good idea to be left with little or nothing after you move in. If there ever was anything that exemplified “Murphy’s Law” it’s the home buying process. The Boy Scout motto: “Be Prepared” is great advice.

Reason #2 – There’s more to buying your first home than just the down payment.  You’ll have closing costs, moving expenses, utility deposits, or homeowner’s association fees.

Reason #3 - If you’re buying your first home in a market that’s loaded with REO or bank owned homes, unless you get very lucky it will need some cleaning, minor repairs, upgrades, maybe even new appliances. Your down payment money will come in very handy as you turn that house into your home.

Reason #4 - It’s the best terms you’re ever going to get. LIfe’s every day emergencies have even the most cost conscious first time home buyer in need of a loan sometimes. Appliances break down, the car needs tires, the kids need braces or you want to take the family to Disneyland (now that’s a big ticket item).

Some of the down payment programs are “same as cash” while the down payment assistance for California first time home buyers has a low interest rate (3.25%) with no payments required and the balance due when you sell.

Reason #5 - It can make the difference between being a homeowner now or continuing on as a renter, with rents rising at a record pace.
A recent article in CNNMoney warned:
“Renters beware! Double digit rent hikes may be coming soon”
Renters in San Diego, according to CNNMoney, may soon be facing rent increases of 31% over the next few years.

For more information on down payment assistance for first time home buyers – Click Here

Other related posts:

• 6 Tips to understanding first time home buyer programs
• 3 Signs that say BUY to first time home buyers
• 3 Myths about first time home buyer programs

Whether you’re buying a car, computer, flat screen TV or your first home, it’s the “American way” to want the “best deal”
Well, homes are on sale in Temecula and Murrieta. In fact they’re on sale throughout Riverside County and Southern California, and the best deals are waiting for you and your family.

Riverside County is offering “15 years same as cash” for first time home buyers

 
• Click here for more information

The State of California also has a first time home buyer program with down payment assistance.

 
• Click here for more information

There’s a first time home buyer program for California State Employees

If your a first time home buyer in Southern California, your other option for housing (other than your parent’s home) rental homes are seeing rents rise to the tune of up to 10% a year in San Diego.
Click here to ask a first time home buyer specialist your burning question

While this video is about a home in Salt Lake City, it only proves that homes are on sale across the country and no one is better positioned than first time home home buyers.

Other related posts:

 
• Tips to understand first time home buyer programs

 
• A tip from Warren Buffett

 
• 3 Signs that say BUY!

Credit and credit scores are a big part of the qualifying process for first time home buyer loans and understanding how your score is calculated is critical to obtaining and maintaining an acceptable credit score.

First Time Home Buyers Credit

First time home buyers don’t need perfect credit, but they do need to demonstrate and ability to manage the credit they have.
For those first time home buyers that absolutely have to have a number to hang their hat on, then 620 is good enough, 640 is better.

Watch this 90 second video on the basics of how your credit score is calculated.

In case you missed them:
Credit Course 1
Credit Course 2

Other Related Posts:
5 Steps to Credit Score Suicide
Understanding first time home buyer credit – Part 1
Understanding first time home buyer credit – Part 2

Video – Understanding the mortgage process and its costs will be getting easier for first time home buyers.

Last year the government in an attempt to help consumers understand the costs

of obtaining a mortgage, rolled out a multi-page Good Faith Estimate that only served to further confuse first time home buyers.

The new form will be shorter (2 pages) and will break out the estimates for total payment and cash required to close (which the old form didn’t )

• To find out more about the know what you owe initiative

Other Related Posts:

• 6 Tips to understanding first time home buyer programs
• Is it really a good time to buy your first home?
• 3 Signs that say BUY to first time home buyers

First Time Home Buyers Credit

One of the fallouts of the housing bubble is that lenders are examining the credit of first time home buyers more closely than in the previous five years.

Click here to watch Credit Course 1

Interesting enough, these guidelines aren’t that far removed from the first time home buyer market that existed before the “housing insanity” that overcame most of us.

Your credit score is a reflection of your ability to manage your debts and lenders want to make sure you have a reasonable chance of paying them and paying on time.

• Click here for more information on first time home buyer programs and your credit

Watch this really short video, it explains a lot.

Other related posts:

• 6 Tips to understanding first time home buyer programs
• Prices are low and mortgages cheap, why can’t I get a home?
• 3 signs that say BUY to first time home buyers

This is the first in a series of posts about the first time home buyer programs and down payment assistance programs available to first time home buyers in California and specifically Riverside County.
Millions of Americans have bought big screen TVs, appliances, lawnmowers, even cars with “same as cash” terms.

15 Years same as cash

Now qualified first time home buyers in Riverside County can get down payment assistance with “same as cash” terms. In fact the terms can be even better than “same as cash”.

The County of Riverside through its EDA is rolling out an enhanced version of its Neighborhood Stabilization Homeownership Program (NSHP)  “purchase price assistance” program.

Like all down payment assistance programs there are qualifying criteria for not only the future homeowner but the property as well.

Following the 6 Tips to first time home buyer programs, let’s look at NSHP.
Eligible properties are bank owned foreclosed homes or completed new homes that have never been occupied located in portions of 15 cities and 9 unincorporated areas of Riverside County with a sales price maximum of $292,686.

1. First Time Home Buyer – NSHP like all first time home buyer programs requires that you be a first time home buyer or not have owned a home in the last three years. We’ll verify this by requesting your federal tax returns to verify there is no mortgage interest paid.

2. Owner Occupied – All first time home buyer programs require you be purchasing your first home to live in.
There is an affordability period of 15 years for NSHP. What this means is that for the first 15 years you own the home (and occupy) if you sell it, you will be required to repay the down payment assistance.
Because there are no payments or interest charged you only pay back what you initially borrowed (same as cash).
After 15 years the down payment assistance becomes a grant and no longer requires re-payment.

3. Credit Qualify – All first time home buyer programs have an underlying first mortgage (usually FHA) for which you have to qualify based on your income and credit.
To help you with qualifying, NSHP may be combined with the Mortgage Credit Certificate (MCC) program to give you a boost in qualifying.

4. Income Limits – NSHP has income limits of 120% of HUD median income. So a family of three can earn as much as $70,200 and a family of four $78,000.

5. Down Payment Assistance – NSHP provides down payment assistance up to 20% of the purchase price in the form of a “silent second” with no payments or interest (same as cash), to a maximum of $75,000.
Because many of the foreclosed homes need some cosmetic repairs and energy efficient upgrades there is also a “repair component” as part of NSHP, which becomes part of your first time home buyer incentive.

• For more information on the repair component.

6. Homebuyer Education – All Riverside County homeownership programs require you attend an 8 hour in person home buyer education class. This should be one of your first steps on the path to homeownership. Because of the high demand for first time home buyer programs these classes fill up quickly.
NSHP offers first time home buyers one of their best opportunities of owning their first home. It will require effort and patience on your part, but when you can borrow money “same as cash”, it’s worth the effort, don’t you think?

Other Related Posts:

• 5 Tips for writing a smart offer
• Is now the right time to buy your first home?
• I thought I made too much money for first time home buyer programs

This article was contributed by Kristeen Smith 

When is a reverse mortgage option suitable for you?

First time home buyers don’t need “perfect” credit to buy their first home but they do need to show that they can manage their credit.

First Time Home Buyers Credit

Your mortgage company will be lending you hundreds of thousands of dollars and they want to be sure you will pay them back and pay them on time.

This is the first in a series of videos on first time home buyer credit scores and things you can do to make sure your loan application gets

For more information on first time home buyer creditOther related posts:

6 Tips to understand first time home buyer programs5 Tips for writing a smart offer on your first home3 Myths about first time home buyer programs

First time home buyers have a number of choices when it comes to the programs available to help them down the path of homeownership.

Unfortunately that’s the good news and bad.
Good because the programs are out there
Bad because the differences can be very confusing.

This is the first post in a series, where I’ll break down the programs into bite size pieces.
Warning, you can try and do this with a Realtor and Lender who are unfamiliar with the programs, but the turbulence may be more than you can bear.

For all their differences, the available first time home buyer programs are built on the same foundation. These programs seek to provide assistance, usually in the form of down payment assistance to eligible first time home buyers.

1) First Time Home Buyer – First time home buyer, by definition, would be someone who has never owned a home.
However, most jurisdictions define first time home buyer as someone who has not owned a home in the last three years.
This is almost always verified by reviewing the last three years of your federal tax returns to see if there is a mortgage interest deduction.
So if you or someone you know lost their home through foreclosure at the beginning of this meltdown in 2007 or early 2008, they may be eligible for one of the first time home buyer programs.

2) Owner occupied –  These programs will only provide incentives to first time home buyers who intend to occupy the property as their primary residence.
They want to help you get a home not build your “real estate empire”.
Many of these programs also have a recapture provision which means you have to own and live in the home for a specific period or you will be obligated to repay the money you were lent.

3)  Credit qualify – In order to be eligible for down payment assistance you will still be required to qualify for the underlying first mortgage (usually FHA) for which you will have to qualify based on your income and credit.

4) Income Limits – In order for the various government agencies to receive these funds they have to provide the assistance to “low and moderate” income families.
“Low and moderate” is a relative term and is based on the HUD income limits for your particular area. The income limits for your area can be found on the HUD website.
Low income is generally defined as 80% of the HUD median income and moderate income is usually 120% of HUD median based on family size.
Click here for more information on the HUD income limits

5) Down Payment Assistance –  The most common first time home buyer incentive comes in the form of down payment assistance. That assistance can range from 3% to 20% depending on the program and the other qualifying criteria the issuing agency has set forth. How much you might qualify for will be determined by a lender approved to originate these loans.

6) Home Buyer Education – Almost without exception, to be eligible for first time home buyer down payment assistance you will be required to attend a first time home buyer education class.
This class may be taken online or require class room time, but may be different with each program.

First time home buyer programs and down payment assistance programs are the poster children for “the business golden rule”: “Them with the gold make the rules”.
So if you would like to use one of these programs to help you make that move from renter to first time home owner, you need to know the rules and then follow them.

Other related posts:
3 Myths about first time home buyer programs
Do you need a Realtor to help you buy your first home?
What is the real cost of waiting to buy your first home?

First time home buyers in Murrieta, who might be tired of fighting the multiple offer battles with REOs and short sales are turning more to new homes in Murrieta.

One of your new home options in Murrieta is Kenton Place by KB Home.

Murrieta is one of America’s safest cities and the award winning schools and family friendly atmosphere make it one of the most desirable places to live in Riverside County.

The first time home buyer programs available in Murrieta, make owning a home in today’s market even more affordable, with down payment assistance ranging from 3% to up to 20% for qualified first time home buyers.

Kenton Place incorporates a Craftsmen design which is unique in Murrieta, where most of the homes have a very similar “spanish style” appearance.

The home buying public must agree that the homes at Kenton Place are a good value.

Kenton Place is a small community by California builder standards and there are only 15 home sites available out of the original 41.

According to TQ Coleman, one of the on-site sales representatives for KB Home, there are three homes available for quick occupancy:

• Lot 17 – 2876 square feet, 4 bedroom, 2.5 bath – $313,740
• Lot 18 – 2654 square feet, 5 bedroom, 3.0 bath – $279,900
• Lot 19 – 2263 square feet, 4 bedroom, 3.0 bath – $267,990

The homes at Kenton Place are in a price range that makes them and qualified first time home buyers eligible for one of the many first time home buyer programs available in Murrieta and Riverside County.  

Click here for more information on these first time home buyer programs.

For more information on Kenton Place, contact TQ Coleman at (951) 696-5040 or email her tcoleman@kbhome.com.

To contact a local real estate agent who understands first time home buyer programs and how to use them when purchasing a new home, Click here

Other related posts:

• Is it really a good time to buy your first home?

• 3 signs that say buy to first time home buyers

• 3 Myths about first time home buyer programs

If you’re a first time home buyer who has decided you want to add new homes in Murrieta to your choices, then you probably want to check out FoxHollow at Crown Valley Village.

FoxHollow at Crown Valley Village by KB Home has some unique features you won’t find in many of the other new homes in Murrieta.

All new homebuilders who offer FHA/VA financing also have to include a 10 year limited warranty and FoxHollow at Crown Valley Village is no exception.

Using FHA or VA financing, also gives first time home buyers the ability to take advantage of the first time home buyer programs available. (of course that is subject to KB home acceptance)

The first time home buyer programs available in Murrieta, make owning a home in today’s market even more affordable, with down payment assistance ranging from 3% to up to 20% for qualified first time home buyers.

In what may be a first among the new homes in Murrieta is that FoxHollow at Crown Valley Village offers five floor plans, all single story, which will provide a great deal of privacy for the homeowners there.

First time home buyers in Murrieta and in most of Riverside County for that matter, have become painfully aware of the difference in property tax assessments they’re finding and should always investigate thoroughly because of the impact it will have on their monthly payment.

According to the FoxHollow at Crown Valley Village brochure the homes have an “approximate tax rate of 1.02687% plus $260 a month in special assessments”. This would give you an approximate tax rate of between between 2 – 2.25%, which is not too bad for new construction.

Perhaps the most unique feature of the homes at FoxHollow at Crown Valley Village is the option of “smog eating roof tiles”. In early February, KB Home announced they would be offering  these “pacman” like tiles that are designed to “neutralize the smog-forming nitrogen oxides spewed into the air by automobiles.”

The grand opening for FoxHollow at Crown Valley Village is set for May 14-15. For more information call Robyn Nelson, the KB Home Sales Representative at 951-677-4110.

Other related posts:
Do I need a Realtor to purchase a new home?
Murrieta – One of America’s safest cities
5 Tips for writing a smart offer on your first home
What really helps or hurts your credit score

Buying your first home is the most important financial decision you will make for you and your family. The rules in today’s real estate market have changed and your approach to buying your first home in this market has to change with it.

Here are 5 tips to help you write a smart and competitive offer.

Writing an offer for a home you can’t afford is not the best first step on your path to homeownership.

1. Know your payment threshold –  It’s ironic that the entire real estate business revolves around “prices”, whether it’s list price, offered price or sales price.
But not one first time home buyer EVER has been qualified based on price,
Qualification for first time home buyer loans is based on “total monthly payment”.
That includes: interest rate, mortgage insurance, property taxes, homeowners insurance and homeowners association fees.
And here’s an obvious tip that many first time home buyers forget: You’re monthly payment increases along with your sales price, so do the property taxes, mortgage insurance and homeowner’s insurance.

Set a budget and stay with it. You don’t want your first home to make you “house poor”.

• To ask your burning question of a first time home buyer specialist

2. Know your wallet – You’ve heard the expression “champagne taste with a beer budget”?

I’m no math whiz but one of the things I’ve learned in my 30 years helping first time home buyers is that as they get caught up in the emotion of buying their first home they lose sight of this basic fact: “As the price of your first home goes up, so does the cost to buy it!

It’s not just monthly payment either. The amount of down payment and closing costs also increase and even though you may qualify for the monthly payment, it won’t matter if you don’t have the funds to close.

Of course there are first time home buyer incentives to help you and in many markets you may be able to get closing cost assistance from the seller.

3. Know the market – Many markets across the country are dominated by distressed sales. Most homes sold are either foreclosed homes (REO) or short sales.
This fact has driven home prices down and allowed thousands of first time home buyers the opportunity to become homeowners that they didn’t have four or five years ago.

And we’re not out of the woods yet!

According to Bart Jordan, Chief Appraisal Officer at Eagle One Property Valuations, “first time home buyers should also be aware of the future market trends”
“The number of homes in pre-foreclosure should be considered when making an offer. As part of my job I have to consider “market trends” and their influence on home values” Jordan added. “and so should first time home buyers”.

• For more information on local market trends

4. Know the tipping point – First time home buyers should also be aware of their market’s “tipping point”.
Almost every market has a price point where the number of sales reaches its peak and then starts to decline.

What this means to first time home buyers is that below the “tipping point” you’re likely to have more competition for each homes and above it, less competition.

This increased competition means means other first time home buyers are trying to do exactly what you are, so “stealing” a home in this range becomes a long shot at best.

• To contact a real estate agent who knows the local market trends

5. Know the seller - Have you ever wondered why first time home buyers aren’t buying homes significantly below market?
When I say “market” I mean today’s market not the market of 5 years ago.
It’s critical to understand that to a bank/seller this is not a real estate transaction, it’s loss mitigation.
They’re trying to cut their losses and as a result have a “net” figure they will accept and if your “lowball” offer doesn’t meet their net, they’ll say NO and move on to the next one.

Remember, just because YOU wrote the offer doesn’t mean it will get accepted.

There are three things that can happen and you have to have a “what if” scenario for each
1. The bank/seller will accept your offer as is.
2. The bank/seller will counter offer and now the ball is back in your court
3. The bank seller will reject your offer and move on to one with a better “net”

Treat buying your first home as the important financial decision it is. Make sure your financial house is in order and to paraphrase Warren Buffett: “buy a home you can afford”.

Other related posts:

• 3 Signs that say “buy” to first time home buyers”
• First Time Home Buyer market for 5 years?
• First Time Home Buyers it’s your money on the table

Buying a  first home is a very exciting time for first time home buyer families, and sometimes  they might forget it’s a “wild world” out there.

First time homebuyers in Temecula, Murrieta and other portions of Riverside and San Diego County now have the ability to see if their new neighborhood is safe.

Providing for our family’s safety is paramount to our decision when selecting a city like Temecula or Murrieta or even a neighborhood like Temecula Crowne Hill or Redhawk.

Murrieta and Temecula two of America’s safest cities

You can’t escape crime completely, but you can make an informed decision by checking out CrimeReports.com

Maybe you’ll decide that an electronic security system is a must have.

Or maybe an organic security system.

Organic Security System

But sometimes the threat comes from seemingly harmless activities, such as smartphone pictures.

Unfortunately the threat is real, Fortunately the fix is easy and FREE!

Part of being an educated first time home buyer is understanding the local real estate market. That understanding includes not only current market trends but also how future trends will influence your decision to buy.

On this page you can get a glimpse of foreclosure filings and outcomes. This will help you gauge where the market is heading.

Click here for more information on the homes in foreclosure

Foreclosure Filings -

06065 – Foreclosure Outcomes

First time home buyers in Riverside County have a tremendous amount of information and data available to help them make the right buying decision for them and their family.

Our market trends report lets you know what’s going on today.

The foreclosure filings and outcomes report gives you insight into what the future holds for homes about to hit the market.

But what if you’re still investigating the housing market and your decision is 2 months or even 6 months down the road?

First time home buyers can think of this page as their “crystal ball”.  Now you can see (based on foreclosure filings) how many bedrooms the homes in your future may have. You will also be able to see how many square feet, the approximate market value and the year built.

First thing we have to do is admit that most of the homes that will be available are the result of a current homeowner in distress, so this glimpse into the future is based on foreclosure filings.

These homes will hit the market as either bank owned (REO), short sale, or an investor “flip”.

What will your first home look like?

06065 – Filings By Number of Bedrooms

06065 – Filings By Square Foot

06065 – Filings per Year Built

06065 – By Est. Market Value

If you’re a first time home buyer there is so much conflicting news it’s impossible to know if now really is the time to buy your first home.

Unfortunately, most of the information your seeing and hearing has a “can’t see the forest for the trees” approach. Most of the data good and bad focuses on month over month or year over year declines or increases in sales numbers and property values.

Real estate has always been (or should have been) viewed as a long term investment. These last few years of insanity aside, the ups and downs of the real estate market have been relatively predictable.

They say a picture is worth a thousand words, if that’s the case this video is worth tens of thousands. It’s a one hundred year look at real estate values from a perspective that most of us can relate to.

To ask your burning question of a first time home buyer specialist

To find a real estate agent that specializes in first time home buyers

Other related posts:

3 Myths about First Time Home Buyer Programs and Incentives
3 Signs that say BUY to first time home buyers
First Time Home Buyers market for 5 years?

California First Time Home Buyer Program

First time home buyers who happen to be California State or municipal employees have a first time home buyer program they may not know about.
For years first time home buyers who were California state employees used the CalPers Home Loan program to buy their first home.
Recently, CalPers got out of the home loan business (which may not be a bad thing as far as your pensions are concerned), and left many of these employees wondering if they would be able to get on the path to homeownership.
The CalPers Home Loan program, though not limited to first time home buyers, was a benefit that allowed many state and municipal employees to make that jump from renter to homeowner.
Among other things the CalPers program featured:
1) A below market interest rate
2) Low down payment requirements
3) Limits on lender origination and admin. fees
4) Down payment assistance in the form of a second mortgage secured by your retirement account.

If you’re one of those state or municipal employees looking for help in buying your first home, there’s another State of California program to help you.

In the interest of full disclosure, this program is not affiliated with CalPers in any way and is not limited to state or municipal employees, but it is sponsored by the State of California Housing Finance Agency (CALHFA) through it’s participating lenders for first time home buyers.

• For more information on the California First Time Home Buyer Program

What are the features of this first time home buyer program?
1) A below market interest rate
2) Low down payment requirements
3) Limits on lender origination and admin. fees
4) Down payment assistance in the form of a “silent second” mortgage.

• To ask your burning question about the California First Time Home Buyer Program

This program is not limited to state, municipal or other government employees. In fact all first time home buyers may be eligible, but not all lenders and Realtors are specialists in this program.

• To contact a real estate agent about the California First Time Home Buyer Program

Other Related Posts:
3 Myths about First Time Home Buyer Programs and Incentives
3 Signs that say BUY to first time home buyers
First Time Home Buyers market for 5 years?

In one of the most dramatic turnarounds in American history, the housing market, overnight, is exploding. First time home buyers are lining up everywhere to capture their piece of the American Dream.

Jamie (name withheld) was convinced that owning a home was a better decision for her family than renting., but the costs of buying her first home made it feel beyond her reach. Even though she had a great job, it was hard to save enough money to make her dream a reality.

FirstTimeHomeBuyersNetwork.com, an association of Mortgage and Real Estate professionals who specialize in helping first time home buyers find the right first time home buyer programs and incentives, were there to help Jamie and her family.

One of the best things about living in Southwest Riverside County in general and Temecula is the semi-annual Rod Run in Old Town Temecula.
Twice a year, the streets of old town Temecula are lined with pre-1974 classics and hot rods.
This year’s spring edition was held March 11-12 and more than 700 cars were on display.
This video is from the Friday Night Cruise, as many of the cars and trucks on display cruised Old Town Front Street with their headers open.

Members of FirstTimeHomeBuyersNetwork.com, an association of Mortgage and Real Estate professionals who specialize in helping first time home buyers find the right first time home buyer programs and incentives, recently made the difference for a Hemet first time home buyer.

Linda (name withheld by request), had decided now was the right time for her to make that move from renter to homeowner. Her husband had recently lost a  lengthy battle with cancer, and she was anxious to move out of the rental they had shared and buy a home that was “hers”.
“When Linda first contacted me about buying her first home, she was concerned that the cost of acquiring her first home would deplete most of her savings” said Greg Cook, a first time home buyer specialist at FirstTimeHomeBuyersNetwork.com.

Because most of the houses she had viewed online were bank owned or foreclosed properties, “she worried that she wouldn’t have enough to purchase a home and to make all the repairs necessary”, said Cook.
“After determining that Linda qualified as a first time home buyer (she hadn’t owned a home in the last three years), I tried to match her wants and needs with one of the many programs available to first time home buyers in California and Riverside County”, Cook added.
The match was a program recently released by the State of California and administered through their approved lenders.
The CALHFA/FHA program provides FHA loans for qualified first time home buyers at below market interest rates and has an optional down payment assistance component, that allows for up to 3% to be used toward downpayment.
“Even though Linda had the money for down payment, Greg’s recommendation that she use the down payment assistance was perfect. Her new home was a Fannie Mae property that had some deferred maintenance, and she’ll be able to use her savings to make those repairs.”, remarked Jim and Teresa Debruyn of Distinctive Realtors, Hemet real estate agents who specialize in first time home buyer programs.
The end result is that Linda now owns a home instead of renting one. She still has money in savings to do  those repairs, and remarkably her total mortgage payment is $350 LESS than she was paying for rent.
For additional information on the first time home buyer programs and incentives available in California and Riverside County, Contact Us

First time home buyers looking for that flashing neon sign that tells them now is definitely the time to buy their first home, might as well be cruising the Strip in Las Vegas.
There are signs flashing everywhere that say “BUY!” or “are you nuts? DON’T BUY!”.

So how can first time home buyers know for sure which direction guarantees the right decision?

As with any investment, there are no guarantees when it comes to investing in your first home, but you can make a smart decision if you can read the signs.

Recently the Wall Street Journal published an article about the “5 signs that say buy”. While the WSJ gives their perspective from 30,000 feet, I thought a “closer to the earth” view would be of more help to first time home buyers.

Here are 3 signs for first time home buyers that say “BUY”

1. Jobs – Jobs are important, and nationwide statistics say that more people are finding employment, but what’s more important to first time home buyers is THEIR J-O-B.
If you feel your job is secure and you’ll be able to make the mortgage payment on your first home, then the combination of affordable homes and low interest rates are clearly a sign to “BUY”.

• What lenders look for in a loan application
• To ask your burning questions of a first time home buyer specialist

2. What’s going on in the rental market? – First time home buyers have choices: they can continue to rent (paying their landlord’s mortgage) or start paying their own.
As the demand for more rental units increases (largely from displaced homeowners) we’re experiencing an upward pressure on rents.
A recent article in CNNMoney warned:
“Renters beware! Double digit rent hikes may be coming soon”
Renters in San Diego, according to CNNMoney, may soon be facing rent increases of 31% over the next few years.

• Compare the cost of buying v renting in San Diego
• First Time Home Buyer incentives in San Diego

“Hmmm? Rents are going up and mortgage payments going down, what kind of sign can that be?”
When the cost of renting exceeds the cost of owning, that’s clearly a sign to BUY!.

Other related posts:

• Are you ready for the change in lifestyle?
• Should I continue to rent and wait for house prices to drop?
• Is renting really cheaper than buying?

3. Mortgage availability – The WSJ talks about the availability of mortgages like it’s a commodity that’s flying off the shelves and may not be available soon.
Fact is, there are TRILLIONS of dollars available to qualified first time home buyers.
More important to first time home buyers is the availability of first time home buyer programs and first time home buyer incentives.

• 3 Myths about first time home buyer programs and incentives

Some of these programs do have limited funding and are often available on a “first come, first served” basis.
But, when available, they provide the assistance to help thousands of first time home buyers become first time home owners.
As long as these funds are available for qualified first time home buyers, that’s clearly a sign to BUY!

• To contact a real estate agent who specializes in first time home buyer programs

First Time Home Buyer Tips

3 Myths about first time home buyer programs and first time home buyer incentives

#1 – “I previously owned a home so I’m not eligible for first time home buyer incentives”
Even though “first time home buyer” implies no previous home ownership, the criteria for most first time home buyer programs and incentives is that you haven’t owned a home in the last three years.

A lender is going to review your last three years of tax returns to verify you didn’t claim  mortgage interest or property tax deductions.

So, If you were one of the early casualties of the “housing meltdown” in 2007 and 2008 you may be eligible for one or more of the first time home buyer programs.

Note: Even if it’s been less than three years, there are incentives and down payment assistance programs available for those who don’t currently own a home or primary residence.

• To ask your burning question about first time home buyer programs

#2 – “I have to be “low income” to qualify for first time home buyer programs”
The stated purpose of first time home buyer programs and incentives is to provide “homeownership assistance to low and moderate income families”.
But “low to moderate” is a relative term.
Most first time home buyer programs have income limits and these income limits are based on the “HUD median income limit” for your area (generally by County).
The program may be limited to 50%, 80% or 120% of HUD median, but the size of your family also factors in.
For example: in Riverside County, CA  if the program guidelines are 80% of HUD median a family of 4 can make up to $52,000 a year and be eligible. If the program is at 120% of HUD median then the same family of 4 can make up to $78,000 a year.

• Click here to find out which Riverside County first time home buyer programs may be available to you
• Click here to find a Real Estate agent who specializes in first time home buyer programs

A family of 4 looking to use the State of California first time home buyer and down payment assistance programs to buy their first home can earn up to $93,240 in Riverside County.
In San Diego County this number increases to $115,640 (for a family of 4 or more) and $130,200 in Orange County.

• Click here for more information on the State of California first time home buyer program

#3 – “I’ve saved for my down payment, I don’t need down payment assistance”
It’s true you don’t NEED it, but it may be a smart financial move to use it if you qualify.

Owning your first home, is more than just making a monthly payment. There are moving expenses and if you’re going to be one of the thousands of first time home buyers who will be purchasing a bank owned or foreclosed property, there undoubtedly will be some deferred maintenance, which will need your attention.

If you exhaust your savings just to buy your first home then those upgrades and repairs will have to wait.

On the other hand, if you qualify and take advantage of the first time home buyer incentives and down payment assistance, you’ll still have that money in the bank.

The down payment assistance can also give you an advantage if you happen to get into a competitive bidding situation for your first home.
Many first time home buyers have saved enough for their down payment, but as part of their offer are asking the seller to pay all or a portion of their closing costs.
If you have down payment assistance, you can use your savings to pay closing costs and then be submitting a much more competitive offer.

For more information on how to use first time home buyer incentives

First time home buyer programs and incentives will vary depending on where your searching for your first home, so it’s important that both your Realtor and Lender are specialists.

Other related posts:

• Housing double dip? Over Rated!
• What is the real cost of waiting for first time home buyers?
• First time home buyers it’s your money on the table

First time home buyers searching for the best deals in their local real estate market are often choosing from one of the many foreclosed homes on the market.

While these foreclosed homes may be the best deals for first time home buyers, they may come with something unanticipated; “negative energy”.

By it’s very nature a foreclosed home has had a family displaced from it and there was a lot of anguish in making that choice, and some first time home buyers are looking to cleanse their new home for a fresh start.

Buying your first home a “no brainer”

Here’s a first time home buyer tip, you might not be expecting:

To rid your first home of the “negative energy” you might want to consider hiring the services of a witch, and you might as well go to the top of the “witch” food chain in Salem, Massachusetts.

Other related posts:

• Is buying your first home a smart move?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

First Time Home Buyers

First time home buyers are undoubtedly a little concerned that we may be experiencing a double dip in housing prices.
According to one “expert”: “you may get a big discount by waiting a year [to buy],” said Dean Baker, co-director of the Center for Economic and Policy Research.
You know what, he’s right IF YOU’RE PAYING CASH!
But for those of you who need to get a first time home buyer loan, Baker obviously didn’t do enough “research”
The automobile dealers figured this out a long time ago. They know their product is going to go down in value the minute you drive it off the lot, yet they still manage to sell cars every year.
One reason they’re able to do that is because they have made renting a car cheaper than buying one. The monthly payments on a leased car are significantly less than they would be if you bought that same car, so more and more people lease cars than buy.

And what do they have to show for it at the end of the lease? Zero, Zip, Nada, just a bunch of payments made and “their” car is back on the dealer’s lot.
Would you buy a car rather than lease if the payments were lower?

Why wouldn’t you?
In many real estate markets across the country, it’s actually cheaper to buy a home than rent one. So with all the first time home buyer programs and first time home buyer incentives now may be a great time to quit paying your landlord’s mortgage.

• Still think renting is cheaper?

We know cars are going to decrease in value but whether or not houses will is only SPECULATION!
That being said, let’s look at some real numbers and you can decide how much “discount” you get from waiting.
In a couple of earlier posts, I examined this issue:

• What is the real cost of waiting for first time home buyers?
• First time home buyers it’s your money on the table

So, lets assume the “expert” is right and home prices do decline by an additional 10% this year. You would be able to buy that $200,000 home for $180,000 and you would save approximately $40,947 over the course of the 30 year loan.

• But that also means you’ve rented for another year, which (at $1500/mo) means you’ve spent $18,000 with nothing to show for it other than a big smile on the face of your landlord. So, now your net gain is $22,947.
• FHA has already announced that they will be increasing their MIP premium by .25% on April 18th. So, waiting will cost you an additional $10,068 in increased borrowing costs. Net gain: $12,879 (starting to see a trend?)
• In the last five months interest rates have risen .75%, if that trend continues over the next year, you would pay an additional $30,395 in interest, so now your Net Gain has become a Net Loss to the tune of $17,516.

I haven’t factored in the tax benefits first time home buyers receive from the mortgage interest and property taxes they will be paying. They’re too subjective, so let’s just consider it that “year end” bonus we all like to get.
Like the so called experts, these numbers are hypothetical and not likely to get as much press as those from the “think tanks”, but they’re as realistic a possibility as the “double dip”, and worth your consideration.
After all it’s only money: YOURS!

Other related posts:

• Warren Buffett has advice for first time home buyers
• First time home buyers move to the front of the line
• Buying your first home a “no brainer”?
• Do first time home buyers need a Realtor?

First Time Home Buyer Tips

If you’ve been thinking that owning your first home is better than renting but aren’t quite ready to make that leap because you have credit to repair or you are still saving for a down payment, then this news is good for you.

Is renting cheaper than owning your first home?

First time home buyer loans are tougher to get and despite the picture painted by the national media, millions of first time home buyers are qualifying for those first time home buyer loans at near historic lows in interest rates.

If you’re still trying to “fix up” your financial house before you make that leap to first time home buyer, then that is the most important first step, but according to this expert you will have time to do that rehab.

To ask your burning question of a first time home buyer specialist

Other related posts:

• Housing double dip? Over Rated!
• What is the real cost of waiting for first time home buyers?
• First time home buyers it’s your money on the table

If you’re a first time home buyer, we know that typically you get 90% of your information from the internet before you begin the search for your first home. We also know that first time home buyers do much of their information gathering about home loans on the internet as well.
This “insider” information has led to most real estae and mortgage websites offering a “how much home do you qualify for” widget. You get to enter some basic like your desired sales price, down payment, interest rate etc. The widget then calculates a monthly payment and estimates(based on the amount of income you entered) a sales price for which you qualify.
it all sounds pretty simple, but the real value for your first home search?
None!… Zero!… Zip!… Nada!
There is some entertainment value however.
It’s very similar to those photography kiosks you find in some malls, or in the casinos on the Strip in Las Vegas.
You know the ones where you get to put your face on the world’s most perfect body? It’s fun to imagine, but not likely to happen in the real world.
Those “what do I qualify for” widgets are the same thing : FANTASY! and they only create unrealistic expectations for first time home buyers.

• Click here to see what lenders look for in a loan application – Part I
• Click here to see what lenders look for in a loan application – Part II
• Click here to see what lenders look for in a loan application – Part III

Today’s lending world is full of strange new terms, like “overlays” and “LLPAs”. What these terms mean to you is that:
What you buy!
Where you buy!
How you buy! – all have an impact on your first time home buyer loan and most importantly the monthly payment.
Did you know? That if your first home has a Homeowner’s Association Fee of $200, it impacts your monthly “nut” the same as an increase of $40,000 in your mortgage amount.
So, if you enjoy the “fantasy” of these widgets, have fun with them!
But, If you’re interested in finding out what you truly qualify for, contact a lender who specializes in first time home buyer programs and the incentives available for first time home buyers.

• Click here to ask your burning question of a first time home buyer specialist
• Click here to find a Real Estate Agent who specializes in first time home buyers

Other Related Posts:

• Is buying your first home a smart move?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

Warren Buffett's House

First time home buyers who are struggling with the decision to buy their first home, might want to listen to Warren Buffett. Warren Buffett is the third richest man in the WORLD! and he believes: The housing market will rebound this year as housing continues to show signs of improvement.

Should first time home buyers buy now or continue to rent?

More from Warren:

Billionaire Warren Buffett said buying a home was the third-best investment he ever made, after the rings he bought for his first wife, Susan Thompson, and, after her death, his second wife, Astrid Menks.

“For the $31,500 I paid for our house, my family and I gained 52 years of terrific memories with more to come,”
Buffett, the world’s third-richest man, still lives in the house he bought in Omaha, Nebraska, more than five decades ago. He said home ownership makes sense for most people, especially after a slide in prices and record-low interest rates.
The U.S. home ownership rate has fallen to the lowest level in a decade amid record foreclosures and a plunge in property values after a five-year boom. The S&P/Case-Shiller Index of prices in 20 cities is down 31 percent from its July 2006 peak.
“A housing recovery will probably begin within a year or so,” Buffett, 80, wrote in the letter. “In any event, it is certain to occur at some point.”
“A house can be a nightmare if the buyer’s eyes are bigger than his wallet and if a lender — often protected by a government guarantee — facilitates his fantasy,” Buffett wrote. “Our country’s social goal should not be to put families into the house of their dreams, but rather to put them into a house they can afford.”

Other related posts:

 
• Is buying your first home a smart move?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

First Time Home Buyer Tip

If you’re a renter in San Jacinto, CA  who is thinking now is a great time to be a first time home buyer but market conditions have you wondering whether buying your first home is a smart financial decision.
Here are some tangible numbers to consider.
If you’re renting, whether it be an apartment or a home, you’re making a mortgage payment  it’s just not yours, it’s your landlord’s, so this may be an opportune time to make that move from renter to homeowner.
Making that move is a lifestyle change and an important commitment, so if you’ve decided that life circumstances make buying your first home a good move for you and your family, then your next step is to analyze the investment side of your decision.

• For the latest real estate market trends in San Jacinto

In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.

• Read the rent v buy comparison

This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.
To help first time home buyers in San Jacinto, I’ve taken the average rental rate for a 3 bedroom home in San Jacinto (from RentRange.com) and compared it with the average sale price of the same size home (figures from Trulia.com) and come up with the Rent Ratio for San Jacinto.

• To ask your burning question of a first time home buyer specialist

Average Rent: $1200 (1480 sq. ft – 3 bedroom)
Average Sale Price: $112,400
San Jacinto Rent Ratio: 7.81

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

• So what does it all mean to you?

Based on Rent Ratio comparison, San Jacinto’s Rent Ratio (7.81) is:  (1) clearly on the buying side and (2) one of the lowest in Riverside County.
But what about that ultimate barometer? That very technical term that we mortgage professionals refer to as the “monthly nut” or mortgage payment
Your “nut” in San Jacinto would be $857.59
(Payment is an estimate based on an FHA loan at 5%/5.12 APR for 30 years with minimum 3.5% down payment, including mortgage insurance, homeowners insurance and estimated property taxes at 1.65%)
So not only is the Rent Ratio on the buying side, you can own that same home with a payment almost $350 less than the average rent!

• To contact a San Jacinto Real Estate Agent who specializes in first time home buyer programs

Other related posts:

• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

Congress announced yesterday that the HAMP (Home Affordable Modification Program) is among those on the “chopping block”, so they obviously think it’s not working.

But is it the program or the banks failure to make a good faith effort that has caused the failure? Way above my pay grade!

In this CNBC video a Wells/ Fargo describes how their loan modifications work…or don’t work.

What is not discussed in this video are the terms of a typical loan modification. For example:

• most loan mods are only temporary.

• Most loan mods do nothing with the negative equity.

• Most loan mods will temporarily reduce the borrowers payment by 50%.

What happens the the 50% they are not paying?

• To contact a local real estate agent to answer your loan modification/short sale questions.

Its added to their unpaid loan balance, so in five years the distressed homeowner is in exactly the same position as today only it’s five years later.

Many first time home buyers are in a holding pattern, waiting for that “perfect” time to buy their first home. They’re hoping for that combination of the lowest price and the lowest interest rate before jumping in.
If that’s you, I have some advice.
1) Hope is not a strategy!
2) Take a close look at your current strategy, it’s probably costing you money.
I did a post a couple of months ago about the real cost of waiting.

• What is the real cost of waiting for first time home buyers?

The recent run-up in interest rates has increased the monthly cost of that hypothetical $200,000 home $90/ month or $5400 over a five year period.
FHA loans are the “loan of choice” for most first time home buyers. The low down payment requirements and easier qualifying guidelines make the most attractive option among loan programs.
FHA has announced that on April 18th they will be increasing their monthly mortgage insurance premium by .25%. If you wait until after that date to start the hunt for your first home, the tab will increase by another $41.67/mo or $2500 over five years, on that $200,000 home.
In that same period of time, home values in many markets have decreased by about 3%, so you would have gained about $32/mo or $1920 over 5 years.
So net-net sticking with this “wait n see” strategy will cost you almost $100/mo
If you’re still paying rent in most markets it’s cheaper to own than rent, so you’re overpaying for one form of housing when there is a cheaper alternative.

• Still think renting is cheaper?

Unlike some of my peers, I don’t claim to have a crystal ball to predict which way interest rates and home values will go over the next few months, but I can tell you this with absolute certainty:
Home values and interest rates will do one of three things (and not necessarily in the same direction).
They may go up, they may go down, or they may stay the same. and in only one chance in three will you get better than what you can get today (one in six if you are playing both sides of the fence)
Bottom line, “IT’S YOUR MONEY ON THE TABLE, HOW MUCH OF A GAMBLER ARE YOU?”

• Click here to contact a local real estate agent who specializes in first time home buyers

• Click here to ask your burning question to a first time home buyer specialist

Other related posts:

• Is buying your first home a smart move?

• What you can do now to buy your first home in 2011

• Do first time home buyers need a Realtor

• Important information about first time home buyer loans

First time home buyers is renting the new “American Dream?”

First time home buyers

If you’re a first time home buyer you have to be wondering if buying your first home in this market is the right decision for you and your family. There is so much speculation it can be very difficult to know what is a smart decision.

If you’re thinking about buying your first home, strictly for the investment value and that it will double in value in just a couple of years, then you ABSOLUTELY should think twice.

If you’re hesitating about buying your first home because it might drop in value over the next year or so, chances are you’re right.

BUT! 

If you’re tired of paying your landlord’s mortgage for him and would like something to call your own, then let’s take a look at the data from both sides and then you can choose which is right for you and your family.

According to this CNBC video, more American’s are opting for renting than home ownership.

Sometimes you have to look past the “hype” and examine the information from a different perspective.

Unless you’re still living at home, you’re making someone’s mortgage payment (your landlords) and according to CNBC the increased demand for rental units is putting upward pressure on rents, so you can expect those costs to rise.

• First time home buyers still think renting is cheaper?

Let’s take a look at the cost Buying v Renting in some selected Inland Empire cities.

• Should first time home buyers buy or rent in Temecula?
• Should first time home buyers buy or rent in Murrieta?
• Should first time home buyers buy or rent in Menifee?
• Should first time home buyers buy or rent in Canyon Lake?
• Should first time home buyers buy or rent in Hemet?
• Should first time home buyers buy or rent in Corona?
• Should first time home buyers buy or rent in San Diego?

In the next post we’ll compare the incentives available for renters and the first time home buyer incentives.

• To contact a first time home buyer specialist

First time home buyer credit scores

First time home buyers in today’s uncertain real estate market, to get the most favorable interest rates and terms have to prove to lenders that they are competent credit managers.

One benchmark that lenders use to measure first time home buyers ability to manage credit is their first time home buyer credit score.

Your credit score is your lender’s way of measuring your willingness and ability to repay and manage your other credit debt.

If you’re using one of those free on-line credit reports, you’re not looking at the same information as your lender and the surprise you get may not be a good one.

A string of late payments on a credit card or car loan, is not going to make your lender feel all “warm and fuzzy” about lending your hundreds of thousands of dollars.

Check out this video from CBSMoneyWatch.com, which provides some expert advice on what helps or hurts your credit score:

other related posts:

• 5 steps to first time home buyer credit score suicide

• 5 things first time home buyers can do today to become a homeowner in 2011
• First time home buyers still think renting is cheaper?
• First time home buyers a new tool to help become a homeowner – Video

• First time home buyers do you need a Realtor?

• To ask your burning question of a first time home buyer specialist

• Murrieta Buy or Rent

• Canyon Lake Buy or Rent

The Canyon Lake Rent Ratio is 11.56 (Start looking for homes!)

AND

This buy-rent ratio is a rough gauge with many other factors entering into the buying decisions of individual home seekers, including their income, property taxes and whether home values are likely to rise. Still, it is a good starting point for those in the market for a new home. (Trulia.com)

other related posts:

• Is it the right time for first time home buyers?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

First time home buyers is renting cheaper?

First time home buyers across the country are finding that owning their first home may, indeed, be a cheaper alternative to renting.
Owning your first home has to be the right fit for your lifestyle now but also your lifestyle in five or ten years. You will change, your families needs will change and it’s very possible the opportunities you have today to become a first time home owner will change.
Even if home values are still depressed in five years, it’s a certainty that interest rates won’t be at these levels. We’ve already seen them increase more than one-half percent.
What that means to you is you will pay more over time for a home that cost less than today.

• First time home buyers what is the real cost of waiting to buy?

Here’s an excerpt from the HotPads.com annual rental housing report:
Washington, DC. – January 6, 2011 – Rental prices across the US increased 11.6% in 2010, growing from a national average of $1181 in January 2010 to $1319 by December. The steady increase in rental prices was inversely matched by falling prices of homes for sale, which saw a 9.8% drop over the same period. (Hotpads.com)
The continued weakness in the housing market indicates more of the same for the forseeable future. A tough economy is causing more families unable to keep their homes, which will continue to depress housing prices while increasing rental prices (they have to live somewhere).

• Rent Ratio helping first time home buyers make the right decision

If you’re a first time home buyer in San Diego or the Inland Empire the Rent Ratios are clearly on the buying side and as rents increase will be even more so.

• San Diego Rent Ratio
• Temecula Rent Ratio
• Murrieta Rent Ratio
• Menifee Rent Ratio
• Canyon Lake Rent Ratio
• Hemet Rent Ratio
• Corona Rent Ratio

First Time Home Buyer incentives at risk

2011 is definitely the year of first time home buyer incentives, but even those may be lost. One of the largest source of funds for first time home buyer incentives come from state and local redevelopment agency funds.
California has a knack for leading the nation in many things, both good and bad, and it appears we’re out front on this too.
Jerry Brown, our newly elected governor, is keeping a campaign promise to cut spending and one of the programs on the chopping block is RDA funds.
Without these funds, the state, counties and cities will be unable to offer the first time home buyer incentives and first time home buyer programs available today.

• 2011 First Time Home Buyer incentives in Temecula
• 2011 First Time Home Buyer incentives in Murrieta
• 2011 First Time Home Buyer incentives in San Diego
• 2011 First Time Home Buyer incentives in Canyon Lake
• To find a First Time Home Buyer Specialist

other related posts:

• Is it the right time for first time home buyers?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

Help for First Time Homebuyers

First time home buyers have always had two choices when it comes to their housing wants and needs.

If it matches their lifestyle, they can continue to rent, pay their landlord’s mortgage and not be encumbered with the responsibilities of homeownership.
On the other hand, if having something that belongs to them and their family and allows them to pay less to Uncle Sam each year is more appealing, then making the move to first time home owner is the right choice for their family.

• Rent Ratio-Helping first time home buyers make the right choice

Regardless of your choice, most often it boils down to the check that gets written each    month (or in today’s tech savvy environment the electronic transfer).
To help you make the right choice, many real estate websites have a Rent v Buy “widget” , which IMHO are the biggest waste of computer programming on the internet.
By definition, you’re a first time home buyer and even in a “normal” market don’t have the information to accurately complete the “Buy” side of the calculation.

By asking you to enter your own data, they’re allowing you to create your own “fantasyland” .

Earlier this week I received a call from a first time home buyer who wanted more information on the incentives for first time home buyers in Riverside County.
I started asking the usual questions and he mentioned that he had been “pre-qualified” at $200,000.
When I asked which lender had done that?
His reply was “I did it myself”.
He had used one of those “find out how much home you qualify for” widgets on another real estate website.
“What interest rate did you use?”, I asked
“4% because I have excellent credit”, was his reply
This was getting interesting so I asked some more questions:
“How much did you enter for property taxes and homeowner’s insurance?
“It didn’t ask for those.”
“What about mortgage insurance”
“Do I need that?”
Buying your first home is one of the most important financial decisions you will make and you CAN’T do it yourself.

To quote Sean Connery in The Untouchables, that’s like “bringing a knife to a gun fight”

• Why first time home buyers need a GOOD Realtor

Getting the loan to pay for your first home is more complicated now than ever and you CAN’T do that on the internet either.
Regardless of how good those Rent v Buy or “how much home you can afford” widgets make you feel, first time home buyers need “professional help” to make the best decision for their family.

• To ask your burning question of a first time home buyer specialist

• To find a First Time Home Buyer Specialist

Hemet first time home buyers

If you’re a renter in Hemet CA  who is thinking now is a great time to be a first time home buyer but market conditions have you wondering whether buying your first home is a smart financial decision.
If you’ve decided that your life circumstances make buying your first time home a good move for you and your family, then your next step is to analyze the investment side of your decision.

• For the latest real estate market trends in Hemet

In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
Read the complete article
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.
To help first time home buyers in Hemet, I’ve taken the average rental rate for a 3 bedroom home in Hemet (from RentRange.com) and compared it with the average sale price of the same size home (figures from Trulia.com) and come up with the Rent Ratio for Hemet

• To ask your burning question of a first time home buyer specialist

Average Rent: $1200 (1640 sq. ft – 3 bedroom)
Average Sale Price: $131,200
Hemet Rent Ratio: 9.11

Compare to Canyon Lake Rent Ratio

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.
So what does it all mean?

Based on Rent Ratio comparison, Hemet’s Rent Ratio (9.11) is clearly on the buying side.

But what about that ultimate barometer? That very technical term that we mortgage professionals refer to as the “monthly nut” or mortgage payment
Your “nut” in Hemet would be $1001.35
(Payment is an estimate based on an FHA loan at 5%/5.12 APR for 30 years with minimum 3.5% down payment, including mortgage insurance, homeowners insurance and estimated property taxes at 1.65%)

• To contact a Hemet First Time Home Buyer Specialist

other related posts:

• Is it the right time for first time home buyers in Hemet?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

Corona first time home buyers

If you’re a renter in Corona CA  who is thinking now is a great time to be a first time home buyer or if you’re a renter in Orange County who may wondering the same thing and market conditions have you wondering whether buying your first home is a smart financial decision.
And you’ve decided that your life circumstances make buying your first home a good move, then your next step is to analyze the investment side of your decision.
For first time home buyers, Corona has long been an affordable alternative to the home prices in Orange County.
But the question still remains will your investment in a longer commute be worth the rewards of homeownership in Corona?

• Check out the lastest Corona Real Estate Trends

In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.
To help first time home buyers in Corona, I’ve taken the average rental rate for a 3 bedroom home in Corona (from RentRange.com) and compared it with the average sale price of the same size home (figures from Trulia.com) and come up with the Rent Ratio for Corona.

• Read the complete article

Average Rent: $1625 (1470 sq. ft – 3 bedroom)
Average Sale Price: $213,150
Corona Rent Ratio: 10.93
Now let’s compare the Corona Rent Ratio with that of Yorba Linda, Corona’s closest neighbor to the west.
Average Rent: $2400 (1720 sq. ft – 3 bedroom)
Average Sale Price: $522,800
Yorba Linda Rent Ratio: 18.15

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

So what does it all mean?
Based on Rent Ratio comparison, while Yorba Linda’s Rent Ratio (18.15) is still on the buying side, Corona’s Rent Ratio (10.93) is clearly on the buying side.
But what about that ultimate barometer?

That very technical term that we mortgage professionals refer to as the “monthly nut” or mortgage payment
Your “nut” in Corona would be $1626
Your “nut” in Yorba Linda would be $3961
(Payment is an estimate based on an FHA loan at 5% for 30 years with minimum 3.5% down payment, including mortgage insurance, homeowners insurance and estimated property taxes at 1.65%)

Rent Ratio is only one tool available to first time home buyers, but it does provide an “apples to apples” comparison of not only the rent v buy question, but it also can be used in comparing local Real Estate Markets.

• To ask your burning question of a first time home buyer specialist

other related posts:

• Is it the right time for first time home buyers in Corona?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

2011 First Time Home Buyer incentives in San Diego

San Diego First Time Home Buyer Incentives

Even first time home buyers in San Diego County have choices when it comes to the incentives available to purchase their first home.
The housing market collapse has created some unique opportunities for first time home buyers in San Diego. With a median home price of around $320,000 (according Trulia.com), in many cities it’s possible to have a house payment that is competitive with rents.

• Is now the time to buy your first home in San Diego?

We have the most affordable home prices in more than a decade and interest rates are at their lowest levels in a generation.
To stimulate the San Diego County housing market there are a number of first time home buyer incentives available in the form of down payment assistance and special tax credits for first time home buyers.
This post is a summary of those programs along with links to other articles that spell things out in more detail.
Each first time home buyer program is a little different but they have a few things in common.
1) You must be a first time home buyer or not owned a home in the last three years
2) You must be credit qualified by an approved first time home loan lender
3) You must attend an approved first time home buyer education class
4) You must meet the income limits (maximum based on family size) and sales price limits (maximum)
5) You must be ready to be a homeowner!

The County of San Diego offers low-interest deferred payment loans of up to $35,000 or 33% of the purchase price whichever is less for low-income first-time homebuyers.
The loan funds may be used to pay downpayment and closing costs on the purchase of a new or re-sale home.
Properties eligible for assistance include single-family homes, condominiums, townhomes and manufactured homes on a permanent foundation.

• The maximum sale price is $451,250
• Total gross maximum income cannot exceed 80% of the HUD AMI for San Diego
• The home you purchase must be in an unincorporated area of San Diego County or in the city of Coronado, Del Mar, Imperial Beach, Lemon Grove, Poway or Solana Beach.

If you need more choices, when it comes to location or you make more than 80% of the HUD median income, then the most flexible program for first time home buyers in San Diego is the first time home buyer program offered by the State of California Housing Finance Agency (CALHFA).
To qualified first time home buyers this program provides down payment assistance of 3% AND a below market interest rate (currently 4.25%).
This program is available for most homes including bank owned, REOs, short sales and new homes in San Diego up to a sales price of $627,750.

• For more information on how to use the CALHFA first time home buyer program.

In addition to down payment assistance, first time home buyers in San Diego may be eligible for a special first time home buyer tax credit.

• For more information on the San Diego first time home buyer tax credit

• To ask your burning question of a first time home buyer specialist

other related posts:

• Is it the right time for first time home buyers in San Diego?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

San Diego first time home buyers

First time home buyers in San Diego Ca have to two choices when it comes to their housing needs, they can continue to rent and pay their landlord’s mortgage or they can take that giant step onto the path to home ownership.
That  “giant step” should not be taken without careful research. You should investigate the neighborhoods, the schools, the city amenities, traffic bottlenecks etc.
But once you’ve decided that owning your first home in San Diego , fits your lifestyle, it’s time to analyze the investment side of your decision.Check out San Diego Real Estate Trends
In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
Read the complete article
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.

To help first time home buyers in San Diego, I’ve taken the average rental rate for a 3 bedroom home in three zip codes, 92028, 92064 and 92127 (from RentRange.com) and compared it with the average sale price of the same size home in those zip codes (figures from Trulia.com) and come up with the Rent Ratio for them.

Zip Code 92028
Average Rent: $1870 (2060 square feet)
Average Sale Price: $350,200
Rent Ratio: 15.61

Zip Code 92064
Average Rent: $1990 (1590 square feet)
Average Sale Price: $410,220
Rent Ratio: 17.18

Zip Code 92127
Average Rent: $2450 (2210 square feet)
Average Sale Price: $375,700
Rent Ratio: 12.78

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

If you use Rent Ratio as a barometer for your decision, you can see that in these San Diego zip codes, the rent v buy decision is almost a coin flip.

Now compare these numbers with the Rent Ratios in:

• Temecula
• Murrieta
• Menifee
• Canyon Lake

The Rent Ratio in these cities indicates they make a better buying decision for first time home buyers when compared to San Diego.

• To find a Temecula first time home buyer specialist
• To find a Murrieta first time home buyer specialist
• To find a Menifee first time home buyer specialist
• To find a Canyon Lake first time home buyer specialist

other related posts:

• What is the real cost of waiting for first time home buyers?
• Why good credit is important for first time home buyers
• First time home buyer loans with no credit scores
• First Time Home Buyers 10 good reasons to buy now
• First Time Home Buyers – How to buy your first home
• First Time Home Buyers – should you buy a new home

2011 First Time Home Buyer Incentives in Canyon Lake CA

First time home buyer incentives for Canyon Lake

2011 promises to be an exciting year for first time home buyers in Canyon Lake.
We have the most affordable home prices in more than a decade and interest rates are at their lowest levels in a generation.
To stimulate the Canyon Lake housing market there are a number of first time home buyer incentives available in the form of down payment assistance and special tax credits for first time home buyers.
This post is a summary of those programs along with links to other articles that spell things out in more detail.
Most families qualify for more than one program and you need the help of a first time home buyer specialist to find which program(s) are right for you and your family.

• To contact a first time home buyer specialist

Each first time home buyer program is a little different but they have a few things in common.
1) You must be a first time home buyer or not owned a home in the last three years
2) You must be credit qualified by an approved first time home loan lender
3) You must attend an approved first time home buyer education class
4) You must meet the income limits (maximum based on family size) and sales price limits (maximum)
5) You must be ready to be a homeowner!

1. The most flexible program for first time home buyers in Canyon Lake is the first time home buyer program offered by the State of California Housing Finance Agency (CALHFA).
To qualified first time home buyers this program provides down payment assistance of 3% AND a below market interest rate (currently 4.25%).
If you use this loan program with a qualified Riverside County down payment assistance program your interest rate could be as low as 4%.
This program is available for most homes including bank owned, REOs, short sales and new homes in Canyon Lake up to a sales price of $450,000.

• For more information on CALHFA first time home buyer program

2. Riverside County First Time Home Buyer (FTHB) down payment assistance program – This program offered by the County of Riverside, will lend qualified first time home buyers in Canyon Lake up to 20% of the purchase price for down payment assistance.
This assistance is in the form of a “silent second” which requires no payments as long as it is your primary residence.
Property must be located within the City limits of Canyon Lake and have a maximum sales price of $292,686.

• For more information on the First Time Home Buyer Down Payment Assistance Program

3. Riverside County Neighborhood Stabilization Housing Program (NSHP) down payment assistance program – This program offered by the County of Riverside, will lend qualified first time home buyers in Canyon Lake up to 20% of the purchase price for down payment assistance on foreclosed homes only.
The assistance is in the form of a “silent second” and requires no payments as long as it is your primary residence.
Property must be a foreclosed home within the City limits of Canyon Lake and have a maximum sales price of $292,686

• For more information on the NSHP down payment assistance program for first time home buyers

4. Riverside County Redevelopment Housing Program (RHP) down payment assistance – This Riverside County program will lend qualified first time home buyers in Canyon Lake up to 20% of the purchase price for down payment assistance on homes located in unincorporated areas around Canyon Lake.
The assistance is in the form of a “silent second” and requires no payments as long as it is your primary residence.
Maximum sales price is $292,686.

• For more information on the RHP down payment assistance program for first time home buyers

IMPORTANT NOTE: Riverside County down payment assistance funds are limited and available on a first reserved basis.

All of the above down payment assistance programs may be used in conjunction with the special Riverside County Tax Credit for first time home buyers.

• For more information on the Riverside County tax credit for first time home buyers

• To contact a Canyon Lake first time home buyer specialist

other related posts:

• Is it the right time for first time home buyers in Canyon Lake?
• A new tool for first time home buyers-Video
• First time home buyers should you continue to rent or buy?
• Buying your first home a no brainer?
• First time home buyers do you really need a Realtor?
• First time home buyers how to buy your first home – Video

Canyon Lake first time home buyers

First time home buyers in Canyon Lake Ca have two choices when it comes to their housing needs, they can continue to rent and pay their landlord’s mortgage or they can take that giant step onto the path to homeownership.
That  “giant step” should not be taken without careful research. You should investigate the neighborhoods, the schools, the city amenities, traffic bottlenecks etc.
But once you’ve decided that owning your first home in Canyon Lake , fits your lifestyle, it’s time to analyze the investment side of your decision.Check out Canyon Lake Real Estate Trends
In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
Read the complete article
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.

To help first time home buyers in Canyon Lake, I’ve taken the average rental rate for a 3 bedroom home in Canyon Lake (from RentRange.com) and compared it with the average sale price of the same size home in Canyon Lake (figures from Trulia.com) and come up with the Rent Ratio for Canyon Lake.

• Read more about Canyon Lake Real Estate

Average rent: $1840 (1800 square feet)
Average Sale Price: $229,320
Canyon Lake Rent Ratio: 11.56
In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.
For most first time home buyers, it’s still about that payment or as we mortgage professionals like to call it: “your monthly nut”. Your “nut” in this case would be about $1695 a month including taxes and insurance.
(Payment is an estimate based on an FHA loan at 5%/5.2% APR for 30 years with minimum 3.5% down payment, including mortgage insurance, homeowners insurance and estimated property taxes at 1.65%, does not include Canyon Lake monthly property owners association fee)

• Compare to Temecula Rent Ratio

• Compare to Murrieta Rent Ratio

• Compare to Menifee Rent Ratio

To find a Canyon Lake First Time Home Buyer Specialist

other related posts:

• What is the real cost of waiting for first time home buyers?

• Why good credit is important for first time home buyers

• First time home buyer loans with no credit scores

• First Time Home Buyers 10 good reasons to buy now

• First Time Home Buyers – How to buy your first home

• First Time Home Buyers – should you buy a new home

2011 First Time Home Buyer Incentives in Temecula CA

Incentives for first time home buyers in Temecula

2011 promises to be an exciting year for first time home buyers in Temecula CA.

We have the most affordable home prices in more than a decade and interest rates are at their lowest levels in a generation.

To stimulate the Temecula housing market there are a number of first time home buyer incentives available in the form of down payment assistance and special tax credits for first time home buyers.
This post is a summary of those programs along with links to other articles that spell things out in more detail.
Most families qualify for more than one program and you need the help of a first time home buyer specialist to find which program(s) are right for you and your family.
To contact a first time home buyer specialist
Each first time home buyer program is a little different but they have a few things in common.
1) You must be a first time home buyer or not owned a home in the last three years
2) You must be credit qualified by an approved first time home loan lender
3) You must attend an approved first time home buyer education class
4) You must meet the income limits (maximum based on family size) and sales price limits (maximum)

5) You must be ready to be a homeowner!

1. The most flexible program is the first time home buyer program offered by the State of California Housing Finance Agency (CALHFA).

To qualified first time home buyers this program provides down payment assistance of 3% AND a below market interest rate (currently 4.25%).

If you use this loan program with a qualified Riverside County down payment assistance program your interest rate could be as low as 4%.
This program is available for most homes including bank owned, REOs, short sales and new homes.

• For more information on CALHFA first time home buyer program

2. Riverside County First Time Home Buyer down payment assistance program - This program offered by the County of Riverside, will lend qualified first time home buyers up to 20% of the purchase price for down payment assistance.

This assistance is in the form of a “silent second” which requires no payments as long as it is your primary residence.

Property must be located within the City limits of Temecula and have a maximum sales price of $292,686.

• For more information on the First Time Home Buyer Down Payment Assistance Program

3. Riverside County Neighborhood Stabilization Housing Program (NSHP) down payment assistance program – This program offered by the County of Riverside, will lend qualified first time home buyers up to 20% of the purchase price for down payment assistance on foreclosed homes only.

The assistance is in the form of a “silent second” and requires no payments as long as it is your primary residence.

Property must be a foreclosed home within the City limits of Temecula and have a maximum sales price of $292,686.

• For more information on the NSHP down payment assistance program for first time home buyers

4. Riverside County Redevelopment Housing Program (RHP) down payment assistance - This Riverside County program will lend qualified first time home buyers up to 20% of the purchase price for down payment assistance on homes located in unincorporated areas around Temecula.

The assistance is in the form of a “silent second” and requires no payments as long as it is your primary residence.

Maximum sales price is $292,686.

• For more information on the RHP down payment assistance program for first time home buyers

IMPORTANT NOTE: Riverside County down payment assistance funds are limited and available on a first reserved basis.

Don’t forget to check back in, I have it on good authority that the City of Temecula will be rolling out there own down payment assistance program shortly. I don’t have any details yet, but what I’ve heard sounds very promising for first time home buyers in Temecula.
All of the above down payment assistance programs may be used in conjunction with the special Riverside County Tax Credit for first time home buyers.

• For more information on the Riverside County tax credit for first time home buyers

• To contact a Temecula first time home buyer specialist

other related posts:

• Is it the right time for first time home buyers in Temecula?

• A new tool for first time home buyers-Video

• First time home buyers should you continue to rent or buy?

• Buying your first home a no brainer?

• First time home buyers do you really need a Realtor?

• First time home buyers how to buy your first home – Video

This kind of headline probably sends chills down the spine of first time home buyers looking to take advantage of today’s affordable housing prices, very low interest rates and the incentives for first time home buyers.

If you are a first time home buyer and this kind of headline, makes you even more nervous about your decision, you can relax (at least for now).

In what might be a homage to the National Enquirer, CNBC lead with a similar headline to this video.

The short version of this, lenders are looking for a loss mitigation strategy on certain loans and (at least for now) has little to no impact on first time home buyer loans.

To ask your burning question of a first time home buyer specialist

other related posts:

What is the real cost of waiting for first time home buyers?
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home

Menifee First Time Home Buyers

First time home buyers in Menifee Ca have two choices when it comes to their housing needs, they can continue to rent and pay their landlord’s mortgage or they can take that giant step onto the path to homeownership.
That  “giant step” should not be taken without careful research. You should investigate the neighborhoods, the schools, the city amenities, traffic bottlenecks etc.
Once you’ve decided that owning your first home in Menifee, fits your lifestyle, it’s time to analyze the investment side of your decision.Check out the latest Menifee Real Estate Trends
In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
Read the complete article
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.

To help first time home buyers in Menifee CA, I’ve taken the average rental rate for a 3 bedroom home in Menifee (from RentRange.com) and compared it with the average sale price of the same size home in Menifee (figures from Trulia.com) and come up with the Rent Ratio for Menifee.
To read more about Menifee Market Trends

Average rent: $1575 (1840 square feet)
Average Sale Price: $218,900
Menifee Rent Ratio: 11.56
In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.
For most first time home buyers, it’s still about that payment or as we mortgage professionals like to call it: “your monthly nut”. Your “nut” in this case would be about $1670 a month including taxes and insurance.
(Payment is an estimate based on an FHA loan at 5%/5.2% APR for 30 years with minimum 3.5% down payment, including mortgage insurance, homeowners insurance and estimated property taxes at 1.65%)
Compare to Temecula Rent Ratio
Compare to Murrieta Rent Ratio

To find a Menifee First Time Home Buyer Specialist
other related posts:
What is the real cost of waiting for first time home buyers?
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home

Murrieta First Time Home Buyers

If you’re a renter in Murrieta who is thinking now is a great time to be a first time home buyer and market conditions have you wondering whether buying your first home is a smart financial decision and you’ve decided that your life circumstances make buying your first home a good move, then your next step is to analyze the investment side of your decision.Check out the latest Murrieta Real Estate Trends
In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
Read the complete article
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.
To help first time home buyers in Murrieta, I’ve taken the average rental rate for a 3 bedroom home in Murrieta (from RentRange.com) and compared it with the average sale price of the same size home (figures from Trulia.com) and come up with the Rent Ratio for Murrieta.
To read more about the Murrieta Real Estate Market
Average rent: $1585 ( 3 bdrm – 1650 sq ft home)
Average sale price: $188,100
Murrieta Rent Ratio: 9.88
In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

• Click here to find out about first time home buyer incentives in Murrieta

• Compare to Temecula Rent Ratio

• Click here to find a Murrieta Real Estate Agent who specializes in helping first time home buyers

• To ask your burning question of a First Time Home Buyer Specialist

First time home buyers 5 easy steps to kill your credit score

First time home buyer credit scores

First time home buyers in today’s market have an incredible opportunity. Affordable prices, sub-5% interest rates, and very attractive down payment assistance programs are all waiting for qualified first time home buyers.
The key word here is “qualified”.
Lenders in this last housing boom literally went STUPID when it came to approving home loans. In complete disregard for prudent lending standards, we offered stated income and asset loans, we had NINJA loans (no income-no-job-or assets). There were even rumors of a Stated FICO loan.
To get a first time home buyer loan in today’s market doesn’t require perfect credit, but credit score requirements are tighter, and it can be “credit score suicide” if you aren’t careful in managing your credit.

Why it’s important for first time home buyers to have a good credit score
FICO focuses on five categories when calculating your score: How much debt you have, your payment history, your debt utilization ratio (how much you owe in relation to your credit limits), how far back your credit history goes and your mix of various types of credit.
Here are five sure steps to “credit score suicide”

1. Making late payments
Payment history accounts for up to 35% of your credit score and a single late payment, if you have a good credit rating, can lower your score up to 110 points immediately following the late payment.
The longer it’s been since you were late on a payment, the less of an impact it will have on your score, but “your history does follow you.
2. Carrying a big balance
Your credit utilization accounts for 30% of your credit score. Credit utilization is the percentage of credit used to available credit.
While consolidating all your credit cards into one low interest rate card makes sense from a monthly payment perspective it can have a devastating effect on your credit score.
Your magic number  here is 50% or less. If you can maintain your credit usage (across all your cards) to 50% of the available credit you won’t see your FICO score in need of life support.
3. Closing a credit line
At first that may seem counter-intuitive, but if you close a credit card it could negatively impact your credit utilization ratio AND if it is an older account, it could also affect the age of your credit history.
If the account has a zero balance and no annual fee, leave it alone until after you’ve moved into your new home.
4. Opening a credit line
In order to open a new account, a credit card company will need to check your credit, and a typical “hard” inquiry like this will lower your score by about five points, plus the cost of opening a new line of credit typically ranges from five to 15 points.
Twenty points may not seem like a lot, but in today’s first time home buyer loan market, it can make the difference between home owner and renter.
5. Defaulting
Defaulting on a credit obligation, whether it be a credit card charge off, a collection account or bankruptcy is the single worst thing for your credit score.
Declaring bankruptcy could lower a good score of 750 by up to about 250 points.
Even bankruptcy doesn’t have to be  “life without parole”. If there were extenuating circumstances you may be just a couple of years from buying your first home.
Buying a home after bankruptcy-Part I
Buying a home after bankruptcy-Part II
But, you have start rebuilding and any slip ups afterward will only further delay making that move from home buyer to home owner.
Ask your burning question of a first time home buyer specialist

Other related posts:
What is the real cost of waiting for first time home buyers?
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home

First Time Home Buyers – is it the right time to buy

First time home buyers need more than a down payment

Saving up for a down payment takes discipline and sacrifice for First Time Homebuyers.

Fortunately qualified first time home buyers may be eligible for down payment assistance and other home ownership incentives.
Read more about first time home buyer down payment assistance.
Some special government programs provide both down payment assistance and a below market interest rate.
Read more about the California program for first time home buyersBut buying a home takes more than just the down payment.
FHA is the “loan of choice for most first time home buyers because of it’s low down payment requirements (3.5%)  and relaxed qualifying quidelines.
It’s the other costs than can trip you up and make closing a stressful situation, rather than a celebration.
In addition to closing costs (title, escrow and lender fees) you will have what are called non-recurring costs to set up your impound (escrow) account to pay for your property taxes, insurance and mortgage insurance as they come due.
Many smart First Time Home buyers are able to negotiate with the seller to pay all or part of these costs.
Appraisal fee. You often have to pay this fee out of pocket as part of the loan approval process. Depending on your location, the fee can run anywhere from $200 to $1,000.
Professional home inspection. Costs range from $300 to $800 for typical homes, but they can go higher depending on the age and type of structure. More specific inspections, such as those for structural engineering, mold and termites (FHA loans may require a termite inspection but the repairs are a cost generally paid by the seller) are additional costs.
Extra closing costs. Although the good faith estimate from your lender should be reasonably accurate, you won’t know the actual amount you have to bring to closing until a day or two beforehand. Don’t play it too close. You don’t want to hold up closing because you’re $100 short. The money you bring to closing almost always has to be in the form of a cashier’s check or wire transfer, so make arrangements a day ahead of time to take care of this.
Homeowner’s association fees. If you’re buying in a subdivision, you may pay an annual or even monthly fee for upkeep of common areas. In these tough economic times many homeowners association have become very creative in the fees they charge.
Repairs, upgrades, renovations. Depending on the condition of the home you buy, remember to budget for the work it will take to make it move-in ready.
Moving van rental fees and boxes.
Termination fees for current services. Carefully check your Internet and cell phone contracts.
Appliances. Whether you’ll have appliances included depends on the deal you strike with the seller. Be aware that brand-new houses usually do not include refrigerators, washers or dryers. If the other kitchen appliances are stainless steel, you’ll need to spend some serious dough to buy a matching fridge or else live with the “eclectic” look.
Utility Deposits- In many parts of the country the local utility departments require a deposit to transfer the services from the seller to you. You should make arrangements for this at least a week prior to your scheduled closing date. Candle light dinners are romantic but not if your dirty and sweaty from moving boxes.
Household items. As a renter, it’s easy to forget that the move to a bigger space means you’ll need more mundane stuff like trash cans, lamps and shower curtains. Are window coverings included? You will need light bulbs and unless it’s a brand new home, batteries for the smoke detectors. Lawn-care equipment. Buying a yard? Your new neighbors will prefer that you mow, rake and edge it.
Warm milk. Just for the first week of whigging out in the middle of the night, wondering if they still have debtors’ prison. (They don’t.)
Buying your first home will be the most important financial decision you will make, so do  thoughtful research and careful preparation.
By the way, always pack the toilet paper on top!

Other related posts:
What is the real cost of waiting for first time home buyers?
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy

New tool for first time home buyers

First time home buyers who want to take advantage of this perfect storm of affordable prices, low interest rates and unprecedented home ownership incentives have almost unlimited resources to help them make that RENT or BUY decision.
THE GOOD NEWS: There is a ton of information available to help you make the right decision!
THE BAD NEWS: There is a ton of information available to help you make the wrong decision!
The real problem is sorting the good information from the irrelevant.
Yes, there are a lot of good reasons to buy, but not all will apply to your life circumstances.
First time home buyers what is the real cost of waiting?

Regardless of where you rent, you’re helping pay someone’s mortgage and it isn’t yours.
Buying on the other hand, involves multiple expenses some of which aren’t so obvious. On top of closing costs, there are repairs, property taxes, mortgage principal and mortgage interest.
Of course owning also brings benefits that have nothing to do with money. You can settle into YOUR home, repaint the walls and redo the kitchen just the way you like it.
In short it’s YOURS!
Here’s a little tool I picked up from the New York Times that will help you compare the cost of buying a home to the cost of renting. It was written by David Leonhardt, a card carrying renter.
If you find two similar houses, one for sale and the other for rent and divide the sale price by the annual rent, you can call the result the Rent Ratio.
That concept probably sounds familiar to stock market investors. It’s the real estate market’s version of a price-earnings ratio – a measure of how expensive an asset is, relative to the underlying economic fundamentals. Like the P/E ratio, the rent ratio provides something of a reality check.
For example: A $180,000 home may rent for $1750/mo that would give it a Rent Ratio of 8.57% ($180,000 divided by $1750 x 12= $21,000 = 8.57)

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

Many real estate markets across the country are experiencing a declining rent ratio. Which makes for prime opportunities for first time home buyers.

Prices of homes continue to decline while rents for single family homes are remaining constant (increasing in some areas).

Many homes now rent for more than the monthly payment would be if you were to buy it.  If you’re a first time home buyer using one of the many homeownership incentives available, like down payment assistance, the numbers (at least) make it a no brainer
So, in many markets the Rent Ratio is dropping, which makes buying a better investment decision for first time home buyers.
Pretty simple, you can now compare the cost of renting with the cost of owning without all the clutter.
By the way, David is now a card carrying homeowner.

Other related posts:
What is the real cost of waiting for first time home buyers?
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home

First Time Home Buyers – is it the right time to buy

Santa's secret for first time home buyers

First time home buyers who have decided that living in Riverside County is a great idea for their family, have a “secret stash” of homes from which to choose that are waiting for families to move in.
As of today there are 154 homes (most are still available), that have been or are in the process of being renovated from top to bottom. If you’ve been looking at bank owned properties you can appreciate how wonderful it will be to have a freshly painted home with new flooring and appliances.
But, what really makes these homes special is they WANT you to use one of the Riverside County Down Payment Assistance Programs.

First time home buyers who have tried to use this program know how rare it is to find a home that wants to use the program let alone will accept an offer using it.
Not all Realtors are familiar with this program and all lenders must be certified by the County to participate.
To contact a First Time Home Buyer Specialist
All of these homes, fall under the County’s NSP1 Program.
What is NSP!?
The Neighborhood Stabilization Program 1 Homebuyer (NSP1H) program assists low and moderate income first-time homebuyers to purchase an eligible home in certain target areas of Riverside County.Assistance may be used for purchase price assistance and is provided as a silent second mortgage secured by the buyer’s home which bears 0% interest.A portion of the assistance may also be used to pay for closing costs for the homebuyer.
How Much Assistance is Available?
NSP1H purchase price assistance is available to a maximum of 30% of the purchase price of the home not to exceed $75,000.NSP1H funds can be used as a silent second loan that will be used as gap financing to 1) reduce the amount of first mortgage required in qualifying for the home and 2) can also be used to pay for up to 3% of the sales price to pay for closing costs on behalf of the homebuyer.
For more information on Santa’s “secret stash”

Other related posts:

What is the real cost of waiting for first time home buyers?
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home

First Time Home Buyers – is it the right time to buy

First time home buyers may find their dream of home ownership overwhelming at times.

If you’ve partnered up with a first time home buyer specialist in  San Diego or Southwest Riverside County (CA) you’re already getting help with the home ownership incentives for first time home buyers, like: down payment assistance special first time home buyer tax credits below market interest rates for first time home buyersTo find a first time home buyer specialistBut if you’re a first time home buyer, who isn’t ready to make that commitment but are ready to get your financial house in order so you can buy your first time home then there is a new tool for you to lay the foundation.

What is the real cost of waiting for first time home buyers?
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
Check us out on Facebook Temecula 365 Things to Do

Buying your first time home a no brainer?

First time home buyers who are considering that jump to first time home owner, got a little nudge today from CNNMoney. The lead article in the Real Estate section was titled  “Buying a home “now is a no brainer”.
I get that snappy headlines create interest but should buying your first time home be a “no brainer”?
Didn’t we try that in the last “boom cycle” and just how did that turn out?
According to CNNMoney: “With a few exceptions, if you have 20% to put down and good credit, now is a great time to buy.”
Is now a great time to buy?
Perhaps, but it’s certainly not a “no-brainer”. Buying your first home is the most important financial decision you will make and requires research and some self-reflection on whether you are ready for the homeowner lifestyle.
Test drive before you buy?
If your first home is an apartment in New York and you have the 20% down (as the author did), then it was a good decision.
But what about the millions of first time home buyer families who don’t have 20% down or good credit?

The answer is: I’ve got good news and bad news.
Starting with the bad news: First time home buyers have to have better credit than before, but not perfect.
First Time Home Buyer Credit Scores
First Time Home Buyers with no credit scores
Even first time home buyers with a bankruptcy in their credit history may still be qualified to buy their first home.
First time home buyers, buying after a bankruptcy
First time home buyers, buying after a bankruptcy -Part II
Now the good news: First time home buyers don’t need 20% down for it to be a great time to buy.
Say what you will about the success or failure of the various government programs trying to bring us out of this housing downturn, it will be first time home buyers that lead the way out of this “black hole”.
The various governments recognize this, and all the homeownership incentives are directed at first time home buyers.
Down payment assistance for San Diego first time home buyers
Tax credits for San Diego first time home buyers
Even though these links, point to information for San Diego first time home buyers, the redevelopment agencies in almost every state and county have similar programs.
If you’re a first time home buyer in California, the state housing financing agency (CALHFA) has a special program for you. It includes down payment assistance AND a below market interest rate.
Read more about the California first time home buyer program

Even if you’re not buying an apartment in New York, there are plenty of good reasons to take that jump from first time home buyer to first time home owner and as CNNMoney said:
“Buying a fairly priced home at today’s rates may be the best deal you will ever get. And who knows? It may even turn out to be a good investment.”
What is the real cost of waiting for first time home buyers?
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
Check us out on Facebook Temecula 365 Things to Do

First time home buyer in 2011

If you’re a first time home buyer who has decided that 2011 is the year you will make the jump from first time home buyer to first time home owner, then now is the time to get prepared.
Buying your first home is a process, not an event, so you have to have an action plan that will get you through this process with your sanity intact.
Here are 5 things you can do now to help you get ready for owning your first home in 2011:

1) Test drive the lifestyle – Owning costs more than renting and most first time home buyers find they will have to make some lifestyle sacrifices. It might be as simple as cutting out that daily mocha grande frappiccino or  packing a lunch three or four days a week,
Whatever those sacrifices may be, you might want to find out if you can adjust BEFORE you buy instead of after.
Test drive before you buys

2) Keep your financial house in order – Lenders are examining every loan application more closely than ever before. Interest rates have increased over the last couple months and many lenders now have a minimum credit score of 640. Very shortly many of those lenders will also have a maximum debt-to-income ratio of 45%. So whether or not you’ve been pre-approved in the past, you might want to get with your lender to make sure your still in the market.
As lender’s we’re going to look at all aspects of your financial picture to determine your ability to repay us and repay us on time, so make sure your financial house can stand up to lender scrutiny.
Why first time home buyers need to pay attention to their credit
First time home buyers better have clean underwear

3) Check out all the first time home buyer incentives - There are a lot of good reasons to own your first home. First of all it belongs to you and your family, your not making someone else’s mortgage payment, your getting tax write-offs for mortgage interest and property taxes AND state and local governments are throwing money your way in the form of down payment assistance and tax credits.
Below market interest rates for California First Time HomeBuyers
Down payment assistance programs for first time home buyers
Tax credits for first time home buyers

4) Find a Realtor and Lender team who are specialists in first time home buyer programs
The loan programs and special incentives that are available for first time home buyers require an expertise that not all Realtors and Lenders have. You need a team that represents YOU!, not the seller, bank or builder.  First time home buyer loan programs are more paperwork intensive, require more time, and have more exacting guidelines, so your representative has to be looking out for best interest to get you to a successful closing.
Why first time home buyers need their own Realtor

5) Quit procrastinating! – If you’ve made the decision to move from first time home buyer to first time home owner, then get up off the couch, use the DVR to record your favorite programs and get started. Sure home prices will continue to drop, but we’ve already seen interest rates climb and over the long term interest rates will have a greater impact on your cost of homeownership.
What is the real cost of waiting for first time home buyers?

Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy

Check us out on Facebook Temecula 365 Things to Do
Google Me

Down payment assistance for San Diego first time buyers

For first time home buyers, very often the biggest obstacle between them and becoming a first time homeowner is having the funds for down payment.
The demise of the “zero down payment” loans, has left many first time home buyers who have steady income and maintained a good credit rating, still on the outside looking in.
For first time home buyers in San Diego and other parts of San Diego County where the median sales is price is $320,000 (according to Trulia.com) would need a minimum of $11,200 (3.5%) for just the down payment.
First time home buyers in San Diego who are looking for more home, can actually purchase their first home up to $720,000 with 3.5% down. Unfortunately, on $720,000, 3.5% is $25,200, which for many families is beyond their reach.
If you’re a first time home buyer in San Diego you have three choices:
1) You can continue to pay your landlord’s mortgage by renting
2) You can look to the Temecula Valley for great values and homeownership incentives
For more information on the value of first time homes in Temecula
For more information on the Riverside County tax credit for first time home buyers
OR
If you’re a first time home buyer in San Diego who needs help with down payment assistance for your first home, help is available in the form of a special down payment assistance program from the State of California.
Like all down payment assistance programs there are sales price and income limits, but depending on your wants, needs and financial profile you may be able to combine, not only the down payment assistance but also a below market interest rate on your first time home loan.

But unlike most other down payment assistance program, this program is available for new homes, resale homes, bank owned properties and short sales. So first time home buyers who qualify for this program will have a much bigger selection available to them than might be the case with other down payment assistance programs.
For more information on the California down payment assistance program
To contact a first time home buyer down payment assistance specialist
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do

Google Me

Safety for first time home buyers

First time home buyers who are considering buying their first home in San Diego, Oceanside, Escondido, San Marcos or Vista have a lot of very good reasons for choosing these cities.
There’s the proximity to the Pacific Ocean,its world class beaches and the moderate weather it brings.
There are San Diego Padre baseball games and Chargers football games. Great shopping and nightlife are an easy drive for most San Diego County residents.
But what about the really important things like safety of your family?
CQ Press recently released its annual rankings of the safest cities in America and two of the safest cities in America are just an easy drive north of San Diego.
According to CQ Press, Murrieta finished as the 21st safety city in America with populations of more than 75,000 and 6th statewide. Temecula finished 74th nationally and 20th in California.. Corona which is about 30-40 minutes north of Temecula ranked 76th and 21st.
Murrieta and Temecula also finished 1-2 in Riverside County.
The only city in San Diego County to rank this high was San Marcos which finished 69th nationally and 18th in the state.
Other rankings for cities in San Diego County are: Oceanside 147th and 44th, Escondido 162nd and 50th and Vista was 182nd in America and 56th in California..
The crimes tracked by the UCR Program include the violent crimes of murder,
rape, robbery, and aggravated assault and the property crimes of burglary, larceny-theft, motor
vehicle theft, and arson. To be fair larceny-theft account for more than 59% of all the crimes reported, so it’s not like a “killing field” in any of these cities.
Tax credits for San Diego first time home buyers buying in Temecula
Down payment assistance for first time home buyers in Temecula
Not only are there great financial incentives to buy your first home in Temecula or Murrieta, but you can buy your first home in Temecula or Murrieta two of the safest cities in America.
Ask your burning question to a first time home buyer specialist
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do
GOOGLE ME

We are fast approaching a very important date for first time home buyers. First time home buyers who have decided that buying a condominium fits their lifestyle and budget, could have a hole shot in those plans very soon.

FHA Condos for first time home buyers

We’re not talking about a condo that overlooks Central Park in New York, or a condo that is on Lakeshore Drive in Chicago but we are talking about that condo that many first time home buyers have decided is the best first step for them and their family.
On December 7, 2010 the FHA project approval will expire on more than 3000 condo projects.
So what does this mean to first time home buyers?

Without an FHA project approval on your condominium of choice, you will have to look to other options for financing.
FHA loans have always been the home loan of choice for most first time home buyers and condominiums have been the choice for their first time home and that will be getting harder on December 7.
As we get closer to that date, you’re undoubtedly going to hear some whining from some members of the real estate community about their job getting harder.
It probably will, BUT the important thing to remember is that FHA project approvals are designed for your protection (and FHA’s).

To qualify as an FHA approved condo project, the homeowner’s association has to provide a number of documents that prove the financial stability of the condo project (reserves and budget) along with verification that the majority of occupants in their project are owners not renters.
Without the FHA project approval, you might be moving into a financially unstable condo project that doesn’t have enough in reserves to pay for everyday maintenance of the common areas and major expenses (like roofs, painting etc). These are items that will need to be taken care of eventually and guess who would be paying more to meet these expenses?

A friend told me about a local project where the HOA dues have gone from $250/mo to more than $500.
Another important part of the project approval is verifying that the number of owners is greater than the number of renters. If it’s more renters you’re just trading one apartment for another. There’s no pride of ownership and you little to no chance of your first home experiencing any significant appreciation.
December 7 is not very far off, so if you’ve been “fence sitting” it’s time to pick the splinters out of your butt and do something.

Even if you’re not ready to buy your first home now, this is important information to file away for when you are.
Ask your burning question of a first time home buyer
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do
GOOGLE ME

Tax credit for San Diego first time home buyers

First Time home buyers in San Diego and other cities within San Diego County have a tremendous opportunity to buy their first home at significantly discounted prices.
You’ve no doubt heard all the good reasons for you to make the move from first time home buyer to first time home owner. Prices on homes, in some areas are 50% lower, than they were just 3-4 years ago. Interest rates are still at historic lows and all the tax benefits of home ownership are still there.
But for many first time home buyers, the dream of homeownership is still beyond their reach because with a median home price of $320,000 and an average cost per square foot of $262, you still don’t get a lot of home for your money.
If you’re still not happy with what your first time home might look like in San Diego, I have a prescription for you. It’s simple and won’t cost you any money.
Wherever you are right now, step outside and face the Pacific Ocean. Now slowly make a 90 degree right turn and your solution will be just an hour north of where you are standing.
Temecula, Murrieta and surrounding communities offer not only tremendous value but a number of first time home buyer home ownership incentives.
For more information on the value of first time homes in Temecula
If you’re still in the market for your first home, you missed the federal $8000 first time home buyer tax credit. Even though the feds aren’t handing out the tax credit any longer there is a similar tax credit available from Riverside County and is available to all qualified first time home buyers on almost any house you may choose to be your first time home.
For more information on the Riverside County tax credit for first time home buyers
So what’s it worth to you?
If your first time home will be at our median sale price of $280,000, and if like most first time home buyers you are considering a low down payment FHA loan, over 5 years your first time home buyer tax credit (based on a 4.75% interest rate loan) would be about $9335.
This credit is in addition to the mortgage interest deduction you would have.
Subscribe to the blog and look for more first time home buyer incentives for San Diego first time home buyers who think an extra hour in their commute is worth the great value you would get by purchasing your first home in the Temecula Valley.
Ask your burning question of a first time home buyer
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do

GOOGLE ME

San Diego first time home buyers

If you’re a first time home buyer in one of the many communities in San Diego, you’re no doubt surprised by the affordability of homes, but also taken back by how “little bang for your buck” you get when looking to purchase your first home in “America’s finest city”.
According to the most recent figures from Trulia.com, the median sales price in San Diego County was $320,000 which is a long drop from January of 2006 when it was more than $510,000.
But just what does your hard earned $320,000 buy you in San Diego. I know it gets you mild weather, fantastic beaches, shopping and  dining that attract millions of visitors and homeowners.
Well, when it comes to that place called your first home, that place where you spend most of your time, it gets you 1221 square feet (that’s the median sales price divided by the average price per square foot of $262).
Now just north of San Diego is the Temecula Valley.

You may have passed thru on your way to Las Vegas.

You may have even taken a wine tasting tour at one of our almost 40 wineries.
But what you might not know, is that your hard earned $320,000 will go a lot further in Temecula and the cost is one hour travel time (each way).
In Temecula, according to Trulia.com our median sales price is $280,000 with an average cost per square foot of $130, at those prices you would get almost double the size of your first home in San Diego (2153 square feet instead of 1221) for $40,000 less.

If you still wanted a $320,000 home in Temecula you would be getting 2461 square feet at those prices.
But affordability of first time homes in Temecula is only part of the story.
Temecula, Murrieta and many other cities are part of the Riverside County Homeownership programs. These programs offer down payment assistance and special tax credits to first time home buyers who purchase bank owned or short sale properties in Riverside County.
This is the first in a series of posts about the homeownership incentive programs in Riverside County that make buying your first home here not only a great lifestyle decision but also the start of a great long term financial plan for your family.
Ask your burning question to a first time home buyer specialist
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do
GOOGLE ME

First time home buyer tax credit

The $8000 first time home buyer tax credit has come and gone and many first time buyers who are just entering the market feel like they missed out.

If you’re a first time home buyer in Riverside or San Diego County, you may not be aware there are still special first time home buyer tax credits for you and like most first time home buyer programs, you may still qualify if you haven’t owned a home in the last three years.Any income tax credit is a good thing because it is a “dollar for dollar” reduction of your income tax liability.

On the other hand a tax deduction, just reduces the amount of your taxable income but only reduces your tax liability by the tax bracket you happen to fall in.
I’m not a CPA or a “tax guy” but give me a tax credit anytime I can get it.
In both Riverside and San Diego County these tax credits come in the form of a “mortgage credit certificate” or MCC.

In Riverside County the MCC for qualified first time home buyers is 15% and in San Diego County it is up to 20%. There are income and sales price limits for new and resale homes, so check the links below for details.
What that means to you is that either 15 or up to 20% of your mortgage interest deduction (you remember that, it’s one of the many reasons to own your own home) is converted into a tax credit AND you are still able to use the remaining 85 or 80% of your interest paid as a tax deduction.
A first time home buyer can use the MCC in one of two ways.
First, you can revise your W-4 withholding to reduce the amount of federal income tax withheld from each check. Many first time home buyers select this option to better acclimate their budget to the costs of homeownership.
This option can be a huge benefit for a first time home buyer who might be stretching a little bit to buy their first home. If you are using the MCC your first time home loan lender will take into account your reduced tax liability. When underwriting the loan, a lender considers this and the borrower is able to qualify for a larger loan than would otherwise be possible.
Another option is to leave your withholding as is and then reap the benefit in the form of a larger refund or reduce the amount you might have to pay when you file your federal income taxes.

For example, if you had a $200,000 loan at 5%, over 5 years you would pay $48,076 in interest. 15% of that interest would  be converted to a tax credit, so over that period you would have a tax credit of $7211.
I can’t tell you which one is best for you, that’s a conversation between you and your CPA or tax guy.
How do you apply for this special first time home buyer tax credit?
Borrowers must apply for a MCC through a participating lender who will perform an initial qualification and assist the borrower in completing the MCC submission forms.
The lender then submits the MCC application to the County., and when approved will issue a MCC commitment to the lender.
For more information on the Riverside County MCC program
For more information on the San Diego County MCC program
To ask a burning question about these first time home buyer tax credits
Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do
GOOGLE ME

First time home buyer after a short sale

You’re probably wondering how someone with a short sale or foreclosure in their credit history could qualify as a first time home buyer.
We’ll discuss it in detail later in this post, but if you “haven’t owned a home in three years” most first time home buyer programs consider you as a “first time home buyer”.
Is a short sale better than a foreclosure?
When it comes to the damage to your other credit and credit score, absolutely.
The amount of harm a foreclosure will do to your credit is very subjective. Many families are in such a bind, that not only have they been unable to make the payment on their home, but are struggling to make car and credit card payments. The combination of foreclosure and late payments on your other credit lines, will cause your credit score to “sink like the Titanic”. The foreclosure is also reported in the public records section, which causes a further drop and can remain for as long as 7-10 years.
Important note: Just because it’s reported on your credit report, DOES NOT mean you have to wait 7-10 years to become a homeowner again.
Most families considering a short sale have the same struggles with their other credit lines. The difference a short sale makes is that there is no “public record” filing and that will save you some major points on your credit score, which you may need if you will need to apply for other credit.
Is a short sale better than a foreclosure when it comes to getting your next home loan?
Current lender guidelines view a short sale and foreclosure the same. In simple terms: You contractually agreed to repay your mortgage loan and didn’t and lenders are very reluctant to lend money to you again until they are convinced you have made the changes necessary to insure you will repay your mortgage the second time around.
In a previous post I talked about “credit repair” when applying to buy a home after bankruptcy
and “credit rehab” after bankruptcy
The same principles apply to buying a home after short sale or foreclosure. Whichever option you choose you will have some “credit repair and rehab” you will have to endure if you want to get back on the path to homeownership.
You can do it alone, but you don’t have to.
Buying a home after a short sale or foreclosure means a three year “credit rehab” period to qualify for a new FHA loan.
Why an FHA loan? It has the lowest down payment and credit score requirements available PLUS you can combine your new FHA loan with many of the first time home buyer incentives available.
If you were fortunate enough to qualify and successfully complete a short sale and remain current on your payments up to the date of closing, you may be eligible to become a homeowner again as soon as 1 day after the short sale.
For more information: Contact Us

If you live in Riverside County (CA) here are some of the programs available today:
Riverside County Home Ownership Incentives
Ask your burning questions about buying a home after a short sale or foreclosure

Other related posts:
Why good credit is important for first time home buyers
First time home buyer loans with no credit scores
First Time Home Buyers 10 good reasons to buy now
First Time Home Buyers – How to buy your first home
First Time Home Buyers – should you buy a new home
First Time Home Buyers – is it the right time to buy
First Time Home Buyers – What is the real cost of waiting
Check us out on Facebook Temecula 365 Things to Do
GOOGLE ME

Personal bankruptcies have increased dramatically over the last few years and many families felt they lost any chance of becoming first time homeowners.

If you are one of the millions of families whose only solution to their credit problems was personal bankruptcy, you’ve been given a “do over”.

First time home buyers get a doover

A bankruptcy in your history doesn’t mean your dream of becoming a first time home buyer has ended but it does mean you will have to “repair and rehab” your credit if you want to achieve that dream.

Buying a home after bankruptcy – repair

Fresh start for first time home buyers