The Home Tax Credit

Time is growing short for buyers hoping to land a great deal before some key changes occure.

Later this spring, the federal home buyer tax credit — up to $8,000 for first-time buyers and up to $6500 for move-up buyers — is scheduled to expire.  Buyers must have their new home under contract by April 30th to receive these funds.

Mortgage rates may also bigin to climb soon.  In late 2008, the federal government began a $1.25 trillion campaign to purchase mortgage backed securities, driving borrowing costs lower.  The fed confirmed yesterday this program will expire in March.  Consequently, mortgage rates will rise anywhere from half a point to a full point.

We’ve had these low rates for a year and people think they are where they should be, but they are not.  Rates are artificially low right now due to the fed’s purchasing program.

When rates do move higher when the program expires, shoppers waiting for the absolute bottom of the housing market may regret their procrastination.  A slight increase in interest rates can erode any savings achieved through a low interest rate.

Also, FHA loans will become more expensive this spring.  Currently FHA loans account for more than 40% of all new mortgages being originates.  This spring the up front mortgage insurance premium on FHA loans will go from 1.75% to 2.25% this spring.

Take advantage of these tax credits and make 2010 the year you find your perfect home!

Call Dale Curtis at WaterStone Mortgage 208-484-8993 and tell him Josh Groesbeck of Trust Realty (208-353-7131) sent you-

Idaho Home Sellers and Home Buyers

Ada county and Canyon county have 242 bank owned properties and 262 possible short sale properties listed as of January 1, 2010. This news below may seem discouraging if you believe the glass is half empty, but if you look at all of these golden opportunities the glass is really half full. If you are one of many homeowners that have already are in a position to lose your home there are many opportunities to avoid foreclosure (Making Home Affordable Program-Short Sales) but you must be proactive seek a professionals help to navigate through this mess. Always know that the sun will rise tomorrow, you are not alone and time will heal.

On the other side if you are looking to purchase a home right now it very well could be the best time to get the home of your dreams in the neighborhood you most desire. $8,000 tax credit for first time home buyer’s, $6,500 tax credit for move up buyer’s – go to www.homeswithjosh.com for more information to qualify. Interest rates are still extremely low with talks that they are going to start moving up so my advice is to start your qualifying process now and be ready when your dream home comes on the market. This not just talk take a look at homes on www.homeswithjosh.com and see what I am talking about as I am quite sure you cannot deny there are some sweet homes just waiting for their new owners.

Call Josh Groesbeck 208-353-7131 for information about selling and buying Idaho real estate.

The housing market in the Treasure Valley has yet to bottom out, despite government incentives and record low interest rates for buyers.

“You read a lot of national data that says we have hit the bottom of the market,” said Charlie Nate, president of IdahoDataProviders.com, a Boise company that measures foreclosures in the Valley. “That’s just not the case.”

The month-to-month numbers weren’t bad. In Ada and Canyon counties, December foreclosure rates fell 9 percent from a month earlier, Nate said.

But the flow of distressed properties entering the housing market will keep pushing inventories up and prices down this year, Nate said.

High unemployment rates and a worsening default rate are partly to blame. So are the number of homeowners who are “upside-down” on their mortgages, which means they owe more on their mortgage than their home is worth, Nate said.

About 30 percent of all borrowers are “upside-down,” he said.

During 2009, there were 8,639 new foreclosures filed in Ada and Canyon counties, a 66 percent increase over 2008.

source: Idaho Stateman