Scripps Ranch Real Estate and Community Blog

LAST CALL for HOME PURCHASE TAX REBATES

There are ONLY 30 days left to locate and purchase your next home if you want to take advantage of up to $8,000 in government tax rebates for home purchasers.

The rebates are available to both first time buyers (no personal residence owned in last 3 years) and repeat buyers (current home owners who have owned their homes for five of the last 8 years).

In order to qualify, the home buyer must be locked into a binding contract by April 30^th 2010.  Although you will have until June 30^st 2010 to complete the transaction, you must be in a binding escrow by April 30^th 2010. 

Don't fall into the contract language trap.  Most real estate purchase contracts contain contingency clauses to protect the buyer.  For example, the purchase contract may give the home buyer 17 days to inspect and investigate the home, obtain an appraisal and secure a loan.  This makes it a contingent contract, which will not qualify you for the home buyer tax rebate.  In order to be eligible for the rebate, you must have removed ALL buyer contingencies provided in the contract by April 30^th 2010.

So to be safe, you really need to locate your next home by April 15^th 2010, unless you want to give up your contingency protections.  That's ONLY 30 DAYS from TODAY!  Inventory is limited in many areas, such as Scripps Ranch houses and Rancho Penasquitos houses.  Short Sales will not work because they take too long to process.  That means that you have to locate a home owner with equity in their home, or a foreclosed property whose owner is willing and able to process the transaction in the next 30 days.

Since you probably will not be the only purchaser scrambling to purchase a home in the next 30 days in order to take advantage of the tax rebates, you will most likely face competition from other similar minded purchasers.

 If you have not yet started looking for your next home, you better start looking immediately.  If you see a home that has 80% to 90% of the features you want, grab it as another one may not come along in time for you to take advantage of the tax rebates.

To look for a home and take advantage of the federal tax rebate program, call Real Estate Broker Claude Braunstein at 858-271-7770 ( Claude@ClaudeBraunstein.com.)   A Coldwell Banker affiliate with over 30 years of experience, Claude and his team will help you find the right home at the right price and help you to take advantage of the home purchase tax rebate.  Additional information is available on our website www.ClaudeBraunstein.com , where you can also search the MLS for a suitable home.  CA Broker Lic # 590130.

Department of Defense -Homeowner's Assistance Program (HAP) can assist military homeowners in Scripps Ranch to sell their Scripps Ranch homes.

Like most other Americans, military personnel living in Scripps Ranch and the surrounding communites are feeling the impact of the economic downturn as well as struggling with the unique challenges of military life.  Their homes are often worth  less than they paid for them, and often less than they owe their lender. 

HAP is a program of the Department of Defense designed to aid military families who are under mandatory orders to transfer on a permanent basis.  It is designed to help transferred military homeowners who must sell their houses for less than what they owe.  The HAP program is run by the Army corps of engineers on behalf of all branches of the military. There are numerous rules and eligibility requirements but here is a very brief rundown of the current program:

• When a home is sold at less that what it was purchased for, the program may"substantially offset" the loss up to 95% of the loss. The government will not make up past payments, junior liens or other encumbrances. It will pay allowable mandatory closing costs.

• Sellers must make a reasonable effort to sell their homes for at least 30 days at current market value using a Corps of Engineers automated valuation model. They must document how the price was gradually reduced until true current value is reached. 

•  Applications for aid will be processed according to eligibility in this order: 

                 Owners who were injured in the line of duty while deployed since Septermber 11, 2001 and are relocating for further 

                 medical treatment.  

                Spouses of the fallen who relocate within 2 years after the death of their spouse.

                Homeowners affected by the 2005 round of base closings.

                Military home owners who receive permanent duty station changes between February  1, 2006  and September 30, 

                2012.

As with most government programs the aims are worthy but the funding is limited and the regulations rigorous.  Scripps Ranch homeowners who feel they may qualify for help to sell their Scripps Ranch Houses, townhomes or condominiums should go to the HAP website at  http://hap.usace.army.mil.  for more information.

Changes to FHA financing requirements affect buying and selling

 Scripps Ranch Real Estate

If you are thinking of buying or selling a home, town home or condominium in Scripps Ranch or anywhere else in the United States, the following information regarding FHA home lending may be important to you.  The  Federal Housing Administration  (FHA) insures home loans, allowing buyers to purchase new homes with as little as 3.5% down payment.  Currently the maximum loan amount in San Diego county is $697,500.  As the major source of "low down" financing as banks tighten their lending, the FHA has become a  significant player in housing's weak recovery.

Recently, FHA Commissioner David Stevens announced the following changes to FHA insured home loans:

• The FHA will raise the up front Mortgage Insurance Premium, paid by borrowers, from 1.75% to 2.25%.  This premium may be added to the loan amount and paid over the life of the loan.
• The FHA will request legislative authority to raise the annual mortgage insurance premium, currently the factor is .55.
• To qualify for the 3.5% down loans the buyers will now be required to have a FICO score of 580 or better.  Those with lower scores will be required to put down at least 10%.
• The FHA will reduce allowable current "seller concessions, or how much the seller can help the buyer, from 6% to 3%.
• The FHA will be dropping the 90 day "flipping rule" through the end of 2010.  Sellers may now sell Scripps Ranch homes and condominiums using FHA financing without the requirement that the seller own the property for more than 90 days.

What does this mean to the buyers  and sellers of Scripps Ranch Real Estate using FHA financing programs?

• Fewer buyers will qualify for the 3.5 % loans.
• Buyers using FHA fianancing will payer higher upfront mortgage insurance premiums and possibly higher yearly mortgage insurance premiums. 
• The amount of allowable "sellers concessions" to buyers will be reduced.
• Sellers may resell a property they have owned for less than 90 days with the buyers using FHA financing. 

For more any information on buying or selling real estate contact:

Claude Braunstein & Associates

claude@claudebraunstein.com

 858-271-7770

January 2010 Scripps Ranch single family home sales were 12 with a list price of $650,733 and sold price of $595,500. Sellers were getting around 8.4 percent less from the list price. This is lower than 13 homes sold with 16.2 percent deduction on the list price a year earlier.

The Scripps Ranch homes for sale dropped 15.3 percent from 156 in January 2009 to 132 in January 2010. A home last year has an average active list price of $757,844, and it was 2.9 percent lower than $781,266 over the past 12 months. This information is based on the real estate market activity of San Diego in the 92131 zip code for January 2009 vs. January 2010.

In Scripps Ranch Real Estate, entry level property prices are increasing and mid level and luxury properties are attractively priced. This is the best time to sell a Scripps Ranch real estate property at a premium price to take advantage of the $250,000 ($500,000 if married) Capital Gains Exemption. Now is also favorable for home buyers to lock in a 30 year mortgage at a low interest rate and get up to $8,000 tax credit. Homes' interest rates have hit the bottom and are likely to rise again. So, grab the best opportunities to invest in Scripps Ranch!

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