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Orleans Parish Bond Money 2012, Never know if you can use this for your mortgage….

     The Orleans Parish Bond Program is open to first time home buyers who will occupy the home or condo as their residence.  Meaning you have not owned a home in 3 years.  You have a minimum credit score of 640.  You take 12 hours of certified training.  If you meet this criteria and find something under $324,359 for a single residential unit then you may qualify for the program.

      There is no limit for household income which is highly unusual in these Bond Programs.  You will have to use certain lenders.  The two that  I can recommend is Robert Tynes at Whitney Bank 504-838-6511 and Ted Nusenow 504-310-7422 with Iberia Bank.  They participate in the program.  Check out the list Lenders for Bond Money in New Orleans 

      The mortgages carry a 1% origination fee.  You can always ask the seller to pay this and up to 3% of your closing cost on top of the program.  The program is designed to give you 4% of the purchase price or a super low rate of 3.25% for FHA and 3.5% for a conventional loan.  The FHA loan allows you the lower down payment of 3.5% while conventional will require 10%.

        There are other things you will need to know but these are basics.  Its always best to give your self an extra couple of weeks when dealing with bond money.  I have seen it work many times and benefit my clients.  Its always worth checking out all the angles and choices.  

 30 fixed Bond Money

Bond Purchase Limits

 

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Jefferson Parish Bond Money, Hard to beat this deal..3.5% interest plus the credit….

     The Jefferson Parish Bond money is hard to beat if you can qualify for an FHA or VA loan .  The interest rates are extremely good at 3.5% and you get a credit for another 3.5%. The credit is like a gift to you that is hard to pass up.  There are limits on income as you can see below and the price of the home.  You have to be a first time home  buyer and cannot have owned a home in the last 3 years.  You will have to live in the property.  There is a 1% origination fee that is paid.

    It gets even better as you can ask for the seller to pay your closing cost, up to 3% under the new rules.  This means you can save your cash and buy with very little down for a home.  This is perfect for a person making less than $60,000 or more for a family.Julie Profile Collage  Could easily be cheaper than renting and you build equity and have pride in home ownership.

    The credit for a  home costing $200,000 would be $7000 and you can ask the seller for concessions of another $6000.  Borrowing a $100,000 at 3.5% for 30 years for principal and Interest is only $449 per month.  The oddity is at these low rates is at the end of year one you will have paid down you loan by $1757.  You will have paid $3183 in interest payments which are tax deductible.  Borrow 200k and then you just double the numbers. 

    There are other requirements but if you qualify this is a great deal to put you in a home with a minimum amount of money. Allow about two additional weeks on the loan to close just to be safe.  First step is to get pre-approved for the loan then start your search with an experienced agent.

       Only certain lenders will be handling the Bond issue but my Favorite Lender Julie Baudier at Standard Mortgage is.  Its outstanding service and low cost as well as being a great deal.  She can be reached at 504-583-1793.  Check it out and then I can get you started with the search.

Jefferson Bond Money 

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The time line on the $8000 tax credit ! It ends on Friday April 30th, 2010. Dead line to have an accepted Contract!

       You have to close by  June 30, 2010 if you want the $8000 federal tax credit.  This means in essence you have to have an accepted contract on your New Orleans Home or Condo by  April 30, 2010.  Lets put this int0 a time line so you can get started this month.    $8000 is real money!

     Jan 2010- get an idea of what you are looking for in terms of price, stlye, location, bedrooms and the rest of your criteria. You cannot do this in a week so you need to start now.  See a lender now so you can get the numbers out of the way.  Nail down the lender as this can delay the process.  Chosing someone local is the best way for success.  With the various new rules in effect give yourself an extra week.   Time to do your homework is now! 

    Feburary 2010 Search begins– Start looking so you can narrow your choices down to the best 2-3 places.  Be realistic in pricing and the condition.  This part of the search can take 30-40 days. You can find the best things much sooner if you do your homework.  Mardi Gras and Super Bowl will knock some days out.  Feburary is short being only 28 days and then minus the stuff that happens.  Know how you will finance by the end of the month.

     March 2010-The Chosing stageNarrowing it down and getting ready to write the offer.  You have to get an offer written and accepted in March or April. Its the time to get the all the details worked out.  Easter will knock some days out.  You have to get Inspections set up and started.  The condo documents need to be read and reviewed.  The lenders will have to review the condo associations books and insurances.  Give an extra week if its an FHA Loan.  Remember the lenders just take longer these days.

      April to June 30, 2010 final stages  The appraisal, loan processing, Inspections all should be wrapping up in April and May. Give yourself time for someone to screwup as it happens often.  The title work still has to be done. The finish line is in site.  If you miss the deadline for any reason then you miss the money.

The Repeat Buyers

      The  repeat buyers can qualify for a $6,500 tax credit if they’ve lived in their home for five consecutive years of the last eight. Repeat Buys need to understand that as long as they’re buying a new primary residence, they’re not required to sell their current home right away—or at all. In the meantime, they’re able to take advantage of today’s lower home prices and historically low interest rates.

new-orleans-real-estate-the-8000-tax-credit-expires-4-30-2010

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Buyers are on Vacation but looking and thinking of next Year ! It pays to be ready!

       The buyers are still in the condo market, some segments are of course better than others.  What we are now seeing is less new units coming on the market.  The sellers are waiting for next year until the Saints win the Super Bowl or until their unit is ready to sell.  Real Estate is seasonal.  Buyers are busy looking on line to see what there choices are.  Many are looking but are still in the decision process.

       The interest rates are still extremely low.  They will not be this low in a year or two.  Borrowing 100k today will cost you only $538 for principal and interest.  This is great incentive to purchase. Rates are at 5%.

       Prices are a little lower but not in a fall like some cities.  Prices have been fairly steady but there are some wonderful deals to be had.  As a buyer you have less competition now and that means saving about $5000 on an offer.  You will not get this discount in April or May.

      $8000 and $6500 tax credit is waiting for you as well.  I think the economy and overall sales will improve and this will surely go away.  Its a gift for you now.  

      Second Home Buyers are beginning to return to the New Orleans Market.  New Orleans has been receiving some great publicity over the past year. With Mayor Nagin leaving on May 5, 2009, we may have a mini boom or at least we will feel in more reliable hands.

buyers-agent-in-new-orlelans

      It does pay for buyers and sellers to be ready.  The buyers who study and know the market trends have a better chance to buy and sell high.  It always has a lot to do with market timing.  Make this your advantage !!

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$8000 Tax Credit is yours! Add that to a couple of things that people forget! Building Equity and the Interest Deduction!

     Besides the federal tax credit there are two very important aspects of buying that you may forget about.

1.  Interest deduction is big.  You get to deduct your interest on your taxes for every year till its paid off.  The deduction is based on your tax rate.  If you are in the 25% bracket and you pay $10,000 then your savings would be $2500 per year.  Taxes are also deductible as well.

2.  Building Equity. Your note is is interest and principle.  Each Month you are paying down your note. The amount of equity increases with every payment.  If you borrow 200k you are paying down your mortgage by more than $200  per month.  Its paying down the mortgage by at least $2500 in year one.  This is building equity.

    Federal Tax Credit $8000/$6500

      The $8000 First Time Home Buyer Tax credit was approved and is now on the President’s desk for signatures. For first timers, the $8000 tax credit is extended until April 30th, 2010. The major addition is a $6500 Tax credit for existing home owners. Effective the day of the signing, this gives current homeowners, that have owned their current home for more than 5 years, a credit and incentive to move up or sell their home.

     This is nice for homeowners to help with their closing costs. Income limits have also been increased to $125,000 single or $225,000 married and you can claim this credit on any home up to $800,000 in price.

      Now you add up thses savings and if you qualify you could have all three of the savings of owning in year one. $8000 plus $2500 plus $2500 equals $13000 for this example.  Its hard to beat that return !

8000-tax-credit

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Housing tax Credit Extended? There are no free lunches! Someone will have to pay!

     As a real estate agent I am glad to get the credit extended. On the other hand I am worried that our Congress can only react to the crowds who want new favors.  Does this make common sense when the real problem is creating an environment that will produce jobs. We will be getting ready for the next GM bailout shortly.

     Its a carnival of incentives.  Much like Mardi Gras- Throw me something so long as it cost me nothing.  So if you can get it you have to take it.  The interest rates remain low since the Feds are buying the mortgages.  Its wild !

Senators agree to extend homebuyer tax credit By STEPHEN OHLEMACHER Associated Press Writer © 2009 The Associated Press

Oct. 28, 2009, 7:00PM

WASHINGTON— Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers.

The tax credit provides up to $8,000 to first-time homebuyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6 percent in September, and some industry representatives blamed uncertainty about the tax credit.

Senators agreed to extend the existing tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.

The tax credits would be available to home buyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.

Senators were still negotiating the expansion of a separate tax credit that lets money-losing businesses get refunds for taxes paid in previous years, providing them with an immediate source of cash

new-orleans-homes-throw-me-a-tax-credit

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$8000 tax credit from Uncle Sam, Time is running out in New Orleans!

      If you are considering purchasing that home or condo you should have a contract by the end of October to take advantage of the $8000 gift from Uncle Sam.  He will be too poor in future years to give away more.  There are some good deals out there as well.  If less people are looking then the ones that look will get the better deals.

1.  If you are in contract on a New Orleans Home or condo but have NOT closed by November 30th, sorry but you DO NOT collect $8,000 from the U.S. Government.  The tax credit is ONLY for homes purchased and closed by November 30th, 2009.

2.  If you are in contract to have a Home or condo in New Orleans metro area built for you but the house is not going to be ready until December 30th, 2009, sorry but you DO NOT collect $8,000 from the U.S. Government.  Although you were under contract by November 30th, you did not close on the house by November 30th and the tax credit is ONLY for homes purchased and closed by November 30th, 2009.

3.  If you are in contract on a New Orleans Condo and your closing date is scheduled for November 30th, but the lender is unable to close on November 30th because he has not finished processing your loan, sorry but you DO NOT collect $8,000 from the U.S. Government. 

timing-is-everything-in-real-estate

     Incentives do work so you need to start looking no to take advantage of getting $8000.  There also may be some Louisiana State Bond money coming out which should have great rates and another gift for you.  Details should be out shortly.  It too is too good to pass up of you qualify.  Its well worth checking out and getting $15,000 in a double deal.  Can that be you?

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New Orleans Real Estate, Odds and Ends! Some things worth thinking about!

      As we near the end of Summer there are a number of things to think about if you are in the market for a home or condo.

new-orleans-condo-search

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Jefferson Parish Grant Money for first time home buyers! Great way to start!

    Jefferson Parish has several programs that can help you as a first time buyer for a home or condo.  You have to be able to qualify for a loan and meet the income requirements.  The purchase price has to be below $200,160.  You start by getting qualfied for a loan through an approved lender.  This will let you know what you can afford and if your credit score is sufficient for a loan. The loan itself can be FHA, VA, or Conventional.  Call Julie Baudier at Standard Mortgage to get you started with the loan process 504-583-1793.  This is your first step.

      The home or condo has to be in good shape and should not need major repairs. Then you call the Jefferson Parish Community Developement Office.  They will give you information on the classes and a certificate to get started. 

    A Real Estate Agent like Eric can then help you in selecting a property.  Its well worth the time and effort as its a big, big help in getting started towards home ownership.

 

   As per the Jefferson Parish Website  “The HOME Program funds assist first-time homebuyers in purchasing their homes by subsidizing closing costs and/or down-payment requirements in conjunction with loans obtained through the Jefferson Parish Finance Authority or other qualified lenders.

Qualified applicants may receive a level of assistance up to $50,000 determined by Community Development to be applied for the down-payment and normal closing costs. Participants will be required to grant a mortgage to the Parish in the amount of the assistance provided. This mortgage will be for a term determined by the amount of money received, non-interest bearing, and will be non-repayable if certain conditions are met.  Eligible participants purchasing homes in the City of Kenner will receive a $10,000 grant secured by a deferred mortgage of 10 years.

 

Eligibility

Eligible participants include households that have not owned a home during the past three years. The annual maximum allowable household income limits, based on family size, are as follows.  The annual income of a family of four cannot exceed $47,850.

1 – $33,500         2 – $38,300         3 – $43,050         4 – $47,850

5 – $51,700         6 – $55,500         7 – $59,350         8 – $63,150

 

Applicant Requirements

Applicants are required to complete a Preliminary Application with supporting documentation before being funding will be considered.

Applicants are required to attend two classes and must present an acceptable certificate of training completion before loan closing.

The monthly payment required to service the contemplated mortgage(s) may not exceed 30% of the monthly household income.”

 

     You should also be able to get a federal tax credit as well if you buy by the end of the 2009 of $8,000.

 

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New Orleans Condo Buyers can get tax a credit of $8,000, something for Free !

      Congress had a great opportunity to really jump start the housing market with a $15,000 tax credit open to everyone and anyone.  Its hard to believe they thought it would cost too much.  This move could have saved people tons of money and would have helped us with the bank bailout.  Any incentive to increase demand is welcome

       I would have made it very simple and open to everyone buying a home or condo.  Why put all these strings attached when we need to increase demand.  It would lighten the load on sellers and banks costing American less in the long run.  Incentives do work and when we need immediate spending this is the fastest way to make it happen.  Much less than the bailout of Citi Bank alone by 10’s of billions.  Where are the Nation’s thinkers?    

     However if you fall into this niche its something to take advantage of.  Its like free money along with the tax advantages of owning.   

      “The good news is that there is an $8000 tax credit available for first time home-buyers! On Friday, both the House and the Senate passed the American Recovery and Reinvestment Act of 2009 and President Obama is expected to sign it into law early next week.

$8000 tax credit highlights include:

For those of you who have been asking questions about the possible tax credit – the good news is that we now know what has been passed into law.

What this legislation should do is encourage first time home-buyers to buy a condo or home. What it will probably not do is encourage everyone who isn’t a first time home-buyer to buy a home.

And it remains to be seen exactly how much it will help the overall real estate market turn around.”

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Eric Bouler Realtor
Gardner Realtors
Metairie - New Orleans, La. USA