WASHINGTON – July 7, 2009 – Although the mortgage lending crisis put a serious squeeze in the housing market, the situation has also produced attractive low borrowing rates for prospective homebuyers who can qualify for a mortgage. Moreover, the federal government has offered an $8,000 tax credit for first-time homebuyers through Dec. 31, 2009.
What should a person know about securing a home mortgage, and the different types of mortgages available? A spin on the information highway will turn up a bevy of answers. Several Web sites provide tips and information about qualifying for a mortgage. Here is a sampling of sites:
• Bankrate.com: www.bankrate.com/brm/green/mtg/mort1a.asp
Good primer on different types of mortgage borrowing.
• Federal Deposit Insurance Corp.: www.fdic.gov/consumers/looking/
Features guidelines and tips for securing a mortgage.
• Home Loan Learning Center: www.homeloanlearningcenter.com/MortgageBasics.htm
Discusses a range of borrowing topics, including qualifying for a mortgage and mortgage types.
• Home Mortgage Calculator: www.home-mortgage-calculator.net/how-much-should-i-borrow.asp
Provides insights on how much to borrow for a mortgage.
• MortgageInfoCenter: www.mortgageinfocenter.com/tips/default.asp
Offers dozens of mortgage borrowing tips over five pages.
© 2009 McClatchy-Tribune News Service
Tuesday, July 7, 2009
It’s a buyer’s market for real estate sales
SOUTH BEND, Ind. – July 7, 2009 – A combination of factors from interest rates to inventory is bringing more buyers into the market.
Meanwhile, federal programs are helping distressed owners keep their homes as tough times in the real estate market turn around.
“You might say it’s a perfect storm for buyers at this time,” says Carolyn Bierbaum, general manager at Cressy & Everett. “Buyers that are qualified to buy should buy. Why not jump in when interest rates are as low as they have ever been?”
Mortgage payments are often lower than rent, so worries about employment are canceled: “It’s going to have the same outcome,” she says.
A tax credit for first-time homeowners and a glut of houses on the market complete the perfect storm.
“There’s tons of inventory for them,” Bierbaum says. “They can pick and choose. We have more than a six-month supply. That means it’s a buyers’ market.
“What I am hearing from the agents who are busy is they have lots of interested buyers.”
Successful agents know how to assess risk factors, weigh advantages and communicate clearly with clients. Twenty-five percent to 30 percent of the agents are enjoying business at least as good as before the downturn.
“Today’s Realtor needs to know who their client is,” Bierbaum says. “They need to distinguish themselves,” both in their degree of knowledge and their facility with modem communications tools, such as texting and Facebook, which is a focus for many in the generation of first-time homebuyers.
“They need to relate to their client in the mode their client is in. We’re moving into the X and Y generation, and these people use their thumbs on a little machine.”
Some customers still prefer the traditional services where the agent finds the house, shows it to them and takes them to the lender.
The firm has brought in educators to teach agents how to handle short sales and other special elements of the unusual market.
Short sales, which involve the lender’s accepting the price a buyer is willing to pay even when it is lower than the owner’s debt in order to avoid foreclosure proceedings, have become more accepted.
“You might have to do a short sale,” Bierbaum says. “You need an agent who can help with that. Now banks are capitulating to the idea that short sales are in their best interest.”
Programs in the Obama administration offer help – loan modification or loan refinance –for owners whose mortgage payment is more than 31 percent of their take-home pay.
Copyright © 2009 Tribune Business Weekly
Meanwhile, federal programs are helping distressed owners keep their homes as tough times in the real estate market turn around.
“You might say it’s a perfect storm for buyers at this time,” says Carolyn Bierbaum, general manager at Cressy & Everett. “Buyers that are qualified to buy should buy. Why not jump in when interest rates are as low as they have ever been?”
Mortgage payments are often lower than rent, so worries about employment are canceled: “It’s going to have the same outcome,” she says.
A tax credit for first-time homeowners and a glut of houses on the market complete the perfect storm.
“There’s tons of inventory for them,” Bierbaum says. “They can pick and choose. We have more than a six-month supply. That means it’s a buyers’ market.
“What I am hearing from the agents who are busy is they have lots of interested buyers.”
Successful agents know how to assess risk factors, weigh advantages and communicate clearly with clients. Twenty-five percent to 30 percent of the agents are enjoying business at least as good as before the downturn.
“Today’s Realtor needs to know who their client is,” Bierbaum says. “They need to distinguish themselves,” both in their degree of knowledge and their facility with modem communications tools, such as texting and Facebook, which is a focus for many in the generation of first-time homebuyers.
“They need to relate to their client in the mode their client is in. We’re moving into the X and Y generation, and these people use their thumbs on a little machine.”
Some customers still prefer the traditional services where the agent finds the house, shows it to them and takes them to the lender.
The firm has brought in educators to teach agents how to handle short sales and other special elements of the unusual market.
Short sales, which involve the lender’s accepting the price a buyer is willing to pay even when it is lower than the owner’s debt in order to avoid foreclosure proceedings, have become more accepted.
“You might have to do a short sale,” Bierbaum says. “You need an agent who can help with that. Now banks are capitulating to the idea that short sales are in their best interest.”
Programs in the Obama administration offer help – loan modification or loan refinance –for owners whose mortgage payment is more than 31 percent of their take-home pay.
Copyright © 2009 Tribune Business Weekly
Monday, July 6, 2009
Florida’s climate is business-friendly, says FAR
ORLANDO, Fla. – July 2, 2009 – As the Sunshine State, Florida’s warm and sunny weather draws residents and visitors eager to experience all the state has to offer, including the many opportunities and strong support it provides for business and industry.
“Not only is Florida a great place to call home, it’s a great place to do business,” says Cynthia Shelton, 2009 president of the Florida Association of Realtors® (FAR). “Our state has made it a priority to not only encourage new businesses and industries to come to Florida, but to provide the kind of supportive climate that entrepreneurs and businesses need to succeed and prosper. Florida is the fourth most populous state in the U.S., with a large and diverse population fueling innovation in industry, and providing a creative and highly skilled workforce.”
A broker/salesperson with Colliers Arnold Associates Inc. in Orlando, Shelton has more than 30 years of experience in the real estate industry, including residential, ownership, management, development and commercial sectors. With her extensive business background, Shelton understands the state’s appeal to business owners and entrepreneurs. With no state income tax and a favorable tax environment for corporations, she points out that Florida is an attractive location for people who want to own their own business and raise their families in a desirable place close to their livelihood.
Enterprise Florida, a public-private partnership devoted to statewide economic development, notes Florida’s business strengths on its Web site (http://www.eflorida.com) along with a list of recent accolades the state has received.
For example, did you know:
• Florida continues to be one of the best states for business, ranking No. 1 in the nation for workforce; among the top 10 for technology, innovation and access to capital; and third overall in Chief Executive’s survey of the best places for jobs and business growth. (Chief Executive, March 2009)
• Four Florida metros, Orlando, Miami-Ft. Lauderdale, Cape Coral-Fort Myers and Jacksonville, are among the nation’s best places to start a small business. (Bizjournals, Feb 2009)
• Florida has the second highest number (tied with Washington) of leading metropolitan areas on the Milken Institute/Greenstreet Real Estate Partners Best Performing Cities 2008 - 2009 Largest Metros Index. Florida consistently ranks among the top states in this annual report, which measures economic growth, job creation and technology growth. (Milken Institute, September 2008)
• Florida continues to gain ground among the nation’s top states for entrepreneurship, moving up to rank fourth overall in the 2008 Small Business Survival Index. Florida’s low tax rates have helped improve its ranking from sixth in 2006 and fifth in 2007. (Small Business & Entrepreneurship Council, December 2008)
• Florida earned top spots on Site Selection’s 2008 Top State Business Climate rankings. The state’s business climate ranked fourth among executives and sixth overall. (Site Selection, November 2008)
• Florida continues to rank among the top five states for best tax climates for business, according to a Tax Foundation survey. With no state income tax, low corporate taxes, a low unemployment insurance tax rate and sales tax exemptions for certain business transactions, Florida has remained among the top five U.S. states since the survey’s inception. (The Tax Foundation, October 2008)
• Florida’s economic climate ranks No. 1 in the U.S., according to Forbes’ Best States for Business. Ranking eighth overall, Florida also scored among the top five in the Labor and Growth Prospects categories. (Forbes, August 2008)
© 2009 FLORIDA ASSOCIATION OF REALTORS
“Not only is Florida a great place to call home, it’s a great place to do business,” says Cynthia Shelton, 2009 president of the Florida Association of Realtors® (FAR). “Our state has made it a priority to not only encourage new businesses and industries to come to Florida, but to provide the kind of supportive climate that entrepreneurs and businesses need to succeed and prosper. Florida is the fourth most populous state in the U.S., with a large and diverse population fueling innovation in industry, and providing a creative and highly skilled workforce.”
A broker/salesperson with Colliers Arnold Associates Inc. in Orlando, Shelton has more than 30 years of experience in the real estate industry, including residential, ownership, management, development and commercial sectors. With her extensive business background, Shelton understands the state’s appeal to business owners and entrepreneurs. With no state income tax and a favorable tax environment for corporations, she points out that Florida is an attractive location for people who want to own their own business and raise their families in a desirable place close to their livelihood.
Enterprise Florida, a public-private partnership devoted to statewide economic development, notes Florida’s business strengths on its Web site (http://www.eflorida.com) along with a list of recent accolades the state has received.
For example, did you know:
• Florida continues to be one of the best states for business, ranking No. 1 in the nation for workforce; among the top 10 for technology, innovation and access to capital; and third overall in Chief Executive’s survey of the best places for jobs and business growth. (Chief Executive, March 2009)
• Four Florida metros, Orlando, Miami-Ft. Lauderdale, Cape Coral-Fort Myers and Jacksonville, are among the nation’s best places to start a small business. (Bizjournals, Feb 2009)
• Florida has the second highest number (tied with Washington) of leading metropolitan areas on the Milken Institute/Greenstreet Real Estate Partners Best Performing Cities 2008 - 2009 Largest Metros Index. Florida consistently ranks among the top states in this annual report, which measures economic growth, job creation and technology growth. (Milken Institute, September 2008)
• Florida continues to gain ground among the nation’s top states for entrepreneurship, moving up to rank fourth overall in the 2008 Small Business Survival Index. Florida’s low tax rates have helped improve its ranking from sixth in 2006 and fifth in 2007. (Small Business & Entrepreneurship Council, December 2008)
• Florida earned top spots on Site Selection’s 2008 Top State Business Climate rankings. The state’s business climate ranked fourth among executives and sixth overall. (Site Selection, November 2008)
• Florida continues to rank among the top five states for best tax climates for business, according to a Tax Foundation survey. With no state income tax, low corporate taxes, a low unemployment insurance tax rate and sales tax exemptions for certain business transactions, Florida has remained among the top five U.S. states since the survey’s inception. (The Tax Foundation, October 2008)
• Florida’s economic climate ranks No. 1 in the U.S., according to Forbes’ Best States for Business. Ranking eighth overall, Florida also scored among the top five in the Labor and Growth Prospects categories. (Forbes, August 2008)
© 2009 FLORIDA ASSOCIATION OF REALTORS
Friday, July 3, 2009
Mortgage rates fall slightly
Mortgage Rate Trend Index
Only 8 percent of the experts polled by Bankrate.com this week expect mortgage rates to go up over the next 30 to 45 days. The rest split their opinion down the middle – 46 percent predict a drop while the same number predicts no change.
McLEAN, Va. (AP) – July 2, 2009 – Rates for 30-year home loans inched downward this week, but still remain above record lows posted during the spring, Freddie Mac said Thursday.
The average rate for a 30-year fixed mortgage was 5.32 this week, below last week’s average of 5.42 percent. Last year at this time, the average rate for a 30-year fixed mortgage was 6.35 percent, Freddie Mac said.
Rates on 30-year mortgages fell to a record low of 4.78 percent earlier this year. But then they rose as high as 5.6 percent in June after yields on long-term government debt, which are closely tied to mortgages rates, climbed as investors worried that the huge surplus of government debt hitting the market could trigger inflation.
Since then, the yield on the 10-year Treasury note has fallen back from an 8-month high of 4.01 percent reached in June to 3.51 percent Thursday.
“Lower mortgage rates are helping to support the housing market,” said Frank Nothaft, Freddie Mac’s chief economist.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage fell to 4.77 percent, down from 4.87 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.88 percent, down from 4.99 percent last week. Rates on one-year, adjustable-rate mortgages rose slightly to 4.94 percent from 4.93 percent.
The rates do not include add-on fees known as points. The nationwide fee for the loans in Freddie Mac’s survey averaged 0.7 point except the one-year, adjustable-rate mortgage, which averaged 0.6 point.
Copyright © 2009 The Associated Press. All rights reserved.
Only 8 percent of the experts polled by Bankrate.com this week expect mortgage rates to go up over the next 30 to 45 days. The rest split their opinion down the middle – 46 percent predict a drop while the same number predicts no change.
McLEAN, Va. (AP) – July 2, 2009 – Rates for 30-year home loans inched downward this week, but still remain above record lows posted during the spring, Freddie Mac said Thursday.
The average rate for a 30-year fixed mortgage was 5.32 this week, below last week’s average of 5.42 percent. Last year at this time, the average rate for a 30-year fixed mortgage was 6.35 percent, Freddie Mac said.
Rates on 30-year mortgages fell to a record low of 4.78 percent earlier this year. But then they rose as high as 5.6 percent in June after yields on long-term government debt, which are closely tied to mortgages rates, climbed as investors worried that the huge surplus of government debt hitting the market could trigger inflation.
Since then, the yield on the 10-year Treasury note has fallen back from an 8-month high of 4.01 percent reached in June to 3.51 percent Thursday.
“Lower mortgage rates are helping to support the housing market,” said Frank Nothaft, Freddie Mac’s chief economist.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day.
The average rate on a 15-year fixed-rate mortgage fell to 4.77 percent, down from 4.87 percent last week, according to Freddie Mac.
Rates on five-year, adjustable-rate mortgages averaged 4.88 percent, down from 4.99 percent last week. Rates on one-year, adjustable-rate mortgages rose slightly to 4.94 percent from 4.93 percent.
The rates do not include add-on fees known as points. The nationwide fee for the loans in Freddie Mac’s survey averaged 0.7 point except the one-year, adjustable-rate mortgage, which averaged 0.6 point.
Copyright © 2009 The Associated Press. All rights reserved.
Thursday, July 2, 2009
NAR: Pending home sales up for 4th straight month
WASHINGTON – July 2, 2009 – Pending home sales show a sustained uptrend, rising for four consecutive months, according to the National Association of Realtors®. Very favorable housing affordability and a first-time buyer tax credit have boosted activity.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April. It’s 6.7 percent higher than one year earlier when it was 85.0 in May 2008. The last time there were four consecutive monthly gains was in October 2004.
“Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” says Lawrence Yun, NAR chief economist. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
The Pending Home Sales Index in the Northeast rose 3.1 percent to 80.9 in May and is 6.8 percent above a year ago. In the Midwest, the index slipped 1.3 percent to 89.2 but is 11.4 percent above May 2008. The index in the South declined 1.7 percent to 92.6 in May but is 7.9 percent higher than a year ago. In the West the index rose 2.2 percent to 96.9 and is 0.7 percent above May 2008.
NAR President Charles McMillan says the appraisal issue is complicated. “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he says. “In many cases, appraisers from outside the area are being used; but as everyone knows, real estate is local, and appraisals should be done by an expert with local expertise.”
McMillan says sellers shouldn’t hesitate to speak with an appraiser about their home. “Sellers should feel free to tell an appraiser about improvements and renovations to their home, and how it compares with other homes in the neighborhood.
“Also, if recent sales in the neighborhood were discounted, but not similar to your home in terms of quality or condition, that should be pointed out. It wouldn’t hurt to put all this in writing, especially if an appraiser is not familiar with your area. A Realtor® could offer guidance and information to help you with this process.”
NAR’s Housing Affordability Index remains at historic highs. The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970. “Under these conditions, the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” Yun said.
The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market. “Strong activity by entry-level buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Existing-home sales should trend up through the end of the year, with normal local market differences. “The big question is how much the appraisal issue will impact the ability of contracts to go to closing,” Yun said. “We are currently conducting a study to assess the degree to which new appraisal rules are impacting home sales.”
© 2009 FLORIDA ASSOCIATION OF REALTORS®
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in May, increased 0.1 percent to 90.7 from an upwardly revised reading of 90.6 in April. It’s 6.7 percent higher than one year earlier when it was 85.0 in May 2008. The last time there were four consecutive monthly gains was in October 2004.
“Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed or falling through from the application of new appraisal rules for many transactions,” says Lawrence Yun, NAR chief economist. “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards. Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.”
The Pending Home Sales Index in the Northeast rose 3.1 percent to 80.9 in May and is 6.8 percent above a year ago. In the Midwest, the index slipped 1.3 percent to 89.2 but is 11.4 percent above May 2008. The index in the South declined 1.7 percent to 92.6 in May but is 7.9 percent higher than a year ago. In the West the index rose 2.2 percent to 96.9 and is 0.7 percent above May 2008.
NAR President Charles McMillan says the appraisal issue is complicated. “We see that distressed homes often are selling for 20 percent less than normal homes in the same area, but some appraisals don’t distinguish between traditional homes and distressed property,” he says. “In many cases, appraisers from outside the area are being used; but as everyone knows, real estate is local, and appraisals should be done by an expert with local expertise.”
McMillan says sellers shouldn’t hesitate to speak with an appraiser about their home. “Sellers should feel free to tell an appraiser about improvements and renovations to their home, and how it compares with other homes in the neighborhood.
“Also, if recent sales in the neighborhood were discounted, but not similar to your home in terms of quality or condition, that should be pointed out. It wouldn’t hurt to put all this in writing, especially if an appraiser is not familiar with your area. A Realtor® could offer guidance and information to help you with this process.”
NAR’s Housing Affordability Index remains at historic highs. The affordability index fell to 171.6 in May from an upwardly revised 178.8 in April, which was the highest on record dating back to 1970. “Under these conditions, the typical family would devote only 14.6 percent of gross income to mortgage principal and interest, which is one of the lowest percentages on record,” Yun said.
The HAI is a broad measure of housing affordability using consistent values and assumptions over time, which examines the relationship between home prices, mortgage interest rates and family income.
A median-income family, earning $60,800, could afford a home costing $296,700 in May with a 20 percent downpayment, assuming 25 percent of gross income is devoted to mortgage principal and interest. Affordability conditions for first-time buyers with the same income and small downpayments are roughly 80 percent of what a median-income family can afford. The affordable price was significantly higher than the median existing single-family home price in May, which was $172,900.
The first-time buyer tax credit also is benefiting the market. “Strong activity by entry-level buyers is helping to absorb inventory and allow some existing owners to make a trade,” Yun said.
Existing-home sales should trend up through the end of the year, with normal local market differences. “The big question is how much the appraisal issue will impact the ability of contracts to go to closing,” Yun said. “We are currently conducting a study to assess the degree to which new appraisal rules are impacting home sales.”
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Wednesday, July 1, 2009
Florida’s qualify of life means ‘home sweet home,’ says FAR
ORLANDO, Fla., July 1, 2009 – What does Florida have to offer? Pick up a travel brochure and some benefits are clear: Beautiful beaches. Miles of scenic parks and nature preserves. Oceans, rivers and lakes offering boating, fishing, swimming and other water recreation. A rich and varied history, which includes the city of St. Augustine, the oldest permanent European settlement in the mainland United States. Unique entertainment parks and other family-friendly attractions. Cultural activities that offer residents and visitors fine theater, music, dance and arts events. Then there is Florida’s climate featuring an average annual high of 81 degrees Fahrenheit and an average annual low of 60 degrees, giving the Sunshine State its well-known nickname and reputation.
“Florida is a great place to live and I feel privileged to call it home,” said 2009 Florida Association of Realtors® (FAR) President Cynthia Shelton. “There is so much to see, to experience and to enjoy in Florida, from the distinctive white sugar sand beaches of Destin in the north, to the family fun offered by Orlando’s theme parks and attractions, to the leisurely, laid-back lifestyle in the Keys. Whatever you like to do, you’ll find it here in Florida. We have visitors coming here from around the world to vacation in Florida. But they only get to sample what Florida offers for a brief time; when you’re lucky enough to be a Florida homeowner, there’s no end to the possibilities!”
State officials, Florida Realtors® and business recruiters agree: Florida’s unique quality of life is one of the state’s best assets. Enterprise Florida, a public-private partnership devoted to statewide economic development, notes on its Web site (http://www.eflorida.com) many of the amenities found in the Sunshine State.
• Florida beaches were awarded more top 10 spots than any other state, including the No. 1 beach in the U.S., Caladesi Island State Park, on America’s Best Beaches list for 2008. This internationally recognized ranking by Dr. Stephen P. Leatherman (aka Dr. Beach) is based on 50 criteria including number of sunny days, sand softness, algae and pollution content, safety record, and more. Leatherman is a Ph.D. coastal scientist, professor of environmental studies and director of the Laboratory for Coastal Research at Florida International University in Miami.
• The state’s park system, one of the largest in the U.S., has 160 parks covering more than 700,000 acres and 100 miles of Florida’s beaches.
• Seven of Relocate-America’s Top 100 Places to Live in 2008 were Florida cities, including one, Flagler Beach, which was named to the Top 10. These rankings attest to Florida’s high quality of life, and are based on a combination of economic data and feedback from people who live in each area.
• In many ways, Florida’s cost of living is below that of other states with similar economic growth and in-migration rates. For example, the state’s homeownership rate currently stands at about 70 percent, well above the national average. And, with data from the Florida Association of Realtors showing that $187,800 was the statewide median price for an existing home at year-end 2008, housing prices compare well to other similar states.
• Noted for its outstanding statewide system of trails, Florida was named the Best Trails State in America, winning the biennial National Trails Award in this past November from the national nonprofit organization American Trails.
• Five Florida universities were named to the Best Values in Public Colleges list for 2009 by Kiplinger’s Personal Finance. The schools are University of Florida, ranking No. 2 in the nation; New College of Florida, No. 8; Florida State University, No. 17; University of Central Florida, No. 42; and the University of South Florida, No. 75. Among other criteria, these rankings recognize schools with top academics and affordable costs.
© 2009 FLORIDA ASSOCIATION OF REALTORS
“Florida is a great place to live and I feel privileged to call it home,” said 2009 Florida Association of Realtors® (FAR) President Cynthia Shelton. “There is so much to see, to experience and to enjoy in Florida, from the distinctive white sugar sand beaches of Destin in the north, to the family fun offered by Orlando’s theme parks and attractions, to the leisurely, laid-back lifestyle in the Keys. Whatever you like to do, you’ll find it here in Florida. We have visitors coming here from around the world to vacation in Florida. But they only get to sample what Florida offers for a brief time; when you’re lucky enough to be a Florida homeowner, there’s no end to the possibilities!”
State officials, Florida Realtors® and business recruiters agree: Florida’s unique quality of life is one of the state’s best assets. Enterprise Florida, a public-private partnership devoted to statewide economic development, notes on its Web site (http://www.eflorida.com) many of the amenities found in the Sunshine State.
• Florida beaches were awarded more top 10 spots than any other state, including the No. 1 beach in the U.S., Caladesi Island State Park, on America’s Best Beaches list for 2008. This internationally recognized ranking by Dr. Stephen P. Leatherman (aka Dr. Beach) is based on 50 criteria including number of sunny days, sand softness, algae and pollution content, safety record, and more. Leatherman is a Ph.D. coastal scientist, professor of environmental studies and director of the Laboratory for Coastal Research at Florida International University in Miami.
• The state’s park system, one of the largest in the U.S., has 160 parks covering more than 700,000 acres and 100 miles of Florida’s beaches.
• Seven of Relocate-America’s Top 100 Places to Live in 2008 were Florida cities, including one, Flagler Beach, which was named to the Top 10. These rankings attest to Florida’s high quality of life, and are based on a combination of economic data and feedback from people who live in each area.
• In many ways, Florida’s cost of living is below that of other states with similar economic growth and in-migration rates. For example, the state’s homeownership rate currently stands at about 70 percent, well above the national average. And, with data from the Florida Association of Realtors showing that $187,800 was the statewide median price for an existing home at year-end 2008, housing prices compare well to other similar states.
• Noted for its outstanding statewide system of trails, Florida was named the Best Trails State in America, winning the biennial National Trails Award in this past November from the national nonprofit organization American Trails.
• Five Florida universities were named to the Best Values in Public Colleges list for 2009 by Kiplinger’s Personal Finance. The schools are University of Florida, ranking No. 2 in the nation; New College of Florida, No. 8; Florida State University, No. 17; University of Central Florida, No. 42; and the University of South Florida, No. 75. Among other criteria, these rankings recognize schools with top academics and affordable costs.
© 2009 FLORIDA ASSOCIATION OF REALTORS
Florida’s $8K program effective today but not available yet
TALLAHASSEE, Fla. – July 1, 2009 – Florida created a program to help first-time homebuyers get their federal tax credit early, allowing them to use up to $8,000 toward a downpayment. The effective date for the program is July 1; however, it will probably be another few weeks before the funds are available. As a result, some Realtors struggling to help homebuyers find the system confusing.
While most first-time homebuyers qualify for the tax credit (given by the government as an income tax rebate regardless of tax owed), they once had to buy a home first, submit the info to the IRS through their tax return, and wait for the $8,000 rebate. To help these buyers get the money early enough to use it as a downpayment, the State of Florida created a program of bridge loans, the Florida Homebuyer Opportunity Program (FLHOP), where money can be borrowed from the state and then paid back after the new homeowner receives his tax credit.
Under a different federal program, the Federal Housing Administration (FHA) has done something similar, yet with a significant difference: The federal program applies to FHA loans only, and buyers must still come up with a minimum downpayment of 3.5 percent.
“FAR’s Office of Public Policy has been getting a lot of questions from across the state regarding downpayment assistance for those who qualify for the federal first-time homebuyer tax credit,” says Florida Association of Realtors (FAR) Vice President of Public Policy John Sebree. “Given that there is a state downpayment plan and a federal downpayment plan (and at least one special exemption), it definitely gets confusing, and details have been slow to emerge. Many Florida Realtors say local housing authorities don’t have all the information they need to move forward with the state program, and some Realtors report that bankers are steering clear of the downpayment assistance programs altogether.”
Florida Homebuyer Opportunity Program (FLHOP)
The Florida Legislature created the state program during the recent legislative session, and it’s part of the 2010 budget effective July 1, 2009. Many details remain sketchy, but Sebree reports the following:
• Money for homebuyers may not be available until the first week of August. Lawmakers funded the program through doc stamp taxes applicable in the new fiscal year rather than through a lump sum commitment; and since today is the start of the new fiscal year, the program won’t be fully funded until the state collects new doc stamp taxes.
• Florida’s downpayment loan program can work with FHA loans. Florida Housing Finance Corporation (FHFC) – the state agency that funnels housing money to local housing agencies – received confirmation from FHA that borrowers who access the $8,000 tax credit through a state or local government program may use it to make up the required 3.5 percent downpayment, unlike the FHA downpayment loan program through private lenders.
• Florida’s local housing administrators will oversee the downpayment funds at the local level. (To find the administrator in your area, go to: http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx). For local housing authorities, the program is similar to the SHIP program (State Housing Initiatives Partnership) with one major difference – the income limits. Currently, SHIP uses Area Median Income (AMI) and those are typically lower, and calculated differently, than the federal tax credit limit of $75,000. The $75,000 for a single income tax filer ($150,000 for joint filers) will be used for FLHOP.
• Realtors can start to promote the program to potential homebuyers. It takes time to close on a home, and local housing authorities should be taking applications now.
• FHFC says they’ve trained local administrators on procedures for the Florida downpayment program. Local housing authorities will have flexibility over the $8,000 loan, be able to include penalties, and create a structure dictating how the new homebuyer will pay back the money.
“It’s important to note that this money is a bridge loan to buyers; but once it’s repaid, local governments and housing authorities can keep the money and use it locally for affordable housing projects,” Sebree says. “This is a win/win for them. If the offices seem unwilling to work with Realtors, they probably don’t understand the program themselves yet.”
For specific questions about the $8,000 tax credit, homebuyers should consult a tax professional.
Resources for understanding the tax credit and bridge loans
FAR’s Homebuyer Center: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm
NAR’s The Basics: 2009 First-Time Home Buyer Tax Credit: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit?lid=ronav0019.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
While most first-time homebuyers qualify for the tax credit (given by the government as an income tax rebate regardless of tax owed), they once had to buy a home first, submit the info to the IRS through their tax return, and wait for the $8,000 rebate. To help these buyers get the money early enough to use it as a downpayment, the State of Florida created a program of bridge loans, the Florida Homebuyer Opportunity Program (FLHOP), where money can be borrowed from the state and then paid back after the new homeowner receives his tax credit.
Under a different federal program, the Federal Housing Administration (FHA) has done something similar, yet with a significant difference: The federal program applies to FHA loans only, and buyers must still come up with a minimum downpayment of 3.5 percent.
“FAR’s Office of Public Policy has been getting a lot of questions from across the state regarding downpayment assistance for those who qualify for the federal first-time homebuyer tax credit,” says Florida Association of Realtors (FAR) Vice President of Public Policy John Sebree. “Given that there is a state downpayment plan and a federal downpayment plan (and at least one special exemption), it definitely gets confusing, and details have been slow to emerge. Many Florida Realtors say local housing authorities don’t have all the information they need to move forward with the state program, and some Realtors report that bankers are steering clear of the downpayment assistance programs altogether.”
Florida Homebuyer Opportunity Program (FLHOP)
The Florida Legislature created the state program during the recent legislative session, and it’s part of the 2010 budget effective July 1, 2009. Many details remain sketchy, but Sebree reports the following:
• Money for homebuyers may not be available until the first week of August. Lawmakers funded the program through doc stamp taxes applicable in the new fiscal year rather than through a lump sum commitment; and since today is the start of the new fiscal year, the program won’t be fully funded until the state collects new doc stamp taxes.
• Florida’s downpayment loan program can work with FHA loans. Florida Housing Finance Corporation (FHFC) – the state agency that funnels housing money to local housing agencies – received confirmation from FHA that borrowers who access the $8,000 tax credit through a state or local government program may use it to make up the required 3.5 percent downpayment, unlike the FHA downpayment loan program through private lenders.
• Florida’s local housing administrators will oversee the downpayment funds at the local level. (To find the administrator in your area, go to: http://apps.floridahousing.org/StandAlone/FHFC_ECM/AppPage_SHIPLGContacts.aspx). For local housing authorities, the program is similar to the SHIP program (State Housing Initiatives Partnership) with one major difference – the income limits. Currently, SHIP uses Area Median Income (AMI) and those are typically lower, and calculated differently, than the federal tax credit limit of $75,000. The $75,000 for a single income tax filer ($150,000 for joint filers) will be used for FLHOP.
• Realtors can start to promote the program to potential homebuyers. It takes time to close on a home, and local housing authorities should be taking applications now.
• FHFC says they’ve trained local administrators on procedures for the Florida downpayment program. Local housing authorities will have flexibility over the $8,000 loan, be able to include penalties, and create a structure dictating how the new homebuyer will pay back the money.
“It’s important to note that this money is a bridge loan to buyers; but once it’s repaid, local governments and housing authorities can keep the money and use it locally for affordable housing projects,” Sebree says. “This is a win/win for them. If the offices seem unwilling to work with Realtors, they probably don’t understand the program themselves yet.”
For specific questions about the $8,000 tax credit, homebuyers should consult a tax professional.
Resources for understanding the tax credit and bridge loans
FAR’s Homebuyer Center: http://www.floridarealtors.org/AboutFar/homebuyercenter/index.cfm
NAR’s The Basics: 2009 First-Time Home Buyer Tax Credit: http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit?lid=ronav0019.
© 2009 FLORIDA ASSOCIATION OF REALTORS®
Subscribe to:
Posts (Atom)