Friday, February 12, 2010

Columbus Housing Market to See Appreciation

Columbus was ranked second in the country in the Best 25 Housing Markets forecast by Housing Predictor which ranks 250 market predictions based on the strongest likelihood of housing inflation. There is optimism about housing markets across the nation as more are forecast to experience appreciation in 2010, but Ohioans should feel especially positive as the ranking lists Cleveland, Columbus, and Cincinnati as the top three housing markets, respectively. As Housing Predictor states on its website, Ohio is "propelled by bargain prices."

Source: Columbus Board of Realtors and Housing Predictor

Tuesday, February 9, 2010

Columbus, Ohio is Number One!

Columbus is a city with a lot to celebrate

Posted December 30, 2009
By Irene Alvarez, Marketing Project Manager
Columbus is #1

It’s that time of the year when we tend to take a look back. When I reflect on what the past year and half has meant to Columbus, I’m reminded that this is a city with much to celebrate.

We’re number one. A lot.

I’m not just saying that, either. There’s proof:

Excitement abounded when COSI was named #1 science center in the country by Parents Magazine .

Shortly after that, Columbus was named #1 sports town in the U.S. by Scarborough Sports Marketing.

We love sports, but we also love books. The Columbus Metropolitan Library was ranked #1 library in the nation by Hennen’s American Public Library Rating (it’s been in the top four every year since 1999).

That was followed by the Columbus Zoo and Aquarium being named #1 zoo in America by USA Travel Guide .

Then, E. Gordon Gee, president of The Ohio State University , was named #1 college president by Time Magazine .

And most recently, Huntington Park was named Ballpark of the Year by Baseballpark Digest (and, the park received the same distinction from BaseballParks.com back in August).

We’re on a roll, Columbus. Who will be honored next?



http://www.experiencecolumbus.com/blog/index.php/2009/12/30/columbus-is-a-city-with-a-lot-to-celebrate/

Wednesday, January 20, 2010

FHA Loans

FHA Loans just became a little more expensive.

In a move to shore up the FHA's beleaguered balance sheet, Commissioner David Stevens on Wednesday announced big changes at the government mortgage insurer that now backs about half of all home loans to the nation's minorities.


The FHA will raise the up-front Mortgage Insurance Premium, paid by borrowers, from 1.75 percent to 2.25 percent as well as request legislative authority to increase the maximum annual MIP that the FHA can charge. This is the second time in two years that it has raised the premium.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens in a written release.

In addition, in order for new borrowers to qualify for the 3.5 percent down payment program, they will now be required to have a minimum FICO score of 580. Borrowers with a lower score will be required to put down at least 10 percent.

In previous interviews with CNBC, Commissioner Stevens said he wanted borrowers to have more "skin in the game," and this is clearly a means to that end. Some mortgage bankers had been concerned about a proposed change that would prohibit borrowers from financing the up-front premium, but that is not included in this announcement.

The FHA will also reduce allowable seller concessions, or how much the seller can help the buyer, from 6 percent to 3 percent. The change will give borrowers a greater financial stake in their home purchases, as well as brings the FHA into conformity with industry standards on seller concessions.

The FHA, which does not lend but only insures home mortgages, has been under increased scrutiny of late, as rising defaults put the agency below its required reserves. The authority went from insuring barely 3 percent of all home loans at the height of the latest housing boom to now backing an estimated 35 to 40 percent of new loans. It has been a significant player in housing's so far weak recovery.


“The changes announced today by the FHA represent an attempt to navigate a prudent course without negatively impacting access to credit or contributing to a further slowing of the housing market in communities of color," said David Berenbaum, Chief Program Officer at the National Community Reinvestment Coalition in a written release.

"While borrowers will bear more of the costs of the government insurance program through higher premium charges, the additional revenue will help ensure that FHA stays solvent."


http://www.cnbc.com/id/34947047


Wednesday, November 18, 2009

Columbus is the Number 10 Most-Livable Bargain Market

2009 MSN Real Estate Most-Livable Bargain Markets
By Melinda Fulmer of MSN Real Estate


In tough economic times, there’s nothing more attractive than a steady paycheck and an affordable mortgage payment. However, finding a place to live that’s both a bargain and enjoyable can be tough.


So MSN Real Estate asked Bert Sperling of Sperling’s Best Places to evaluate the most affordable housing markets from the 100 largest U.S. metro areas and pinpoint 10 of the most livable areas: places where unemployment is low, commute times are mercifully short and there are enough interesting entertainment and cultural amenities to keep most people busy and satisfied. We defined affordability by the ratio of median income to median home price. The result? MSN Real Estate’s most-livable bargain markets list.


“These places have a great quality of life even though they are affordable,” Sperling says. “And they haven’t suffered a free fall in the marketplace like some other places have.”


You won’t find New York, Los Angeles or Miami on this list. Instead, you’ll find a nice collection of cities spanning the country that range in population from the merely midsize — such as Ogden, Utah, at 513,280 — to the mega metroplex of Houston, with its 5.7 million residents. And all of them offer people more home for their money and, hopefully, more money in their pockets.


On the following slides, find out what makes each of these 10 cities great and the drawbacks you might find if you move there from another area: Hint: For many of these places, be prepared to pack a heavy winter coat.

http://realestate.msn.com/slideshow.aspx?cp-documentid=22334217&GT1=35000

Saturday, November 14, 2009

More Details about the First Time Home Buyer Tax Credit Extension and Expansion

First Time Homebuyer Tax Credit Extended Into 2010! Plus...A New Tax Credit for Certain Existing Home Owners!

President Obama has signed a bill that extends the tax credit for first-time homebuyers into the first half of 2010. This program had been scheduled to expire on November 30, 2009.

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What? The program that has existed for First Time Home Buyers remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

*******Deadlines In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase
Price Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions

Here are answers to some commonly asked questions about the tax credit.

What is a tax credit? A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)? An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the First Time Home Buyer tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit? For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property? No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property? Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit? Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.


  • You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

  • You do not use the home as your principal residence.

  • You sell your home before the end of the year.

  • You are a nonresident alien.

  • You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)

  • Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)

  • You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.


Can you buy a home from a step-relative and be eligible for the credit? Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.


Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit? Yes.


Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years? No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

Friday, November 6, 2009

The Extended Home Buyer Tax Credit

Bringing the Dream of Homeownership Within Reach

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.

Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies for the Extended Credit?


First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.


Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.


To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.


Which Properties Are Eligible?


The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.


How Much Is Available?


The maximum allowable credit for first-time home buyers is $8,000.


The maximum allowable credit for current homeowners is $6,500.


How is a Buyer's Credit Amount Determined?


Each home buyer’s tax credit is determined by tow additional factors:


The price of the home.

The buyer's income.

PriceUnder the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer IncomeUnder the Extended Home Buyer Tax Credit, which is effective on November 6, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income—over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?


Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

The Extended Home Buyer Tax Credit: The Basics for REALTORS, Homebuyers, and Home owners from the National Association of REALTORS.

Tuesday, November 3, 2009

Just Sold!

I just sold the condo at 868 Village Brook Way. Welcome to the neighborhood, Mr. Bickel!