HUD 90 Day FHA flip rule waived! Effective Feb 1st!

The FHA commissioner recently explained that the challenges facing many homebuyers using FHA loans has been the lack of housing inventory available to FHA buyers. Waiving the 90 day FHA flip rule for one year will hopefully provide additional inventory for FHA buyers and help the market remain stable. Currently, FHA prohibited insuring a mortgage on a home that was owned by a seller for less than 90 days. This forced investors and developers to hold title for at elast three months prior to re-listing the home they had purchased. As of February 1st, FHA buyers may purchase a home resold by investors/developers who have held title less than 90 days. This will provide additional inventory for FHA buyers. In addition, this will drive invesotrs/developers to purchase and flip more homes during this year of the 90 day flip rule moratorium.

From the HUD website:

" In today's market, FHA research finds that acquiring, rehabilitating, and the reselling of these properties to prospective homeowners often takes less than 90 days. Prohibiting the use of FHA mortgage insurance for a subsequent resale within 90 days of acquisition adversely impacts the willingness of sellers to allow contracts from potential FHA buyers because they must consider holding costs and the risk of vandalism associated with allowing a property to sit vacant over a 90-day period of time."

The time to sell your house is now!

For those of you who may not have read the front page of the newspaper today, you missed the insight that supports Forbes recent claim that the first half of this year is going to be a hot market for buyers and sellers! The percent of home sales in Santa Clara County rose 44% at the end of the year. This is an impressive statistic considering the traditionally slow fourth quarter the Real Estate industry has experienced in previous years. In a recent article released in Forbes, professionals have projected the best time for homewoners to list their home for sale this year is in the first quarter. With the tax credit extension through April and expansion to repeat homebuyers, there is a high demand in the market for homes. In addition, the median home price in Santa Clara County rose 15% since December of last year, which makes a seller's decision to list their home now promising. While this doesn't mean any given home in Santa Clara County has earned a 15% increase in value, it does show a certain benefit, which stems from suplpy and demand, that has helped start the healing process in our market.

Many homeowners are fearful to sell their home now, as they feel the value of their home will greatly increase in 5-8 years as the market recovers. This will most likely be true. However, the other side homeowners must understand is that now is the prime time also for them to buy. Low interest rates, tax credit and prices make this a great time to buy too!

Contact The Rabello Group for a free market analysis of your home. Now could be the perfect time for you to sell your home!

New Tax Credit Details

The tax credit for first time homebuyers had not only officially been extended, but has also expanded to repeat homebuyers. First time homebuyers are subject to $8,000 tax credit when in contract on the purchase of a home by April 30, 2010, closing escrow by June 30, 2010. Repeat homebuyers are subject to a $6,500 tax credit during through the same timeline, if they have lived in their current residence for at least five years. All purchases must be owner occupied, and owners must reside in the property for at least 3 years. In addition, the cap on the purchase price has increased to $8,000 and the income qualifications have increased to $125,000 for single tax filers and $225,000 for joint tax filers.

Buzz for Buyers

With the continuous flow of affordable inventory, buyers are finding great deals in this market. Over the past few months, we are experiencing high competition for buyers. Homes are coming in the market under $500K and selling within the first few days with mupltiple offers.

The tactic in this madness? Be proactive. Buyers who are even thinking of buying within the next 3 to 6 months should be pre-approved and looking now, if they are ready to act sooner. Those who are simply reacting to this market are being left behind. Make sure your agent is keeping an eye on the areas you are looking for daily, and keeping in touch with agents in their office for listings that are coming on the market.

We have a few great listings that are coming on the market! A couple need a little TLC, but are great first time homebuyer or investor purchases. Keep up to date through our blog for more information at the end of the week on these listings.

www.therabellogroup.com

City of San Jose WELCOME HOME Assistance Program

The Welcome Home loan assistance program offers up to $25k for down payment assistance! This new program provides a great opportunity for first-time homebuyers. Many renters are unaware of the opportunity in this market to become a homeowner. The city and county are offering great programs for down payment assitance, and the qualifications are very achievable. Real Estate has remained a promising investment, and the decision to own a home lays the foundation for security and growth for all of us.

The past few days we have focused on reaching out to individuals within our social network who are currently renting, but would like to own a home. Many of them were pleasantly surprised by the options that were available and the accessibility to the resources that they needed to own a home.

If you would like additional details regarding the program feel free to contact us or visit our website www.therabellogroup.com

Stay tuned to our blog for market updates and reliable information about Real Estate.

Now is the time to own a home!