Wichita Falls Real Estate Market Trends

FHA Loans May Be Key To Today's Housing Recovery

If you're looking for a mortgage, consider the advantages of a Federal Housing Administration loan. In 2006, FHA loans accounted for just 3% of total dollar volume in home loans whereas today they comprise 20% of that volume. In fact, FHA loans are easier to find than ever given the 500% increase in authorized FHA lenders since 2007.

FHA loans are attractive for a number of reasons:

  • Lower interest rates. FHA loan rates recently have often been lower than rates for conventional loans, and the rates do not vary according to the borrower's credit score.
  • Lower credit-score requirements. As of this writing, FHA's minimum required credit score was set at 620 (though exceptions are sometimes made for borrowers with still lower scores). Applicants do not necessarily have to have a long credit history nor a perfect one -- one or two late payment incidents may be acceptable.
  • Small down payments. FHA's minimum down payment requirement is 3.5%.
  • Inexpensive refinancing. If interest rates drop, FHA loan holders can usually refinance to another FHA loan easily and at lower costs than with conventional loans.
  • Loan modifications more accessible. The FHA has a solid track record of working with borrowers who fall behind on their payments, providing loan mitigation plans to help them stay in their homes.
  • No income restrictions. Though traditionally geared to low- and middle-income home buyers, higher-income borrowers can also qualify.
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Be aware there are certain limits and costs associated with FHA loans:

  • Loan limits. The size of FHA loans written in 2009 for single-family homes is limited to the greater of 125% of the 2008 local area median home price or $271,050, except in designated high-cost areas where the maximum loan size is capped at $729,750. (Give us a call to find out what the FHA loan limit is for the area where you intend to purchase a home.)
  • Mortgage Insurance Premium (MIP). Depending on the type of FHA loan (purchase loan, standard refinancing or streamlined refinancing), FHA charges an "upfront" MIP of 1.5% to 1.75%, which can be paid in cash at closing/settlement or financed in with the loan amount. In addition, borrowers pay a monthly .50% to .55% MIP (about half a percent) with their mortgage payment.
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Be sure to compare the costs of an FHA loan with those of other loan programs available to you.

Sizzling!

Contact us for a "Hot List" of properties that match what you're looking for -- Short Sales, Bank-Owned Foreclosures, Under-Valued Properties, Investor Rentals, Starter Homes, Move-Up Bargains. We'll talk with you to refine your local search criteria and show you the best choices available in your price range. There's no obligation for our "Hot List" service.

The Count-Down is on for The First-Time Home Buyer $8,000 Tax Credit

By now you have most likely hear about the First Time Home Buyer Tax Credit that is available till November 30, 2009.

What a great opportunity to invest in your future and build financial security for you and your family. And, it is a buyer’s market out there right now and the ability for individuals to use the tax credit at closing should have a meaningful impact on home sales and will allow thousands of families to achieve the dream of homeownership.”

The process in purchasing a home is involved and you need to ensure that everything goes smoothly so your closing will take place before the November 30, 2009 deadline.

You need to allow four to six weeks for the loan process, which means your offer should be accepted by mid October and no later than Oct 31.

Don’t let this amazing opportunity pass you by. Call me so we can discuss your options and receive your free mortgage pre-approval. We can start looking today and just think you could be a home owner by Nov. 30, 2009 – Just in time for the holidays.

I would be happy to assist anyone you know that would like to become a first time homeowner as well.

Visit my website www.TexomaHomeSource.com for more information on the 2009 Tax Credit.

Start receiving homes that meet your specific criteria through my exclusive email home search program.  www.TheFallsHomeFinder.com

Looking for bank owned properties?  Visit my www.TexasBankedOwned.com to receive FREE email alerts of new bank owned properties in the Wichita Falls area.

As a first-time home buyer you can take advantage of the 2009 Tax Credit.  Visit 2009 Tax Credit for more information.  Do let time slip by.

 

 


  

Stay Informed Through The Real Estate Podcast offered by Ashton

 

Join Ashton each week as he gives you the latest update on today's real estate information for the Wichita Falls area through his podcast.

www.TexomaHomeSource.com

 

Now You Can Make Bigger Non-Taxable Gifts

First-time home buyers often have difficulty gathering enough cash for down payment and closing costs. As a parent, relative or close friend, you may be able to help by providing a tax-free gift.


For 2009, you are allowed to give up to $13,000 in cash or valuables (the limit was $12,000 in 2008) to any other individual with no tax consequences to you, the donor. (Recipients do not pay taxes on gifts they receive, no matter how large.) Your spouse could a

 

lso give up to $13,000 to the same person. In addition, each of you could give as much as $13,000 to the recipient's spouse. In other words, you and your spouse could give your child and his or her spouse up to $52,000 this year with no tax consequences. That could go a long way toward helping a young couple purchase a home.

If you decide to go this route, bear in mind that the recipient's lender will want you to provide a gift letter including:

  • Names of donor and recipient and relationship
  • Amount of gift
  • Source of funds (bank account, etc.)
  • Reason for gift, including address of property being purchased
  • Statement specifying there is no expectation of repayment

Of course, you could give more than $13,000 per recipient, but doing so would have an impact on your lifetime gift-tax exemption (currently $1 million). Although gifts more than the annual limit are called "taxable gifts," you wouldn't actually owe taxes on such gifts unless you exceed your $1 million lifetime limit. Generally, gifts in amounts above the annual limit must be reported on IRS Form 709.

Also note that taxable gifts -- again, those over the annual limit -- made during your lifetime will reduce the amount of your estate excluded from estate-tax liability. For all the details, be sure to consult a knowledgeable tax professional or financial advisor.


 

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Photo of Ashton Gustafson Wichita Falls, Real Estate, Homes For Sale
Ashton Gustafson
The Bishop Realtor Group
1916 N. Elmwood Ave.
Wichita Falls TX 76308
Office: 940-691-7355
Fax: 940-691-7363
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