Real Estate Pepperell MA and Surrounding Communities

On February 11, 2011, the Obama Administration released housing finance market guidelines for economic market recovery. The report emphasizes bringing private capital back into the market and winding down Fannie Mae and Freddie Mac's investment portfolio.  Allowing the private sector to take back a portion of the market share will dilute the "risk aversion" factor and reduce government risk. "This is a plan for fundamental reform to wind down the GSEs, strengthen consumer protection, and preserve access to affordable housing for people who need it," said Treasury Secretary Tim Geithner. "We are going to start the process of reform now, but we are going to do it responsibly and carefully so that we support the recovery and the process of repair of the housing market."   

Protecting consumers during this period of finance reformation is critical for full economic recovery to be possible. The plan includes stronger consumer protection, increased transparency for investors and improved underwriting standards.  National Association of Realtors (NAR) President, Ron Phipps states, "NAR believes that we cannot have a restoration of the former secondary mortgage market with entities that took private profits while pushing losses onto the taxpayer. The new system must involve some government presence, outside of FHA, USDA, and the Department of Veterans Affairs, to ensure a continued flow of capital to housing markets during economic downturns when large lenders flee the housing market."  He goes on to say, "We believe there must be a certain level of government participation to provide middle-class families access to affordable mortgages at all times and in all markets."  Strengthened anti-predatory lending protections, improved underwriting standards, as well as stricter mortgage disclosure requirements are part of the Adminstration's plan.  The goal is to provide consumers with the best knowledge possible so that they are making sound decisions regarding mortgages.

In addition, the Administration hopes to reform and restructure the role of the Federal Housing Administration (FHA) with measures to support rental housing by offering lending options to the multi family market and programs for smaller properties. "This report provides a strong plan to fix the fundamental flaws in the mortgage market and better target the government's support for affordable homeownership and rental housing," said Housing and Urban Development Secretary, Shaun Donovan.  "We must continue to take the necessary steps to ensure that Americans have access to quality housing they can afford.  This involves rebalancing our housing priorities to support a range of affordable options, from promoting much-needed financing for quality, affordable rental homes to ensuring the availability of safe, and sustainable mortgage products for current and future homeowners." 

Long term reform issues include determining the best course of action and careful analysis of the government's future role in the housing market.  Let's hope, that going forward, the proposed finance market guidelines result in economic recovery and affordable mortgage loan options.

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Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buyingor home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

If you'd like to search for property currently on the market, click on the link below.  You'll have access to every property currently listed in Massachusetts as well as New Hampshire.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

 CLICK HERE to subscribe to my blog for more real estate information. 

According to an article I read by Ken Harney with Inman News, Wells Fargo and Quicken Loans, two of the largest FHA-approved lenders, have revised their lending standards.  Purchasers with 3.5% down and a credit score of 580 can now qualify for a FHA loan. Previously, Wells Fargo and Quicken Loans had "overlay" requirements on FICO Scores which were more stringent than FHA requirements.  The revised guidelines are now similar to typical FHA loan guidelines.

This is good news for purchasers with credit scores that suffered due to current economic conditions and opens the door to qualifying for a home purchase. 

If you'd like to learn more about FHA Loans, take a moment and read: "FHA Loans: Gaining Popularity", or contact a mortgage lender to see if you qualify.

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Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buyingor home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

If you'd like to search for property currently on the market, click on the link below.  You'll have access to every property currently listed in Massachusetts as well as New Hampshire.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

 CLICK HERE to subscribe to my blog for more real estate information. 

Home Buyer Tax Credit - Possible Pitfalls

Recently, I read some articles pertaining to homeowners who took advantage of the Home Buyer Tax Credit and then sold that home within a short amount of time. The common thread was that the homeowner seemed unaware that selling the property, within three years from initial purchase, could result in a significant unexpected tax bill. As real estate professionals, we need to be aware of potential future consequences relative to the Home Buyer Tax Credit so that we can advise our clients to seek professional guidance should the situation call for it.

I believe that during the next three years, we need to ask the following question when meeting with homeowner's who are thinking of selling their home.  "Did you take advantage of the Home Buyer Tax Credit when you purchased this home?"  Keep in mind, real estate agents do not offer legal or tax advice but we should try to determine if there are any potential issues that could arise if the property is sold.

Sale or Use Change - How many homeowner's are aware that if they sell the home, convert it for business purposes or rent it, the home is no longer considered the purchaser's "principal residence".  It's important to know that if the property is sold within three years from initial purchase date, or no longer qualifies as a "principal residence", the homeowner may be required to repay the entire amount of the tax credit.

Destroyed, Condemned or Foreclosed - This also applies to property that was destroyed, condemned or the lender foreclosed on the residence.  In this case, the purchaser may have to repay the entire amount of the credit if the purchaser does not acquire a new home within two years. 

Sale to Unrelated Third Party - If the purchaser sells the home to an unrelated third party, the credit repayment is limited to the amount of gain on the sale. This provision was put in place to prevent purchaser's that received the tax credit from selling the property immediately. While this provision provides some benefits, it also affects those who may need to move for legitimate reasons such as a job transfer or simply a change in circumstances such as death or divorce.

The above information is deemed accurate but is not guaranteed.  Refer to the IRS website (www.irs.gov) for complete details regarding the Home Buyer Tax Credit (Form 5405). I encourage everyone who has purchased a property and received a Home Buyer Tax Credit, to consult a professional prior to selling or converting your property in the next few years.

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Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buying or home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

If you'd like to search for property currently on the market, click on the link below.  You'll have access to every property currently listed in Massachusetts as well as New Hampshire.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

 CLICK HERE to subscribe to my blog for more real estate information. 

FHA Loans: Gaining Popularity

Working as a real estate broker with Integrity Residential Brokerage, I've noticed a significant increase in buyers utilizing FHA loans.  FHA Loans are mortgages issued by lenders and insured by the Federal Housing Administration (FHA). This federal government insurance gives lenders some assurance that they will be repaid if the borrower defaults. 

Even with the popularity of FHA loans, many buyers do not understand the potential benefits of these loans. Below, are some frequently asked questions about FHA Loans.

Are FHA Loans Only For Low Income Borrowers?  The good news is FHA loans are available to everyone. There are no income restrictions. Similar to most mortgage options, borrowers will need to supply proper documentation for income and assets which assures the lender that the borrower will be able to afford the home.

Are FHA Loans Only For First Time Buyers?  You could be a first time buyer or buying your 10th home, anyone who would like to apply for a FHA loan is able to do so. 

Aren't FHA Loans Just For Small Loans?  Recently, the government raised the maximum loan amount from its original cap of $362,790 to $793,750 in hopes that it will help stabilize the housing market. The amount a buyer can borrow might vary county to county, so check with a qualified lender in your area.  

Are FHA Loans More Affordable Than Conventional Loans?  While interest rates are comparable to other loan options, one of the greatest benefits of a FHA loan is that the downpayment could be as low as 3.5%. 

Are FHA Loans Assumable? Yes!  FHA loans are assumable. While the initial attraction of a FHA Loan might be the low downpayment, the potential to transfer the loan and it's terms (interest rate) to a buyer might make the property more desirable and possibly increase the value, especially if interest rates rise.

If you're considering a home purchase, speak with your lender about the possible benefits of a FHA Loan!

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Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buying or home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

If you'd like to search for property currently on the market, click on the link below.  You'll have access to every property currently listed in Massachusetts as well as New Hampshire.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

 CLICK HERE to subscribe to my blog for more real estate information. 

Loan Modification and Short Sale Tips

Are you a homeowner seeking to lower your monthly mortgage payment through a loan modification application? Perhaps you're attempting to process a short sale application.  The application process can be challenging and lengthy.  Oftentimes, paperwork gets lost, your file gets transferred to a new processor, or additional information is needed.  Above all, diligent follow-up and patience is needed.

Below are some tips you might find helpful. 

Contact Your Mortgage Company - Every lender is different so contact them to find out exactly what documentation they require from you. Make sure you send them everything they requested. Typically, they will want the following.

Hardship Letter - In order to process a loan modification or short sale application, you must include a hardship letter that explains the reason for your request. Provide details as to when an income loss occurred and any other mitigating circumstances that create the hardship. 

Income Verification - This is a critical component of your application. Typically, the mortgage company will want copies of your most recent pay stubs, as well as any other income source such as your spouse's income or rent received from a tenant.  

Bank Statements. The lender is going to want to review your most recent bank statements in order to verify your income and expenses.  Did you receive any gift money to help make ends meet?  If so, make sure to include a detailed explanation of the income source.

Send Your Documents to the Mortgage Company - Typically, the mortgage lender will supply you with a fax number as a preferred way to send your documents to the company.  Unfortunately, fax's often get lost, separated or sometimes take 10 days to download into their database. As a backup, I suggest you mail your documents to the mortgage company as well.  Label Each Page With Your Name and Loan Number. All correspondence sent to the mortgage company should include your full name, address, and loan number on each page.

Call Frequently - Follow up, at the very least, on a weekly basis.  Mortgage Companies are inundated with application requests for loan modifications and short sales. The person handling your file may leave the company or your file may get transferred to a new processor.  Sometimes, your file is not being processed further up the chain because additional, or updated, paperwork is needed. Do not wait for them to call you. With the astronomical number of files being processed you must be proactive!

If you are in a position where you need to sell your current home and it's likely to be a short sale, picking a Realtor with short sale experience is critical to getting the short sale approved.  So far, I'm glad to report that all of the short sales I've assisted with have been approved!

I hope you find these tips helpful. Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buying or home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

If you'd like to search for property currently on the market, click on the link below.  You'll have access to every property currently listed in Massachusetts as well as New Hampshire.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

 CLICK HERE to subscribe to my blog for more real estate information. 

Is Market Recovery Possible? The Elimination of the Mortgage Interest Deduction 

Lately, I've read a few articles about the possibility of reducing or eliminating the mortgage interest deduction.  What next? I'm thinking... How can the nation ever expect to recover?

The tax credit stimulus was a nice short-term success but since then, sales of existing homes have decreased and new home sales are at the lowest level they've been in about 50 years. On the upside, the tax credit stimulus helped move foreclosed property, improve bank balance sheets and increase buyer confidence about purchasing a home. Also, of great importance was that Congress passed legislation on June 30, 2010 to extend the closing deadline to September 30, 2010. If this extension hadn't occurred, approximately 180,000 homes that were under contract potentially wouldn't close.

Job growth is a vital component towards long-term market recovery. While job growth has improved, it has not come close to replacing the approximate 8 million job cuts in the past two years. News articles state that it's anticipated that 1 million jobs will be added for the balance of the year and another 1.5 - 2.2 million jobs in 2011.  Let's hope so!

Two positive things to note - interest rates are currently very favorable with a typical 30-year fixed rate of about 4.8%.  The second item is that the ability to acquire flood insurance dramatically improved when the federal government stepped in and became involved in the program.

Now, there's talk of reducing or eliminating the mortgage interest deduction which has been a part of the US tax code for almost a century.  As it is, we are already massively burdened with taxation and to potentially lose our mortgage interest deduction is beyond comprehension.  How will this further impact a person's decision to rent vs. buy?  The benefit of the mortgage interest deduction is a vital component of home ownership. If you're not concerned about this potential change in tax code because you paid cash for your house or have paid off your mortgage - think again!  It's anticipated that should the mortgage interest deduction be eliminated, home values would fall about 15%. 

In what way does eliminating the mortgage interest deduction help us in obtaining a sustainable long-term market recovery?

Be vigilant folks!

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Integrity Residential Brokerage, licensed in both Massachusetts and New Hampshire, would be happy to assist you in your home buying or home selling needs. If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

If you'd like to search for property currently on the market, click on the link below.  You'll have access to every property currently listed in Massachusetts as well as New Hampshire.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

 CLICK HERE to subscribe to my blog for more real estate information. 

Information deemed reliable but not guaranteed.

                 Tax Preparation in Dunstable, MA

It's that time of year again! We either love it (yes - refund!) or hate it (ugh - payment). If you're a business owner like myself, your tax return might be rather complicated and you'll want to utilize the services of a good accountant.  Perhaps you took advantage of the Federal Homebuyer Tax Incentive Program and you're not sure what form to file.  If that's the case, consider contacting  Davidson & Davidson, LLP located in Dunstable, MA. 

Licensed in both Massachusetts and New Hampshire, Davidson and Davidson has over 35 years of combined accounting, tax and business consulting experience with an emphasis on professionalism, responsiveness and quality. Carrie has a Masters in Taxation (MST) and Jennifer has a Masters in Financial Planning (MSFP).  Jennifer is also a Certified Financial Planner®  practitioner (CFP). 

What I like most about Davidson & Davidson, LLP is their genuine care and dedication to providing their clients with insightful advice in order to help them make informed decisions. Their approach is hands on and personal. Expect to enjoy your interactions with these folks.  They're prompt, smart, funny, and have diverse talents and abilities. Their focus is on providing businesses and individuals with the best service possible and I, for one, feel they do just that.

If you need the services of a good certified public accountant and/or financial planning assistance, Davidson & Davidson, LLP is a firm to check out.

If you, or anyone you know, is considering buying or selling a property, Integrity Residential Brokerage located in Pepperell, MA, would love to hear from you!  We strive to offer you the highest level of professional assistance possible making your desires and goals a reality.

SEARCH 1000'S OF HOMES FOR SALE IN MA & NH FOR FREE!

On February 24, 2010, Federal Reserve Chairman Ben Bernanke told lawmakers, "The Feds need to keep interest rates low to aid the economy for an extended period."  He also stated that the economy continues to improve with no indications of a double-dip recession.

While there are reports that consumer spending is up, demand isn't expected to take off until the job market improves, which is still weak.  There is a concern that a growing number of people have remained unemployed for long periods. 

Bernanke states that the central bank will keep its main interest rate near zero to ensure that the delicate economic recovery stays on track.  

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