Archive for the '2009 Stimulus' Category
Neighborhood Stabilization
February 16th, 2009 Categories: 2009 Stimulus, Real Estate News
How Does the Neighborhood Stabilization
Work For Salt Lake County Foreclosures
Neighborhood Stabilization -the bill provides $2,000,000,000 in additional funding for the Neighborhood Stabilization Program (NSP). The NSP was created to provide grants to states and localities to address the problems that can be created when whole neighborhoods are decimated by foreclosures.
The funds can be used to purchase, manage, repair and resell foreclosed and abandoned properties. In addition, the funds can also be used by states and localities to establish financing methods for the purchase and redevelopment of foreclosed properties.
After purchase the homes must be used to assist individuals and families with incomes at or below 120% of area median income. Twenty-five percent of funds must be used for households with incomes at or below 50% of area median income.
I don’t think the above formula will solve anything, the projects that have been abandoned in Salt Lake County are a higher price range as I would suspect in most places. To take a vacant project of McMansions and then try to move people in that are at or just above the median income doesn’t make sense. The median income for Salt Lake County is $65,000, times that by 120% = $78,000 if you were to multiply $78,000 by 3.5 you would get a mortgage affordability of $273,000.
Again we don’t have too many of these projects here in Salt Lake, however there are areas that have many vacant projects.
By leveraging their expertise in partnership with others from both the public and private sector, Realtors® in many communities have been making important contributions to their local communities’ neighborhood stabilization programs.
If you have any questions feel free to contact me 801-694-4762 or Rob@Aubrey.net
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Stimulus Going Green
February 15th, 2009 Categories: 2009 Stimulus, Real Estate News
Stimulus Going Green
To promote green jobs and energy independence, The American Recovery and Reinvestment Act is investing significantly to make homes and buildings more energy efficient. The bill provides state and local governments with $6 billion in energy efficiency and conservation grants for energy audits, retrofits and financial incentives.
Through 2010, homeowners will be able to claim a 30% tax credit (up from 10%) for purchases of new furnaces, windows and insulation. That is a big one, if you were going to replace windows and your cost would be $8,000, you would save $2,400 on your income tax. You would also have to think that window installers and manufacturers are pretty competitive on the bids. These are opportunity times.
Another $5 billion will be available to modernize the nation’s electricity grid and install smart meters on homes that help to save consumers money.
There is also $5 billion for weatherization assistance for low income households and $2 billion for federally assisted housing {section 8}) efficiency efforts.
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Zero Down Programs For Salt Lake Home Buyers
February 15th, 2009 Categories: 2009 Stimulus, Real Estate News
Zero Down Programs For Salt Lake Home Buyers
Hint there are qualified areas within about 25-30 minutes of downtown Salt Lake.
Rural Housing
The bill will give an additional ½ Billion dollars to the rural housing programs, the programs consist of guaranteed and direct lending. The additional money will be divided with $270 Million to direct lending and $230 to the guaranteed lending.
The guaranteed program is a loan guarantee through RHS and means that, should the individual borrower default on the loan, RHS will pay the private financier for the loan. The program is available for the purchase and repair of existing and newly constructed dwelling.
Under the Direct Loan program, individuals or families receive direct financial assistance directly from the Rural Housing Service in the form of a home loan at an affordable interest rate. These loans may be made to eligible applicants to buy, build, repair, renovate, or relocate homes, to provide related facilities, or to refinance home debts under certain conditions.
There is no required down payment, but families must be able to afford the mortgage payments, including taxes and insurance. In addition, applicants must be without adequate housing and be unable to obtain credit elsewhere, yet have acceptable credit histories.
These programs come with more restrictions than a cheap airfare. Both Loan Officers and RELATORS that got in the business during the boom are probably not the best solution, so call me if you are interested in finding out more. 801-694-4762
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Stimulus To Set New Loan Limits For Salt Lake
February 15th, 2009 Categories: 2009 Stimulus, Real Estate News
New Loan Limits For Salt Lake Home Buyers
The bill will keep last year’s 2008 limits that expired on December 31st.
These limits were equal to the greater of 125% of the 2008 local area median home price or $271,050 for FHA and $417,000 for Fannie and Freddie, with an overall maximum cap of $729,750.
Also the bill includes language providing the HUD Secretary with the ability to increase the loan limit for any “sub-area”, i.e.an area smaller than a county.
The Secretary’s discretion is again limited by the $729,750 cap. These 2009 limits will expire December 31, 2009.
Below is a chart showing the 29 Utah Counties loan limits, with Salt Lake and Tooele being the highest. Tooele you ask? The smaller counties that are not given an MSA (metro service area) by the Dept of HUD are attached to another county.
If you have any questions on how to use this credit for your Down Payment Call Me at 801-694-4762.
Search For Your New Salt Lake Home, where you can search all listed properties, create a FREE account, save your search criteria, save your favorites, get email alerts when new properties come online all for FREE.
If you would like to get a FREE market analysis for your Salt Lake Metro Area Home simple complete the form.
Also over on the right sidebar there are links to preview the state approved form that REALTORS use to write offers with.
|
County |
FHA |
Fannie/Freddie |
| BEAVER |
$271,050 |
$417,000 |
| BOX ELDER |
$271,050 |
$417,000 |
| CACHE |
$271,050 |
$417,000 |
| CARBON |
$271,050 |
$417,000 |
| DAGGETT |
$292,500 |
$417,000 |
| DAVIS |
$397,500 |
$417,000 |
| DUCHESNE |
$271,050 |
$417,000 |
| EMERY |
$271,050 |
$417,000 |
| GARFIELD |
$271,050 |
$417,000 |
| GRAND |
$271,050 |
$417,000 |
| IRON |
$271,050 |
$417,000 |
| JUAB |
$323,750 |
$417,000 |
| KANE |
$383,750 |
$417,000 |
| MILLARD |
$271,050 |
$417,000 |
| MORGAN |
$397,500 |
$417,000 |
| PIUTE |
$271,050 |
$417,000 |
| RICH |
$286,250 |
$417,000 |
| SALT LAKE |
$729,750 |
$729,750 |
| SAN JUAN |
$271,050 |
$417,000 |
| SANPETE |
$271,050 |
$417,000 |
| SEVIER |
$271,050 |
$417,000 |
| SUMMIT |
$729,750 |
$729,750 |
| TOOELE |
$729,750 |
$729,750 |
| UINTAH |
$271,050 |
$417,000 |
| UTAH |
$323,750 |
$417,000 |
| WASATCH |
$431,250 |
$431,250 |
| WASHINGTON |
$372,500 |
$417,000 |
| WAYNE |
$271,050 |
$417,000 |
| WEBER |
$397,500 |
$417,000 |
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The New First Time Home Buyer Tax Credit For Salt Lake
February 15th, 2009 Categories: 2009 Stimulus, Real Estate News
Salt Lake First Time Home Buyers
Below is a chart for Salt Lake First Time Home Buyers to compare the new First-Time Homebuyer Tax Credit as modified in the American Recovery and reinvestment Act.
If you have any questions on how to use this credit for your Down Payment Call Me at 801-694-4762.
To start looking for your new Salt Lake Home go to www.MoreUtahListings.com where you can search all listed properties, create a FREE account, save your search criteria, save your favorites, get email alerts when new properties come online all for FREE.
Also over on the right sidebar there are links to preview the state approved form that REALTORS use to write offers with.
FIRST-TIME HOMEBUYER TAX CREDIT
As Modified in the American Recovery and Reinvestment Act
Major Modifications Italicized
February 2009
| FEATURE | CREDIT AS CREATED JULY 2008 APPLIES TO ALL QUALIFIED PURCHASES ON OR AFTER APRIL 9, 2008 | REVISED CREDIT – EFFECTIVE FOR PURCHASES ON OR AFTER JANUARY 1, 2009 AND BEFORE DECEMBER 1, 2009 |
| Amount of Credit | Lesser of 10 percent of cost of home or $7500 | Maximum credit amount increased to $8000 |
| Eligible Property | Any single family residence (including condos, co-ops, townhouses) that will be used as a principal residence. | No changeAll principal residences eligible. |
| Refundable | Yes. Reduces (or can eliminate) income tax liability for the year of purchase. Any unused amount of tax credit refunded to purchaser. | No changePurchasers will continue to receive refund for unused amount when tax return is filed. |
| Income Limit | Yes. Full amount of credit available for individuals with adjusted gross income of no more than $75,000 ($150,000 on a joint return). Phases out above those caps ($95,000 and $170,000). | No changeSame income limits continue to apply. |
| First-time Homebuyer Only | Yes. Purchaser (and purchaser’s spouse) may not have owned a principal residence in 3 years previous to purchase. | No changeStill available for first-time purchasers only. Three-year rule continues to apply. |
| Revenue Bond Financing | No credit allowed if home financed with state/local bond funding. | Purchasers who utilize revenue bond financing can use credit. |
| Repayment | Yes. Portion (6.67% of credit or $500) to be repaid each year for 15 years, starting with 2010 tax filing. | No repayment for purchases on or after January 1, 2009 and before December 1, 2009 |
| Recapture | If home sold before 15-year repayment period ends, then outstanding balance of repayment amount recaptured on sale. | If home is sold within three years of purchase, entire amount of credit is recaptured on sale. Applies only to homes purchased in 2009. |
| Termination | July 1, 2009(But note program changes for 2009) | December 1, 2009 |
| Effective Date | Purchases on or after April 9, 2008 and before January 1, 2009. Repayment to begin for 2010 tax year. | All revisions are effective as of January 1, 2009 |
H.R. 1, the “American Recovery and Reinvestment Act of 2009,” passed the House on February 13, 2009, by a vote of 246 – 184. The Senate also passed the bill later that day. The President is expected to sign the bill soon. The bill is a $780 billion package, with roughly 35% of the package devoted to tax cuts (mostly for 2009) and the rest to spending intended to occur in 2009 and 2010.
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