THE GOVERNMENT WILL STILL HELP YOU BUY A HOME!

Think the end of the tax credit means the end of government support for first-time homebuyers?  Think again!  The government has supported first-time buyers for decades.  With interest rates at historic lows and lots of Sellers competing for your attention, this is the perfect time to look into ways the government can help you get into your first home.  A home is not only a great long-term investment, it also represents security for your family and a great tax deduction as well.  It also can be available for a government subsidy.

The Mortgage Subsidy Bond Tax Act of 1980 allows state and local housing finance agencies to issue tax-exempt Mortgage Revenue Bonds (MRBs) in order to finance mortgage loans.  MRB proceeds are used to purchase or originate mortgage loans at below market rates!  The interest-rate savings of these mortgages will vary, but a 1% reduction on the interest rate could lower the payment on a $200,000.00 home by approximately $120.00 per month!

Qualification standards for mortgages financed through these bonds vary from program to program.  The following represent typical requirements to be eligible for this type of financing:

            Your household income cannot exceed 115% of area median family income.

            The price of the home purchased with an MRB-financed mortgage may not be greater

            than 90% of the average price of homes in that area.

            You must not have owned a home in the previous three years.

            The purchase must be of a primary residence.

If this sounds like you, it is time to get in the game!  The rates we have today will not be available forever.  Once gone, we may never see such low rates again.  If this type of loan is not the right fit for you, there are other very advantageous programs that will help you get into a home.  Get in touch with me and we’ll get you in touch with a mortgage that will get you in a home!  

GIVE YOURSELF AND YOUR HOME A CHRISTMAS PRESENT!

The countdown to Christmas is on (and I won’t add to your stress by mentioning how many shopping days are left before December 25^th!).

While you are busily making holiday preparations, I will remind you there is another countdown underway.  Homeowners have until the end of 2010 to complete certain energy-related improvements to their homes to be able to cash in on the tax credits available for doing this type of work.  Be sure to check with your CPA for particulars about what is included in this program, and what is not.

Here are a few details you should understand if you want to give yourself and your house a holiday bonus:

A tax credit is available in the amount of 30% of the cost of qualifying improvements up to a maximum credit of $1,500.00.  If you replace windows for example, and the cost is $5,000.00, you will have reached the maximum credit of $1,500.00 ($5,000.00 x 30% = $1,500.00).  You can spend more on your improvement projects, of course, but the tax credit is maxed out at $1,500.00.  If you have already done work on your home this year, pull your receipts and see if you qualify!  Examples include heating, ventilating, and air conditioning, insulation, roofs (metal and asphalt), water heaters (non-solar), windows and doors, etc.  You can use multiple jobs to reach the maximum, but the maximum credit is $1,500.00 no matter how many projects you complete.  This program applies to your primary residence only.

If you are planning to do this type of work anyway, you would be wise to finish the work this year and let the government “pay” for part of the job.  Good luck, and if you need the name of an excellent contractor for any of the work listed above or beyond, let me know.  I work with the best!

NATIONAL REAL ESTATE SALES REPORT

The following is a brief excerpt from a press conference with Lawerence Yun, Chief Economist for the National Association of Realtors.  Check back for sales activity reports specific to Montgomery and Bucks Counties.

Sales Decline Following Two Monthly Gains Existing-home sales retreated in October on the heels of two strong monthly gains, according to the National Association of Realtors.   Existing-home sales declined 2.2 percent to a seasonally adjusted annual rate of 4.43 million in October from 4.53 million in September, and are 25.9 percent below the 5.98 million-unit level in October 2009, when sales were surging prior to the initial deadline for the first-time buyer tax credit. "The housing market is experiencing an uneven recovery, and a temporary foreclosure stoppage in some states is likely to have held back a number of completed sales," says NAR Chief Economist Lawrence Yun. "Still, sales activity is clearly off the bottom and is attempting to settle into normal sustainable levels.”

Thanksgiving musings…

Thanksgiving is not quite over, but there are thousands already shopping in the pre-Black Friday hours.  It is my hope that the day that preceded Black Friday was a happy and blessed one for you.  For the first 50 years of my life, Thanksgiving meant gathering with my family and relatives at Uncle Albert and Aunt Myrtle’s house in Leesport, PA.  This was for me, the tradition I enjoyed above all others.  It became the Thanksgiving tradition for my children as well.  Life is, of course, finite, and traditions are subject to the frailties of the humans who live them.  Sadly, my Uncle Albert died on New Year’s Eve a few years ago.  My sister and brother-in-law now host smaller Thanksgiving gatherings at their home in Cape May Court House, NJ.  A new tradition is underway.

As the grandchildren gathered around my father for the annual Thanksgiving picture, I was thankful for my father being able to be there, knowing that there are no guaranties as to how many more of those pictures with Grandpop will be possible.  My family’s traditions, of necessity, will continue to evolve, as will yours.  Knowing that, we are well-advised to be fully present during Thanksgiving and other family events taking complete advantage of the time we have together.  Of course, we need to be open to changes in traditions that will inevitably come.  Wishing you the blessings of familiar family traditions, as well as new customs yet to be experienced.  Happy Thanksgiving…     

Franconia Township tables proposed use and occupancy ordinance

Franconia Township Commissioners have tabled a proposed Use and Occupancy inspection program after receiving many questions and comments about the enabling ordinance from residents and the Suburban Realtors Alliance, an industry and consumer advocacy group of which I am a Board member. Township commissioners were scheduled to consider passage of the comprehensive ordinance during a Nov. 15 meeting. The draft ordinance contained a minimum 26 point inspection checklist as well as a requirement that all home additions conform to zoning regulations and building codes. The ordinance would also establish a $200.00 fee for the inspection process, which would more than double the Use and Occupancy fee found in neighboring communities.

I commend the Commissioners for tabling this ordinance.  While I have no doubt they believed the ordinance serve a good purpose, the proposed ordinance was fraught with unintended consequences.  Sellers could have faced very costly repairs, especially if their home was built prior to 1978 and would, as a result, be subject to EPA’s new rules and regulations governing repairs to older homes that add even more expense to repairs.  I will keep you posted on further developments on this important matter.

Souderton Award

The process of reinvention is not an easy journey, whether it is undertaken by an individual, a team, or a town.  In this case, a town, namely Souderton Borough.  Area residents are justifiably proud as a result of Souderton being presented with a Revitalization Award from Montgomery County officials for revitalization projects within the Borough.  Souderton was recognized for a successful reinvention of the Borough into an arts and culture hub, with private entities rehabilitating an old firehouse into the now renowned Montgomery Theater and old mill buildings into space for over 20 businesses.  Congratulations to all involved – Borough officials, Main Streets, local businesses – all who played a role in bringing this distinction to our town.  As a resident of Souderton, I can attest to the reinvention that is underway.  This is an award well-earned and deserved.