Interest rates are LOW due to Fed announcement

The Federal Reserve announced that it is planning to purchase $750 billion in mortgage-backed securities and up to $300 million in Treasuries. Because interest rates are so closely tied with mortgage-backed securities, we have seen interest rates dip unbelievably low. Freddie Mac has announced these are the lowest interest rates we've experienced in 38 years. 

Please don't hesitate to contact me with any questions you may have. I help people realize their dreams of home ownership here, in Portland, OR. I also work with a lot of investors in analyzing properties to determine what their cash flow will be as well as projected ROIs.

USDA 102% Financing for Sherwood, Newberg, Canby, and more

The USDA Guaranteed Rural Home loan program allows financing up to 102% of the appraised value on the purchase of a home. This means that the purchase price, closing costs, and the one time cost of mortgage insurance can be financed into the loan.

The United States government is doing everything it can to try to make properties affordable for buyers. My last blog post talked about the new $8000 tax credit for first time home buyers, whether or not cosigners were allowed, and answered a few other questions pertaining to the tax credit and why it's a great thing for Portland, OR home buyers.

Buyers taking advantage of the The USDA Guaranteed Rural Home loan program are still eligible for the first time home buyer tax credit. That is, if you were to buy a home today in one of the qualifying areas, you would pay nothing out of your pocket plus you would receive $8000 back next year. Essentially, you would be paid to purchase a home. Buyers with credit scores above 585 are eligible for these loans.


Qualifying homes:

• Guaranteed loans can be made on new construction or existing homes.
• Plumbing, heating, water, waste disposal, and electricity must be certified as adequate and the dwelling must be free from termites and dry rot.
• Homes must be considered modest, however no restrictions exist on the size or design of of the home
  
• Farms are ineligble
  
• Homes with in-ground pools are ineligble

Qualifying areas:

• Parts of Wilsonville, Sherwood, and Hillsboro
  
• Newberg, Canby, Gaston
• Many other rural communities, contact me with eligibility questions
  

I absolutely love helping people realize their dreams of home ownership. Whether you are an existing client or someone "just looking around," I am here to be a resource for you. Please don't hesitate to contact me with any questions, I would be happy to answer them!

Revised Tax Credit- Now $8000

As many people know, a new law was passed regarding tax credits for first time home buyers on February 19th. This new law allows first time home buyer, or those who have not had a mortgage in at least three years, the ability to receive an $8000 tax credit.

The following are a few common questions:

Q: When did this tax credit become effective and when will it terminate?
A: The tax credit is retroactive back to January 1, 2009 and terminates December 1, 2009. This means that if you bought/buy a home between January 1st and December 1st you will receive the tax credit.


Q: Do I need to pay this back?
A: No, absolutely not. This isn't a loan, this is a tax credit.


Q: What are the income limitations?
A: The FULL credit is available for individuals with a gross adjusted income of $75,000 or $150,000 for joint filers. Shoot me an email for the adjusted credit for higher earners.

Q: If I end up owing the IRS nothing, will I get a refund?
A: Yes, you will receive a check for the full $8000.

Q: Are cosigners allowed?
A: Yes, the $8000 can be allocated in anyway the purchasers see fit.

Q: What are the differences between this tax credit and the previous $7500 tax credit?
A: Please visit: http://www.realtor.org/wps/wcm/connect/b32db1004d05f6338052c5fd73e5610f/government_affairs_tax_credit_chart_021308.pdf?MOD=AJPERES&CACHEID=b32db1004d05f6338052c5fd73e5610f


If you are a first time home buyer in Portland, Oregon, buy before the end of the year! This is a golden opportunity. Interest rates are low, home prices are low, and you get $8K cash back!