As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

- Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
- Expands the credit to grant up to $6,500 credit to current home owners purchasing a new or existing home between November 7, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream. The Basics: Extended Home Buyer Tax Credit 2009/2010

3:00 PM ET – White House spokesman Robert Gibbbs said today that economic advisors are studying the impact of the home buyer tax credit and whether or not to extend it. The real estate industry has been pressing Congress to extend it, increase the amount and broaden it to all buyers.

Already over half a million Americans have taken advantage of the $8,000 federal tax credit on their 2008 tax returns. The program is working but efforts to get the $8,000 first time homebuyer credit available to the buyer at closing have stalled at the IRS office. The Governor has signed the legislation that allows the Washington State Housing Finance Commission to make the funds available. Washington REALTORS® have provided the money to guarantee the program and all that is left is some sort of mechanism to ensure that when the borrower receives the $8,000 from the IRS, those funds are dedicated to pay off the bridge loan. Since working with an agency the size of the IRS is tenuous, we are working on alternatives to make this program available by the end of June.

Here is what you can do in the mean time. Attend a Free Homebuyer Education Class: Home buyers can attend a Washington State Housing Finance Commission Sponsored Home Buyer Education Seminar; this 5-hour seminar is a requirement for receiving a loan from the Commission.

Other Loans Are Available Now: Look into the House Key Program for first mortgages for first-time home buyers; and, there are Second Mortgage Loans for Down Payment Assistance available through the Commission when using the House Key Program. There are down payment assistance programs for those with disabilities, for teachers, veterans and those who live in certain rural areas. There is even a conventional first mortgage loan available right now through the Express Loan Program for first-time home buyers that can be used in conjunction with the House Key Plus Down payment Assistance Program.

Start working with a participating lender now: Meet with a House Key trained loan officer and determine if you qualify for a mortgage loan according to FHA, VA, Rural Housing Services (RHS), or conventional loan standards.

Information and help with all these services are available through the Washington State Housing Finance Commission’s Homeownership Division and I can certainly refer you to a qualified lender.

Will gas prices drive homebuyers away from suburbs?

As he gassed up his 2002 Honda Civic recently, David Underwood found himself at the intersection of two priorities: transportation costs and housing.

Paying $53 for a tank of gas to commute from his Kirkland rental condo to his Seattle job, Underwood realized that price set a “personal best” he’d rather not repeat.

That’s why after much discussion, he and his partner, Kali Kuwada, decided to buy their first home in Seattle, as close to their jobs as possible.

“We found ourselves talking more and more often about house prices going down and gas going up and how that intersected with our priorities: getting home fast and not having to spend a lot on gas,” says Underwood, a student and Seattle Central Community College employee who’s buying a Seattle town house near three bus lines.  Continued…  Will gas prices drive homebuyers away from suburbs?  Elizabeth Rhodes, Seattle Times

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com
 

Purchasing a home is a huge financial commitment that requires complex calculations before you even begin looking at houses. Since getting all the answers to your house hunt’s most important questions can be a daunting task, HGTV’s new real estate site-Frontdoor.com-is offering a handy toolkit for home buyers. This user-friendly guide is packed with tips that will break down the overwhelming process and help you develop a home-buying strategy that will allow you to spend more time searching for your perfect home.

Frontdoor.com’s Top 10 Tools for Home Buying:

1. Rent vs. Buy Calculator:

Homeownership comes with great benefits like tax breaks and the chance to build wealth, but renting can often be a less expensive and more convenient option for many people. FrontDoor.com’s “Å“Rent vs. Buy Calculator” compares the costs of renting and buying and helps you determine which alternative is right for you.

2. How-To Guide:

Once you decide that buying a home is the right move, the first thing you’ll need is a comprehensive, step-by-step guide that you can refer to throughout the home-buying process. FrontDoor.com’s “Å“First-Time Home Buyer’s Guide” and “Å“Experienced Buyer’s Guide” offer expert tips and advice for buying your first or your umpteenth home.

3. Home Wish List:

Having a written vision of everything you want and need in a home will keep you enthusiastic and focused during your search. Think about your lifestyle and make sure it’s compatible with your vision of home. Do you need to live close to your workplace? Are you planning a family and need extra space? Questions like these will influence what type of home you need.

4. Home Affordability Calculator:

In general, you shouldn’t spend more than 2.5 times your gross annual income on a home, and your mortgage payment should be less than 28% of your gross monthly income. FrontDoor.com’s “Å“Can I Afford It? Calculator” will estimate what you can afford by comparing your monthly income with your monthly expenses.

5. Mortgage Calculator:

The amount of your loan, the interest rate and the term of the mortgage affect both your monthly and total mortgage payments. And don’t forget about property taxes, hazard insurance and private mortgage insurance. FrontDoor.com’s “Å“Mortgage Calculator” shows you how much you’ll wind up paying.

6. Fixed vs. Adjustable Rate Mortgages Calculator:

A fixed rate mortgage offers an unchanging interest rate, while an adjustable rate mortgage has an interest rate that changes over the life of the loan. The type you choose depends on your ability and willingness to take financial risks. FrontDoor.com’s “Å“Fixed vs. Adjustable Rate Mortgages Calculator” helps you compare the two options.

7. Mortgage Term Length Calculator:

Assess your financial situation to figure out which term length is best for you. If you can afford to make larger monthly payments, you’ll save in the long run by paying less interest with a short-term mortgage. The “Å“Which Term Length Is Best? Calculator” shows how much you’ll pay with various term lengths.

8. No Cost Loan Calculator:

If you’re short on cash and can’t fork up thousands of dollars at closing, consider a no-cost loan. Lenders offer these loans for a higher interest rate, allowing them to cover your closing costs and still make a profit. To find out if a no-cost loan is a better option for you than a traditional mortgage, use FrontDoor.com’s “Å“No-Cost Loans Calculator.”

9. Mortgage Points Calculator:

Points lower your interest rate and are tax deductible, but you’ll have to pay more cash at closing. One point is equal to one percent of your loan. The “Å“Should I Pay Points? Calculator” helps you decide if paying for points now will help you save money in the long run.

10. House Tour Worksheet:

You’ll look at a lot of houses during your hunt for the perfect home, and eventually they’ll start to blend together. Take pictures and detailed notes about what you liked and didn’t like about each home so you can differentiate them. Use your completed worksheets to narrow your search and focus on the houses you really liked.

FrontDoor is like house hunting with an in-the-know friend. Use this helpful guide to formulate your own searching and buying strategy and look for more advice, insight and assistance at FrontDoor.com, including information on ways to beat a sluggish housing market.

For more information, visit http://www.frontdoor.com.

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com

77 Seattle neighborhoods were recently measured for their “Walk Score” to determine Seattle’s most walkable places to live.  A “Walk Score” shows you a map of what’s nearby and calculates a ranking for any property, house or condo.  Check out how walkable your new neighbhorhood ranks before making your next real estate purchase.  Seattle’s most walkable places to live  

Mike Rozell ~ Realtor / Real Estate Agent ~ www.MyLifestyleRealtor.com