16,000 of the Best Reasons to Buy a Home on St Paul's Eastside in 2009!

How did that old gum commercial go? “Double the pleasure. Double the Fun.” How about “Double the Savings” with an $8000 grant AND an $8000 tax credit, if you buy a home this year on St. Paul’s east side?

Earlier this year the $8000 Tax Credit to first time homebuyers was announced as part of the stimulus plan. For those who may not have been paying attention, here is a quick rundown of the criteria to qualify for the government housing tax credit:

• The tax credit is for homebuyers buying their first home only. (But buyers are considered first time buyers if they haven’t owned a home in the past three years.)
• The money does not have to be repaid.
• The credit is capped at 10 percent of the home's purchase price with a maximum of $8,000.
• Homes must be purchased on or after January 1, 2009 and before December 1, 2009. (Note not the credit is NOT available until the end of the year. Plan accordingly!)
• Income caps to apply...Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• Additional questions on the $8000 can be answered by CLICKING HERE

Now for the exciting news for Twin Cities homebuyers. In mid-April, the Pohlad Family Foundation pledged up to $20 million to support two Twin Cities neighborhoods hardest hit by the housing and foreclosure crisis. Part of that funding is being allocated in the form of grants to homebuyers in the 55106 zip code in St. Paul and 55411 zip code in Minneapolis. These areas are considered to be the hardest hit by foreclosures statewide, according to the Minnesota Housing Finance Agency.

Anyone who purchases a single-family home or duplex in either of these neighborhoods by the end of the 2009 calendar year will receive $8,000 from the Pohlad Foundation Charity. The money will not have to be repaid if the home is kept for seven years. Also the homebuyer would have to live in the home to qualify for the grant but there are no limits on income.

Here’s where “Double the Fun” comes into play: The funding would be in addition to an $8,000 federal tax credit that is part of this year's federal stimulus package. Distribution of the funds will be through the following agencies:

• Dayton’s Bluff Neighborhood Housing Services of St. Paul Phone 651-774-6995
• Neighborhood Housing Services of Minneapolis Phone 612-521-3581

As many of the homes in these neighborhoods are in foreclosure, first time homebuyers need to be savvy when making there purchase. Get educated on how to buy a home by contacting a REALTOR® that knows this part of St. Paul (or Minneapolis) and how to best negotiate a good deal on a foreclosed or bank-owned home.

Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Remember When REO Used to be a Rock Band?

In the early 1980’s, when someone was talking about REO they probably meant REO Speedwagon not a home owned by a bank. Yep, back in the day when many of my friends and relatives were buying their first house, few thought a foreclosure home was a good deal. There was a section in the paper at the time for HUD homes. They were all dumps in the minds of buyers. It was deemed “too risky” to buy a bank owned home. Better to leave those houses for an investor.

In 1981 when REO (the band) was tearing up the charts with the now oldie but goodie rock tune, “Keep on Lovin’ You”, interest rates were 17%. That’s not a typo…Seven-TEEN percent! Geez…it’s a wonder anyone bought a house in the 1980’s!

Back in the days of big hair and parachute pants, first time buyers had to scrimp on hairspray to save for a down payment AND closing costs. Sellers might pay a point or two to help bring down the interest rate but they rarely wanted to pay closing costs AND points. So a first time buyer needed to have thousands to put down on their first home.

There was no internet back then either so with REO belting out “Take it on the Run” on the cassette player, buyers would traipse around town with the Sunday open house ads looking to find a home. When they stopped in to talk to a friendly REALTOR®, there was no required agency disclosure. The buyers were supposed to instinctively know that the agent worked for the seller. Almost all agents were under contract to work in the best interest of the seller in those days no matter how nice the agent seemed to treat the buyer.

And believe it or not, despite all the cards stacked against them, many, many people bought their first homes in the early 80’s—It was the American Dream after all!

FLASH FORWARD to TODAY
When someone is talking REO now, they are more than likely talking about Real Estate Owned by a bank. These foreclosed homes are no longer thought of as dumps for investors to deal with; they are opportunities. These homes are sold as-is but many are in amazing condition and at tens of thousands less than the homes sold for just a year or two ago. Some homes are even new construction.

Can you say affordability? It is off the charts when you consider a foreclosed home! Check out this video which explains the 239% Affordability Index currently in the Twin Cities. (The music isn’t rock, but the information rocks!)

Today, interest rates continue to hover around 5%. FIVE percent guys…Your parents, aunts and uncles signed documents agreeing to over 300% more than the rate available in this market. What an opportunity for a buyer today!

In this internet age, first time buyers can prescreen houses online with photos, virtual tours and more. Less driving and more time viewing the homes you really want to see!

Now first time buyers are in the driver’s seat when it comes to representation too. You can hire a REALTOR® to represent your interests—Usually at no cost too! Since the early 1990’s, buyer’s representation has become a wonderful opportunity for home buyers to hire an agent to represent their interests. The seller still pays a commission which is split by both agents so there is no additional cost to have your own agent working for YOU!

And in 2009, first time buyers get an unprecedented $8000 tax credit to boot! This program isn’t going to last forever but if a first time home buyer (or someone who hasn’t owned a home in the last three years) buys a home between January 1, 2009 and November 30, 2009, they will get an $8000 credit on their taxes. There are a few details and restrictions (read more here) but most first time buyers will get to take advantage of this program.

First Time Buyers! What are you waiting for?

If you are the fence about buying your first home, thinking their might be a better opportunity coming, think again! This is a great time to be a first time home buyer. People who bought homes in the early 1980’s did okay even with all the disadvantages they faced. First time home buyers today have opportunities only dreamed of when REO was on the Top 40 charts. Don’t miss out…It won’t be long before your best chance at the American Dream is just a retro memory!

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Copyright 2009 Teri Eckholm http://www.terieckholm.com/

Attention First Time Home Buyers—Incredible Affordability and an $8000 Tax Credit Make 2009 the Year to Buy!

If you haven’t heard, the recently approved stimulus package had a wonderful provision for anyone buying their first home; An $8000 tax credit!
Here are the things to know about the $8000 Tax Credit in a nutshell:

• The tax credit is for homebuyers buying their first home only.
• The money does not have to be repaid.
• The credit is capped at 10 percent of the home’s purchase price with a maximum of $8,000.
• Homes must be purchased on or after January 1, 2009 and before December 1, 2009. (Note not the credit is NOT available until the end of the year. Plan accordingly!)
• Income caps to apply…Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• Additional questions on the $8000 can be answered by CLICKING HERE!

Now combine this with the Twin Cities highest affordability index for homes on record according to the Minneapolis Board of REALTORS® and first time buyers have an amazing opportunity! Get the skinny on the affordability index here.

So how does a first time buyer in Anoka County make the most of this opportunity?
Start researching now…not homes, check out professionals. Looking at homes may be fun and exciting but it is not the first step in buying a first home, finding a professional REALTOR® is!

Having a professional agent to guide you through the buying process doesn’t cost a penny!

As a professional Anoka County REALTOR®, I assist people in buying and selling homes in Blaine, Ham Lake, Forest Lake, Lino Lakes and Andover everyday! I can help spot that great deal quickly before it gets away. I can also point out homes on the market that may not be the best choice for a first time buyer. It all comes down to expertise!
One of my most important jobs is assisting the first time buyer to locate financing through a professional dedicated loan officer. My mortgage contacts work with my clients to help them find the best loan depending on their individual needs and situations. As a team, we work hard to be certain that our home buyers don’t write an offer on a home that they cannot afford. Buyers need to feel comfortable that they will be able to make the payment on their dream home…not just that first month but next year and the year after that.

Once preapproved the fun can really begin…Looking for a good solid foreclosure in Anoka County? Want a picture perfect home in Coon Rapids? Want a bit of land in Columbus or Lino Lakes? Looking for a detached townhome in Blaine? I help buyers define their dreams and pinpoint a handful of homes that meet your specific needs.

With the loan preapproval and home criteria is firmly established, the viewing of the houses can begin. With me as their professional agent at their side, my clients confidently view homes they can afford and would be proud to consider their home. After visiting a several…usually around 10-12, I assist first time buyers through the paperwork process as we write up the offer on their home.

Now that the offer is accepted, I assist the new buyers to find qualified professionals to inspect the home as outline in the purchase agreement and handle the process of closing the home in a timely manner. My first time buyers never feel abandoned or alone. We are a team until they get the keys to their dream home!



Copyright 2009 terieckholm.com