Real Estate Citizen

10 Cities Where Home Prices Will Rise in 2011

2011-01-31T08:08:00.000-08:00

Is good news on the way for the Washington, DC Metro area? According to MSNBC we will see a 6.5% increase in property values.

While home prices are expected to continue to fall in most metro areas, Clear Capital's Home Data Index report says a few cities are already on eh rebound and showing some gains in home values.

The following is a list of 10 cities that Clear Capital expects will rise in property value in 2011:
1. Washington, DC - 6.5 price increase
2. Houston - 3.6%
3. Honolulu - 3.4%
4. Memphis, TN - 3.2%
5. Coloumbus, OH - 2.1%
6. Dallas - 1.4%
7. New York - 1.3%
8. Birmingham, AL 0.9%
9. Pittsburg - .08%
10. New Orleans - 0.5%

To read the entire article go to: http://www.realtor.org/RMODaily.nsf/pages/News2011012801?OpenDocument
Source: MSNBC (Jan 26, 2011)

FHA Suspends the Flip Rule Effective - FEB 1, 2010

2010-02-01T09:42:00.000-08:00

Expanded First-Time Home Buyer Tax Credit Becomes Law - The Home Front (usnews.com)

2009-12-24T06:25:00.001-08:00

Expanded First-Time Home Buyer Tax Credit Becomes Law - The Home Front (usnews.com)

Posted using ShareThis

Tax Credit to Expire SOON

2009-10-06T07:08:00.000-07:00

In order to claim your $8000 First Time Home Buyers Tax Credit you must close on your property no later than Nov 30th.
Rates are down and in order to meet this fast approaching deadline you must move quickly! Contact Williams Realty for more details on how you can take advantage of this opportunity.
Williams Realty
(703) 980-4045
agents@williamsrealty.us

The American Recovery and Reinvestment Act of 2009

2009-06-17T10:36:00.000-07:00

Many are asking us about the Home Buyers Tax Credit, how it works, and the definition of "first-time buyer". Click on the link below for Frequently Asked Questions About the Home Buyer Tax Credit.
If you want to take advantage of this great opportunity please call Williams Realty
at 703-980-4045.

http://www.federalhousingtaxcredit.com/2009/faq.php

FHA allows tax credit to be used for downpayment & closing costs

2009-05-15T05:07:00.000-07:00

May 13, 2009 - HUD Secretary Shaun Donovan’s decision to allow consumers to use the $8,000 first-time home buyer tax credit to help cover their downpayment and closing costs on FHA-insured mortgages will be a big boost to the housing market, according to the National Association of Home Builders (NAHB).“The biggest obstacle for first-time buyers is coming up with a downpayment,” said NAHB Chairman Joe Robson, a home builder from Tulsa, Okla. “We commend Secretary Donovan for acting decisively to enable buyers to access the tax credit at the time of closing. This will help to stimulate home sales, stabilize housing and get the economy back on track.”
The measures announced by HUD would allow FHA-approved lenders; federal, state and local government agencies; and FHA-approved non-profit organizations to supply home buyers short-term or “bridge loans” up to the amount of the $8,000 first-time home buyer tax credit.
Longer term loans secured by second liens can also be used by government agencies and FHA-approved non-profit organizations to facilitate home sales. Several state housing finance agencies have introduced such programs and a number of agencies are considering that possibility.
More information about these programs can be found on the National Council of State Housing Agencies Web site at www.ncsha.org/section.cfm/3/34/2920.
Previously, the home buyer would have been unable to access the tax credit until they filed their next annual tax return or an amended 2008 tax return and received the refund from the IRS.
Robson and others NAHB leaders discussed this matter and other housing-related issues with Secretary Donovan last week. “Secretary Donovan shares our view on the need for a housing and economic recovery,” said Robson. “We appreciate his leadership in moving swiftly to help first-time home buyers to access the tax credit up-front at the time of closing. The timing could not have been better as we are in the midst of the crucial spring home buying season.”
The next step is to see how FHA-approved lenders use HUD’s new guidelines to actually monetize the tax credit for first-time home buyers and structure the payback provisions of the loans. NAHB encourages lenders to act promptly to put these provisions into place.
To qualify for the tax credit, first-time home buyers must actually close on their home purchase by Dec. 1, 2009. Buyers can take the credit on their 2008 or 2009 income tax return.
For further information about the tax credit – including a detailed question and answer section and a number of home-buying resources for consumers – log on to NAHB’s consumer Web site at www.federalhousingtaxcredit.com. A Spanish version is also available to provide detailed information on the tax credit to Spanish-speaking first-time home buyers.

Mortgage Rates Drop to Record Low

2009-03-26T13:43:00.000-07:00

Mortgage rates drop to record low
30-year-fixed average at 4.85 percent, falling from 4.98 last week
The Associated Press
updated 12:35 p.m. ET, Thurs., March. 26, 2009

Rates on 30-year mortgages fell this week to the lowest level on record after the Federal Reserve launched a new effort to assist the staggering U.S. housing market.
Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85 percent this week, from 4.98 percent last week. It was the lowest in the history of Freddie Mac’s survey, which dates back to 1971 and was down a full percentage point from a year ago.
The previous record low of 4.96 percent was set in the week of Jan. 15. Rates fell after the Fed last week said it will pump $1.2 trillion into the economy in an effort to lower rates on mortgages and loosen credit.
Rates on 30-year mortgages traditionally track yields on long-term government debt.
Though the yield on the benchmark 10-year Treasury note initially plunged by about 0.5 percentage points after the Fed’s move, lenders did not pass the entire drop on to borrowers. Bond yields rose after worries about what some saw as lackluster demand at a government debt auction Wednesday.
“There was a honeymoon effect initially” after the central bank’s announcement, said Greg McBride, senior financial analyst with Bankrate.com. “The reality of large government deficits and the need for substantial government borrowing is setting in with investors.”
Mortgage applications surged last week, mostly from borrowers looking to refinance and save money on their monthly payment. The Mortgage Bankers Association said Wednesday its weekly application index climbed more than 30 percent for the week ended March 20.
Nearly 80 percent of applications came from borrowers seeking to refinance home loans at lower rates, rather than purchase homes.
In Freddie Mac’s survey, the average rate on a 15-year fixed-rate mortgage dropped to 4.58 percent this week, down from 4.61 percent last week.
Rates on five-year, adjustable-rate mortgages fell to 4.96 percent, compared with 4.98 percent last week. Rates on one-year, adjustable-rate mortgages rose fell to 4.85 percent, from 4.91 percent.
The rates do not include add-on fees known as points. The nationwide fee averaged 0.7 point last week for all mortgages in Freddie Mac’s survey except for one-year adjustable mortgages, which had an average fee of 0.6 point.

Northern Virginia FHA Max Limit Back to $729,750

2009-02-26T09:08:00.000-08:00

FHA loan limit has been pushed back up to the 2008 limit of $729,750 in certain markets throughout Virginia. To check on limits for a certain county, see link below
https://entp.hud.gov/idapp/html/hicostlook.cfm
Call us with any questions!

2 Interesting Articles

2009-01-14T07:55:00.000-08:00

Article 1: http://www.msnbc.msn.com/id/28471137/
As I am sure you have heard rates are at historic lows and many "experts" are suggesting that they will be going down further in 2009. While that is a possibility, I would like to take this opportunity to remind you that the experts are in this for their own reasons and making sure you get the best rate on your mortgage is not one of them. I encourage you to take a look at the graph in this link, http://library.hsh.com/read_article-hsh.asp?row_id=92 it shows the fluctuation of Fixed Interest Rates on Conforming Mortgages over the past three years.

The reason why I suggested that you look at this is so that you can see for yourself how volatile mortgage rates can be so that when you are trying to decide if you want to wait for the best rate you are aware that in a matter of days from any point in time the rates could rise by half of a percent and up. Just as we have seen interest rates drop by one and a half point over the past 2 months they could begin to clime as sharply with no notice what-so-ever like they did in the first half of May 2007 when rates jumped from 6.2% to almost 6.9%.

If you are interested to know more about what causes interest rates to rise and fall, take ten minutes and read this somewhat simplified explanation of the forces that drive interest rates. http://library.hsh.com/?row_id=85

For another interesting read - Today's Wall Street Journal has an article about former NAR (National Association of Realtors) Chief Economist. This illustrates the importance of having a relationship with a realtor who does not "drink the kool-aid" and who is willing to search outside for information regarding the housing market, and who pays attention and does their own research using many different sources.
Article 2: http://online.wsj.com/article/SB123152099299568447.html#articleTabs%3Darticle

The Housing Stimulus Bill (as of 7/30/08)

2008-07-30T16:10:00.000-07:00

National Association of REALTORS®
Summary of Key Provisions of H.R. 3221 - The Housing Stimulus Bill (as of 7/30/08)
**********************************************************************************
H.R. 3221, the "Housing and Economic Recovery Act of 2008," passed the House on July 23, 2008, by a vote of 272-152. On Saturday, July 26, 2008, the Senate passed the bill by a vote of 72-13. The President signed the bill on July 30, 2008. The bill includes the following provisions:

-GSE Reform - including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median home price, capped at $625,500. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

-FHA Reform - including permanent FHA loan limits at the greater of $271,050 or 115% of local area median home price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The downpayment requirement on FHA loans will go up to 3.5% (from 3%). The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

-Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009. The credit is repayable over 15 years (making it, in effect, an interest free loan).

-FHA foreclosure rescue - development of a refinance program for homebuyers with problematic subprime loans. Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value. Borrowers would have to share 50% of all future appreciation with FHA. The loan limit for this program is $550,440 nationwide. Program is effective on October 1, 2008.

-Seller-funded downpayment assistance programs - codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members. This prohibition does not go into effect until October 1, 2008.

-VA loan limits - temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

-Risk-based pricing - puts a moratorium on FHA using risk-based pricing for one year. This provision is effective from October 1, 2008 through September 30, 2009.

-GSE Stabilization - includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

-Mortgage Revenue Bond Authority - authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

-National Affordable Housing Trust Fund - Develops a Trust Fund funded by a percentage of profits from the GSEs. In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program. In out years, the Trust Fund would be used for the development of affordable housing.

-CDBG Funding - Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

-LIHTC - Modernizes the Low Income Housing Tax Credit program to make it more efficient.

-Loan Originator Requirements - Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate). Federal bank regulators will establish a parallel registration system for FDIC-insured banks. The purpose is to prevent fraud and require minimum licensing and education requirements. The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.

Five Tips to Help You Close a Deal on a Foreclosure Property

2008-07-10T04:14:00.000-07:00

Foreclosure TipsBuying a Foreclosure Property Below Market Value: Five Tips from the Pros(Provided by RealtyTrac)
House hunting can be a very daunting experience, especially in today’s real estate market. Both investors and home buyers have been priced out of the market by escalating costs, and good real estate deals are increasingly difficult to find.
But there are bargains out there, for people who know where to look.
“For people willing to do some homework, the foreclosure market offers some of the best opportunities in real estate today,” explains James J. Saccacio, chief executive officer at RealtyTrac, the leading online foreclosure marketplace.
Web-based services such as RealtyTrac give consumers access to foreclosure and pre-foreclosure information that was previously available only to professional real estate brokers and investors. Today, homebuyers can use these services to assist them identify and research potential home purchases, as well as the tools and professional resources they need to help them close the deal.
With interest rates ticking up and ARMs adjusting upward, experts predict an increase in the number of foreclosure properties on the market. RealtyTrac, which provides all the foreclosure data for both MSN House and Home and Yahoo! Real Estate, has already compiled a list of over 550,000 foreclosure properties across the country.
“Foreclosure properties can be a terrific investment, or give home buyers a much more affordable option than traditional properties,” notes Saccacio. “But they’re not a way to get rich quick, and a foreclosure purchase needs to be approached in an educated, intelligent manner.”
Saccacio offers five tips to help you close a deal on a foreclosure property:

1. Learn about the different types of foreclosure properties, and the foreclosure process.
There are three basic types of foreclosure properties, representing different stages in the foreclosure process: notice-of-default (NOD) and notice of trustee sale (NTS), which are both pre-foreclosure properties; and real-estate-owned (REO), a foreclosure property which has been re-purchased by the bank.
For most consumers, buying a pre-foreclosure property from a private homeowner is the best option. It’s important that both the buyer and the seller see the situation as a win-win situation, in order to ensure a smooth process. In this case, the seller is able to get out from under a mortgage without destroying their credit rating, the lender is saved the time and expense of foreclosing on the property, and the buyer gets a below-market price on a home.Foreclosure auction sales are typically the domain of the professional investor. These properties are formally in default, and sold to the highest bidder at an auction. Buyers are required to be physically present at the auction, and must pay 100% of the sale price in cash, on the spot. Though foreclosure auctions can offer significant savings, they are not for the feint of heart or the uninformed. Unless the buyer is already familiar with a particular property, there is usually little time to examine it. And the buyer will be competing against professional investors—and sometimes even the lender—at the auction.
Once the lender officially reclaims a home, it becomes a real-estate-owned property (REO). While REO properties typically offer more time for evaluation and a more standard bank-managed transaction, their prices are usually very close to full retail market value.
CHART: Stages of the foreclosure process
Stage
Positive
Negative
Pre-foreclosure: Notice-of-Default, Notice-of-Trustee Sale
- Highest potential savings - Potential win/win scenario benefits all parties - Chance to evaluate property
- Buyer / Seller negotiations can be difficult\ - Time pressure to complete transaction before auction
Foreclosure: Auction sale
- High potential savings - Immediate property ownership
- 100% of the sale price required in cash - No time to evaluate property - Competing with professionals
Foreclosure: Real Estate Owned (REO)
- Affords significant time to evaluate property - Traditional bank financing - Lender often rehabs property
- Lowest potential savings
2. Secure financing early
It’s important for a buyer to be pre-qualified before engaging in discussions with a seller. This ensures that the buyer is in a financial position to purchase the property, and is in the strongest possible position to negotiate. It’s best to work with a lender who understands the foreclosure process, and can guide the buyer through certain steps, such as ensuring that a property is FHA-compliant. Another reason to consider pre-qualification is that not all lenders finance foreclosure properties. Having approved financing in-hand makes negotiations with both the seller and the lender easier, and may even make it possible for the buyer to simply cure the default and take over the existing loan to reduce loan processing fees.
3. Engage a real estate agent as a “buyer’s representative”
Most people hire a real estate agent to sell their home. These “seller’s representatives” are charged with making the sale and negotiating the best deal for their clients. “Buyer’s representatives” have the home buyer’s interests at heart, and are charged with finding the right property and negotiating the best price for their clients. Picking the right real estate agent will make a buyer’s life much easier. There are agents who specialize in the foreclosure market, with specific experience in REO properties. Look for an agent with foreclosure transaction experience, as well as knowledge of local, regional and state laws. But it’s also important to consider the agent’s knowledge of the area; their ability to close a deal; and their access to other professionals (attorneys, lenders, mortgage and title professionals) to ensure that the buyer is in good hands.
4. Do your homework
Stocks offer higher potential returns for investors than traditional savings programs, but are also riskier. Similarly, purchasing foreclosure properties is somewhat more risky than buying traditional real estate properties, but offer much higher potential savings. With the right examination and due diligence, buyers can significantly reduce the risks. It makes sense to give any property under consideration a thorough examination. Here are eight steps for doing a professional-level exam.
CHART: Examination process steps
• Identify desirable neighborhoods – Identify specific neighborhoods where you’d like to live or own a home. This will limit your search to a manageable size for you and your real estate agent, and give your a sense of relative property values.
• Cast a wide net – There are a number of Web-based services that can put hundreds of thousands of foreclosure properties at your fingertips. Since the best savings are often found in pre-foreclosure properties, it’s important to check the percentage of pre-foreclosure (vs. REO) properties in any database before subscribing.
• Determine the property value –Look at the original purchase price, and recent comparable property sales to determine the current value of the property.
• Find out the amount in default and the remaining loan balance – In order to determine a reasonable offer price, you’ll need to know—at a minimum—how much money it will take just to satisfy the debt to the lender.
• Run a legal investing report – Before purchasing any foreclosure property, make sure it is free and clear of any bankruptcies, tax liens or other financial liabilities.
• Assess the condition of the property– If at all possible, visit the property, ask your realtor’s opinion, and review pest and structural reports to make sure that the property is in acceptable condition, or to determine how much of a rehab budget you’ll need to build in to your deal.
• Build a positive relationship with the seller – Before purchasing the property, try to make sure that you’re entering into a win-win situation with the seller, so that they’ll do what they can to make the process easier and leave the property in good condition
• Leverage your timing – Knowing when a property is going to be auctioned gives you an extra bargaining chip when negotiating with the seller or the lender.
5. Make a realistic offer
Despite what you may see on late-night cable TV, investing in foreclosure properties isn’t a sure fire “get rich quick” formula. Lenders aren’t likely to give properties away, particularly in a real estate market where prices continue to rise. And homeowners in financial distress may be difficult to deal with, particularly early in the foreclosure process. The keys to a successful foreclosure property purchase are diligence and patience.
As a rule of thumb, the best savings can be made at the pre-foreclosure stage, where home owners can avoid a foreclosure and lenders can save the time and cost involved in going through the process. Another critical point in the process is immediately prior to the auction date, when all parties might be most open to a last-minute solution. It’s not unusual to save from 10-30% of the market value on a foreclosure property, and certain properties offer savings of 50% or even more. An educated buyer—one who knows how much is owed on the property and what its market value is—can usually come up with a realistic offer; one that offers significant savings, while meeting the requirements of the lender.
-----------------------------------------------------------------------------------------------------

Tricks of the Trade-Foreclosures and Auctions

2008-04-10T09:38:00.000-07:00

People who have been hit hard for what ever reason, and for many reasons, are experiencing that real estate is not the liquid assets they thought it was. Foreclosures and Auctions are nothing new, the difference we are experiencing now, is that there is a high percentage of them and the market value of these homes are far less than what is owed to the bank. It is for this reason that it is extremely time consuming to successfully purchase a property that is in Foreclosure or at Auction.

Hint 1- Most people are opting to attempt to sell their home Pre-Foreclosure a.k.a. Short Sale. The Seller needs to prove hardship to the bank for a bank to even consider a Short Sale. A Short Sale simply means that the lien holder(s) have to approve the sale because the market value of the house is less than the balance of the mortgage(s). A bank will NOT sell an asset much less than market value. If you are considering purchasing a home that requires the lien holder(s) approval, we suggest you complete your due diligence and know what the house is worth and what the process is and what the probability is of even purchasing a home in Pre-Foreclosure. The bank may or may not agree to a Short Sale.

Hint 2- Find your source for where Trustees notify the public of houses that are in Foreclosure. We suggest your large and small local newspapers. We also suggest to call the banks directly and speak with their REO departments. There are many companies who will provide lists of foreclosures.

Hint 3- If you do not have savings to put towards the purchase of a home, you will have a very difficult time buying a home in Foreclosure or Auction.

When the bank auctions a house at the courthouse steps, you will need a cashiers check for a certain dollar amount, often about 10%. You have to show this check to the bank rep at the courthouse before they will allow you to bid.

When an auction company is auctioning a home, they required funds at the time of bidding, as well. You need to be very familiar with the terms of the auction which is typically disclosed in detail on each company's web site.

A Realtor would be the best recourse for you because they have many solutions for buyers who would like to buy with no money down.

Hint 4- Before bidding on any property, pull a title search.

Hint 5- Before bidding on any property, you need to look at it. Make sure you know the condition of the property.

Hint 6- Do not get caught up in the bidding process and pay too much for a property. In most cases, the bank is the first bidder.

Hint 7- Get totally pre-approved and have a clear understanding of what a monthly payment will be and how much money you will need to purchase any of these homes. You will forfeit your deposit if you do not move forward with the purchase.

Hint 8- Many foreclosures are listed by Realtors.

Hint 9- Nice, clean, updated, properties are highly sought after. If they are priced well, you can be assured that there will be more than one offer on that property.

Hint 10- Knowledge, patience, and hard work is key to successfully buying property that is in Foreclosure or being Auctioned.

True, it is a buyers market and there are foreclosures and auctions galore, but we have found that many people are realizing that it is not easy. Williams Realty is here to work with you and make sure you buy a home while the buying is right. Don't wait until prices start to rise. Contact us now to get into your new home!

Tour Homes Up For Auction

2008-03-12T08:29:00.000-07:00

Buyers, now may just be THE time to get your toes wet. The trend in several areas around Northern Virginia is to auction homes. I have seen some great ones and starting bids are often $25,000 to $50,000!!!

Do you want to get on the band wagon?? Literally, we are interested in renting a bus and touring all of the homes that are going to be auctioned off. Send us an e-mail now to get on our list so that we can let you know what areas we will be touring and when. When it comes to auctions you need to be in the know, Williams Realty is who you can trust!

Home Buying Seminars

2008-03-12T08:27:00.000-07:00

Visit our Homebuying Seminar button to view dates and locations. You may RSVP by contacting us from our website, as well.

Cessation of Taxes and Fees

2008-03-12T08:10:00.000-07:00

The 400% increase in the Grantor's Tax charged to Sellers has been a hot topic. The Commissioner of Taxation instructed to discontinue collecting the additional tax. NVTA is putting a system in place to refund the tax already collected. Once that process is in place we will post it. Stay tuned.

http://www.thenovaauthority.org/PDFs/Press%20Releases/Cessation%20of%20Taxes%20and%20Fees.pdf

NVTA Issues Statement for Cessation of Taxes & Fees

2008-03-08T02:10:00.001-08:00

Click below to read the statement by NVTA regarding the Congestion Fee and other taxes that were found to be unconstitutional on 2/29 by the Virginia Supreme Court:

http://www.thenovaauthority.org/PDFs/Press%20Releases/Cessation%20of%20Taxes%20and%20Fees.pdf

Grantor's Tax - Update on Refunds

2008-03-04T04:18:00.000-08:00

This is from NVAR's website:

Given the Virginia Supreme Court’s finding that the Northern Virginia Transportation Authority (NVTA) cannot impose taxes, we will all be receiving questions about the additional grantor's taxes that have been paid to the Authority. NVAR has communicated with local clerks of the court regarding anticipated refunds on grantor's taxes paid since January 1, 2008.
The Virginia Court Clerk’s Association has asked the Virginia Attorney General for an opinion as to when it should stop charging the tax, as the Supreme Court order does not become effective for 10 days. The Attorney General will respond by Monday or Tuesday.
The Northern Virginia Transportation Authority has 10 days to ask the Supreme Court to reconsider its ruling, and NVTA staff plans to make that request. However, given the unanimous vote, NVAR does not think the request is likely to be successful.
Local tax departments will be working with NVTA on a refund plan. The NVTA is collecting and holding those funds. Individuals who have paid this tax will eventually be asked to write to the NVTA for the refund and present a recording receipt. If the person does not have the receipt, the county clerk’s office will be able to obtain a copy.
In the meantime, the legislature and the Governor are looking at the next steps regarding transportation funding. NVAR will update you as soon as we have further information.

Economic Stimulus Package

2008-02-20T05:43:00.000-08:00

Mortgage Loan Limits to Increase as Part of Economic Stimulus Package
On February 7, Congress passed an economic stimulus package that includes increases in the loan limits for Fannie Mae, Freddie Mac and FHA loans. The FHA limit will increase to as much as $729,750 in high cost areas (to 125% of local median home prices) for loans approved on or before December 31, 2008. The Fannie Mae and Freddie Mac limits will also be increased up to $729,750 for loans originated after July 1, 2007 to December 31, 2008. President Bush has indicated that he will sign the legislation later this week.

Quotes From the Past

2008-02-20T05:08:00.000-08:00

Quotes From the Past "The goal of owning a home seems to be getting beyond the reach of more and more Americans."-Business Week, 1969 (average price: $28,000)

"The era of easy profits in real estate may be drawing to a close."-Money Magazine, 1981 "If you are looking to buy, be careful. Rising home values are not a sure thing anymore."-Miami Herald, 1985

"Most economists agree…a home will become little more than a roof and a tax deduction, certainly not the lucrative investment it was…"-Money Magazine, 1986

"We're starting to go back to the time when you bought a home not for its potential money-making abilities, but rather as a nesting spot."-Los Angeles Times, 1993

Grantors Tax Increase / Congestion Relief Fee

2008-02-19T17:21:00.000-08:00

Effective January 1, 2008 the following tax increases took effect:

A "congestion relief fee," or grantor's tax, of 40 cents per $100 of assessed valuation on the sale price of a house. The seller will be responsible for the fee. For a $500,000 home, the extra charge would be $2,000.

A 1 percent "initial registration fee" based on the sale price of a vehicle. If a vehicle is bought from a dealer, the fee will be part of the purchase; if a vehicle is bought privately, regardless of where, the fee will be paid when the car is registered. For a $25,000 car, the fee would be $250.

A $10 annual regional registration fee for all vehicles.

A $10 annual safety inspection fee for all vehicles.

A 5 percent sales tax on auto repairs. Warranty work will be exempt.

A 2 percent car rental tax, adding about 80 cents to a $40-a-day vehicle.

A 2 percent hotel room tax, adding about $2.40 to a $125-a-night room.

The General Assembly also gave Northern Virginia governments the option of increasing the tax rate on shopping centers, office buildings and other commercial property by as much as 25 cents for each $100 of assessed value.
To learn more go to: http://www.thenovaauthority.org/PDFs/Brochures/Grantor.pdf