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FHA Discounts for First-Time Homebuyers

Posted by Michael Collins, CDPE, SFR on December 15, 2014 at 8:39am

First-Time Homebuyers Discounts through FHA

People in the market for their first home can take advantage of a new offer from FHA. This new initiative aims to provide more information to buyers though classroom education and will reward them with a reduction in the premiums paid towards mortgage insurance.

HAWK to the Rescue

The name of the new initiative is called Homeowners Armed with Knowledge (HAWK). The borrowers are asked to complete a series of classes prior to buying the home as well as a few courses scheduled after the home has been purchased. At the time of this writing the classes are broken down in the following ways

* 1st class to be completed before the buyer completes a purchase contract

* 2nd class will be completed after a contract is signed and before the loan is finalized

* 3rd class will be completed within 12 months after the loan is finalized

Goals of the Program

Simply put, the HAWK initiative is hoping that people buying their first home will have a better understanding of the overall process thanks to the counseling and will be in a better position to make wise financial decisions in the future not only in regards to their housing but also to their other needs.

Monetary Benefit

Once the customer has completed the necessary classes their upfront mortgage insurance premium will be reduced along with the monthly premium that is paid as part of the mortgage payments. In addition, if the customer has no delinquent mortgage payments within the first 2 years of the loan the monthly premium will be reduced again.

Some Limits and Expiration Dates

Since this is a new program with no history to review the FHA is rolling this out with limits. The program is currently scheduled to only last for 4 years. In addition, not all FHA loans are going to be accepted under this program. At this time there is no news about how many loans will be allowed to use HAWK but FHA has stated that there will be a maximum number each year.

Class Time Requirement

For the class completed before the contract signing the prospective buyers will need to finish at least 6 hours of counseling and education.

The class that is conducted after the contract signing is a one hour class as well as the class that comes after the loan is closed.

Each class will issue a certificate to the students indicating that the course has been successfully completed. These certificates will be necessary in order to get the reduction in mortgage insurance premium.

In general, this is a great program that FHA is offering. It provides critical information to potential home buyers in order to better prepare them for a prosperous future and it rewards them by reducing the amount paid on their mortgage.

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Rarely Discussed Tips for Buying that First House

Posted by Michael Collins, CDPE, SFR on January 31, 2013 at 7:14am

Rarely Discussed Tips for Buying that First House

Lots of solid information is available online that discusses items for first time home buyers such as choosing the right loan, working with a reputable lender, and arranging a proper budget. While those items are very important, there are some other items that don't get the same publicity but deserve great attention.

Buyer Beware

It cannot be stressed enough: there is no such thing as a perfect home. One home that seems to have a great outside appearance may need significant work on the inside. Another home that is appealing both indoors and out could be located in a terrible neighborhood. Take some time to look over the home as closely as you can. Ask some friends or relatives to come by and inspect the place. If something looks wrong, consult with a professional inspector.

Don't Sign Something that is Unclear

Most people that are buying a home for the first time are not aware that there are LOTS of forms to sign. This does not mean you should sit at the closing and closely read every single word. Many of these items are simply legal documents designed to protect the borrower. However, it also does not mean you should be confused about the process. During the closing process, ask the closing agent or your lender questions about the paperwork that you are signing to be sure you understand everything.

Allow for Improvements and Vacations

Very few people buy a home and leave everything as it sits for the duration of their home ownership. Most people like to add variety by changing out the carpet, adding fresh paint and updating the appliances and light fixtures. All of these things take money, whether they are done now or 5 years from now. Don't pick a home that is at the edge of your affordability. Leave some room for making a few improvements as well as saving up for the occasional vacation.

Don't Buy With Just Your Heart

It is true that most people will live in a home for a number of years. For this reason, they need to be quite happy with the major features of the property. However, falling in love with a property that is over an hour away from your job will make your commute quite tough, and add misery to your life. It is important to find a home that makes you happy and is practical for your situation.

: photo credit: joelplutchak via photopin cc

Avoid Unpleasant Features

Just as some people fall in love with a home and buy it based on one or two features, some people loathe one or two features of an otherwise suitable place. It is a bad idea to try and put up with something that makes you unhappy for the sake of owning a home. For instance, some people despise yard work. Buying a lovely modern home, with modern appliances, and in a good area may sound great until you realize the yard is monstrous. All those hours spent mowing the lawn, trimming bushes, cleaning around walkways and other items may actually irritate some people to no end.

Language Makes All The Difference

Posted by Mike Cooper on May 22, 2011 at 2:08am

Language Makes All The Difference

I recently worked with a foreign couple, and we had moments where the language barrier between us brought everything to a crawl. It wasn't that we were having problems with each other, but the differences in language and customs caused us to have to take a much slower pace when communicating.

Language is important in real estate. Actually, language is important in all affairs in life, but I wonder if we take our language for granted when speaking to people from other countries. Let me give you a simple example. Let's take the word "Time."

We all know that we have limited time, but then again we say, "Don't worry, we have all the time in the world!" How much is that? What about when your time is up? Does that mean you're suspended in time? Can time stand still? If time stops, how can it speed up? Or does time really fly? But, I've heard that time can slow to a crawl. Is something really "only for a time?" Or does it stand the test of time? If so, who is doing the grading? Is it possible for it to sit the test of time? If we save time, can we use it later? What about when we make up time? Is that like 26 o'clock?

When we play sports we have time outs, but when that's over it's time in. We have time on the clock, but where else would it be? Sports have time keepers. Does that mean they get to take it home with them, and if so, do they get to keep it for a time? Or do they have to give it back? If they keep it, do they store it in a time capsule for a later date? Or do they save time in a bottle?

We have daytime, but we also have nighttime. Somehow we have figured out how to have daylight savings time, but we haven't figured out how to have nightlight savings time. Maybe that's because there is no light at night, and you need light to save time. Is one time more important than another? Because we have prime time. Is that daytime or nighttime, or is it neither? If it's neither, what is it? And, what about when we punch a time clock? Is that some sort of numerical schism between people and time. I've also heard that time is money. I thought time was time. So, which is it?

It's easy to figure out what Summertime, Wintertime and Springtime are, but why don't we call the fourth season Fall-time? Is it because it sounds like an injury? We all know when it's Christmas time, because it always follows the beginning of Wintertime. But, Spring break doesn't always follow Springtime. There are time zones. Does that mean there are zones without time, and if there is no time in some zones does that mean they have no time for you? Is that a bad time? Or is it a good time?

We're familiar with Father Time, but I've never heard of Mother Time. Is time sexist? I know there is a delivery time which would correspond with Father Time, so there must be a mother who doesn't know what time a baby is going to arrive, but she's happy just as long as the doctor is on time and not taking time off.

Well, you see the dilemma I sometimes face when dealing with foreign clients who don't understand our use of language. It can be real challenge. I guess I'll stop wasting your time with this blog. But, I hope you had a good time reading it. Hopefully, it has been time well spent, because time management is important!

What Do You do To Keep Your Agents Motivated?

Posted by Mike Cooper on May 19, 2011 at 2:38am

What Do You Do To Keep Your Agents Motivated?

During the early part of the roaring 2000s our office was a selling machine. Of course, most offices were like that, but when the market began to slide into recession things slowed down. Our broker, who was a great guy, was managing two offices. He spent the majority of his time at the other office in a large metropolitan city (approximately 29 out of 30 days). As the recession became more and more severe our office began to drop sales and agents.

The worse things got with the economy the worse sales got with the office. Our broker was seldom around to encourage and inspire the office, and the agents found little enthusiasm and motivation to overcome the economic struggle the country was entering into. Finally, a year ago that office closed. It really was the right thing to do. Most agents were doing little to nothing by that time. In our former broker's defense a dozen or more offices have closed in the area. So, it wasn't specific to our location.

There were a few of us who were highly self-motivated who simply moved on. I actually joined that company because I was very self-motivated, and I didn't need the broker looking over my shoulder all the time. I also didn't need weekly pep rallies to keep listing and selling homes. I love the job. When the office closed I started my own company and it's doing well, but my questions for you are,

"What do you, or what does your office do during hard times to keep your agents motivated and on track? What keeps the agents excited when it becomes a real challenge to succeed in their profession? How do you deal with the agents who need that extra boost to stay steady during slow time?"

Motivated Buyer

Posted by Linda Landry on October 9, 2009 at 3:15pm

No doubt this has happened to you more than once but it is my first experience.I have been networking with several lenders doing funding expo's and first timehome buyer workshops. I was pleasantly surprised this week when I was givena lead from one of them. Her LSR was complete and she was searching for arealtor being dissatisfied with her prior agent. She'd been shown the only propertyshe wanted and needed to see it again and most likely make an offer.Her prior agent said it was not worth either her or the agent's time to write an offeras it would be a back up offer and it was a short sale 'possibility' (ie: not yet lenderapproved). Naturally I was willling to assist her and I asked her if she'd signed aBuyer/Broker agreement and she said she had not. I wanted to ensure she hadn'tas if the transaction did go through there was no reason to ask for trouble. At anyrate we saw the property and we did write an offer for her. She also signed aBuyer/Broker agreement to work with me exclusively through the end March 2010.Why is this important? She is obviously a motivated buyer and there is a greatpossibility she will not obtain the property she has her eye on. However, if shedoesn't I am the agent ready, willling, able and signed on to work with her. BTW,she is renting and her lease expires the end of November and she can only gomonth to month for 90 days. Sweet!

As we approach the end of the federal tax credit incentive for the housing market, discussions are starting to whether or not extend the tax credit. I recent read two contradicted articles. According

Posted by Marcelo Da Silva on September 29, 2009 at 12:30pm

As we approach the end of the federal tax credit incentive for the housing market, discussions are starting to whether or not extend the tax credit. I recent read two contradicted articles. According to a survey from CAR (California Association of Realtors), 40% of first time would not have purchased a house if it were not for the tax credit. In addition to that 70% of all buyers, first or second home, say that is was "very important" or "most important" in their decision process.On the other hand, a survey from Zillow shows that the tax credit was not a fact for most first time buyer when making a decision to purchase a home. Only 18% would be swayed to purchase a house in 2010 if the tax credit is extended. The discrepancies in the surveys is like water and wine. Who is right?

Dear First Time Buyer - Don’t’ Buy that Dump! It's not worth the $8000 tax credit.

Posted by Ken Lee on September 27, 2009 at 5:50am

The $8000 tax credit is a nice perk for first-time homebuyers. In my opinion, new Buyers should look at it as a perk, not as an incentive:1) Qualify for a home based on solid income, a certain level of confidence in job security, and ability to repay for years to come.2) Find a nice property that you don’t have to sell for at least 5 years, better if you can keep it for 10 years or more, possibly as a rental later on.3) Don’t let the pending deadline for free money lure you into a dump! First of all, market swings can wipe out that $8000 in a flash, even if you are buying a $150,000 property. Second of all, a dump doesn’t need the market to help wipe out that $8000 of free money. A dump can do it all by itself. See my blog “Top 10 Ways to Know Your Buying A Dump.”In certain locations there is a shortage of inventory and a feeding frenzy among first-time Buyers trying to beat the clock. Meanwhile cash investors are snatching up the best properties causing first-timers to battle for scraps.Yes, the $8000 tax credit is a nice perk. If you buy for all the right reasons, the credit is gravy. But buying a dog pile to get $8000 today and risk your future just makes no sense. Some times renting makes more sense. (OK now you can officially declare me the worst real estate salesperson ever.)For all its encouragement and stimulus, the government doesn’t even want you to buy a dump. Last I heard, they have not announced Cash-for-Clunkers Homes, and you don’t want to be calling Marilyn Mock of the Foreclosure Angel Foundation in 2011.Let the professional investors deal with risk. You too can be a pro some day if you make the right moves today.

Pre-Approved Shortsales Breaking Out?

Posted by Jonathan on April 10, 2009 at 7:27pm

Well, I've bloged about this several months ago. Pre-Approved Short Sales!! I closed my first one 2wks ago and from list to close total time was 40 days. Yes 40 days, I recieved a list price 96 hours after submitting my BPO, which was priced 10K below my BPO value. I got multiple offers within he first7 days on the market and the property sold for 5K more than list price (Closer to my BPO value). My local board rules require us market any short sale as such, which in the past and sometimes hinders offers beacuse all of us know that there is nothing short about a traditional shortsale.This did not increase the time on the Market, as we advertised it as a HomeTeleos Pre-Approved Short Sale. This program has officially launched and you may see it in a City or County near you. Its true when you see HomeTeloes Pre-Approved short sale, then really are short sales. www.hometeleos.com I'd love the hear from anyone else if they are doing anything similar or have heard of any similar programs launching. I think it will be a matter of time before others follow if they have not already done so.

CSS (Cooperative Short Sale ) Program Comming Soon!! Home Telos

Posted by Jonathan on October 5, 2008 at 3:30am

Okay, gang here's what's comming down the Pike!! When this program hits the streets short sales will truly be SHORT SALES.Anyway, myself and 4 of my agents were blessed with being selected and trained during the 5-Star Conference via Webinare, to be on the 4 front of this new program that will be comming to a city near you soon. When you see the words Home Telo's approved Short Sale , these properties will close in 30 days or less. Thats right lender approved short sales!! What a concept. Not all homes will qualify for the program and there will be a screening process. To some this up in a NUT shell this is how the program will work.A BPO is completed on the property within 72 hours of completing our BPO the lender will have had a 3 rd party apprasial or BPO conducted and sets a price at current market value they are willing to except for the home. The property will then be placed on the maket local MLS and www.bidselect.com where it can be bid on. Highest bidder assuming lenders price is met, will go into contract to close within 30 days.During the marketing time the home-owner has to maintain the home, remains in the home and is resposible for keeping it up for showing. The investors/lenders etc have finally figured it out!!!. It's cheaper for them in the long run to keep people in homes, maintaining them rather than them being vacant, and getting everything of value (A/C Units, Copper, Appliacnes, Light Fixtures etc) stolen.This should bring about some stability to the market and great opportunities for first time buyers that are overwhelmed when they step foot in some of the REO homes out there. They will have to be left for the investors to pick up at rock bottom prices,because they will be the only ones buying them when these short sales hit the market. This should be a WIN WIN for everyone.So Buyers Agents, When you see HOME TELO's you better act fast, because once this gets out , there will be 10-15 offers on each property, just like the turnkey REO's. That's my tip for the month...1 of 500 out of 135,000. If you were invited to the Round Up during the 5-Star Conference then you know what this means. For those of you that don't and would like to know shoot me an email if you can't figure it out..(Staci it was nice to see you at the Round Up!)

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FHA Discounts for First-Time Homebuyers

Rarely Discussed Tips for Buying that First House

Language Makes All The Difference

Language Makes All The Difference

What Do You do To Keep Your Agents Motivated?

What Do You Do To Keep Your Agents Motivated?

Motivated Buyer

As we approach the end of the federal tax credit incentive for the housing market, discussions are starting to whether or not extend the tax credit. I recent read two contradicted articles. According

Dear First Time Buyer - Don’t’ Buy that Dump! It's not worth the $8000 tax credit.

Pre-Approved Shortsales Breaking Out?

CSS (Cooperative Short Sale ) Program Comming Soon!! Home Telos

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