Brookings Institute study says Va headed for economic recovery
by Ben Martin, blogmaster emeritus on June 17, 2009
Research from the Brookings Institute on the economic conditions in the country’s 100 largest metro areas released this month indicates that Virginia may already be recovering from the nation’s economic downturn.
Brookings ranked the 100 metros on overall economic health. Washington DC ranked 14th, Norfolk-Virginia Beach-Newport News ranked 16th, and Richmond ranked 46th.
In the report, all three Virginia-area metros are cited as showing signs of economic recovery: Richmond, Washington DC, and Virginia Beach each showed growth in employment and output in the first quarter of 2009.
Virginia Beach-Norfolk-Newport News, Washington DC, and Richmond were ranked three, four and five respectively for percent change in Gross Metropolitan Product from Q4 2008 to Q1 2009.
One significant blemish for Virginia: The DC area is still showing 6.49 REOs per 1000 mortgageable properties, making it the 11th worst performer in that category.
A strong government and/or military employment presence in all three of Virginia’s major metro areas bodes well for economic recovery the Commonwealth, as these employment sectors tend to be insulated from large employment declines.
Standing in stark contrast to the gloomy Case-Schiller index, the Brookings Institute report shows that 38 of the top 100 metro areas saw no decline in home prices over the past 12 months.
We have seen a decrease in the inventory of homes for sale for the month of May. Glad to pass on good news! Call Kerry Riley with specific questions about market conditions in your neighborhood at (804) 432-2688.
Monday, June 22, 2009
Great option for VCU/MCV student or first time buyer - 212 N 29th Street
Buying that first home can be daunting for the first time buyer. Luckily today there is some relief. First is the economic downturn and credit crisis which has slowed the real estate market. This is good news for first time buyers because of the big inventory of homes for sale.
This increases the affordablity of homes. Also the $8000 first time tax credit allows a first time buyer or anyone who has not owned a home in the last three years to get an $ 8000 credit on their next federal tax return filing.
MEANING that if you can get the seller to cover the closing cost, the $8000 federal tax credit will cover the downpayment assuming an FHA loan up a sales price of $ 228,571. That's a no out of pocket cost to a first time buyer (after credit is applied at tax time). A golden opportunity for a first time buyer.
Also a parent can take advantage of the first time buyer tax credit if their child is occupying a home near college. The student must have a qualifying credit score and occupy the property. We call this the "Kiddie condo" and is a great tax shelter and investment for the parent. Especially when they can rent a room or two to a roomate.
Which brings me around to 212 N 29th Street at Churh Hill. It's a charming turn of the century townhouse in great shape with a separate downstairs apartment included for just $219,900. So the upstairs owner can rent the downstairs to another student for probably $700/mo. or so.
Throw in an $8000 federal tax credit and you have got a sweet deal for a parent or anyone wanting a home close to VCU Medical Center.
Call Kerry Riley for the details at (804) 432-2688 or check out at http://www.kerryriley.com
This increases the affordablity of homes. Also the $8000 first time tax credit allows a first time buyer or anyone who has not owned a home in the last three years to get an $ 8000 credit on their next federal tax return filing.
MEANING that if you can get the seller to cover the closing cost, the $8000 federal tax credit will cover the downpayment assuming an FHA loan up a sales price of $ 228,571. That's a no out of pocket cost to a first time buyer (after credit is applied at tax time). A golden opportunity for a first time buyer.
Also a parent can take advantage of the first time buyer tax credit if their child is occupying a home near college. The student must have a qualifying credit score and occupy the property. We call this the "Kiddie condo" and is a great tax shelter and investment for the parent. Especially when they can rent a room or two to a roomate.
Which brings me around to 212 N 29th Street at Churh Hill. It's a charming turn of the century townhouse in great shape with a separate downstairs apartment included for just $219,900. So the upstairs owner can rent the downstairs to another student for probably $700/mo. or so.
Throw in an $8000 federal tax credit and you have got a sweet deal for a parent or anyone wanting a home close to VCU Medical Center.
Call Kerry Riley for the details at (804) 432-2688 or check out at http://www.kerryriley.com
Sunday, June 21, 2009
Big News! VHDA will loan $8,000 tax credit at closing for qualified first time buyers
Here are the details... Call me at (804) 432-2688 to sign up..
VHDA to Launch Homebuyer Tax Credit PlusThe Virginia Housing Development Authority (VHDA) is launching a new program to allow first time homebuyers to use the Federal First Time Homebuyer Tax Credit to finance downpayment and closing costs on a VHDA mortgage.
This loan has a built in second mortgage with zero interest and no payments for the first 12 months. Eligible buyers have the following three payment options:1. Pay off the second mortgage with the Federal First Time Homebuyer Tax Credit. 2. Pay off the second mortgage over 29 years - and save the tax credit to pay for future emergencies, make home improvements, or pay off/pay down existing debt.3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.
The maximum loan amount for the first mortgage is the maximum FHA mortgage, and the maximum loan amount for the second mortgage is up to 5% of the sales price (no cash back). VHDA does not guarantee borrowers' eligibility for the Federal First Time Homebuyer Tax Credit. Borrowers can file an amended tax return after closing, and should consult a tax advisor or the IRS for complete eligibility criteria. Information is available at http://www.irs.gov/.
If borrowers are not eligible for the First Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the First Time Homebuyer Tax Credit plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest.
For more information, click here or call 877-VHDA-123.The release of VHDA's program follows HUD's May 12 announcement that FHA approved lenders are permitted to "monetize" the Federal First Time Homebuyer Tax Credit through short-term bridge loans.
HUD's program DOES NOT allow a buyer to use a conventional lender to monetize the tax credit to reach the 3.5% downpayment, although they CAN use it for closing costs and prepaids. The only way a homebuyer can use the tax credit for downpayment (to reach the FHA 3.5%) is if the buyer uses an FHA-approved non-profit or instrumentality of government. For more information, click here to read HUD's mortgagee letter.
VHDA to Launch Homebuyer Tax Credit PlusThe Virginia Housing Development Authority (VHDA) is launching a new program to allow first time homebuyers to use the Federal First Time Homebuyer Tax Credit to finance downpayment and closing costs on a VHDA mortgage.
This loan has a built in second mortgage with zero interest and no payments for the first 12 months. Eligible buyers have the following three payment options:1. Pay off the second mortgage with the Federal First Time Homebuyer Tax Credit. 2. Pay off the second mortgage over 29 years - and save the tax credit to pay for future emergencies, make home improvements, or pay off/pay down existing debt.3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.
The maximum loan amount for the first mortgage is the maximum FHA mortgage, and the maximum loan amount for the second mortgage is up to 5% of the sales price (no cash back). VHDA does not guarantee borrowers' eligibility for the Federal First Time Homebuyer Tax Credit. Borrowers can file an amended tax return after closing, and should consult a tax advisor or the IRS for complete eligibility criteria. Information is available at http://www.irs.gov/.
If borrowers are not eligible for the First Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the First Time Homebuyer Tax Credit plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest.
For more information, click here or call 877-VHDA-123.The release of VHDA's program follows HUD's May 12 announcement that FHA approved lenders are permitted to "monetize" the Federal First Time Homebuyer Tax Credit through short-term bridge loans.
HUD's program DOES NOT allow a buyer to use a conventional lender to monetize the tax credit to reach the 3.5% downpayment, although they CAN use it for closing costs and prepaids. The only way a homebuyer can use the tax credit for downpayment (to reach the FHA 3.5%) is if the buyer uses an FHA-approved non-profit or instrumentality of government. For more information, click here to read HUD's mortgagee letter.
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