Archive for January, 2010
Knoxville One Of The Top 5 Cities Real Estate Market To Rebound First….
January 23rd, 2010 categories: Buyers, General, Market Trends, Sellers
The cities that are coming back the strongest are the ones that did not hit have the pricing bubble, which was followed by the foreclosure crisis. Forbes did a study of America’s 100 largest Metropolitan Statistical Areas (MSA) which are defined by US census. One of the key factors in the ranking is the low foreclosure rate. Forbes also looked at the delinquency rate of the city and foreclosures will be much lower and will clear up faster in cities with low delinquency rate. They looked at the trends for these cities to determine the ranking.
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FHA To Change Guidelines…How Will It Effect Knoxville Home Buyers??
January 20th, 2010 categories: Buyers, General, Market Trends, Sellers
Patti Francisco with Wells Fargo sent along information on this anticipated announcement from HUD today relaying changes to FHA lending terms in it’s continued effort to shore up the program against increasing financial losses and the threat of needing a government bailout.
The changes being announced are expected to be:
- Increase the Mortgage Insurance Premium which is collected at closing and most often financed with the loan from 1.75% to 2.25% of the loan amount.
- Require that any borrower with a credit score less than 580 put down 10%. 3.5% down will continue to be required by HUD with credit scores equal to and greater than 580. ***Note that most lenders apply their own credit policy overlay on top of the HUD credit score requirements, i.e. Wells Fargo currently has a credit score minimum of 600 for our FHA transactions. Most other lenders have a 620 or 640 FHA credit score minimum.
- Seller concessions will be limited to 3% of the purchase price versus the currently 6% limit.
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Knoxville Home Buyers Take Advantage Of The Tax Credit
January 8th, 2010 categories: Buyers, General, Market Trends, Sellers
As we get started in 2010 many Knoxville Home Buyers are wondering who can take advantage of the extension of the tax credit. It isn’t just limited to first time Knoxville Home Buyers buying their first home.
Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.
To help area Knoxville Home Buyers here are the highlights of the Tax Credit.
Which Knoxville Home Buyers can claim the credit?
“First-time home buyers” who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.
For current Knoxville homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years.
Another key point is that the existing Knoxville home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at “move up” buyers.
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Happy New Year Knoxville!!!
January 1st, 2010 categories: Buyers
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