Homebuyer Tax Credit Deadline Nearing

Welcome back!

Atlanta home buyers be warned. It’s time to take action or forever hold your peace. If you’ve been thinking about buying a home and have been procrastinating, your opportunity for the $8,000 first-time homebuyer tax credit or the $6,500 repeat homebuyer tax credit is fleeting. We noticed a huge surge in last-minute homebuyers last fall when the previous tax credit was expiring. Many of those buyers waited too long and couldn’t find the right home anymore.

So don’t wait until the last minute. You must enter into a binding agreement on the purchase of a home by April 30, 2010 and close by June 30, 2010 to qualify. The way the current law is written, it actually allows you to procrastinate even longer, which isn’t a good thing. You’ll want to act now to make sure you get first dibs at the best homes before they’re gone.

There are some great homes still available that you can get under contract in time to qualify, so don’t delay. Contact us today to see how we can get you the tax credit and the home of your dreams.

We also have an on-staff CPA to answer all your questions about the tax credit and help you understand whether you qualify for the $8,000 first-time homebuyer tax credit or the $6,500 repeat homebuyer tax credit. Sometimes it’s surprising to find home buyers that don’t realize that they can take advantage of the tax credit.

Contact us today to schedule your complimentary homebuyer consultation.

Keller Williams Continues Growth in 2009

Having just returned from Family Reunion in New Orleans, I felt it’s important to pass along this great news. Keller Williams Realty reported that, despite the battered economy, it closed out 2009 with increased profit, profit share and associate growth.

According to CEO Mark Willis, who delivered his annual State of the Company address to more than 8,500 convention attendees, the company gave back $32.2 million in profit share to its agents in 2009, up six percent year-over-year. Since the inception of the profit sharing program, the company has given back $270 million in earnings to its agents.

The gains were driven by an increase in agent productivity, with the number of contracts closed per agent increasing by 16 percent year-over-year. On average, the company has grown its business (as measured by the number of closed units) at an annual rate of 27 percent for the past 12 years.

The company also continued to grow by number of associates. While the National Association of REALTORS® (NAR) saw a seven percent decrease in its membership in 2009, Keller Williams Realty grew its associate base by three percent, ending the year with 76,879 associates across North America.

In addition to being named the third-largest real estate franchise in the United States by REAL Trends, the company received accolades throughout the year:

* Entrepreneur magazine, No. 1 ranked real estate franchise on the 31st Annual Franchise 500 list

* J.D. Power and Associates, highest in overall satisfaction ratings from home buyers among the largest full-service real estate firms for the second year in a row

* Inman News, President and COO Mary Tennant named one of the 100 Most Influential Leaders in Real Estate

* Swanepoel TRENDS Report survey, No. 1 Industry Trendsetter of 2009 and 2009 Most Recognizable Real Estate Franchise Brand

* REAL Trends 500, KW offices comprised more than a quarter of the entire list, and of the major brands represented in the report, was the only company to boast growth in both number of agents added to its ranks and in total transactions closed.

* RISMedia’s Power Broker Report, KW again had the largest majority of offices on the list – accounting for 35 percent of all the brokerages listed and was No. 1 in number of agents and total closed transactions.

Contact us to learn more about Keller Williams and a career in Atlanta real estate.

Atlanta Home Buyers – FHA Update

Atlanta Home Buyers – FHA Update

Atlanta home buyers have plenty of reasons to buy a great house today. There’s certainly plenty to choose from, prices (for the most part) are great and interest rates remain low (although trending upward).

Oh, and we can’t forget about the ability to qualify for $8,000 for first-time homebuyers or $6,500 for repeat homebuyers.

One more wrinkle has thrown in recently. Last week, the Federal Housing Administration (FHA) announced that they would be taking steps to reduce their risk in lending to home buyers.

Announced FHA Policy Changes:

1. Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending. As private mortgage insurance (PMI) on conventional loans have increased, more buyers have used FHA loans as they were more affordable. The MIP will now be raised to 2.25% and the will request legislative authority to increase the maximum annual MIP that the FHA can charge.

2. Update the combination of FICO scores and down payments for new borrowers. New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%. This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.

3. Reduce allowable seller concessions from 6% to 3%. The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.

4. Increase enforcement on FHA lenders.  FHA has always been a good financing option if you less downpayment in hand and if your credit score was a bit lower than what some banks liked. Over the last few years, FHA has written almost 30% of the loans (up from 3% back in 2006) and has suffered from rising delinquencies.

The agency will now use these new measures to build its reserves and keep FHA-insured financing alive and well for homeowners. HUD Secretary wants borrowers to “have more skin in the game” as a way to reduce future defaults.

These measures are expected to take effect later this Spring and Summer. So in addition to the $8,000 tax credit, great prices, a good supply of homes to choose from and low interest rates, you can now add stricter and more expensive FHA financing looming as reasons to not delay your Atlanta home search.

If you would like some professional guidance for you Atlanta home search, don’t hesitate to contact us.

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