REALLY!  IT’S TRUE.

The program is available only through Wells Fargo Bank who has dedicated $14 Million in funds to provide down payment assistance to eligible home buyers in the City of Los Angeles.

This is a great opportunity for home buyers to get into a home with a $30,000 FORGIVABLE *down payment assistance grant.   There are some other VERY REASONABLE eligibility requirements.  THIS IS A GREAT OPPORTUNITY for many home buyers!

*Its a 0% interest grant and 20% is forgiven each year – so if you stay in the home for 5 years all of the $30,000 is forgiven.

Contact me for more information on the program and to find out about an event you can attend to learn more and to have the funds reserved for you for 60-days.

Adeline Ramirez
Keller Williams Realty
BZPros@gmail.com
DRE 01763980

On the heels of one of the worst housing downturns in history, and having seen many people lose their home, today’s home buyers are much more conservative.  Their number one priority is to keep the monthly payment low and easily affordable, preferably close to what they currently pay in rent.  While they may qualify for a larger loan, they don’t want to risk getting in over their heads.

Today’s home buyers are both victims and witnesses of the national housing crisis.  For many young adults, buying a first home is part of the American dream. But current economic conditions give them cause to pause and consider whether or not owning a home makes financial sense.  They’re also being more cautious in investigating the condition of the home, ordering inspections beyond the general physical inspection to better assure they’re not going to be hit with some large repair expense in the near future.

While the dream of home ownership remains strong amongst many would be home buyers, it’s important for sellers to be cognizant of this shift in attitudes.  Selling a home is often an emotional time for the homeowners for many reasons.  By being aware of the concerns and values of today’s home buying market, sellers can avoid stress by having a better understanding of what to expect when selling a home.

 (I figured you’d ask if you read the last post)

Eleven homes for under $400,000

Click HERE to search for more homes.

This means, at today’s rates,  if you purchase a home for $375,000 and put 20% down , your mortgage payment will be around $1400/month (on a 30-year loan).

If you’re thinking of buying, you owe it to yourself to get some facts on your LOCAL market.  A great place to start is by talking to a LOCAL Realtor.

2. You deduct it:  Mortgage interest, property taxes and some costs involved with buying a home can be deducted from federal income tax

3. Interest Rates: The cost to borrow mortgage money is at an all-time low.  If you’re going to buy, this is the time to jump into the market.

4. You invest in it: Rent money is gone forever.  Mortgage payments build home equity ownership interests.

5. You save for the future: Home equity is a ready-made savings plan.  Sell it and you can make up to $250,000 cash without owing any federal income tax on the profit.

6. You can predict expenses:  Unlike rent, a fixed mortgage payment doesn’t get more expensive over time.

7. You pick it:  Choose from different neighborhoods, styles and price ranges

8. You create it:  Decorate, renovate, get a pet or paint the walls whatever color you want – it belongs to you.

9. You live in a neighborhood:  You and your neighbors take pride in the local schools, roads and more – and you work together to build a friendly community.

10. You spend money on yourself:  When you buy a chandelier or hardwood floor or kitchen cabinet, you’re spending hard-earned money on yourself and building equity at the same time.

1. When the gym is empty in the middle of the day again

2. When people start ordering appetizers and desserts again

3. When we stop deferring deferred maintenance

4. When we can sell a house in 90 days again

5. When mortgage lenders actually start competing for your business again.

Especially if you’re looking to downsize or up-size, NOW may be the right time to sell your home and purchase another.

Why?

1. Interest rates remain low giving buyers more incentive to buy as well as more purchasing power.  An increase in interest rates of a mere 1/4% reduces a buyers purchasing power significantly.  The low interest rates also work in your favor in the purchase of your next home.

2. While you may be taking a loss on the value of your home from its peak value, you’re gaining by purchasing your next home while prices and interest rates are low.  You will see a greater gain when the real estate market turns around with your next home.  Additionally, lower home prices may enable you to obtain more features in your next home. It also may allow you to move into a more desirable area.

In short,  the answer to “IS IT A GOOD TIME TO SELL?”, depends on your reason for selling and your particular set of circumstances.  There are opportunities in every season and under all market conditions.  One must look at the big picture to truly determine if selling now is right for you.

The report also indicates that inventories in both markets remain healthy with sales activity leveling out – meaning the market is still leaning towards a buyer’s market.  Combining that with low interest rates makes this a great time to buy.

1. Economic insecurity – translates to “What if I lose my job?”

2. Fear the market will decline and therefore their home value will decline.

And another excuse I hear from time to time is:

3. I’m waiting until the big crash of ’12/’13.

Let’s address item number 1.

If you rent and you lose your job and you don’t get another job for 3 months do you know where you’re likely to be living at the end of those 3 months? Probably NOT in that same apartment or house. Your landlord will most likely initiate eviction procedures as soon as possible. Contrary to what some people seem to think, it is not difficult to evict a tenant who is behind in rent payments. I have a friend who fell on hard times. He couldn’t pay his rent for 2 months. He rented from a friend. His friend evicted him. It was a business decision.

If you own your house, you’re likely to be able to work something out with the lender and just working that out could take 3 – 6 months in which time you’ve probably already found a job. There are many options to modify your loan if you hit hard times. You just need to take action the moment you hit a bump in the road.

You’re living arrangement is more secure if you own the home.

No. 2 – What if the home value goes down? Consider this:

Just about any investment (stocks, bonds, mutual funds) fluctuate in value. To reap the greatest rewards you must consider these long-term investments. You have little to no control over the value of those investments. Not so with Real Estate. With Real Estate you have some control over the value because you can maintain the home and even improve it thereby protecting and likey  increasing it’s value. Try doing that with a stock (you’d have to buy boat loads of coca-cola to have an impact on the value of that stock). Now I’m not a financial analyst or planner or anything like that so consult with them (I bet they have investments in Real Estate).

No. 3 – I’m waiting until the crash of 2012/2013

Folks, interest rates are at historic lows; housing prices are lower than they’ve been in years. Even a small 1/4% increase in interest rates will diminish your purchasing power significantly.

It’s unlikely, especially in the Los Angeles area, that housing prices will plunge much lower. By waiting, you risk being subject to higher interest rates. This means you will get less house for your money. It can make a huge difference.

The point is, IF you are able to buy now, and you WANT to buy, you may want to re-assess your reasons for not taking advantage of the set of conditions that exist in today’s Real Estate market.

Center for the Arts Summer Solstice Sound Bath – Tuesday June 21

Mortgage Rates Hover at 4.5%