Ventura County homebuyers have less than 60 days left to select a Realtor, pre-qualify for a loan, choose a home, and open escrow in order to qualify for the federal government’s homebuyer’s tax credit.

The tax credit for Ventura County homebuyers is:

• $8,000 Tax Credit for 1st Time Home Buyers.
• $6,500 Tax Credit for Current Homeowners.

The catch? You have to be in contract (in escrow or open escrow) on a home before April 30, 2010 in order to qualify for any of the tax credits mentioned above.

Time is running out for those of you who have procrastinated. The competition to open escrow before April 30, is fierce and at times an emotional roller coaster.

If you need any help locating a home in Ventura County or would like to learn more about the homebuyers’ tax credit please feel free to contact me, Mana Tulberg: 805-443-8898.

The Federal Housing Administration (FHA) has introduced new rules for the FHA home loan program which will ultimately have a huge impact on Ventura County’s home buyers and consequently, Ventura County’s real estate market.  Due to a significant rise in the number of defaulted FHA loans, the FHA’s cash reserve has fallen below the Federally mandated level.  This has prompted new FHA home loan guidelines to ensure that the new FHA home buyers are in a better financial position and have greater equity at the time of purchase.

The new FHA guidelines will introduce new restrictions for FHA borrowers.  Below is a list of a few of these conditions and restrictions:

• Downpayment for borrowers with a credit score above 580 will remain at 3.5%.  However, home buyers with a credit score less than 580 will have to provide 10% downpayment towards the purchase of their new home.  This rule will go into effect in early summer 2010.

• All new FHA borrowers’ upfront mortgage insurance premiums will increase from 1.75% to 2.25%.  The FHA mortgage insurance is a cost borrowers pay because they are able to purchase a home with less than 20% downpayment.  This rule will go into effect in Spring 2010.

• Home sellers’ concessions, which is the amount home sellers contribute to the FHA home buyers’ closing cost, will be reduced from 6% to 3%.  This means home buyers will have to come up with the additional money for their closing costs.  This rule will go into effect in early summer 2010.

Some Ventura County home buyers may see these new FHA guidelines as an additional hurdle in their road to homeownership.  Many FHA home buyers who were relying on FHA’s low closing cost and low downpayment will have to come up with some additional cash.  In today’s economy where cash and revenue is scarce, coming up with additional cash may be more difficult for some FHA home buyers.   Therefore, Ventura County may experience a thinning in FHA home buyers during the summer season where traditionally the real estate market is at its busiest.

I would like to read your thoughts and feelings on these new FHA guidelines in the comment area provided for you below.

Starting February 1, 2010 the dream of home ownership will become easier for many FHA home buyers.  For the next year the Federal Housing Administration (FHA) will lift its’ 90 day seasoning requirement in order to expedite the sale of foreclosed and flipped properties.  This new guideline will allow Ventura County FHA home buyers to have access to a much larger inventory of homes.

How Do The FHA New Rules Help Ventura County FHA Home Buyers?

Current FHA guidelines prevent FHA home buyers to purchase a home that has been owned by a seller for less than 90 days.  Therefore, FHA home buyers are not eligible to purchase foreclosed properties and/or flipped properties unless the home has been owned by the seller for more than 90 days.   Many prospective home buyers with FHA mortgage insured loans and many Realtors can attest to the frustration associated with the FHA home loans 90 day seasoning requierment.

However, the new FHA guidelines will allow Ventura County FHA home buyers to have just as much access to all properties as do cash buyers or buyers with conventional loans.  No more 90 day seasoning will also help neighborhoods with a high volume of foreclosed homes to become occupied sooner.

Last week I attended the annual National Association of Realtors (NAR) convention in beautiful San Diego.  One of the sessions that received the most attention and precipitated some controversial discussion was the forum with NAR’s Chief Economist Lawrence Yun.  In this session Mr. Yun projected “real estate prices would climb between 3%-5% in 2010, while the number of home sales will increase 15%.”

Following Mr. Yun’s prediction, many blogs and newspapers have published a taunting series of attacks on this very optimistic forecast. Blogs and their contributors such as Boston.com have questioned such a sunny prediction for 2010’s real estate market.

Although Ventura County’s real estate market has demonstrated some positive changes in the past few months, it is hard to envision a significant rise in real estate when unemployment is predicted to reach 11% in 2010 (source: NAR).   As I have mentioned in my previous posts, our economy and the housing market will not recover unless there are more jobs created.  Jobs provide income and income is the primary means to fulfill those monthly payments called mortgage!!

For our economy’s sake I do hope Lawrence Yun’s predictions are accurate. However, there is hopeful wishing and then there is reality.

Do you see a light at the end of our economic tunnel? If so, what are the positive signs that guide you?  If not, what is your economic barameter?  Either way, please feel free to comment below.  Ventura County Real Estate Talk would love to read what you have to say on this issue.

Thank you.

Good news Ventura County: the first time homebuyers’ tax credit has been extended and expanded to April 30, 2010.  For many Ventura County homebuyers who were overbid or outbid by cash buyers, this extension of the first time homebuyers’ tax credit is a tremendous help.

The $8,000 tax credit, which is due to expire by November 30, 2009, has been beneficial to many in Ventura County in achieving their dream of homeownership.

“The homebuyers’ credit has helped pave the way for stabilization in the housing market and contributed to three consecutive months of rising home prices,” said Representative Jim McDermott, a Washington Democrat. “Its extension will continue to make homeownership more affordable and bring confidence to a housing market and economy that remain fragile.”

So here is how the HomeBuyers’ tax credit extension and expansion works:

• $8,000 tax credit to those buying a home for the first time in the past three years has been extended to April 30, 2010. In this case homebuyers must have signed a Residential Purchase Agreement before April 30, 2010 and close escrow by July 1st, 2010.

• Military families who have been deployed overseas for 90 days or more in 2008 or 2009 can enjoy the same benefits.  However, the time frame for these families has been extended to April 30, 2011 to close escrow.

• A tax credit in the amount of $6,500 to those homebuyers who have resided in their prior residence for a consecutive five years of the past eight years.

• Once you have used this tax credit, you would have to repay the credit if, within the next 3 years, you sell your home or no longer use your home as your primary residence.

• The income limit for both first time homebuyers and existing homeowners is $125,000 for individuals and $225,000 for couples.

• The new tax credit is only offered on homes priced at $800,000 or less.

The new tax credit bill is a part of a more complex bill that includes an extension of unemployment insurance benefits.  Those who are currently jobless will receive another extra 20 weeks of unemployment assistance.

With the Federal government extension and expansion of the tax credit for homebuyers, Ventura County’s real estate market is expected to see another boom in number of home sales.  Now only if there were enough homes on the market to satisfy all the homebuyers in Ventura County.

What do you think of the newly extended Homebuyers’ Tax Credit?

According to the California Association of Realtors (CAR) in the 2009 First Time Home Buyers Tax Credit Survey, nearly 40% of the first time home buyers in California claim that the $8000 federal government’s tax credit had a significant impact on their decision to purchase a home before the end of this year.

In Ventura County there has been an 18% increase in the number of homes sold from January-August of 2009 compared to the same period of time in 2008.  Since there have not been any significant positive changes to our county’s economy, the increase in the number of homes sold in Ventura County has consequently been correlated to the first time home buyers tax credit.

Therefore, CAR and the National Association of Realtors (NAR) are urging Congress to extend the December 1, 2009 deadline and to include all home buyers in the $8000 tax credit program.

We care strongly about our readers’ opinions and would like to know if you believe that:

• The Congress should extend the first time home buyers tax credit?
• The Congress should offer the tax credit to all home buyers?

Stay tuned for the Congress’s final decision on the first time home buyers (or all home buyers) tax credit.

On June 15, 2009 the California Foreclosure Prevention Act went into effect in order to help many Ventura County and California homeowners who are at the risk of losing their homes.  The California Foreclosure Prevention Act adds 90 days to the existing foreclosure process to help homeowners work on a loan modification program with their lenders.  This means Ventura County homeowners have an extra 90 days from the time that they have defaulted on their mortgage to the time their home is sold in a foreclosure auction.  California now requires that lenders need to prove that they have worked with a homeowner on a mortgage modification before the homeowner’s property is put up for foreclosure.

“The goal is to compel banks to do systematic loan modifications across California to reduce our foreclosure rate, which is the highest in the nation,” said Assemblyman Ted Lieu, D-Torrance, who wrote the bill.

While there is no guarantee that a homeowner is eligible for a loan modification, the new law would like to see that the lenders have made an effort to help the distressed homeowner.  Some lenders may choose not to participate in this program, however, in order to do so, they must apply for and receive an exemption from these provisions of the new law.

Although it’s great to see the government helping distressed homeowners, it is very important to know that this new law will not help every distressed homeowner in Ventura County, California.  Those homeowners in Ventura County who can not qualify for a loan modification, will opt to short sale their home.

As Ventura County distressed home owners wait for a loan modification, our county should see a reduction in the number of bank owned/REO homes.  Help from the government will assist many home owners in Ventura County, however so long as jobs are lost, governmental assistance will protect only some people from losing their homes.

If you need any help or have any question with mortgage modification in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.

Currently there are 204 homes for sale in the city of Camarillo.  From the 204 homes for sale in Camarillo, 33 homes are short sale homes and 4 homes are bank owned or REO homes.

Below is a real estate market report for the city of Camarillo for the month of May.

Camarillo and Santa Rosa Valley Real Estate Market-May 2009

Single Family Homes in Camarillo and Santa Rosa Valley:

• Homes listed for sale in May: 43
• Homes sold in May: 56
• Average home sale price: $586,464
• Median home sale price: $469,000
• Average days on market: 48
• Average selling price % of list price: 95.61%

Condos and Townhouses in Camarillo:

• Condos/Townhouses listed for sale in May: 13
• Condos/Townhouses sold in May: 25
• Average Condos/Townhouses sale price: $287,372
• Median Condo/Townhouse sale price: $285,000
• Average days on market: 69
• Average selling price % of list price: 96.62%

Source: Ventura County Regional Data Share

If you wish to receive updated information on Camarillo Real Estate please don’t hesitate to call Mana Tulberg: (805) 443-8898.

Ventura County first time home buyers can now use the Federal Government’s $8000 tax credit towards their down Payment.  On Tuesday, May 12, 2009, the Department of Housing and Urban Development secretary, Shaun Donovan, announced that the Federal Housing Administration (FHA) will permit its lenders to let first time home buyers use the $8000 federal tax credit as a down payment.

According to Secretary Donovan, “The FHA’s approved lenders will be permitted to “monetize” the tax credit through short-term bridge loans. This will allow eligible home buyers to access the funds immediately at the closing table.”

Currently,Ventura County first time home buyers may receive the Federal tax credit after they have filed their taxes.  However, the new offer to first time home buyers will help many in Ventura County who need extra money for their down payment to cover the closing costs associated with their home purchase.

The FHA is currently working on a program where approved lenders will provide first time home buyers with a short term loan to be used towards the down payment.  Once these first time home buyers receive their tax credit from the Federal Government, they would then pay back the lender of the short term loan.

Now first time home buyers in Ventura County have more incentives than ever to enter the market and purchase a home.

If you need any help purchasing a home in Ventura County or if you have any questions about the first time home buyer tax credit please feel free to contact me, Mana Tulberg: (805) 443-8898.

In Ventura County and the State of California first time home buyers may not only benefit from the $8000 government tax credit, but may also take advantage of the First Time Home Buyers Mortgage Protection Plan.  The California Association of Realtors (CAR) has announced a mortgage protection plan for first time home buyers effective April 2, 2009.

The California Mortgage Protection Program provides first time home buyers in California up to six months of mortgage protection.  The following is an announcement by the California Association of Realtors:

Through the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), first-time home buyers who lose their jobs due to layoffs may be eligible to receive up to $1,500 per month for up to six months to help make their mortgage payments. A qualified co-buyer also can participate in the program, for a reduced monthly benefit of $750 per month for up to six months in the event of a job loss. Program benefits also include coverage for accidental disability and a $10,000 death benefit. C.A.R.’s Housing Affordability Fund is dedicating $1 million to the program this year, and estimates that as many as 3,000 families will benefit from the program throughout 2009.

Who Is Eligible For The California Mortgage Protection Plan:

• You must be a first time home buyer. First time home buyers is defined as someone who has NOT purchased a single family home in the past 3 years.
• Your must open escrow on April 2, 2009, or later, and close escrow no later than December 31, 2009.
• You must use a California Realtor for your home purchase transaction.
• The property must be located in California.
• You must provide a W-2. You can not be self-employed or a military personal.
• Detailed information can be found at: CAR Housing Affordability Fund

Source: California Association of Realtors (CAR)

The California first time home buyer mortgage protection plan is a way for CAR to help prospective home buyers in California.  With many first time home buyers apprehensive about their income stability, CAR has given these California home buyers some measure of protection and assurance against temporary job loss.

If you are looking to purchase a home in Ventura County please feel free to contact me, Mana Tulberg: (805) 443-8898.