Southern Oregon Seniors, Did You Know You Could Use A Reverse Mortgage To PURCHASE A Home?

A lot of information goes around about the Reverse Mortgage that is the tool many senior homeowner’s choose to use to help bridge the gap between their retirement benefits and their everyday expenses, but Southern Oregon Seniors, did you know you could use a Reverse Mortgage to PURCHASE a home? The general terms are the same as when you already own a home and take out a Reverse Mortgage, aka “Home Equity Conversion Mortgage” or “H.E.C.M.”.

Some general program details:

-You must be 62+ years old
-You never have to make monthly payments on the amount you borrow
-Credit history and income do not matter. The amount of money available to you is based on your home’s appraised value and/or the FHA loan limit (currently $625,500 nationwide) and your age
-Money may be disbursed to the homeowner in a lump sum, through monthly payments or accessed through a home equity line of credit.
-This is a non-recourse loan, meaning the homeowner(s) or heirs can never owe more than the home is worth
-You must reside in the home more than 50% of the year, which will be checked annually
-You must pay your property taxes and homeowner’s insurance, and maintain upkeep on the home.
-When the day comes you no longer live in the home, you or your heirs have time to make arrangements to refinance or sell the home and payoff the Reverse Mortgage

So, if you have sold a home and are purchasing another, you might want to consider using a Reverse Purchase Mortgage, which might work something like this:

Buyer is 65 years old, purchasing a home for $300,000 and is considering paying cash for it. You cover your down payment and closing costs, financing the rest with the Reverse Purchase Mortgage – A HUD FHA insured home loan that has no monthly payments – leaving almost $175,000, with which you may supplement retirement benefits, earn interest, save for a Rainy Day.

Sound like the solution you and your family have been looking for? Call or e-mail for more details.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Hear Ye! Hear Ye! Southern Oregon First Time Home Buyers! Need Down Payment Assistance?

Hear Ye! Hear Ye! Southern Oregon First Time Home Buyers! Need Down Payment Assistance?

Are you a First Time Home Buyer in Southern Oregon who thinks you have to rent because you haven’t been able to save for a down payment? Think again! Down Payment assistance funds are once again available to eligible first time home buyers meeting the income criteria. As always, funding is limited, so don’t wait! Call or e-mail me for further details.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Thinking of Buying A Foreclosure Home In Southern Oregon?

Here in Southern Oregon, in the traditional peak buying season we’re seeing quite a bit of activity in the lower price ranges of the real estate market. Even Ashland, where prices are at the higher end of the scale for the Rogue Valley, sales are picking up. In Medford, White City, Central Point, Eagle Point the under $200,000 price ranges are seeing a flurry of activity, especially heavy in the lower price ranges where both first time home buyers looking to take advantage of the $8000 tax credit before it sunsets December 1, 2009 AND investors who are seeing price ranges that will cash flow and meet their investment goals are competing against each other. The inventory of available homes is shrinking consistently now, with the Mar-May 2009 number of homes on the market 27% less than the same period in 2008. Foreclosure sales are still representing a large percentage of these sales, and this market segment is likely to pick up a bit more when the State once again releases the funding for the Neighborhood Stabilization Program, probably sometime toward mid to end of July.

So, how does the “average buyer” buy a foreclosure home? Typically, you won’t find the average buyer on the courthouse steps trying to pick up a bargain through the Trustee’s Sale. This is where you will find the sophisticated, experienced investors who know the risks associated with purchasing foreclosed homes in this manner. The average buyer is working with their savvy, experienced Realtor, who has explained the many risks associated with these “as is” purchases where the bank who owns the property has no idea of how the property was treated by previous occupants. Their Realtor is advising their buyers how to limit risk and protect themselves through home inspections and other more specific types of inspections specific to a property, such as septic system and well/ water flow/quality inspections and certifications. And, their Realtor is watching for these properties to come on the market – knowing even before they are on the Multiple Listing Service that they are coming down the pipe, letting their buyers position themselves to pounce as they come on the market.

Sound intimidating? With the right professionals on your team, it doesn’t need to be. Southern Oregon Buyers are finding amazing deals this way. They are choosing their own Realtor to look out for their best interests vs. the bank’s representatives who are looking out for the banks. Here are some financing tools that may help you if you choose to buy a foreclosure/bank-owned home:

Home Path – Fannie Mae’s specific program for buyers purchasing a home that Fannie Mae owns. A “standard program”, or a “renovation program” for homes in need of some work. Fannie Mae works with local Realtors and Lenders on the sale of their homes so you may work with your chosen professionals. Here are the general highlights:

• Low down payment and flexible mortgage terms (fixed-rate, adjustable-rate, or interest-only)You may qualify even if your credit is less than perfect
• Available to both owner occupiers and investors
• Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a loan from a nonprofit organization, state or local government, or employer
• No mortgage insurance
• No appraisal fees
• HomePath Renovation Mortgage Financing to fund both your purchase and light renovation
  

HUD Homes – These homes went back to HUD after an FHA loan was foreclosed upon. This foreclosure process is a slow one, so we haven’t seen many of these on the market in our area, but we do see a handful of them in our area. With only $100 down payment required, plus other buyer incentives, buyers may find they are paying as much as they are paying for rent, but own their own home.

Neighborhood Stabilization Program – This federal program that was devised as part of the stimulus packages approved in late 2008 has had a slow start getting to market so buyers may use it. Eligible Buyers purchasing foreclosed homes in the eligible areas that have seen a high concentration of foreclosures may get up to $50,000 to be used for matching down payment, closing costs, prepaid expenses, eligible repairs and mortgage reduction. A recent change in June has led to further investigations by the State of Oregon who administers the program. This process will hopefully be complete and the program re-released for eligible buyers purchasing foreclosure homes

USDA Guaranteed Rural Housing – This program is not specific to foreclosure properties as are those programs listed above, but it does have a unique feature that allows for a “holdback” of up to $10,000 for repairs to be made after close of escrow that may be financed. Buyers meeting the income/property eligibility requirements of this program end up with a great government loan with no down payment and no mortgage insurance required.

Some of these programs have income limits, some have population/area limits, so feel free to check with me to see what is available to you based on your individual circumstances.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Ready...Set...WAIT! No, DON'T Wait!

Have you ever played "On your mark...Get Set....Wait!" with your kids? Or, "Red Light, Green Light"? I know my husband and I have done this, and are learning as time goes by that this isn't a bad lesson for our kids to get in the world we live in today. I'm thinking I wish someone had played "ready set wait!" with me a bit more when I was a kid, so I might be a bit more tolerant of the world I live in today - especially when it comes to the real estate/mortgage industry!

Ready...Set...WAIT!

Monetizing the $8,000 tax credit
HUD Secretary Donovan opened mouth and insert foot at the National Association of Realtors convention in Washington, D.C., announcing a wee bit early that the guidelines had been changed so that eligible FHA home buyers could have their participating lenders "monetize" tax credit funds they are eligible for so that these buyers may use these funds to meet the minimum 3.5% down payment requirements on FHA home loans. I'm glad Secretary Donovan did this, because although this announcement and its associated Mortgage Letter were retracted until the fine nuances were ironed out, Friday May 29th a new letter was issued. So, eligible first time home buyers, call your lenders and see if they are participating with this program to make the funds available to you.

Ready...Set...WAIT!

Neighborhood Stabilization Program
Well, finally, the waiting is coming to an end for some of these programs to be up and running for today's eligible Oregon home buyers to take advantage of. The Neighborhood Stabilization Program is just awaiting its final stamp of approval which should be coming through any day now. One segment of this program will be made available to home buyers who are looking to purchase bank-owned or privately financed properties that have been taken back through foreclosure proceeds. Matching down payment funds, closing costs and reasonable/eligible repair costs may be funded through the Neighborhood Stabilization Program funds - up to $50,000 per home!

Ready...Set...GO!
Yes, you heard that right...GO! The Neighborhood Stabilization Program for Oregon is about ready to accept reservations. If you are a buyer who has gotten all your ducks in a row and are prepared to jump on this opportunity, DO IT NOW! Not many lenders and realtors have familiarized themselves with these program requirements, so you may be a bit frustrated when calling around about it. If you are looking to buy in Southern Oregon, call me and I can help you with your financing, and recommend you to Realtors who are knowledgeable about the program guidelines. Why the sense of urgency you may ask? Very limited funding allocation is available, and it's first come, first served, so the early birds will be catching this particular worm. I've been on the phone with all my eligible buyers and Realtor referral partners spreading the word, and would love to play a part in the successful outcome of the Neighborhood Stabilization Program, which is to help eligible home buyers while getting foreclosed homes off the market.

Oregon is trying to get the $8000 "monetized" for non-FHA or non-participating lender programs by June 30, 2009, so get ready now!

See you at the closing table!
Karen Cooper - OR/CA Mortgage Consultant - http://www.quality4loans.com/

Ready...Set...GO! Get Your $8000 Tax Credit for Your Down Payment!

There is some good news on the horizon for home buyers who are ready, willing and able to enter the world of homeownership!

There are several provisions in the overall stimulus package that President Obama's approved Tuesday. One of the most beneficial provision for home buyers is an $8,000 home buyer tax credit for new home buyers - buyers who have not owned a home in the past three years. For qualified home purchases in 2009, the legislation:

· Stipulates that the $8,000 tax credit does not have to be repaid, unlike the tax credit passed last summer (has a recapture provision if the home is sold in the first 36 months, though);
· Keeps the tax credit refundable, or claimable regardless of tax liability;
· Extends the "sunset" date from July 1, 2009 until Dec. 1, 2009 so that consumers can utilize it during the critical summer and fall buying months;
· Allows tax credit home buyers to participate in the mortgage revenue bond programs, such as Oregon Bond's RateAdvantage program; and
· Permits state housing finance agencies to help buyers at closing by advancing the credit amount as a loan using tax-exempt bond proceeds - this is even better than the Oregon Bond CashAdvantage program, as you may still take the really great rate on the RateAdvantage program.

While much of the focus has been on the home buyer tax credit, there are several other important components in the legislation that will help small businesses and bolster the housing market. Additional provisions that relate to housing in H.R. 1, the American Recovery and Reinvestment Act of 2009, will:

· Help home borrowers wanting to purchase or refinance homes in the high-cost markets by extending the 2008 FHA, Fannie Mae and Freddie Mac loan limits of $729,750 through the end of 2009;
· Temporarily allow exchange of Low-Income Housing Tax Credit allocating authority for tax-exempt grants and appropriates $2 billion in HOME funding for affordable housing projects (this should make housing developers trying to keep their construction crews busy happy!)

Think $8,000 would help you get the home you want to buy? Want to find out if you meet the criteria? Call me at (541)608-6003 or e-mail me for your free consultation, and I'll gladly share my 25 years of experience with you.

See you at the closing table!

Karen Cooper - OR/CA Mortgage Consultant - www.Quality4Loans.com

Investors May Finance Up To 12 Properties

Here in Southern Oregon where we haven’t experienced the same level of real estate market devastation as California, Florida, Nevada and Arizona there is still a silver lining to be found in our beautiful puffy cloud skies.

With market values in Jackson County Oregon roughly 8% lower in our year over year statistics, we’ve also seen a steady contraction in the inventory of available homes for sale – also 8% lower year over year.

As is customary when the general populace begins to think we are seeing some great values, there are buyers coming out of the wood work…450 of them, to be exact, from August 1st through October 31, 2008 in the Rogue Valley.

Many of these buyers are investors, savvy, experienced, and taking advantage of some great bargains. Until recently, these investors might be able to take out purchase money financing with no limitation on the number of financed properties they owned. This has just changed:

Guideline changes EFFECTIVE IMMEDIATELY!

• 
  
  Max LTV for investment properties is now 65%.
  


• 
  
  Cash-out on 3-4 unit investment properties is limited to 60% max LTV.
  


• 
  
  The number of financed investment properties owned by one borrower is limited to 10 (this does not include their financed owner-occupied and/or second homes).
  


• 
  
  Out-of-State investors are strictly case-by-case, and limited to 60% max LTV.
  


• 
  
  At this time, there are still no exceptions allowed under the Non-Owner Occupied program.
  

For Investors meeting Fannie Mae Underwriting criteria (680+ credit score) may put as little as 15% down, but cannot have more than 10 financed properties INCLUDING THEIR PRINCIPAL RESIDENCE AND SECOND HOME.

Still not bad, all things considered. So, Southern Oregon investors, call today for your free consultation, or go online at http://www.quality4loans.com/ .

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – http://www.quality4loans.com/

Is It Time For Your Senior Parents/Grandparents to Simplify Their Home Life?

Do you have a parent or grandparent who is one of the 65,000+ Jackson County Oregon residents aged 50+? Population Growth for the Rogue Valley has averaged over 1.5% per year. One segment is the 50+ age group, a group which represents roughly 33% of the residents of Jackson County’s estimated 199,295 residents in 2007.

Age Characteristics (from City of Medford Comprehensive Plan)
"In 2000, the majority of cities in Jackson County had a greater percentage of residents under age 18 than over age 65, including Medford. However, Jackson County had a lower percentage of residents under age 39 (51%) than Oregon (56%), but a higher percentage of residents over age 50 (33%) than Oregon (29%). This suggests that Jackson County, including Medford, is attracting people who have retired or are soon to retire. Baby boomers (aged 45 to 64) were the fastest growing age group in all of the cities in Jackson County in the 1990s, except for Medford, Talent, and White City. Medford, Talent, and Central Point had the greatest increase in younger residents - under age 44. Medford experienced the highest growth in the County in the 5 to 17 age group, which grew by 3,627 - a 44% increase."
Information Source: 2000 Federal Census via Jackson County Comprehensive Plan, 2007Population Element

With the phenomenal Quality of Life we have here in Southern Oregon, our net migration numbers are some of the highest in the State of Oregon. Many of the 50+ group migrating to the Rogue Valley are active residents still part of the workforce drawn here for the many options available to them to fulfill outdoor interests while having their economic and health care needs met. Some of these folks are focused on the future, knowing when they reach the stage of their lives where they no longer will be living independently there are a multitude of options available to them in Southern Oregon.

There are a large variety of facilities available for those looking to move from their current home in to a home where they will receive the care they may need – from regularly housekeeping to meals to full medical care. Tools are available to help you research the quality of care in these facilities, such as Medicare’s facility inspection results and additional reports/information you may obtain by contacting the DHS or Area Agency on Aging local office and the Long-Term Care Ombudsman program at (800) 522-2602.

If part of the process associated with moving your loved one out of their home includes exploring financing options or the sale of the home, it is critical you look for professionals familiar with these transactions. For the sale of the home, you should work with a real estate broker with the Senior Real Estate Specialist designation who not only has made the effort to obtain the specific training and information for these special types of transactions, but comes highly recommended by other families they have worked with on these types of transactions.

As with all real estate transactions, surrounding yourself with the right team will make what can be a complex process a smooth one.

http://activerain.com/blogsview/553000/Living-Longer-And-Lifelong-Learning-Programs-in-Southern-Oregon

http://activerain.com/blogsview/511319/California-50-Somethings-Ready-to-Begin-Their-Steps-to-Retire

http://activerain.com/blogsview/410880/Rogue-Valley-Manors-Contribution-to-Southern-Oregon

http://localism.com/blog/or/posts/359902/Southern-Oregon-More-Than

See you out there!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com

Rogue Valley For Sale By Owners, Want Some Free Marketing?

Okay, Rogue Valley homeowners, have you decided to put your home on the market “For Sale By Owner”? There are many reasons home sellers choose to go this route when selling their home. Today, often times, the decision to go “FSBO” is made due to current market values in relation to the amount of your loan balance.

If you would like some free home seller tips and tools I’ve gathered in my 25 years in the real estate/finance industry, please contact me.

See you at the closing table!

Karen Cooper – OR/CA Mortgage Consultant – www.Quality4Loans.com