Tax Credit Extension/Expansion Gains Momentum

To: All REALTORS®

From: Charles McMillan, 2009 NAR President

Re: Tax Credit Extension/Expansion Gains Momentum

Dear Fellow REALTOR®,

With Congress moving quickly on a number of key issues, I wanted share some important news that you won’t read in the newspapers.

In my latest podcast, I explain why momentum is building – both in Congress and the Administration – in support of extending and possibly expanding the $8,000 first-time homebuyer tax credit.

http://www.realtor.org/about_nar/presidents_report/_podcast_archive/mcmillan_credithealthreform_20091020

My podcast also provides updates on other important activities in Washington, D.C., this week:

First, NAR’s federal political coordinators are in town to urge Congress to act now on the tax credit. If you haven’t yet sent a letter to your Representatives and Senators, please go to the REALTOR® Action Center now and answer the call. We are so close – please keep pushing!

http://takeaction.realtoractioncenter.com/campaign/hbtc?qp_source=dotorg&LID=RONav0019

Second, NAR First Vice President Ron Phipps also was on Capitol Hill to testify before the Senate Banking Committee on the need to extend the tax credit and to address several remaining challenges in the real estate market. I urge you to read Ron’s testimony and stay engaged in these issues in the months ahead.
http://www.realtor.org/fedistrk.nsf/files/testim_sbhua_102009.pdf/$FILE/testim_sbhua_102009.pdf

Third, NAR continues to actively engage in the debate over healthcare reform. We are meeting with key lawmakers and urging them to make sure the needs of small business owners and employees are a priority. When a final bill emerges, NAR will take a position and explain exactly how the provisions will impact you – our members.
http://www.Realtor.org/healthreform

On behalf of NAR, I thank you all for your participation in our ongoing advocacy efforts. Thanks to you we are starting to see real progress in our markets and the economy. I look forward to celebrating our success with all of you in San Diego, as we chart a new course, “United Toward Tomorrow.”
Sincerely,

Charles McMillan
CIPS, GRI
2009 NAR President

Real Estate Forecast: Will Housing Slow Down?

by Kenneth R. Harney

Though some economic analysts are warning that the housing market’s rebound will slow down as the weather turns colder, this week’s numbers show no hints of that.

In fact, they’re actually pretty warm.

Start with house prices. The Clear Capital Home Data Index, which tracks price movements in thousands of neighborhoods and ZIP codes across the country, reported a 6.3 percent gain last week for the period covering August 27th through September 25th.

The latest index found prices up for the first time since 2006 in two of the hardest-hit real estate markets – Riverside-San Bernadino, California, and Orlando, Florida. Though the gains weren’t big – just 1.2 percent in Orlando, and half a percentage point in Riverside-San Bernadino – just the fact that they’re finally bottoming out has got to be good news for property owners and sellers there.

Baltimore also saw its first positive price change in seven quarters on the Clear Capital Index, while other major markets continued their multi-quarter strings of gains.

Dallas-Ft. Worth, for example, saw prices rise by an average 2.3 percent. Miami-Ft. Lauderdale was up 3.4 percent, Houston 3.1 percent and even New York, which has had a tough time recently in Manhattan, posted a 1.6 percent jump.

Meanwhile, the mortgage market continued to provide plenty of financing fuel for home buyers looking to use the $8,000 tax credit before it possibly disappears at the end of November.

The Mortgage Bankers Association says average thirty year rates dropped again last week in its national survey — hitting 4.89 percent — the lowest they’ve been since May.

Fifteen year fixed rates decreased to just 4.3 percent, which is the lowest ever recorded in the mortgage association’s survey history.

Not surprisingly, record low rates are pulling in massive numbers of new loan applications. Overall applications were up by 16 percent last week. Loans to people planning to buy homes jumped by 13 percent, while refinancing applications soared by 18 percent.

And here’s a truly amazing statistic: New mortgage applications to buy houses using FHA loans were 52 percent higher last week than they were a year ago!

With mortgages flying out of banks with interest rates in the mid -to -upper four percent range, you don’t spend a whole lot of time worrying about a slowdown in the real estate rebound.

Unless, of course, Congress doesn’t extend the $8,000 tax credit into next year.

Utah Home Run Housing Grants 2.0!

You may remember at the beginning of summer the $6,000 New Construction Utah Home Run Housing Grant, that was given to anybody who bought a new, previously un-occupied home or condo in Utah. There were over 1,500 grants issued then, and the money ran out very fast.

The State has just announced the revival of the Home Run Housing Grant program, with a few improvements that increase the number of homes that are available for the grant money. Below are some important highlights of the new program:

• $4,000 Grant - No repayment required, use towards down payment, closing costs, or rate buy-down!

• New Construction Only – Newly built, never-occupied properties, full or partially finished or scheduled for completion by June 30, 2010.

• Owner Occupied - You must live in the home as you primary residence.

• Any Qualified Buyer - Applies to ALL qualified buyers (even those who are not first time homebuyers!)

• First Come, First Served – State Funding only allows for about 1,950 grants total, so hurry!

• Income Limits - Can not make more than $75,000 for singles or $150,000 for married couples.

• $8,000 First Time Homebuyer Credit - For first time homebuyers, combine the $8,000 tax credit, and the $4,000 Utah Home Run Housing Grant, and receive up to $12,000 just for buying a home!

• Expires December 1, 2009 - Whether the grants are used or not, this program will expire on the December 1st!

• Taxable – Funds used from this grant will most likely be taxable.

We’ve said it many times before, 2009 may well go on record for being the BEST time in our lifetimes to be a home buyer, particularly a first time homebuyer. If you are thinking about buying a home, don’t delay! Call 801.358.0970!

HUD Homes in Utah

HUD homes in Utah may seem scarce but they are out there.  Some of the best priced homes on Utah’s real estate market are HUD homes.  HUD homes are simply homes that are owned by the US Department of Housing and Urban Development.  They have special financing available for many different types of buyers.  The most popular being the “Good Neighbor Next Door” program which enables school teachers, law enforcement and fire fighters to purchase HUD homes for 50% of it’s list price.  For those who are not civil workers, there is a $100 down payment program which is also exclusive to HUD homes.  Only HUD approved agents can sell HUD homes.  Agents here at RedSign.com have become experts in assisting buyers in purchasing HUD homes in utah.

If you would like to meet with a HUD expert or simply receive a fresh list of HUD homes, please call 801-358-0970 or fill out our simple form here.

FHA Changes Financing For Condos!

FHA financing on condominium projects is changing beginning October 1, 2009. This is a very big deal for buyers because if they can’t get the condominium FHA approved they cannot use a FHA loan which will affect many people. Here are some of the highlights everyone needs to know:

• Changes effective for all FHA Case Numbers assigned on or after 10/1/2009. The spirit behind these changes is to complete a current due diligence of all condo projects.
• Spot approvals are being eliminated. This means, to obtain FHA Financing fora  condominium, the project must be FHA-Approved.
• All current condominium project approvals will be invalid (with the exception of projects approved on or after October 1, 2008) and will be required to go through the re-approval process. There will be 2 approval process options:

1. HUD Review and Approval Process (HRAP)
2. Direct Endorsement Lender Review and Approval Process(DELRAP) This option is available only to lenders who have unconditional Direct Endorsement authority and staff experience in reviewing and approving projects.

• HUD will only accept approval packages from review from:

1. FHA Lenders, or
2. Builders/Developers

• Going forward, all projects will require re-certification every two years.
• FHA will limit their exposure per project to 30%.
• New construction (or less than <1 year old) will no longer require a 10-year warranty. Condos will follow the same guidelines as SFR, which requires a one-year builder’s warranty, copy of the building permit and certificate of occupancy. Project approval is not required for:

1. FHA-to-FHA streamlines refinances
2. FHA/HUD Real Estate owned (REO) division sales.

Getting projects back on the approved list is anticipated, initially, to be a long process. And until a project is approved, FHA financing is not an option. Those who have condos for sale right now, may choose to aggressively market their property for a worry-free sale and closing before October 1st.

Work with an experienced HUD-approved lender to get projects re-approved. With the restrictions still in place by the mortgage insurance industry, FHA is still the best choice for low down payments on condominiums.

Call us today with help on how to get your condo approved.

Planting a Vegetable Garden

Having your own vegetable garden can be a very fun and rewarding thing, but it also is very challenging and a lot of hard work. It’s especially hard work in Utah, because the Spring weather here is very unpredictable. We can go from hot to cold, calm to windy, dry to rain or snow in just a few weeks, sometimes even days. When planting in Utah you have to be careful with the weather to not ruin your crops and you need to make sure you plant when the weather is right. The easiest way to get information on specific micro climates in your area is to visit this web site: http://climate.usurf.usu.edu/reports/freezeDates.php. There you will find data for the last spring and first fall freezes in many areas of the state.

A good indication of when to plant tender vegetables is to measure the soil temperature. Put a thermometer a couple inches under the soul. Check the temperature at 9 each morning. When the temperature reaches 55 degrees for three consecutive mornings, it is usually safe to plant tender vegetables.

Below is a table of the most popular vegetables to plant. The table outlines the time you should plant, the spacing when planting, the depth, how long until the plant is mature and some helpful comments for you to refer to when planting your own garden

Plant	Garden Sowing Date	Spacing P=plant spacing R=row Spacing	Seed Planting Depth	Time To Maturity	Comments
Asparagus	Plant in early Spring	P=14” R=24-36”	4-5”	Second Year	Do not harvest the first year to allow the plant to become established. Apply a heavy mulch in winter to help prevent the roots from heaving the ground.
Broccoli	April-May	P=24” R=30-36”	1/2 -1”	4-5 Months	Harvest the main Broccoli heads before they open. The plant will produce an extended crop of smaller heads through the rest of the summer.
Carrots	April and again in July	P=2-4” R=18-24”	1/2”	90 Days	Sow early, harvest when young. Sow successive plantings every three weeks.
Corn	May Successive Plantings Every 2 Weeks	P=3” R=24”	1”	2-3 Months	Should be planted closely together in blocks rater than rows to insure good pollination. Corn is at it’s very sweetest the moment it is picked.
Cucumbers	May-June	P=36-48” R=36-48” 3-4 plants per mound	1”	2-3 Months	Spread a mulch of black plastic to the area before the vines begin to spread. Prompt harvesting will prolong the fruiting period.
Onions	Plant Onion Sets In April	P=3” R=12-18”	1/2”	Seeds 3-4 months, sets 50-60 days	Plant as early as possible. Apply fertilizer high in phosphorus and potash. Onion sets may also be grown in planters
Peas	April Successive Plantings Every 2 Weeks	P=3-6” (Double rows) R=72’	1 1/2-2”	60 Days	Do best in cool temperatures, so plant early and harvest when the peas are young.
Peppers	May	P=24” R=24”	1/2”	4-5 Months	Do not provide too much nitrogen or you’ll have lots of plant, little fruit. A black plastic mulch will warm the soil and promote good growth.
Potatoes	April-May	P=8” R=36”	3-6”	90-150 Days	Plant a chunk of a ‘seed’ potato, containing 2 or more eyes. Harvest when the vine begins to die or has died completely. Leave the potatoes laying on the ground for a day to harden them and prevent bruising.
Pumpkins	May	P=6-8” R=36”	3-4”	4-5 Months	Pumpkins take up a lot of room, so sometimes it is better to plant them outside of the garden. Will tolerate a small amount of shade.
Radishes	April	P=1-3” R=18-24”	1/2”	30 Days	Plant Radishes early. They will go to flower when the warm temperatures arrive.
Rhubarb	Plant In Early Spring	P=24” R=24-36”	3/4”	Second Spring	Ready to harvest early in spring. Rhubarb likes soil high in organic material. Keep the bloom spikes cut off. Easily dividable.
Spinach	April	P=6” R=12-18”	1/2”	90 Days	Soil pH should be between 6.0 and 6.7. Apply nitrate of soda between the rows to stimulate growth. Harvest spinach when young or the plants will go to seed.
Squash	May-June	P=36” R=36” 3-4 Plants per mound	1/2-1”	4-5 Months	Grows well in warm areas, prefers rich organic soil.
Tomatoes	May	P=30-36” R=30-36”	1/2”	4-5 Months	Provide frost protection when first planted. Tomato plants may be trained on stakes, grown in cages, or allowed to crawl along the ground. Tomatoes will ripen after they have been picked.
Watermelon	May	P=72” R=72” 1-2 Plants per mound	1”	4-5 Months	Do best in sandy soil with plenty of added manure. Top dress with high nitrogen/potash fertilizer. Needs warm temperatures to mature.

Good luck with your garden!

Tax Credits for Energy Efficient Air Conditioning In Your Home

The government has come up with a tax credit for new energy efficient cooling systems in our homes. As part of the provisions in the Energy Policy Act 2005, homeowners are entitled to claim tax credits on the use of a few energy saving items. They include the use of energy saving windows, doors, roofing, furnace and boiler, water heater and air conditioner. As energy becomes scarcer by the day, it is essential to conserve as much energy as possible. The government, by way of giving tax credits, also encourages using alternate sources of energy.

Using energy efficient air conditioning systems is one of the items that qualifies you for tax credit. Those who install this type of air conditioner are eligible for tax credit of up to $300 dollars. The models that qualify for this are obviously more expensive than the ordinary ones. However, this calculation would show that it is advisable to install a new energy saving air conditioner. Even if you save just $10 dollars a month on average by way of electricity bills it comes to $120 for a year. Add to that the tax credit of $300, your net savings is $420. This amount should be good enough to talk a homeowner into buying an energy efficient air-conditioner.

Not all air conditioners are eligible for a tax credit, not even all the Energy Star air conditioners qualify. Very efficient central air conditioners qualify for the tax credit if they meet the following criteria:

1. The Energy Efficiency Ration has to be 13.0 or higher (in some states 12.5).
2. Certified technician needs to install the equipment.
3. The Seasonal Energy Efficiency Ration (SEER) has to be 15.

The tax credit for energy efficient cooling systems in our home is just another step in saving money on both your energy bill and taxes. Since tax credits are reduced from the actual amount of tax you owe, not your gross income, you should strongly consider taking advantage of this one.

New Government Regulations & How They May Affect You

Here are the new Government regulations for 2009 from the HVCC (Home Valuation Code of Conduct) and MDIA (Mortgage Disclosure Improvement Act).

Effective May 1, 2009- HVCC  Rules:

• Promotes the accuract of appraisals by shielding appraisers from undue influence. Loan Originatos (as awell as Agents, Sellers, & Buyer) cannot choose a specific appraiser to appraise the property, nor can they have communication with the appraiser regarding the value prior to the appraisal being completed.
• It is important to note Mortgage Brokers will be ordering their appraisals from a 3rd party vendor, which may add additional time or expense.
• HVCC also required that borrowers recieve a copy of their appraisal reports no less than 3 days prior to closing unless they have signed a written waiver of this requirement.

Effective July 30, 2009- MDIA Rules:

• Amends the Truth in Lending Act (TIL). Once the lender has provided initial disclosures to the borrower, the earliest any home purchase can close is 7 days after receipt of these disclosures. Because of this, the absolute minimum number of days to close a transaction is 7 days after a complete application.
• A change of more than .125% in the Annual Percentage Rate (APR) after the initial disclosures requires the TIL to be revised and reissued to the borrower. Once received, there must be a 3 day period before closing the loan. This means that if your buyer’s loan or contract terms change at the last minute, you may be forced to delay your closing.
  

• Things that can affect a buyer’s APR include:
• Unlocked Rate
• Change in loan amount
• Loan product change
• Rate renegotiation’s
  
• Change in closing date
• Changes to fees, including settlement agent fees

To apply for a loan click here

The Solaris Collection – Solar Homes in Utah

Award-winning builder Garbett Homes introduces the solar-powered Solaris Collection at Daybreak.  These homes demonstrate that a first time homebuyer can now afford a contemporary modern-style, solar-powered single-family home.  Garbett Homes has teamed up with internationally renowned, California-based KTGY Architects to design and build Utah’s first truly affordable solar -powered home.

 

For more information including a full brochure or t o set up an appointment to walk through the two model homes, please call Clay at 801-358-0970 or email Clay@RedSign.com

Solar electric systems are reliable and pollution free–all the time.  They make use of an nendless source of energy–the sun.  The solar power system in your home will provide a constant stream of renewable energy–reducing your electric bill.  Here’s how it works:

• Solar cells automatically convert sunlight into electricity
• Contains no moving parts and is highly durable
• Excellent low-light performance ensures a stream of energy even on cloudy days
• An inverter converts DC power from the solar panels into AC power for household use
• Your power bill will be reduced because y ou are now producing your own energy

For more information including a full brochure or t o set up an appointment to walk through the two model homes, please call Clay at 801-358-0970 or email Clay@RedSign.com

Utah's National Parks Makes It #1 Choice To Live For Outdoor Enthusiasts

With five national parks, Utah is America’s national park capital. Our parks include:

• Zion National Park
• Bryce Canyon
• Arches National Park
• Canyonlands National Park
• Capitol Reef National Park

Designated in 1919, Zion is Utah’s oldest national park. The park is known for its incredible canyons, including The Narrows, which attract people from all around the world. Hiking possibilities are endless. With nearly three million visitors per year, Zion is Utah’s most heavily used park. Zion is located in Southern Utah about 40 miles outside of St. George, Utah.

Millions of years of wind, water and geological mayhem have shaped and etched the pink cliffs at Bryce Canyon, which isn’t actually a canyon but the eastern slope of the Paunsaguant Plateau. Bryce Canyon is located about 80 miles east of Cedar City, Utah.

Arches National Park contains the world’s largest concentration of natural stone arches. This National park is red, arid desert, punctuated with oddly eroded sandstone forms such as fins, pinnacles, spires, balanced rocks, and arches. Arches National Park is located about 5 miles from the beautiful Moab, Utah.

Canyonlands National Park included a huge area of rugged land west and south of Moab, Utah. It consists of canyons and plateaus carved by two large rivers- The Colorado and the Green. The park offers some of the most challenging 4X4 roads and whitewater rapids in the world.

Capitol Reef National Park is characterized by sandstone formations, cliffs and canyons, and a 100-mile long bulge in the earth’s crust called the Waterpocket Fold. Erosion has carved the rock into marvelous shapes. This is an inviting wilderness of rock with descriptive names such as Capitol Dome, Hickman Bridge, Grand Wash and Cathedral Valley. Capital Reef is located about 10 miles from Torrey, Utah and about an hour south east of Richfield, Utah.

Utah also claims the North Rim of Grand Canyon National Park, since it is best accessed through southern Utah.

 

If you’re thinking of moving to Utah to enjoy these nation parks, contact those who know it best, RedSign.com.  All members of the RedSign team are home grown here in Utah and have personal spent time in all 5 of Utah’s great nation parks.  Call us today at 801-358-0970 for info on living in and around our parks.