Happy Independence Day from TheRedSign.net

 

Happy Independence day!

 

The years following the signing of the Declaration of Independence our forefathers continued to battle British forces until finally in 1781, they fought the final major battle of the war for independence and claimed victory over British forces at Yorktown.  It was also in 1781 that the states finally ratified the Articles of Confederation. But our young country still had some work to do. In 1789, the Constitution of the United States was finally ratified, but still several hard decisions were postponed, such as states’ rights and slavery.

 

We still have challenges today, but through all these years and struggles, there have been Americans in our history who have stepped forward to lead, fight, and die for the God-given principles that established our country. We honor them best not by cooking the best barbeque or launching our fireworks, but by the way we live our lives now and what we do for each other.

 

Those Americans who fought for this country in 1776 established a rich history that has been added to generation after generation. We are now actively contributing to the history of our country; will our actions today help make America great tomorrow?

 

The founders of this great nation took enormous risks to set us on the path of freedom. The right to take risks, start a business, and work hard should remain fundamentals of this country. Each of us has chosen to work in an industry that goes to the heart of what America stands for, but it isn’t always easy.

 

Ayn Rand in her book Capitalism: The Unknown Deal, said, “America’s abundance was created … by the productive genius of free men who pursued their own personal interests and the making of their own private fortunes. They did not starve the people to pay for America’s industrialization. They gave the people better jobs, higher wages, and cheaper goods with every new machine they invented, with every scientific discovery or technological advance—and thus the whole country was moving forward and profiting…”         

 

The “productive genius of free men” Rand speaks of implies a hard work ethic embedded within Americans, an ethic in which we don’t run and hide at the sight of difficult tasks—we rise to face them. Wealth in America has come when those who are willing have faced the challenges with courage and took the necessary risks. Freedom requires risk taking. To remain free, we must cherish the fact that we still have the ability to take risks and reap the reward for our courage.

 

The right to own land, work the land, and create something is what has made America great. We are fortunate that we can still take risks and work the land…through helping others buy and sell land.

 

I hope on this July 4^th holiday you will remember the sacrifice of so many others who have gone before us. More importantly, I hope you will face our future challenges with the effort required for us to remain free, productive, and prosperous: take risks, work the land, and “pursu[e] [your] own personal interests and the making of [your] own private fortunes.”

 

President Dwight D. Eisenhower said, “There is nothing wrong with America that the faith, love of freedom, intelligence and energy of her citizens cannot cure.” Government does many things for our benefit, but I hope we remember that America is a great nation today not because of not only what government does for us, but because of what people do for each other.

 

God bless America!

Financing Solutions - What interest rates really mean

The Fed did this! The Fed did that! Rates are up! Rates are down! Aaaagggh! Okay, now exhale. In turbulent economic times the media can’t wait to report what interest rates are doing. Pundits prognosticate, forecasters forecast and soothsayers sooth. When should you buy a home based upon interest rates and when is it the right time?

Visit David Reed’s Website

The fact is that interest rates, while important, have little impact when it comes to buying a home. Alright, alright, I’ll admit: it’s important…but it’s not a deal-killer.

There is a fixation on what rates are doing. A fixation on what rates will be in the future and what rates were in the past. I’ve heard potential home buyers tell me, “I’m not sure I want to buy now because rates are ¼ percent higher now and I think I’ll wait.” I say, “Wait for what?” I say let’s not look at the rate but instead concentrate on what that rate actually represents … your monthly payment.

Let’s look at what an interest rate move of ¼ percent really does to a $200,000 mortgage. Say a 30-year interest rate at 6.00 percent “jumps” to 6 ¼ percent. Shall we sit on the sidelines, thinking such a move is suddenly unaffordable? No. The payment on a $200,000 loan “jumps” by about $32 a month!

Now let’s get a bit more draconian and look at a ½ percent increase and the monthly payment increases by $64. Putting that into daily financial terms, $64 is about a tank of gas. While not insignificant, it’s hardly a reason to stay on the sidelines of home ownership. Right now, buyers should have more urgency than ever. Home prices have declined enough to make buying more affordable than it’s been in recent memory and interest rates (whether at 6 percent or 6 1/4 percent) are historically low. It’s time to act.

Are rates important? Sure they are. But are they the end-all? Heck no. Interest rates over the past few years have been in a very tight range, with few major swings. Just remember what interest rates represent, your monthly payment, and pay less attention to the headlines.

Click Here to Apply for a Home Loan from TheredSign.net

Written by David Reed, author of Mortgage 101 and Mortgage Confidential.

Utah Housing Market - Trending 2008 (Salt Lake County)

This post will be updated weekly on Tuesdays. All numbers are based off the WFRMLS and are deemed accurate but not guaranteed. We can learn so much about Utah’s market by analyzing these numbers. I hope you find them helpful because they aren’t easy to publish every week. Enjoy! -Clay

	# of active listings	# of active Bank/Short Sales	% of Total Listings as Bank/Short Sale	# of New listings in last month	# of Under Contracts in last month	# of closings in last month	# of months inventory
5-Feb-08	7102	106	1.5%	2803	874	653	11
18-Feb-08	5916	116	2.0%	1838	729	432	14
25-Feb-08	5906	257	4.4%	1712	719	419	14
3-Mar-08	5848	270	4.6%	1731	745	442	13
10-Mar-08	5922	278	4.7%	1743	785	508	12
17-Mar-08	6039	276	4.6%	1895	822	571	11
24-Mar-08	7340	722	9.8%	2568	1061	852	9
31-Mar-08	7452	756	10.1%	2316	971	724	10
7-Apr-08	7519	794	10.6%	2322	983	794	9
14-Apr-08	7573	793	10.5%	2292	1087	812	9
21-Apr-08	7716	820	10.6%	2271	1077	791	10
28-Apr-08	7771	849	10.9%	2273	1094	710	11
5-May-08	7851	843	10.7%	2221	1025	786	10

Utah Real Estate Market Statistics show interesting trends this week. Please visit often to see an updated chart which will have the market stats for each week. I pull the numbers and post them each Tuesday. Stay tuned. Visit TheRedSign.net so view all these homes for sale.

Forbes rates SLC as ‘recession-proof’

SALT LAKE CITY (ABC 4 News) - If you’re worried about the economy and you live in Salt Lake City, you shouldn’t be. Utah’s capital is one of America’s most recession-proof cities.

Forbes.com says Salt Lake joins other cities like Dallas, San Antonio, Austin, Charlotte, Seattle and the number one city, Oklahoma City, on the list of America’s most recession-proof cities. Salt Lake is number 6.

Why? Well, there are several reasons. Utah’s unemployment rate is still a ridiculously low 3.1 percent. The national rate is 5.1 percent. Utah’s foreclosure rates—while rising—are still much lower than the national average. And in Utah real estate values are still rising, very different then many other places around the country.

The unsung hero of Salt Lake’s and Utah’s economic stability, however, might just be tourism. Salt Lake City has seen record revenue from its restaurants and hotels in the first quarter of 2008. Restaurants made over 1 billion dollars in 2007 alone. And it’s a cycle. The more people visit Utah the more money they spend, the more construction, the more jobs, the more people move here and get those jobs…and you make a recession-proof list in Forbes.

Economists we talked to, of course, say there is no such thing as a recession-proof city, but they do admit, Salt Lake is very economically stable.

Two Down Payment Grants for Utah County - Seminar (Part 2)

Here Dustin goes into great detail about the two types of grants that he has for first time home buyers.  Now remember, he calls them loans because if you sell your home before 10 years you must pay it back.  Basically the begin forgiving the loan at 5 years.  For example, after the 6th year they forgive 20% of the loan.  After the seventh they forgive another 20% of the loan until the 10th year in which they forgive the remaining 20% of the loan.  This is tax free, interest free money.  You simply must commit to living in that home for a while to get it for free.  If you do sell before 5 years, there is no penalty, you simply must pay it back.

Utah Grant Money For Home Down Payment Video(Part 1)

For those of you who couldn’t make it to the down payment seminar, I recorded it on my iSight cam for you to watch. Dustin Kenyon from Utah Valley Housing Services talks about their program and how you can get government money for your down payment.

Click Here to apply for Free government money.

Utah Down Payment Assistance Series (Part 6 of 6)

Conclusion

It is obvious that despite the discontinuance of 100% financing, there are several different options available to aid in getting a down payment. Due to the variety of options discussed it seems that, with a good agent and lender, most any person can find a solution to not having enough money for a down payment. To begin this process and commence the experience we recommend that homebuyer start by contacting a competent Realtor at TheRedSign.net and setting up an appointment.

 

FREE Down Payment Seminar May 1, 2008

Place: Axiom Financial
Address: 358 West Center St. Orem UT
Time: 7pm

Special guest speaker from Housing Services of Utah. Everyone attending
will be entered in our prize drawing. Snacks and refreshments will be served.

Space is limited, please RSVP at 801.358.0970

For more information please visit www.MyFirstUtahHome.com

Utah Down Payment Assistance Series (Part 5 of 6)

Utah Housing Corporation (First Time Home Buyers Only)

The Utah Housing Corporation offers six exciting loan programs to assist low- and moderate-income homebuyers with the purchase of a home. All loan programs offer below-market interest rates and three of the programs make available down payment and closing-cost funds. As a result, many individuals purchase a home even though they have no savings. The six loan programs are: FirstHome, FirstHome Plus, Veterans Enhancement Program (VEP)-FirstHome, VEP-FirstHome Plus, Single Parent FirstHome and Single Parent FirstHome Plus. The ensuing quoted sections can be found at: UHC Homebuyer Program Brochure:

FIRSTHOME loans are geared to first-time homebuyers who have access to personal or family financial resources to pay all of their down payment and closing costs. FirstHome loans may also be used to purchase homes in Targeted Areas of Utah. (See Targeted Areas found on website.)

FIRSTHOME PLUS offers financial assistance for first-time homebuyers who do not have personal or family finances with which to pay their down payment and closing costs. These costs generally average 5% - 6% of the home purchase price. Applicants can borrow up to 6% of the amount of their first mortgage using a second mortgage that will have the same term as the first mortgage, but an interest rate exactly 1% higher.

VEP-FIRSTHOME is the preferred loan for Veteran homebuyers who have access to personal or family financial resources sufficient to pay all of their down payment and closing costs. Veterans may purchase a home in any location in Utah.

VEP-FIRSTHOME PLUS offers financial assistance for Veteran homebuyers who do not have personal or family finances with which to pay their down payment and closing costs. These costs generally average 5% - 6% of
the home purchase price. Veterans can borrow up to 6% of the amount of their first mortgage using a second mortgage that has the same term as the first mortgage, but an interest rate exactly 1% higher.

SINGLE PARENT FIRSTHOME loans are designed to assist single parents who have previously owned or co-owned their own residence and have primary custody of at least one minor dependent. These applicants have access to personal or family resources with which to pay all of their down payment and closing costs.

SINGLE PARENT FIRSTHOME PLUS loans assist single parents who have previously owned or co-owned their own residence and have primary custody of at least one minor dependent. These applicants need to borrow funds from UHC to pay all or a part of their down payment and closing costs.

QUALIFICATION GUIDELINES

• Your total gross household income must fall within the Maximum Income Limits set by UHC. (See website for Limits for Income and Acquisition Cost for details.)
• The purchase price of the residence you wish to buy may not exceed the Acquisition Cost (Purchase Price) Limits for the area in which it’s located. (See website for Limits for Income and Acquisition Cost for details.)
• Your credit report must indicate a history of responsible and timely payments. If you have three established credit scores, only one of them may be less than 660.
• You must be able to qualify for an FHA or VA loan.
• You must live in the home yourself and not rent any part of it.
• You must be able to cover the costs associated with owning a home including your monthly mortgage, taxes, insurance, repairs and improvements. To calculate your potential mortgage payment, visit our website at www.utahhousingcorp.org and use the Mortgage Calculator.
• You may purchase a home anywhere within the state of Utah that meets FHA or VA guidelines, including single family homes, twin homes, manufactured homes, condominiums and PUDs (planned unit developments). The residence may not be used for business purposes or as rental property.

Perhaps the reason Utah Housing is the best choice for first time homebuyers, in addition to the fact that no down payment is needed, is that the already low interest rate can literally be bought down to a lower rate. This means that the current rate of 5.7% can become even lower by paying Utah Housing. Here’s how it works: The buy down cost is about 2% of the sales price on the home so it would be about $3,000 on a $150,000 home. This cost is paid upfront when you close on the home. Your rate then becomes 3.7% your first year, 4.7% your second year, and then 5.7% your third year and to the end of the loan period. It is a fixed rate at 5.7%. This allows for the home buyer to “grow into” the monthly payment over 3 years.

Move on to Part 6

 

FREE Down Payment Seminar May 1, 2008

Place: Axiom Financial
Address: 358 West Center St. Orem UT
Time: 7pm

Special guest speaker from Housing Services of Utah. Everyone attending
will be entered in our prize drawing. Snacks and refreshments will be served.

Space is limited, please RSVP at 801.358.0970

For more information please visit www.MyFirstUtahHome.com

Utah Down Payment Assitance Series (Part 4 of 6)

City Grants

Nearly every city in the state of Utah provides some sort of grant for homebuyers as a means to help with a down payment. The most common grant found among cities is $5,000 toward your down payment if you commit to living in that particular city for five years. Some cities, such as Provo, have even outlined certain neighborhoods as “qualified zones” where they will grant up to $20,000 with a five year commitment. This is an effort to revitalize the community. Due to the time constraints of this report we will only present the details for “Housing Services of Utah Valley,” which services the down payment assistance needs for several Utah County cities including: Orem, Lehi, Lindon, Payson, Pleasant Grove, Spanish Fork, Springville, and Unicorporated Utah County (rural farmland, not in an incorporated City).

Housing Services or Utah Valley (HSUV)

In an interview with Dustin Kenyon, Program Director of Housing Services of Utah Valley, he stated the following criteria (Dustin Kenyon {personal communication, April 1, 2008}) :
• We can only take second position (can’t be first lean holder)
• We only second behind FHA or Conventional fixed rate loans. We can do 2/1 buy downs (but have to run ratios at the third year rate) and we an pay for loan discount points.
• There can be no co-signers involved
• The purchase price of the home cannot exceed $223,155
• The applicant must buy in an eligible city in Utah County as stated in the paragraph above.
• The applicant’s debt to income ratios meet HSUV guidelines (which is in the application packet)
• The applicant is buying a single family home (condos and townhomes are eligible)
• The applicant completes the HSUV application and check list
• Applicants must be under the income limits which are:
Family Size 1 2 3 4 5 6 7 8
Income Limit $34,400 $39,300 $44,200 $49,100 $53,050 $57,000 $60,900 $64,800

Age of home

• If the home is NEWER than 30 years the applicant is eligible for $5,000 toward ½ the required down payment and the one time closing costs.
• If the home is OLDER than 30 years the client is eligible for $15,000 which will pay for the one time closing costs and the balance will go toward down payment.

Terms of the loan

• No Interest
• No Payments

Fees for the Program

• Borrowers pay a $25.00 fee to HSUV at the time of application;
$150.00 of the total loan of $5,000 or $15,000 will be used for a limited title insurance policy and recording fees, that should be changed to the borrower at the time of closing.

Move on to Part 5

 

FREE Down Payment Seminar May 1, 2008

Place: Axiom Financial
Address: 358 West Center St. Orem UT
Time: 7pm

Special guest speaker from Housing Services of Utah. Everyone attending
will be entered in our prize drawing. Snacks and refreshments will be served.

Space is limited, please RSVP at 801.358.0970

For more information please visit www.MyFirstUtahHome.com

Utah Down Payment Assistance Series (Part 3 of 6)

Ameridream, Nehemiah–Having the seller/builder pay your down payment

Due to federal law it is illegal for a home seller to pay the down payment for a homebuyer. However, a non-profit organization can donate toward the buyers’ down payment. In other words, the seller can donate “X” amount of money to a non-profit organization (Ameridream, Nehemiah, etc.); and, in turn, this organization can “gift” that “X” amount of money to the home buyers. This truly is legalized money laundering!

Listed in the ensuing section is an example of this afore mentioned option:
Buyer Bob wants to buy Seller Suzy’s house but doesn’t have any money for a down payment. He needs at least 5% down in order to qualify for an FHA loan. Suzy is asking $200,000 for the home and is willing to pay 3% (6,000) toward Bob’s closing-costs. Bob meets with Clay from TheRedSign.net and finds out that by offering $205,000 and asking for 8% ($16,400) to be paid to Ameridream by the seller, he’ll now be able to obtain the amount needed for a down payment and closing-costs. Agent Clay presents a net equity sheet to Suzy showing that this offer is only $5,400 less than her asking price (Her asking price after concessions: $194,000 - Our offer after concessions: $188,600) and convinces her that it is a fair offer in Utah’s now “buyer market”. Ameridream then supplies buyer Bob with $10,500 for a down payment, the remainder is put toward closing-costs, and Ameridream takes $395 for themselves. Voila!… 5% down, and nothing out of Bob’s pocket.

Disadvantages

•The home must appraise for $205,000 in order for the lender to a make a loan for that amount
•The loan awarded must be an FHA loan. No exceptions.
•The fee paid to the assistant program is $395

Move on to Part 4

 

FREE Down Payment Seminar May 1, 2008

Place: Axiom Financial
Address: 358 West Center St. Orem UT
Time: 7pm

Special guest speaker from Housing Services of Utah. Everyone attending
will be entered in our prize drawing. Snacks and refreshments will be served.

Space is limited, please RSVP at 801.358.0970

For more information please visit www.MyFirstUtahHome.com