As part of my public service, I will be speaking at the April 6 session of this seminar.  If you are a first time home buyer in the Bennington VT real estate market, this is a valuable series of speakers.

“Yes, You Can” is a 4-part workshop on financing and affording first-time home ownership through government programs as well as local lending institutions.

Eight different presenters will cover topics like, “Getting Out of Debt and On a Budget”, “Financing Through USDA Rural Development” and “The True Cost of Home Ownership”. Participants will gain valuable information from how to improve their credit score to properly filling out a loan application, and learn about low- and no-interest mortgages available through the USDA. A presentation of available housing stock, raw land and new construction possibilities also will be presented.

The first session will be presented by Ann Bloch, a financial motivational speaker who will present a primer of the necessary knowledge one needs to make home ownership a reality. Cleaning up your present financial clutter is an important first step in the process, and Ms. Bloch is able to explain in layman’s terms how to reduce personal debt, develop a realistic spending plan, and handle unexpected expenses. Participants will have an opportunity to submit questions either verbally or in writing.

The workshops take place on four consecutive Wednesday nights beginning March 23 from 6:30 to 8:00 PM at the Pownal United Methodist Church on Route 346 and Church St. in Pownal. The series, sponsored by the Pownal Valley Affordable Housing Committee, is free and open to all. Call 802 823 9308 for more details.

Vermont Home & Garden Show
April 15 – 17

Get ready for spring at the Champlain Valley Expo Center and Fairgrounds. We’ll be there, along with 400 other exhibitors from around the Champlain Valley. Meet Bob from the Home Team, chat with a Home Performance with ENERGY STAR contractor, and more.

This is a great home show, I just wish it were closer to the Bennington VT real estate market.  Would you like to see a Home Show in Bennington?  If you would, let me know, and maybe we can get enough interest.

The mortgage industry is divided over how much down payment a borrower should be required to have in order to be considered less risky. Regulators have until April to come up with a down payment requirement as part of the Dodd-Frank financial overhaul legislation.

Wells Fargo & Co., the nation’s largest mortgage lender, has asked U.S. regulators to set a new down-payment standard of 30 percent on mortgages. If approved, banks would have to retain 5 percent of the loan if it is securitized for any borrower who came with a down payment below 30 percent in order to meet a risk retention requirement. The new requirement is aimed at preventing lenders from facing big losses in case the loans goes into default.
While banks would still make loans to borrowers with down payments lower than 30 percent, those loans would be more costly to banks because of the risk retention requirement. Analysts say that lenders will likely pass that cost on to borrowers via higher interest rates.

Much of the housing industry opposes the Wells Fargo proposal, saying that a 30 percent down payment standard is too high.

The NATIONAL ASSOCIATION OF REALTORS®, along with the Mortgage Bankers Association and other groups, sent a letter to regulators warning that an “inordinately narrow” mortgage definition “would mean that millions of creditworthy borrowers would be deemed, by regulatory action, to be higher risk borrowers.”

If the 30 percent requirement does stand, some in the mortgage industry say it will drive more of the lending business from the private sector to the government. The Federal Housing Administration is exempt from the risk retention rules and offers loans with down payments as low as 3.5 percent.

Wells Fargo says it suggested the 30 percent requirement because about half of all mortgages already have that big of down payment.

Source: “Banking Law Hung Up on Down Payments,” The Wall Street Journal (Jan. 13, 2011)

Mortgage rates have been rising ever since November 2010, when lows of 4.42 percent were reported. Bankrate.com recently reported a rise to 5.02 percent in 30-year fixed rate loans, which is the second time in three weeks rates have crossed the 5 percent mark–many experts say signaling the end to the 4 percent mortgage rate era.

Forecasters predict mortgage rates to hover in the 5-6 percent range in 2011.

Yet, some industry experts say the rise in mortgage rates may stimulate a sluggish housing market.

The rising rates create an urgency for potential buyers. They’ll have more incentive to buy soon before mortgage rates go any higher.

After all, higher interest rates mean buyers will pay more for their mortgages. Greg McBride, chief economist at Bankrate.com, told CNNMoney.com that when rates rise 4.25 percent to 5 percent, it takes away 9 percent of the purchasing power of buyers.

Lawrence Yun, chief economist of the National Association of REALTORS®, doesn’t foresee a moderate hike in mortgage rates as a negative for the industry. Instead, he says the real mortgage challenge is getting lenders to approve creditworthy buyers for a loan.

“It’s less about rates than it is about underwriting standards … If lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy,” Yun said.

Source: “Kiss 4% Mortgage Rates Goodbye,” CNNMoney.com (Dec. 30, 2010)

Here in the Bennington VT real estate market, we have already seen local banks with increased rates from what they were in late 2010.  It’s pretty safe to say that these rates will only continue to inch up over time.  With these historic lows, it’s a great time to buy a house.

Home buyers may get three more months — until Sept. 1 — to close on purchases they made prior to May 1 and still qualify for the federal tax credits.

Senate Majority Leader Harry Reid, a Nevada Democrat, introduced the proposal as an amendment to a bill that would extend jobless benefits through November. Reid represents the state with the highest foreclosure rate.

The National Association of REALTORS® has been lobbying for the extension because buyers whose purchases are delayed by slow-moving short sales and financial transactions will lose out.

“Time is of the essence,” said Lucien Salvant, NAR managing director. “It’s important for Congress to get this done, because there’s whole bunch of loans that aren’t going to close on time.”

Source: Associated Press, Alan Zibel (06/10/2010)

This may be great news for many buyers in the Bennington VT real estate market.

The Internal Revenue Service has clarified which documentation taxpayers need to submit to claim the first-time and move-up homebuyer tax credit.

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: “In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

Bennington VT, First Time Buyers, Buying

According to the Chinese calendar, 2010 is the Year of the Tiger. But in real estate, 2010 may come to be known as the “Year of the First-Time Home Buyer.”

Mark Zandi, chief economist at Moody’s Economy.com, says there will be 1.84 million homes sold to first-time home buyers in 2010, compared with 1.73 million in 2009.

These buyers will invariably make some mistakes that they will come to regret a few years down the road, some experts say, including failing to use a real estate professional to help them manage the transaction.

Real estate professionals have the time and the knowledge to sift through thousands of listings, creating market analyses to judge pricing and other key features, points out Ray Boss Jr., a practitioner with RE/MAX Realty Group in Maryland.

“I would want someone who is going to look out for my interests first and foremost,” says Boss. “Someone who knows the contracts, who has experience negotiating, and who can walk me through the entire process smoothly — step by step — and make sure I get the house that’s right for me.”

Source: U.S. News & World Report, Kimberly Castro (02/18/2010)

In the Bennington VT Real Estate market, we have over 240 homes for sale.  Many of these homes are priced right for first time buyers.  Give Troy Richardson a call today at 802-447-3210 for information on these affordable homes.

Mortgage interest is deductible on your tax return. And you may be able to deduct the points you paid – check your 1098 statement from your lender for the amount. To be deductible, loan points must meet certain requirements, including but not limited to:

• The loan is for your main home
• The charge for points are within normal rates for your area.
• The amount is listed on the settlement statement as charged points.
• You report your income and deduct expenses in the year received or paid (cash accounting method).

For more information on deducting points from your tax return, go to www.irs.gov. For your Bennington, Vermont real estate needs, contact Troy Richardson at RE/MAX Maple Leaf Realty!

According to a British newspaper, a new 450-house development in the community of Farnsborough has instituted a “no pet” policy as a way to protect wildlife. The development is near a 32-mile stretch of heathland that is protected by the European Union Birds Directive. The directive requires area communities to protect, maintain and restore habitats.

So far, Bennington, Vermont has no communities that have a ban on pets as part of their homeowner guidelines. Pet owners are encouraged to call Troy Richardson to find the perfect Bennington real estate to call your home!

Bank of America and JPMorgan Chase & Co. both said their failure to help more borrowers stemmed from the fact that many home owners fail to complete mortgage-relief paperwork.

Jack Schakett, Bank of America’s credit loss mitigation strategies executive, cited “ineffective communications with customers, shortcomings in document maintenance, misunderstandings about program requirements, and the inability to comply by some borrowers.”

Likewise, JPMorgan Chase said only 4,300 home owners have completed the paperwork, although 16,000 have been approved.

“We are facing challenges with borrowers completing documentation or making trial plan payments as agreed,” Molly Sheehan, JPMorgan Chase’s executive in charge of housing policy, said in written testimony.

Source: Associated Press, Alan Zibel (12/07/2009)