Norman OK has announced that they will be opening up the NCRC Grant program, which gives each eligable first time home buyer $5,000 that can go towards closing costs and down payment (it can go towards the FHA required 3.5% down payment!). Applications can be taken now, and funds can be reserved starting July 2010, with closings as early as August, 2010. Call me for a list of approved lenders! (click here to search for homes for sale in Norman OK)
Some of the guidelines that a purchaser will have to meet in order to qualify for the 2010 Norman home buyer assistance program are:
1) Must be below the following income limits:
1 member household - $33,250
2 member household - $38,000
3 member household - $42,750
4 member household - $47,500
5 member household - $51,300
6 member household - $55,100
2) Maximum sales price of home: $125,400
3) Purchaser must provide a minimum of 1% of sales price in their own funds.
4) In the case where ther is a non-occupant that is co-signing for the loan, the house payment cannot be larger than 43% of the primary borrower's income.
5) Cannot currently own or have owned property within the last 3 years.
6) Must be willing to occupy the property as their primary residence for at least 5 years (if you sell the home before 5 years is up, the balance will be pro-rated on a yearly basis). i.e. if you have 2 years left and you sell your home, you will have to pay $2,000 back to the city at closing.
7) And lastly, and most importantly, the property has to be within Norman, OK. city limits.
Call me with questions or to get a list of homes for sale in Norman that will qualify for the NCRC Grant, or click here to see my blog post about other first time home buyer programs!
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Oklahoma Real Estate Agent -- let me know how I can help you with your next move!
Fiddlers Green in Norman, OK, is a wonderful neighborhood in a convenient location in South Norman, close to the University of Oklahoma and I-35, designed for low maintenance living and specifically for those persons 55 and older. Monthly HOA dues include common area maintenance, gated entry, yard maintenance, community center, and community pool -- the perfect retirement community!
Most of the homes in the community are smaller, but if you need extra space for a gathering, you can rent out the community center for only $25 per night!
Click here homes for sale in Fiddlers Green as well as pictures and information about the community.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, Oklahoma City, OK, and Edmond areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
This is a question that I get presented with quite frequently -- the basic answer? A lot better than the majority of the United States.
Is Norman being affected by what is going on Nationally? Absolutely, but not in the ways that you might think. The largest impact that is being brought to Norman is not from lack of demand like in other parts of the US, but from new bank and appraisal guidelines. I am going to be writing another post shortly on how those two elements are impacting the local housing market in the Oklahoma City Metro Area. For now, I will focus on the guts: What are people paying for homes these days?
Homes listed between $100,000 and $150,000 and closed within the last 30 days (05/15/2010 - 06/14/2010) vs. the same period in 2009:
Total #: 59 vs. 44 in 2009
Average Sales Price: $123,976 ($86.22 / Sq. ft) vs. $125,125 ($85.48 / Sq. Ft) in 2009
Average Sales Price / Listing Price: 97% vs. 98% in 2009
Median Sales Price / Listing Price: 98% vs. 98% in 2009
Average Days on Market: 45 vs. 44 in 2009
Compared to the same period last year, while the overall average sales price is lower in 2010 than 2009, the average price per square foot is higher by .86%, signifying that there was an approximate increase in property values in this price range of 1% between 2009 and 2010. The metric that I think is impressive is that while the number of homes that had sold this year compared to last is higher by nearly 20%, the average days on the market is roughly the same, signifying a much higher absorption rate than the same time last year (a possible side effect of the tax credit expiring).
Homes listed between $150,000 and $200,000 and closed within the last 30 days (05/15/2010 - 06/14/2010) vs. the same period in 2009
Total #: 27 vs. 34 in 2009
Average Sales Price: $170,334 ($93.49 / Sq. Ft.) vs. $165,941 ($88.48 / Sq. Ft.) in 2009
Average Sales Price / Listing Price: 97% vs. 96% in 2009
Median Sales Price / Listing Price: 97% vs. 97% in 2009
Average Days on Market: 62 vs. 89 in 2009
The most notable difference is the Average sales price per square foot from 2010 to 2009 -- it is nearly 5.3% higher in 2010 than in 2009. This may be partially due to the introduction of the tax credit for move-up buyers (as the average person/family buying a home in this price range would most likely be), but it could be a genuine increase in the price of these homes. I will look back on these numbers again next month when I run the statistics, as we start getting home sales close that were not impacted by the tax credit. A metric that would be less subject to be influenced by outliers would be the Median price per square foot, which was 91.81 in 2010 and 87.61 in 2009, still a healthy 4.5% increase from 2009.
Homes listed between $200,000 and $250,000 and closed within the last 30 days (05/15/2010 - 06/14/2010) vs. the same period in 2009
Total #: 14 vs. 21 in 2009
Average Sales Price: $218,451 ($98.95 per Sq. Ft) vs. $221,930 ($99.57 per Sq. Ft.) in 2009
Average List Price / Sales Price: 97% vs 98% in 2009
Median List Price / Sales Price: 98% vs. 99% in 2009
Average Days on Market: 123 vs. 138 in 2009
The numbers in this price range speak of a very slight decline or a stagnation of the market. The tax credit would have had a much smaller impact on this price range than the last, however, it is more apparent that people are negotiating a little more this year than last, which would account for the small decline in the average sales price per square foot: on average buyers are asking sellers to come down an additional 1% from where they would have been asking this same time last year.
Homes listed between $250,000 and $300,000 and closed within the last 30 days (05/15/2010 - 06/14/2010) vs. the same period in 2009
Total #: 11 vs. 7 in 2009
Average Sales Price: $272,272 ($103.57 / Sq. Ft.) vs. $267,428 ($93.41 per Sq. Ft) in 2009
Average Sales Price / List Price: 97% vs. 96% in 2009
Median Sales Price / List Price: 98% vs. 98% in 2009
Average Days on Market: 94 vs. 94 in 2009
The price per square foot difference shouldn't be read into too much, except to note that the homes that did sell were those homes in which the price per square foot was lower. At this point in 2009 there were quite a few unknowns in the stock market which may have pushed purchasers in this price range into inaction on the homes that were priced to market. The Average sales price / listing price is very similar, and the days on the market for both are right in line.
Homes listed between $300,000 and $400,000 and closed within the last 30 days (05/15/2010 - 06/14/2010) vs the same period in 2009
Total #: 6 vs. 6 in 2009
Average Sales Price: 338,166 ($114.91 / Sq. Ft.) vs. $319,150 (92.36 / Sq. Ft.)
Average Sales Price / List Price: 93% vs. 93% in 2009
Median Sales Price / List Price: 93% vs. 93% in 2010
Average Days on Market: 69 vs. 164 in 2009
In 2010 there were many more purchasers in this price range prepared to make a purchase, whereas in 2009 the purchasers that there were, didn't want to overextend themselves. Many of the more updated homes were not selling at this time in 2009, whereas now there are more purchasers and the more updated homes are selling (this is also evident in the average days on the market).
Homes listed above $400,000 and closed within the last 30 days (05/15/2010 - 06/14/2010) vs. the same period in 2009
Total #: 5 vs. 3 in 2009
Average Sales Price: 594,279 (122.08 / Sq. Ft.) vs. 483,133 (131.09 / Sq. Ft.) in 2009
Average Sales Price / List Price: 98% vs. 90% in 2009
Median Sales Price / List Price: 100% vs. 96% in 2009
Average Days on Market: 66 vs. 99 in 2009
Not surprisingly, in this price range there were few people willing to make a move during the rough economic times of 2009, and those that were wanting to make a move did so after bargaining quite a bit -- there is one sale that brought the average sales price / list price down, which is evidenced in the median sales price / list price being much higher. Still, in this price range 4% is a considerable $ figure. It is understandable that purchasers in this price range might have significant investments in areas other than real estate, and it is likely that in 2009 the overall financial picture was a little fuzzy. 2010 has brought quite a bit more clarity to equity and debt markets (not as many as we would like!), which has brough more purchasers out. In addition, it is apparent that the sellers in this price range have been selling their homes at a lower price per square foot than in 2009, which may have been enticing to purchasers as well.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in homes in Norman OK, Moore OK, Oklahoma City OK, and Edmond. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
Previously FHA had preventing borrowers from purchasing properties that have been purchased by for-profit investors from being bought by FHA loans until they had been owned by the investor for at least 90 days. With the increase in the number of people utilizing FHA financing to purchase properties, this often meant that investors will have to account for holding a property for 90 days before going under contract (of course properties can still be sold via conventional financing).
Because of the number of foreclosed and abandoned properties on the market right now, FHA has waived the Flip Rul until February 1, 2010. There are, however, still requirements that must be met, according to HUD's briefing on the Flip Rule.
1) the seller must hold title to the property
2) LLC, corporations or trusts that are serving as sellers must be created and operated in accordance with applicable state and federal law
3) No pattern of previous flipping of the property exists in the last 12 months
4) The property was marketed openly and fairly
If the property being sold is 20% (twenty percent) over the sales price that the investor purchased the property at, the following must occur:
1) a justification of the purchase price based on market comparables and/or a second appraisal varifying that the seller has completed a sufficient amount of renovations to the property to justify the increase in the purchase price.
2) That the lender orders a home inspection for the buyer before closing.
This is definitely good news to the investors that are interested in flipping properties, as the carrying costs can sometimes be a significant portion of the cost of flipping a home.
If you are interested in purchasing homes to flip in Norman, OK, Moore, OK, Noble, OK, or Oklahoma City, please feel free to contact me for additional information on homes that might be available.
Click the following link to search for homes for sale in Norman, Moore, or Oklahoma City.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in homes in Norman OK, Moore OK, Oklahoma City OK, and Edmond. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
The terms of the 2010 OHFA bond program were recently announced. The OHFA bond program will allow first time home buyers (including buyers who have not owned a home in at least 3 years) to receive 3.5% down payment assistance. The bond is funded by requiring borrowers to lock in their loan rate at a slightly higher than normal rate, currently 5.65%.
Income Limits:
For a 1-2 person household: $58,500 (non-targeted), and $70,200 (targeted areas)
For a 3+ person household: $67,275 (non-targeted), and $81,900 (targeted areas)*
*one of the participating lenders can assist you with determining whether the area in which you are looking to purchase is a non-targeted or targeted area.
Purchase price Limits:
$189,682
Please feel free to contact me for a list of OHFA participating lenders and I would be happy to forward you a list!
Click the following link to search for homes for sale in Norman, Moore, or Oklahoma City.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
If you are a first time home buyer and eligable for the tax credit, your time is running out! To claim the tax credit, you must have closed on the house before November 30th, and to do that you really need to have a contract on a house by the beginning of November (or before!)
I specialize in the Norman, Moore, Noble, and Oklahoma City metro area and would love to assist you with the purchase of your first home. Contact me today to get started!
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
Are you looking for a HUD homes for sale in Norman OK, Moore OK, or Oklahoma City OK, or do you have questions about the purchase process of a HUD Home? Please give me a call and I can assist you!
I am a HUD qualified Realtor and have assisted many people build instant equity (myself included!) through the purchase of HUD properties, which can be purchased for as little as $100 down! We can even negotiate with HUD to have them pay up to 3% of closing costs as well!
I have put together a frequently asked question page on my website about HUD homes in Norman OK, Moore OK, and Oklahoma City OK, where I have answered some of the common questions about HUD homes and the purchase process, but please, contact me today and we can get started building wealth through the purchase of a HUD home!
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
Royal Oaks is a neighborhood with both established homes and newer homes. The first sections of Royal Oaks were built in the Early Mid 80's, with the most recent sections completed in 2009. The price range of homes varies, from about $125,000 to about $180,000 for some of the newer homes, and homes that back up to the residential lake.
Neighborhood amenities include a playground, walking trails, and a community lake.
Homes in Royal Oaks are close to the University of Oklahoma (5-7 minutes away), the Weather Center (3-5 minutes away), and is a convenient drive for those wanting to live in Norman but also need to have access to Tinker Air Force Base (it is a 10-15 minute drive North of Royal Oaks).
You can see all of the homes listed for sale in Royal Oaks in Norman as well as neighborhood and school information on my Norman Real Estate website.
Interested in purchasing a home in Royal Oaks in Norman? You can click on the link above to see information about the neighborhood, a list of homes that are currently for sale, and to schedule an appointment to see the homes in Royal Oaks.
Are you going to be selling a home in Royal Oaks? I would love to have the opportunity to speak with you about how I could assist you with the sale of your home and feature your home on my website!
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
Eagle Cliff is a neighborhood with both established homes and brand new homes available. The first sections of Eagle Cliff were built in the Early 1980's and the Southern Sections are being built currently. The price range of homes varies widely, from about $100,000 to about $200,000 for some of the newer, larger floorplans that are available.
Homes in eagle cliff are close to the University of Oklahoma (5 minutes away), the Weather Center (3 minutes away), and is a convenient drive for those wanting to live in Norman but also need to have access to Tinker Air Force Base (it is a straight 15-20 minute drive North of Eagle Cliff).
You can see all of the homes listed for sale in Eagle Cliff in Norman as well as neighborhood and school information on my Norman Real Estate website.
Interested in purchasing a home in Eagle Cliff in Norman? You can click on the link above to see information about the neighborhood, a list of homes that are currently for sale, and to schedule an appointment to see the homes in Eagle Cliff.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
Norman OK has announced that they will be opening up the NCRC Grant program, which gives each eligable first time home buyer $5,000 that can go towards closing costs and down payment (it can go towards the FHA required 3.5% down payment!). Applications can be taken now, and funds can be reserved starting July 13th with closings as early as August 3rd, 2009. Call me for a list of approved lenders! (click here to search for homes in Norman OK)
You can use both the NCRC Grant and the $8,000 first time homebuyer tax credit.
Some of the guidelines that a purchaser will have to meet in order to qualify for the 2009 Norman home buyer assistance program are:
1) Must be below the following income limits:
1 member household - $32,750
2 member household - $37,450
3 member household - $42,100
4 member household - $46,800
5 member household - $50,550
6 member household - $54,300
2) Maximum sales price of home: $133,000
3) Purchaser must provide a minimum of 1% of sales price in their own funds.
4) In the case where ther is a non-occupant that is co-signing for the loan, the house payment cannot be larger than 41% of the primary borrower's income.
5) Cannot currently own or have owned property within the last 3 years.
6) Must be willing to occupy the property as their primary residence for at least 5 years (if you sell the home before 5 years is up, the balance will be pro-rated on a yearly basis). i.e. if you have 2 years left and you sell your home, you will have to pay $2,000 back to the city at closing.
7) And lastly, and most importantly, the property has to be within Norman, OK. city limits.
Call me with questions or to get a list of homes for sale in Norman that will qualify for the NCRC Grant, or click here to see my blog post about other first time home buyer programs!
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Oklahoma Real Estate Agent -- let me know how I can help you with your next move!
Carrington Place is a great newer neighborhood in Northwestern Norman just off of 36th and Franklin Road. Carrington Place has great neighborhood amenities including a pool, clubhouse, playgrounds, walking paths, and neighborhood lakes, and is conveniently located close to I-35 and shopping.
You can see homes for sale in Carrington Place in Norman, OK as well as neighborhood and school information on my Norman Real Estate website.
Interested in purchasing a home in Carrington Place in Norman? You can click on the link above to see information about the neighborhood, a list of homes that are currently for sale, and to schedule an appointment to see the homes in Carrington Place.
Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com
"It's not about houses -- It's about homes."
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
3406 Derek Lane in Tecumseh Meadows in Norman Oklahoma is about 3-5 minutes away from I-35, 5 minutes away from Norman Regional, and 5-10 minutes away from the university. Built in 2001, it has 3 bedrooms + a study, a huge kitchen with a pantry, and it is only $76 per square foot - $179,000! Other properties in the neighborhood are selling in the mid to high $90 per square foot!
It is tenant occupied until September which would make it a perfect property for someone looking for investment property in Norman OK, longer escrow period, or just a good deal!
3406 Derek Ln, Norman, OK."It's not about houses -- it's about homes." | | Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com |
Your Norman Ok Realtor and source for everything real estate in the Oklahoma City Metro Area.
You can now see all of the homes listed in Brookhaven, Norman, OK and neighborhood information on my Real Estate website.
I would love to be your Norman real estate agent, so please let me know if you have any questions about Brookhaven in Norman OK, would like to take a look at some of the homes for sale in Brookhaven, or if you would like for me to feature your home for sale in brookahven on my brookhaven webpage.
| | Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com |
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
You can now see homes for sale in the Vineyard in Norman OK and neighborhood information on my Norman, Moore, and Oklahoma City Real Estate website.
Please let me know if you have any questions about the Vineyard in Norman or would like to take a look at some of the homes for sale in the Vineyard!
| | Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com |
I am a Real Estate Agent specializing in the Norman OK, Moore OK, and Oklahoma City OK areas. I am a member of the National Association of Realtors, and have access to the Norman MLS and the Oklahoma City MLS. I can help you as a buyer broker or help you as a listing broker for your home in Norman OK, Moore OK, and anywhere in the Oklahoma City metro area. I would love to be your Real Estate Agent -- let me know how I can help you with your next move in Norman OK, Noble OK, Moore OK or Oklahoma city OK!
The short answer is: Yes. There are, however, important details.
On May 29th, 2009, FHA (Federal Housing Administration) released a buletin in which they gave their blessing to lenders, non-profit organizations, and state agencies to "purchase" the right to receive the $8000 tax credit from an eligable home buyer, so the funds could be used towards closing costs, additional down payment, or other closing fees. Currently, as of the writing of this post on June 9th, there are few that have programs to help first time home buyers use the $8000 tax credit towards their down payment and closing costs in the Norman OK, Moore OK, Oklahoma City OK, or Oklahoma City Metro area. I will update this post when I hear of lenders with such a program in the Metro Area.
It might take some time for local lenders and agencies to instate programs for this loan, particularly because there is no national standard -- FHA is requiring each agency or lender to come up with their own program that meets their guidelines, which could take some time. While on the surface it sounds like a stellar idea to use the credit towards a down payment, there are some important Details:
This means that if you were planning on using some of the money towards closing costs, additional down payment, and expecting to have some money left over -- that will not be possible.
A buyer will still have to come up with the 3.5% minimum required down payment through other sources: non-profit organization, a family member, or an employer. The credit can be used to pay for a down payment in addition to the 3.5%, and can go towards any closing costs, pre-paid items, interest rate buy-downs, or other closing related expenses.
While it doesn't amount to much, it is important to know that whoever does buy your tax credit from you can charge a fee of up to 2.5% of the tax credit amount (2.5% of $8000 tax credit is $200).
They can buy the right to receive the tax credit from you, but that still means that money has left their hands and they can charge interest on it. Essentially, the tax credit will be a second loan against your home until you pay the person that bought it from you. The service provider that buys it from you may require you to make additional monthly principal and interest payments on the loan amount, and they will be included into your qualifying ratios used to calculate your ability to purchase a home (when they calculate your ability to pay, if the service provider requires you to make $200 per month payments on the loan until it is paid and your lender said that you couldn't buy a home that would have your monthly payments exceed $1000, you would have to find a home that would keep your payments below $800 to be able to use the credit in this way: $200 + $800 = $1000).
To read the official publication from FHA, click here.
Please feel free to give me a call if you have any questions regarding the $8000 tax credit, using it as a down payment, or if you have any questions about purchasing your first home in the Norman OK, Moore OK, Noble OK, or Oklahoma City OK area. You can always search for homes for sale in Norman OK, Moore OK, Oklahoma City OK on my website, http://www.OklaHomeSeller.com, or by going directly to my home search page.
| | Rob Schaerer
Dillard Group Real Estate
Preferred: (405) 694-8537
Office: (405) 366-7707
Rob@Dillardgroup.com
www.OklaHomeSeller.com |