Additional Funds for the Elderly Homeowners

If you are a homeowner aged from 62 years old and above, you may qualify for Reverse Mortgage Program.  Reverse Mortgage Program is a safe plan to give elderly homeowners, like you, greater financial security.  Reverse mortgage is a home loan that allows the conversion of the home equity into cash that may be used as a Social Security, pay for unexpected medical expenses, make home improvements - among other things. There are no restrictions on how you can use the funds, you can spend it as you wish.

The good thing about this loan, is that unlike conventional mortgages, there are no income requirements to qualify for the loan. Borrowers do not need to make any monthly payments unless the homeowner moves out or dies or the loan becomes due.

The money received will be non taxable and will not affect the Social Security or Medicare Benefits. However, the borrower must keep his tax payments and insurance up to date so as not to default on the reverse mortgage.

You can receive the loan payments in 5 different ways:
1. Tenure - equal monthly payments as long as the you live and continue to occupy the property as the main residence.

2. Term - equal monthly payment for a specified number of months chosen.
3. Line of Credit - unscheduled pay-out at times in the amount of your choosing until the fund is exhausted.
4. Modified Tenure - combination of Tenure and Line of Credit option as long you live in the property as your main residence.
5. Modified Term - combination of Term and Line of Credit.

To be eligible for the home loan, you must be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance which can be paid from the proceeds of the reverse loan AND you must live in the home.  The type of home required is a single family home or a 2-4 unit home with one unit occupied by you.

If you want to avail of this loan, you must complete a counseling session with a HUD-approved Counselor. In the Counseling session, the Counselor will explain the legal and financial responsibilities of obtaining a reverse mortgage.  Once you receive the Certificate of Counseling", only then the loan can be processed.

You can get more information on www.fha.gov. Or you may call (800) 510-0301 or you can get a free booklet on
http://www.ncoa.org/news-ncoa-publications/publications/ncoa_reverse_mortgage_booklet_073109.pdf

Anti-Fraud Measure for Fannie Mae, Freddie Mac & Federal Home Loan Banks

The Federal Housing Finance Agency (FHFA) has announced an initiative called the Suspended Counterparty Program that will require the mortgage giants Fannie Mae, Freddie Mac and the Federal Home Loan Banks to notify FHFA whenever an individual or company have a history of fraudulent conduct. Any information of fraud or financial conduct committed by that certain individual or company reported by other government sources will also be considered.

Once an individual or a company is proved to have a history of fraudulent activity, FHFA will determine if the party should be suspended from engaging with GSEs or FHFL Banks.

However, affected parties will have an opportunity to explain why they should be able to continue conducting business with one of the FHFA regulated companies.

The initiative will take effect on August 15, 2012.

How to Save on Homeowner's Insurance

 Premiums of homeowner's policies can cost thousand of dollars a year, but they don't need to eat a big chunk of your budget.  Follow these simple tips and you can reduce your premiums and save a lot of money.

1. Insure Only What's Needed
Focus on rebuilding costs. Some insurance company base their coverage level on the home's appraised value, which includes land costs.  While you need to insure your home and its contents, there's no need to insure the land that it's built on.  According to Kevin McCarty, President of the National Association of Insurance Commissioners, "Use the recent per-square-foot replacement costs in your area - available from your local Home Builder's Association.

Do the comparison and you'll see the difference.

2. Read Your Policy
Make sure to read your policy so there are no surprises when you file for your claim.  Read the fine prints as well. This will save you the tons of headache and money in the future.

3. Upgrade your Security
Installing a smoke detectors, fire extinguisher, deadbolt lock, burglar alarms can earn you a discount on your homeowner's insurance.  There are some cases, wherein the additional costs is offset from the discounts given by your insurance provider. Make sure to check with your insurance company.

Most insurers offer discounts of up to 10% to retirees.  This is under the assumption that retired people spend more time at home therefore cutting down the risk factor because they can react quickly to unexpected incidents. 

4. Maintain a Healthy Credit Score  

Credit report can influence your insurance rates.  Insurance companies consider clean credit to be an indicator of risk factor.  When you have a healthy credit score, you can get a lower insurance premium. Therefore, it is very important to check your credit report regularly and fix any errors that you find.

5. Shop Around
When choosing your insurance provider, make sure to do a comparison shop. You can check with your family and friends.  Whatever you do, be sure to buy from a reputable company so you won't have any problems when filing for a claim.

If you need assistance in choosing your homeowner's insurance provider, please don't hesitate to call me.  I have a list of reputable home insurance provider that can take care of all your needs.  

Four Seasons of Real Estate

Everything has a season - including selling your house. Listing at the right moment could give you better opportunities. Many homeowners are unaware that Spring is the best time to put a home in the market. The ideal month to put your home for sale is actually in the month of April - start of Spring season.  If you are planning to sell your home, the time to get on the market is right NOW! Not next week or next month.   More and more properties will be flooding the market in the next few months, so if you haven't listed your property yet, LIST it NOW!! In Real Estate, when the inventory grows, the price drops - this is a basic supply and demand rule.  The best strategy is to list when the inventory is low because buyers are putting offers on what is available in the market.

Furthermore, the military bases are also expecting more active military and their families to be moving to Fort Richardson Army Base and Elmendorf Air Force Base. If you own a property near the bases, you will surely get an offer.

In Freddie Mac's results of its Primary Mortgage Market Survey®, fixed mortgage rates are at new all-time record lows. The 30-year fixed-rate mortgage average at 3.75% while the 15-year FRM is at 2.97%. Buyers are inclined to purchase their homes now, since purchasing a home right now is actually buying a property at a bargain.

If you are an owner of duplex, triplex and fourplex - RIGHT NOW is the time to list your investment property! This will get you TOP DOLLAR in the market as there is a great demand for these kinds of properties because the rental market is climbing. 

If spring is the best season to sell your property, summer is a good season for families to move since it's between school terms and the weather is warm. According to lendingtree.com, 60% of America's move takes place during summer. People have just received their tax refunds, which can be applied as a down payment.  In the past, Sales peak in April and May while they stay strong in the months of June and July. 

With historically low interest rates, high expected demand in single family home and multi-family homes in the current market, do you still need to think about when to put your property in the market?  If you are planning to sell, NOW is the time!!!

In August, the sales go down as people go away on vacation and start planning for the new school year.  Then sales will go up a bit in the fall before dropping again in the winter as buyers and sellers focus on the holidays. But by January, buyers are hunting again and sales will experience a steady increase until the spring season. 

If you are planning to sell and you need help in listing your home.  Please contact me, I'll be happy to help.  For a list of best buy homes in the market, you may visit www.anchoragehomedeals.com.

Renters Intend to Buy a Home in the Near Future

According to the recent homebuyer poll released by TD Bank shows that huge majority (84%) of today's younger renting generation (ages 18-34) intends to buy a home. Doug Duncan, Vice President and Chief Economist of Fannie Mae said, “In spite of the impact of the housing crisis on home values and home ownership rates across the country, Americans by and large still hope to become homeowners.”

The poll also found out that the primary motivation for purchasing their first home is to achieve their American Dream (18%). Next is Good Opportunity (17%); Evolving Family (11%) and lastly Financially Readiness (10%).

According to the survey, 66% of the female respondents plan to own a home while only 57% of the male respondents want to achieve their American dream.

If you are still currently renting, then I should tell you that home ownership is more achievable than ever! Mortgage rates are historically low (Now at 3.83% for 30-year fixed rate) and competitive pricing is available in the market. Furthermore, there are affordable new homes catered for the first time home buyers! I will be happy to assist you to find the perfect home for you.  For a compilation of properties suitable for you, please check out www.anchoragehomedeals.com.

What Home to Choose?

Different people want different things in life. Same goes for their dream home. Some people may want beautiful hardwoods while others prefer carpet. Parents want a home near a great school district, while single people prefers the busy downtown spot where everything is within their reach i.e. office, malls, theaters, etc.

Before you begin your home shopping, it is best to make a wish list to determine what your needs and wants in your new home. Give this wish list to your Realtor so he/she can help you better in finding a suitable home that fits your taste and preferences with a wish list present. Here are some things that you need to consider when searching for a home:    

- Home Type: Are you a condo, townhome or single family detached type of person. Condos are generally low maintenance homes and they are usually centrally located - convenient to centers of employment and shopping.  Amenities are usually present in the building such as 24-hour concierge, security surveillance, recreation and fitness facilities plus shoveling of snow or cutting of grass are included in the HOA fees. 

A townhome can give you more space than the condo.  Architecturally, townhomes are often able to offer more rooms and more square footage than what condos can give. 

Single-family homes come in all shapes and sizes. It can provide you a complete privacy as there are no common walls to be shared with another unit. A yard is built along with the home to provide space for playing with your kids, for BBQs or other outdoor activities you can enjoy.

- Neighborhoods: Do you want to live in the city where there's everything for everyone or a quiet suburban neighborhood? Do you want to stay in your current neighborhood or near your family?

- School Preferences: Do you have children or plan on having them in the near future? Many cities have excellent schools. It will be convenient for your children to have their schools nearby.

- Home Condition: If you do not have time for home repairs, then  MOVE-IN ready home should be on your wish list.  Sometimes, repairs can be messy and if you do not have the time nor the patience for it, MOVE-IN ready home is a much better choice for you.  But if you are looking for a good deal on a gorgeous home, but needs a little work - then a fixer upper might be more of your style. In a fixer upper, you can personalize your home. You can even incorporate your own designs.

Decide what you really want from a home.  Make a checklist and bring it with you all the time when scouting for your new home.  Some features might not be present in that particular home and you may be willing to compromise to have the other features. 

For a list of gorgeous homes in convenient location, please go to www.anchoragehomedeals.com

Are Moving Expenses Tax Deductible?