Friday, June 26, 2009

More good news for first-time buyers

By Kerry Riley, Long and Foster Realtors, www.kerryriley.com

I have told you in the past about getting an $8,000 federal tax credit for first time buyers (hurry! This law expires Dec. 1, 2009), and VHDA monetizing the credit so you can apply to credit at closing.

I learned today that for those first time buyers (also people that have not owned in the past three years) who don't qualify for VHDA (for example if you earn more than $62,000) you can still get the tax credit soon by filing an amended 2008 tax return.

This way you can get back your cash very soon after closing.

Call Kerry Riley at (804) 432-2688 with questions and if you qualify and have not bought your home yet NOW is the time to act. Don't let this great buying envirnment pass you by...

Thursday, June 25, 2009

Finding a job in a tight ecomony

I am sharing this great article by By Anthony Balderrama, CareerBuilder.com writer because so many of my friends are in transition right now. Check this out...

The same rules apply
The way you conduct a job search isn't going to change dramatically this year. If you're currently employed and plan to change jobs soon, don't up and quit without a plan. You don't want to find yourself jobless with no prospects if you can help it -- regardless of the economy. Employed or not, be aggressive in your tactics.

"The market is tougher:
There are fewer jobs, more candidates and hiring authorities are being more careful," says Tony Beshara, author of "Acing the Interview." "So a candidate has to really distinguish himself or herself even more from the competition. He or she [must] go above and beyond the average interview."

Job hunting is about getting noticed by employers. You don't want to blend in with every other person who responds to a job posting or walks into an interview. That's as true now as it was a decade ago. If you're a good employee, you'll be a good addition to the team -- but they'll never know that if you're just another faceless name in a pile of résumés.

To stay ahead of the pack, Beshara encourages you to research the hiring manager online -- use a search engine and social networking sites. If you have mutual contacts, drop their names during conversation so you become memorable. If you're lucky enough to get an interview, be just as prepared.

"Carry a portfolio of reports you have written demonstrating your skills or a 30-60-90 day plan as to what you would do the first 90 days of your employment. Do extra research on the company and the person you are interviewing, and maybe speak to their customers and find out how they are perceived," Beshara suggests.

No room for errorBecause companies don't have the budgets they had a year or two ago, they can't afford to waste time or money on finding a replacement who's anything less than perfect -- or at least close to perfect. Many employers aren't replacing vacation positions that aren't vital to operations. If they're willing to spend on a new hire, they want a qualified candidate who will stick around for a while. They also know that they have many job seekers for far fewer positions. The pressure is on you to be the best potential employee they'll come across in the hiring process.

"Everything, and I mean everything, in your interview matters -- your dress, your speech, your manners -- and employers can be very unforgiving in this market, especially when they still have plenty of candidates to choose from," Beshara warns. "It simply takes lots more practice and, since you can expect fewer interviews in the current market, practice really makes a difference."

A résumé with typos or unprofessional attire in an interview rarely bodes well for a job seeker. In 2009 such a misstep is guaranteed to get your name crossed off the list of potential candidates. Here are some things to consider during your 2009 job hunt.

Résumés
The incessant warning to avoid typos probably gets annoying and seems like redundant advice, but hiring managers repeatedly cite typographical errors as a top pet peeve. Think about it this way: You can't control whether the hiring manager ever picks up your résumé, whether your personality clicks with his or hers and whether you ultimately get the job. Conversely, your résumé is your creation. You went out of your way to type it up and send it to the company. What kind of message are you sending if you don't take responsibility for one of the few factors entirely within your control?

Interviews
The interview is a two-way street, where you need to sell yourself to the hiring manager and he or she needs to sell the company to you. Let the company do its part and focus on yours. You always want to prove to the employer that you're looking for longevity -- in a competitive job market, it's vital. Explain that a position where you can learn, grow and be a team member for longer than a few months is your ideal situation. If the hiring manager gets the feeling that you're desperate to find any job just to earn a paycheck, you'll be out the door before you set your bag down. Employers don't want to spend the money training someone they'll be replacing in four months.

Don't get lazy
Browse job boards, search the classifieds, walk around the neighborhood -- look for jobs wherever you can. Some employers don't want to spend a lot of money advertising a job opening, so reach out to companies that might not have a job opening listed, as they might be quietly searching for new employees.

Network
Your connections, both social and professional, are invaluable resources during a job hunt. Even friends of friends you've only met at a cocktail party are worth touching base with during a job hunt. When you let people know that you're looking for a new job, they'll keep you in mind if they run across an open position at their workplaces or if they hear about one at a friend's company. You can cover more ground than if you search alone.

Tuesday, June 23, 2009

FHA loans are the best deal at the moment for cash strapped buyers

The government backed FHA loan is currently one the best options available to most buyers who can't put 10-20% down on a home purchase. The Federal Home Adminstration (FHA) offers a loan program administered by banks and mortgage companies with just a 3.5% downpayment requirement.

This is the lowest down-payment option available in the current lending environment and you don't have to perfect credit to qualify. A credit score of 580 or above is necessary for FHA. The closer your score is to 720 or higher then the better the rate.

These loans are available on single family and approved condos up to a sales price of 535,900 in Richmond.

Here are the basic requirements:

Two Years of steady employment, preferably with same employer.

Last two years Income should be the same or increasing.

Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 580 or higher or no credit score at all.

Bankruptcy's must be at least two years old, with perfect credit since discharge.

Foreclosure's must be at least three years old, with perfect credit since.

Your new mortgage payment should be approximately 30% of your gross (before taxes) income

I have a good mortgage lender in my office if you would like more information or would like to apply. Now is a great time to buy with a high inventory of homes available, low interest rates, an $ 8,000 federal tax credit for first time buyers and sellers that are more negotiable in paying closing costs.

Call Kerry Riley at 804-432-2688 for more information.

Monday, June 22, 2009

Signs of recovery starting to show in Virgina according to Brookings Institution

Signs of a recovering economy in Virginia
Brookings Institute study says Va headed for economic recoveryby Ben Martin, blogmaster emeritus on June 17, 2009

Research from the Brookings Institute on the economic conditions in the country’s 100 largest metro areas released this month indicates that Virginia may already be recovering from the nation’s economic downturn.Brookings ranked the 100 metros on overall economic health. Washington DC ranked 14th, Norfolk-Virginia Beach-Newport News ranked 16th, and Richmond ranked 46th.

In the report, all three Virginia-area metros are cited as showing signs of economic recovery: Richmond, Washington DC, and Virginia Beach each showed growth in employment and output in the first quarter of 2009.Virginia Beach-Norfolk-Newport News, Washington DC, and Richmond were ranked three, four and five respectively for percent change in Gross Metropolitan Product from Q4 2008 to Q1 2009.

One significant blemish for Virginia: The DC area is still showing 6.49 REOs per 1000 mortgageable properties, making it the 11th worst performer in that category.A strong government and/or military employment presence in all three of Virginia’s major metro areas bodes well for economic recovery the Commonwealth, as these employment sectors tend to be insulated from large employment declines.

Standing in stark contrast to the gloomy Case-Schiller index, the Brookings Institute report shows that 38 of the top 100 metro areas saw no decline in home prices over the past 12 months.We have seen a decrease in the inventory of homes for sale for the month of May.

Glad to pass on good news! Call Kerry Riley with specific questions about market conditions in your neighborhood at (804) 432-2688.

Great Option for VCU/MCV students - 212 N 29th Street Church Hill

Buying that first home can be daunting for the first time buyer. Luckily today there is some relief. First is the economic downturn and credit crisis which has slowed the real estate market. This is good news for first time buyers because of the big inventory of homes for sale.

This increases the affordablity of homes. Also the $8000 first time tax credit allows a first time buyer or anyone who has not owned a home in the last three years to get an $ 8000 credit on their next federal tax return filing.

MEANING that if you can get the seller to cover the closing cost, the $8000 federal tax credit will cover the downpayment assuming an FHA loan up a sales price of $ 228,571. That's a no out of pocket cost to a first time buyer (after credit is applied at tax time). A golden opportunity for a first time buyer.Also a parent can take advantage of the first time buyer tax credit if their child is occupying a home near college.

The student must have a qualifying credit score and occupy the property. We call this the "Kiddie condo" and is a great tax shelter and investment for the parent. Especially when they can rent a room or two to a roomate.

Which brings me around to 212 N 29th Street at Churh Hill. It's a charming turn of the century townhouse in great shape with a separate downstairs apartment included for just $219,900. So the upstairs owner can rent the downstairs to another student for probably $700/mo. or so.Throw in an $8000 federal tax credit and you have got a sweet deal for a parent or anyone wanting a home close to VCU Medical Center.

Call Kerry Riley for the details at (804) 432-2688 or check out at http://www.kerryriley.com

$8,000 Tax credit to be applied at closing through VHDA

Big News! VHDA will loan $8,000 tax credit at closing for qualified first time buyers
Here are the details... Call me at (804) 432-2688 to sign up..

VHDA to Launch Homebuyer Tax Credit PlusThe Virginia Housing Development Authority (VHDA) is launching a new program to allow first time homebuyers to use the Federal First Time Homebuyer Tax Credit to finance downpayment and closing costs on a VHDA mortgage.This loan has a built in second mortgage with zero interest and no payments for the first 12 months.

Eligible buyers have the following three payment options:1. Pay off the second mortgage with the Federal First Time Homebuyer Tax Credit. 2. Pay off the second mortgage over 29 years - and save the tax credit to pay for future emergencies, make home improvements, or pay off/pay down existing debt.3. Make principal payments on the second mortgage before the repayment period begins; this will reduce the required monthly payments for the remaining 29 years on the second mortgage.

The maximum loan amount for the first mortgage is the maximum FHA mortgage, and the maximum loan amount for the second mortgage is up to 5% of the sales price (no cash back). VHDA does not guarantee borrowers' eligibility for the Federal First Time Homebuyer Tax Credit. Borrowers can file an amended tax return after closing, and should consult a tax advisor or the IRS for complete eligibility criteria.

Information is available at http://www.irs.gov/.If borrowers are not eligible for the First Time Homebuyer Tax Credit, or the tax refund (if any) is not enough to repay the First Time Homebuyer Tax Credit plus loan, borrowers are still obligated to repay the second mortgage, plus all applicable interest.For more information, click here or call 877-VHDA-123.

The release of VHDA's program follows HUD's May 12 announcement that FHA approved lenders are permitted to "monetize" the Federal First Time Homebuyer Tax Credit through short-term bridge loans.HUD's program DOES NOT allow a buyer to use a conventional lender to monetize the tax credit to reach the 3.5% downpayment, although they CAN use it for closing costs and prepaids.

The only way a homebuyer can use the tax credit for downpayment (to reach the FHA 3.5%) is if the buyer uses an FHA-approved non-profit or instrumentality of government. For more information, click here to read HUD's mortgagee letter.\

Call Kerry Riley at (804)432-2688 for more details and pre-qualification.