Don’t Pass Up The Fixer Homes…

By: Rob Jordan

The FHA 203k loan is an often overlooked option for buying a home that needs some work, or for refurbishing your existing home. Here’s how it works.

Let’s say you find a house you love, but it needs some work. You’ve saved the money for the down payment, but you don’t have the extra $10,000 or $20,000 or $50,000 or $100,000 that is required for repairs and rehabilitation. Or let’s say your existing house needs some work, and you want to remodel and refinance. Well, you can borrow the repair money from the FHA, and roll it all into one regular home loan!

The FHA 203k loan program is specifically for homeowners who want to buy a property that needs some rehabilitation and repair, and they want to borrow the money for the repairs with the home loan. It’s basically a home improvement loan rolled into your typical home loan.

This program can be used to accomplish rehabilitation and/or improvement of an existing home in a couple of ways:

• You can purchase a home that needs some work and rehabilitate it.

• You can refinance your existing home and build in repair and rehabilitation funds into the loan!

For example, suppose you find a nice house listed for $500,000, but it needs some work. A new roof, new flooring, new appliances, new kitchen cabinets (or a whole new kitchen), new bathrooms. You can use the money for just about anything except a luxury item like a pool. You estimate the repairs at $50,000. The value of the home when fixed up is $600,000, based on comparable homes in the neighborhood.

The FHA will loan you the whole $550,000, and work with you and your contractors to help get the work done. They help you find the contractor, itemize the repairs, develop a schedule, and release funds to pay the contractor, tradesman and material providers as the work is done.

For improvements or repairs LESS than $35,000 – called a streamlined rehab – it’s even easier. The money is advanced to you up front, without a progressive release schedule.

Is the house so bad you can’t move in for a bit? Well, you can even finance the first few months payments to cover the time period during which you’re doing the work. So you’re not making payments on a house you’re not living in.

The program is similar for existing homeowners who want to fix up their homes, but haven’t saved up the necessary funds.

And, you can even do some of the work yourself if you are capable.

FHA rates and qualifying criteria are very competitive, and you won’t be paying a big, over market premium for these loans.

So when searching for a home (or want to fix up your existing house) don’t pass up on the ones located in great neighborhoods which “are in bad shape but have great potential”, just because you don’t have the extra funds to pay for repairs. Maybe the FHA 203k loan is just the thing for you!

For additional information, contact Rob Jordan, of Sotheby’s International Realty/Ewing & Associates. Rob specializes in Agoura, Oak Park and Westlake Village homes. He can be reached at 818.237.4425.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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Fountain Place Villas “Educator Townhomes”

By: Rob Jordan

60 or 70 local homeowners attended a workshop at Agoura High School on the evening of January 25 to listen to a presentation by the City of Agoura Hills regarding a low to moderate income condo development proposed for a one acre parcel of property on the Agoura High School campus. The workshop was hosted by staff members from the City of Agoura Hills. The project architect was present as well.

Called the Fountain Place Villas “Educator Townhomes” the project would be located at the end of Easterly Road along the east border of the school. The site is located in a Redevelopment District which gives the city certain latitude in deciding what type of a project might be suitable. 16 condos are planned, to be priced in the mid $200,000s. Buyers would need to qualify as low to moderate income households, earning between $40,000 and $82,000 per year. According to the terms of the Redevelopment District agreement, the City of Agoura Hills is required to build up to 40 low to moderate income housing units prior to 2014.

Nearly every speaker was opposed to the project.

Sandra Pope, a local teacher at Willow Elementary and Las Virgenes Educators Association president, spoke in favor of the development, which she said would allow low to moderate income teachers to “live in the district where they work.” Staff members pointed out that there is no guarantee that teachers would have priority to purchase the homes.

The homeowners opposition was centered around several recurring themes, including parking problems in the area, and many called it the wrong development in the wrong location.

Many speakers thought the parcel should be consider for a parking lot, citing the worsening parking situation in the area. The school has recently lost over 100 spaces due to the new performing arts center, and students are being forced to park in residential areas or on streets where parking is not permitted. Some parents said that students are receiving expensive parking tickets daily. Some residents of Annandale, the condominium development across from the school, said that finding street parking on evenings when there was a school event was nearly impossible.

You can’t discuss any development in the area WITHOUT addressing the parking problem was a theme that came up over and over during the evening. The City of Agoura Hills staff specifically said they could not discuss the parking problem, only the proposed development.

Many homeowners thought the idea of building 16 condo units on a one acre parcel was a bad idea, citing the rural nature of Old Agoura, and the one home per acre zoning for existing homes on Easterly. Some speakers pointed out that construction traffic up and down the narrow Easterly Road would cause even more traffic related issues.

Finally, several speakers and one realtor remarked that in the current housing market that there are dozens of low cost condos available for sale in the $200,000 to $300,000 range, and why not just buy some of those and turn them into subsidized low to moderate income housing.

In order to proceed, the Las Virgenes Unified School District which owns the parcel, is considering entering into a long term lease with the City of Agoura Hills, which would pay the school district $1,000,000 total over 65 years. One speaker remarked that it seemed like a bad idea to forever give up one acre of valuable land which might be needed for parking or additional classrooms.

Additional workshops and meetings are planned.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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Real Estate 2010

By: Rob Jordan

More homes sold in 2010 vs. 2009. Buyers concluded that current prices are attractive, jumped in and bought at sharp prices (and at low interest rates.) Buyers think that in the long run, today’s prices have nowhere to go but up. Sellers came to the conclusion that prices aren’t going up any time soon, and those Sellers that needed to sell decided to sell now not later. (Sellers, please remember: even if you get less when you sell, you get more when you buy.) Many Sellers sold their homes as short sales (for less than owed.) Often this process is a long one, but eventually these homes sell. Also, homes that were formally foreclosed upon by banks end up as homes listed for sale, which increases inventory and sales volume.

While volume was up, prices remained under pressure, in particular in the over $1,000,000 range. Under $500,000, prices in many areas have stabilized, with lots of buyers (and investors) buying lower priced homes. Nobody is predicting that prices will increase dramatically in the short term. Over 5 or 10 years real estate is likely a good investment. Trying to flip in the next year or two? Not likely. Thinking you’ll get 5% more for your house next year? Also unlikely. Sell now if you need to sell.

The average time required to sell homes increased a bit, to between 3 and 4 months. I think this is mostly a function of the long time it takes to conclude a short sale. Normal sales conclude more quickly than short sales, generally in 1 to 2 months.

What’s going to happen in 2011?

I think prices are going to stay flat at best, or drift down at worst. Several items put pressure on prices: 1) Interest rates may rise, making it harder for buyers to qualify for higher loans. 2) More foreclosures are coming, depressing average prices. And while the Conejo Valley is likely more healthy than many areas in California and the nation, the overall economy is sluggish at best, which limits inflation.

What should you do right now?

•    If you need to sell… do it earlier rather than later. It’s possible to get top dollar. Let’s promote your home furiously and find that one buyer willing to pay you top dollar.

For one past client, I achieved the highest sale in the neighborhood. We had
5 offers and sold in less than a week for $29,000 OVER asking price. Furious initial promotion was the key!

•    If you’re a homeowner in trouble… take action now. Don’t let a bad situation get worse. You have options and I can lay out your choices for you.

•    If you want to buy… do it sooner rather than later. Interest rates may go up; qualifying (particularly FHA) is becoming harder. You have more buying power now.

•    If you’re a landlord with property to lease… let’s price it sharply and promote the heck out of it. It’s better to land a tenant now at slightly reduced rent, than to have your home sit empty for months. There are fewer homes for lease now than in the past.

•    If you’re a tenant wanting to rent… there are lots of choices in all price ranges. I’m aware of properties that are not on Craig’s list or in the newspaper.

•    If you have a dangerous loan… refinance promptly. I can give you several sources who can help you.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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Construction is set to begin at Sumac Park…

By: Rob Jordan

Located adjacent to Sumac Elementary School in the Fountainwood neighborhood of Agoura Hills. The existing playground areas and equipment are all being renovated or replaced. Plans for the park include new swings, adventurous playground equipment (read climbing stuff!), soft wood fiber surfacing that is fall-friendly, a sand play area, new benches and trashcans, and shade canopies.

Construction is planned to be swift, taking only 2 weeks from the middle to end of June 2010, during which time the existing playground will be closed.

Fountainwood is an established, popular family neighborhood in Agoura Hills consisting of some 700 or so one and two story homes. Sumac School is an award winning elementary school located in the middle of the tract. And Agoura High School is walking distance from Fountainwood homes.

Rob Jordan, successful realtor with Sotheby’s International Realty/Ewing and Associates, specializes in helping buyers and sellers in Fountainwood. He achieved the highest sale in 2009 and 2010, helping his Seller obtain $677,000 for a custom 3 bedroom 2 bath home. Rob can be reached at 818 237 4425.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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By: Rob Jordan

If you don’t know, there’s been an ongoing battle to build a school over a 71 acre piece of land in the city of Agoura Hills. Heschel religious school owned property east of Chesebro Road that allegedly went into default and will now be sold to the highest bidder. Heschel sought approval from LA county to construct a larger campus that would effectively host 750 students. But, given the current economic crisis, Heschel school has decided to continue operating the 9 acre property currently in use.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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Great News for Conejo Valley FHA Buyers and Sellers!

By: Rob Jordan

It’s a common scenario for a real estate agent. I have a well-qualified FHA buyer who has been patiently making offers on condos and town homes, but losing every sale for the last six months.  I now locate the property of their dreams, miraculously get the offer accepted, and find the condo project is not FHA approved.  AAAARRRRGGGGHHHH!

But there may be some good news!

A bit of background: FHA is a great way for entry level buyers to purchase a home. FHA purchases only require a 3.5-5% down payment, AND the seller may pay some of the Buyer’s closing costs. By the time you add in the first time buyer’s tax credit, it can take only a few thousand dollars to buy a home!

But the FHA has strict guidelines about property condition, so there is a list of FHA approved condos. If a project is on the list, it’s “preapproved for FHA purchases”.

If a project is not on the approved list, it was possible to obtain an FHA “spot” approval for one particular unit. But this was time consuming and often unsuccessful.

But in an odd turn of events, instead of fighting a losing battle to get just one unit approved,  I may be able to get THE ENTIRE COMPLEX FHA APPROVED at once.

My loan source, Prospect Mortgage, is an FHA Direct Endorsement lender. This means that they have the authority to approve entire condominium projects… not just one unit. No waiting for the government to get involved. My lender can do it all!

To get a project approved the following are the minimum standards:

·  Projects must be at least 12 months old
·  There can be no pending litigation or special assessments
·  At least 50% of the units must be owner-occupied
·  No more than 15% of the total units can be delinquent in their HOA dues
·  Reserves for capital expenditures must equal 10% of annual budget
·  CC&Rs cannot contain a “Right of First Refusal”
·  No more than 50% of the units may be FHA insured

Why the change in approval process? The government desperately wants the real estate market to recover. So they’re doing everything they can think of to make it easier for buyers and sellers to do business. FHA financing is one way to make it easier for Buyers to buy. It does take a bit longer overall for the process, but in the end, it’s worth it for Sellers and Buyers!

So, are you an FHA Buyer or Seller? I may have good news for you! Contact me today!

Rob Jordan is a successful real estate agent with Sotheby’s International Realty/Ewing and Associates in Agoura. He specializes in the Agoura, Oak Park, Westlake Village area. He can be reached at 818.237.4425, or by email: rob@robjordanhomes.com

(This blog based on an article by Brownie Stanisch, Prospect Mortgage, the best darn loan officer in the business! Call her at 818.742.3137. Article edited and reprinted with permission.)

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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By: Rob Jordan

The tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence is in it’s final stages. The tax credit applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify. So buyers need to be IN ESCROW by the end of April, and CLOSE by end of June.

Here are some common questions and answers regarding the tax credit. (Information obtained from Federal Government website.)

1. Who is eligible to claim the $8,000 tax credit?
First-time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit.
2. What is the definition of a first-time home buyer?
The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the home ownership history of both the home buyer and his/her spouse.
3. How is the amount of the tax credit determined?
The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
4. Are there any income limits for claiming the tax credit?
Yes. For sales occurring after November 6, 2009, the income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.
5. How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?
You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS Form 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns). Please note that although the Form is titled “First-Time Homebuyer Credit,” this is the correct form for claiming both the $8,000 first-time homebuyer tax credit and $6,500 repeat buyer tax credit.
No other applications are required, and no pre-approval is necessary.
6. What types of homes will qualify for the tax credit?
Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.
It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members.
7.  I read that the tax credit is “refundable.” What does that mean?
The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.
8.  Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after January 1, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April, 30, 2010).
9.  Is a tax credit the same as a tax deduction?
No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $8,000 in income taxes and who receives an $8,000 tax credit would owe nothing to the IRS.
A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $8,000 in income taxes. If the taxpayer receives an $8,000 deduction, the taxpayer’s tax liability would be reduced by $1,200 (15 percent of $8,000), or lowered from $8,000 to $6,800.
10.  Is there a way for a home buyer to access the money allocatable to the credit sooner than waiting to file their 2009 or 2010 tax return?
Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the down payment.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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Courtesy of the Acorn

Some of the locals may have noticed our brilliant American flag perched atop Ladyface Mountain. Well, at least I have. My curiosity, however, is settled. The editor of The Acorn allegedly climbed to the top of the 1,200 foot peak to scope out the scene.  What he found was a shabby old flag, standing up tall by a makeshift pool.

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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The 90 day project began January 31

Agoura Hills Crane

By: Rob Jordan

Just another follow up on the soil settlement project occurring on the Reyes adobe interchange on the 101.  You’ve certainly noticed the massive crane looming above Agoura and the traffic during the evening hours.  Well here’s the official scoop: from 9pm – 6am motorists can expect this project to be in progress until April 31st.

For more info visit: http://www.ci.agoura-hills.ca.us/

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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These credits will soon disappear…

By:  Rob Jordan

First time buyers are entitled to received a tax credit of up to $8,000 if they purchase a home prior to June 30, 2010. But the window of opportunity is closing. The home must be in escrow by April 30, 2010.

This is a true cash credit you can deduct right off your taxes. And if you don’t owe $8,000 in taxes, you even get the money back from the IRS!

The rules are simple:

1. Be a first time buyer.
2. Buy a new home.
3. Meet the income requirements (up to $145,000 individual; $245,000 couple).
4. Get the credit!

For first time, low to mid range buyers, this is great opportunity. Say you’re buying a home for $400,000, using FHA financing (3.5% down). Your down payment is $14,000. But you get the $8,000 back on your taxes. So your net out of pocket is only $6,000! Wow! In the Agoura, Oak Park and Westlake Village areas, there are lots of wonderful homes in all price ranges that are terrific candidates for first time buyers.

There is a similar credit for move-up buyers, to a maximum of $6,500. So even if you sell they buy, you may be entitled to a tax credit. Consult your tax advisor to see how this program affects your individual situation.

Information provided by Rob Jordan, Estate Agent at Ewing and Associates/Sotheby’s International Realty. Specializing in Agoura/Oak Park/Westake Villae sales and leases. Contact Rob at 818.237.4425,or email to rob@robjordanhomes.com

EwingSIR does not guarantee information contained in this blog, readers are encouraged not to rely solely on this information and to do their own independent research of facts contained herein. Blog information was obtained from independent sources that we do not endorse, and we do not investigate this information for accuracy.

Rob Jordan

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