Near historic low mortgage rates, favorable home prices, and the federal tax credit for first-time home buyers have contributed to home purchases in the past year. However, the onset of the credit crisis, new regulations for home appraisals, and more stringent guidelines for purchases and refinances have resulted in confusion for some potential home buyers.
While using a mortgage broker to find the best loan may work for some buyers, it may not always be the best route. In the past, mortgage brokers could “shop” a loan to multiple lenders to help find the best deal. However, new practices and procedures under the Home Valuation Code of Conduct (HVCC) have hampered mortgage brokers’ abilities, namely that lenders may no longer accept home appraisals commissioned by brokers. As a result, consumers may have to pay for new appraisals with each lender, which costs time and money. However, consumers who are very busy or need guidance may find that working with a mortgage broker is the easiest solution.
Qualifying for a mortgage under current lender standards is more difficult nowadays than in years past. Beginning Nov. 1 or Dec. 12, depending on the type of loan, Fannie Mae is tightening its lending standards to the 620 credit score benchmark—including loans backed by the Federal Housing Administration and Veterans Affairs. Borrowers with credit scores of less than 620 will find it very difficult to qualify for a mortgage. However, to qualify for the best rates, consumers generally need credit scores of 720 and must have verifiable, steady income.
As for loan type, most real estate professionals agree that a fixed-rate mortgage is the best choice for buyers and refinancers.
Monday, October 26, 2009
Tuesday, October 20, 2009
Fear Overload Premier Haunted House
Thursday, Oct 22 7:00p
at Westfield Downtown Plaza, Sacramento, CA
Fear Overload has been implanting fear since 1997. Located in Sacramento California, we work hard to make our haunted house an entirely new frightening experience each year. We believe this is why we have so many return customers year after year (well, at least the ones that make it out alive). With over 25 years of combined haunting experience, our lead design team is highly distinguished for their realism and intricacy to make our attractions deathly terrifying. We take pride in each haunted attraction we create. Bring your friends and family and let us make your worst nightmares come to life! VIP Admission $17.00 General Admission $13.00
Source Sac Bee
Saturday, October 17, 2009
Lawmakers seek to extend $8,000 tax credit
WASHINGTON -- Lawmakers are trying to extend and expand an $8,000 federal tax credit for first-time homebuyers, a stimulus-package tax break that many regard as a significant prop for the still-tottering economy.
The latest Senate proposal would drop the requirement that the credit be available only to first-time buyers, broadening the reach of the program but also adding to its cost, estimated by congressional analysts at $16.7 billion.
The backers of that idea, Sens. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., chairman of the Senate's banking committee, have suggested that their measure be attached to another pending bill aimed at throwing a lifeline to people hit by the recession, an extension of federal assistance to the millions in danger of exhausting unemployment insurance benefits.
While the White House says there will not be a second stimulus package following the $787 billion economy booster enacted last February, extending the homebuyers' credit and unemployment benefits are among several primary means being pushed by the administration or Congress to help people get through the prolonged economic downturn.
Others include continued subsidies for laid-off workers trying to keep their health insurance and a proposal by President Barack Obama to provide seniors and others with a $250 payment to make up for the lack of a Social Security cost of living increase next year.
The stimulus-package credit allows first-time homebuyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. The credit, which could cost in the $12-15 billion range this year, is set to expire Dec. 1.
The Isakson-Dodd proposal would extend the credit to June 30, 2010. It would also remove the first-time homebuyer requirement and raise the eligibility income limit to $150,000, or $300,000 for a couple. That's double the current phase-out limits.
As with the Cash for Clunkers program for cars, skeptics have questioned whether the credit will have any long-term effect on the housing market.
Brookings Institution economist Ted Gayer wrote in a recent report that the tax credit is "very poorly targeted." He calculated that of the 2 million or more people who would make use of the credit if it were extended for a year and expanded to cover all buyers, only about 383,000 would be additional sales motivated by the credit. He estimated that the real cost of the credit would thus be more than $40,000, rather than $8,000, per buyer.
But believers say it has been instrumental in sustaining an economic recovery highly dependent on housing.
The National Association of Home Builders, the source of the 383,000 figure for increased home purchases, pointed out that this would also create more than 347,000 jobs, generate $16.1 billion in wages and salaries and $12.1 billion in business income.
"Homebuyers for the past two years have been sitting on the fence and we needed something to move them into the market," said Lucien Salvant, managing director for public affairs at the National Association of Realtors. With more foreclosures coming next year, "to knock the props out of the housing market at this point would not be a wise move."
The NAR, together with the NAHB and the Mortgage Bankers Association, have been running ads in the Washington area urging Congress to extend the homebuyer tax credit.
They note that home sales to first-time buyers have increased by 25 percent in 2009 and now account for 50 percent of all sales. They add that first-time buyers are often at the lower end of the market and the tax credit is reducing the inventory of foreclosures.
Isakson, in a speech on the Senate floor this week, said lawmakers owed it to the country to extend "a proven program that works" and "buoy the marketplace."
He said that if the program is allowed to expire, the market again will depress values, sales and consumer confidence.
Senate Democratic leaders have not decided whether the homeowners' credit issue should be part of the unemployment bill. But there is powerful backing for taking it up in some form.
House Speaker Nancy Pelosi, D-Calif., said last week that she is looking into extending and expanding the popular tax credit, which according to IRS data has so far drawn more than 1.4 million applications from first-time homebuyers.
Senate Majority Harry Reid, D-Nev., last month joined Sens. Ben Cardin, D-Md., John Ensign, R-Nev., Debbie Stabenow, D-Mich., and Isakson in introducing a bill calling for a straight six-month extension of the tax credit.
The potential addition of the Isakson-Dodd proposal to the unemployment benefit bill would be a new element to a bill that the Senate is already trying to enlarge.
The House last month passed legislation to increase jobless benefits by 13 weeks, but only in those 27 states where the unemployment rate is at or above 8.5 percent.
That left lawmakers from the other 23 states unhappy, and last week Senate Democrats reached agreement on a bill that would give an additional 14 weeks of benefits in all 50 states, and another six weeks on top of that to those in states with the 8.5 percent unemployment rate. The national unemployment rate is 9.8 percent.
Currently, a laid-off worker in a high unemployment state is entitled to up to 79 weeks of state and federal assistance. The average payment is about $300 a week. Supporters of the extension say it is necessary in an economy where 15 million unemployed are competing for 3 million jobs.
Source Sac Bee
The latest Senate proposal would drop the requirement that the credit be available only to first-time buyers, broadening the reach of the program but also adding to its cost, estimated by congressional analysts at $16.7 billion.
The backers of that idea, Sens. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn., chairman of the Senate's banking committee, have suggested that their measure be attached to another pending bill aimed at throwing a lifeline to people hit by the recession, an extension of federal assistance to the millions in danger of exhausting unemployment insurance benefits.
While the White House says there will not be a second stimulus package following the $787 billion economy booster enacted last February, extending the homebuyers' credit and unemployment benefits are among several primary means being pushed by the administration or Congress to help people get through the prolonged economic downturn.
Others include continued subsidies for laid-off workers trying to keep their health insurance and a proposal by President Barack Obama to provide seniors and others with a $250 payment to make up for the lack of a Social Security cost of living increase next year.
The stimulus-package credit allows first-time homebuyers to reduce their federal income taxes by 10 percent of the price of a home, up to a maximum of $8,000. The credit, which could cost in the $12-15 billion range this year, is set to expire Dec. 1.
The Isakson-Dodd proposal would extend the credit to June 30, 2010. It would also remove the first-time homebuyer requirement and raise the eligibility income limit to $150,000, or $300,000 for a couple. That's double the current phase-out limits.
As with the Cash for Clunkers program for cars, skeptics have questioned whether the credit will have any long-term effect on the housing market.
Brookings Institution economist Ted Gayer wrote in a recent report that the tax credit is "very poorly targeted." He calculated that of the 2 million or more people who would make use of the credit if it were extended for a year and expanded to cover all buyers, only about 383,000 would be additional sales motivated by the credit. He estimated that the real cost of the credit would thus be more than $40,000, rather than $8,000, per buyer.
But believers say it has been instrumental in sustaining an economic recovery highly dependent on housing.
The National Association of Home Builders, the source of the 383,000 figure for increased home purchases, pointed out that this would also create more than 347,000 jobs, generate $16.1 billion in wages and salaries and $12.1 billion in business income.
"Homebuyers for the past two years have been sitting on the fence and we needed something to move them into the market," said Lucien Salvant, managing director for public affairs at the National Association of Realtors. With more foreclosures coming next year, "to knock the props out of the housing market at this point would not be a wise move."
The NAR, together with the NAHB and the Mortgage Bankers Association, have been running ads in the Washington area urging Congress to extend the homebuyer tax credit.
They note that home sales to first-time buyers have increased by 25 percent in 2009 and now account for 50 percent of all sales. They add that first-time buyers are often at the lower end of the market and the tax credit is reducing the inventory of foreclosures.
Isakson, in a speech on the Senate floor this week, said lawmakers owed it to the country to extend "a proven program that works" and "buoy the marketplace."
He said that if the program is allowed to expire, the market again will depress values, sales and consumer confidence.
Senate Democratic leaders have not decided whether the homeowners' credit issue should be part of the unemployment bill. But there is powerful backing for taking it up in some form.
House Speaker Nancy Pelosi, D-Calif., said last week that she is looking into extending and expanding the popular tax credit, which according to IRS data has so far drawn more than 1.4 million applications from first-time homebuyers.
Senate Majority Harry Reid, D-Nev., last month joined Sens. Ben Cardin, D-Md., John Ensign, R-Nev., Debbie Stabenow, D-Mich., and Isakson in introducing a bill calling for a straight six-month extension of the tax credit.
The potential addition of the Isakson-Dodd proposal to the unemployment benefit bill would be a new element to a bill that the Senate is already trying to enlarge.
The House last month passed legislation to increase jobless benefits by 13 weeks, but only in those 27 states where the unemployment rate is at or above 8.5 percent.
That left lawmakers from the other 23 states unhappy, and last week Senate Democrats reached agreement on a bill that would give an additional 14 weeks of benefits in all 50 states, and another six weeks on top of that to those in states with the 8.5 percent unemployment rate. The national unemployment rate is 9.8 percent.
Currently, a laid-off worker in a high unemployment state is entitled to up to 79 weeks of state and federal assistance. The average payment is about $300 a week. Supporters of the extension say it is necessary in an economy where 15 million unemployed are competing for 3 million jobs.
Source Sac Bee
Friday, October 16, 2009
Thursday, October 15, 2009
Placer Valley Wine & Art Festival & Dance Party
Saturday, Oct 17 6:00p to 11:00p
at Fountains at Roseville, Roseville, CA
Placer County's wineries are getting ready to pour their best vintages as the countdown for the 2nd Annual Placer Wine & Art Party continues. The gala event at Fountains at Roseville on Saturday evening, Oct. 17, will feature wine tasting with 14 Placer County Wineries. But the fun doesn't stop there, Three big-name bands will perform continuously on stage, and some 50 renowned area artists will display their works along Main Street at the Fountains. Let's get the party started! Be There!
Price: $15.00
Phone: 1-800-773-0522
Age Suitability: 21 and up
Source Sac Bee
at Fountains at Roseville, Roseville, CA
Placer County's wineries are getting ready to pour their best vintages as the countdown for the 2nd Annual Placer Wine & Art Party continues. The gala event at Fountains at Roseville on Saturday evening, Oct. 17, will feature wine tasting with 14 Placer County Wineries. But the fun doesn't stop there, Three big-name bands will perform continuously on stage, and some 50 renowned area artists will display their works along Main Street at the Fountains. Let's get the party started! Be There!
Price: $15.00
Phone: 1-800-773-0522
Age Suitability: 21 and up
Source Sac Bee
Wednesday, October 14, 2009
Storm subsides, but power outages, mess remain
The wind has subsided and the torrential, sideways-blowing rain is gone, but remnants of Tuesday's storm have been keeping utility and cleanup crews busy restoring power and clearing the mess.
At 6 a.m. 12,817 Sacramento Municipal Utility District customers were still without power. Crews worked all night to restore widespread outages that at the storm's blustery height knocked out power to 90,000 customers.
Carmichael resident David Schlaufman was one of those waiting for the lights to come back on at his residence.
"It's been out all night," he said.
Schlaufman, who said he is concerned about frozen food in his refrigerator, is wondering if the outage would last several days or be a short power failure.
Cities and communities where customers were without power included Sacramento, 2100 customers; Carmichael, 2,119 customers; North Highlands, 1,449; Arden Arcade, 1,385; Citrus Heights, 1,315; and Fair Oaks, 1,078.
"We don't have an estimated time on when everyone will be restored," said SMUD spokesman Robert Tokunaga.
Pacific Gas & Electric also had no estimated time for restoration of power in its service area, where 91,000 customers remained without power. Among the counties near Sacramento where PG&E customers were without electricity were Yolo County, 2,325; Nevada, 1,555; Placer, 4,685; and El Dorado, 3,820.
The section of Interstate 5 between downtown and Old Sacramento was clear with no standing water present this morning. An old pipe clogged with debris on Tuesday during the storm, backing up traffic on the part of the downtown freeway where the state spent $40 million for repairs.
On surface streets, city employees who worked in the pouring rain Tuesday to clear downed limbs and felled trees were at it again -- but this time in better weather.
Joe Benassini of the city of Sacramento said crews will be out in force this morning on the second day of major clean-up from the dramatic winds that toppled more than 300 trees or major branches in Sacramento on Tuesday.
Benassini said crews Tuesday cleared streets for travel and today will be clearing major branches and brush from sidewalks and curbs.
He cautioned that budget cuts will make the task slower and asked residents for patience.
"Everybody is a little understaffed," he said. "We are not going to get this thing cleaned up in hours. It's more a matter of days."
The early commute brought numerous crashes around the region, including a big rig that lost its trailer and was blocking a lane eastbound Interstate 80 at Highway 50 in West Sacramento. Tow trucks were on scene at 6:20 a.m.
CHP's Rich Wetzel said drivers still need to be careful this morning.
"It is not raining in most areas, but the roadways are still slick," he said, "and people are not adjusting their speed for the conditions."
As part of the storm clean-up, CHP beat officers will be checking storm drains this morning and reporting problems to Caltrans.
"We know exactly where the problem spots are," Wetzel said. "Often, the officer is the first one to unplug the drain."
The worst is over, but the National Weather Service reports scattered showers today and some strong winds in the morning gusting up to 35 mph.
"Showers may be heavy at times," meteorologist Felix Garcia said, but they will taper off throughout the day and the sun may even make brief appearances.
Better weather is headed in by tomorrow, with temperatures in the mid-70s.
"It's looking good for the rest of the week," Garcia said.
Tuesday's rains set records in Stockton, Modesto and Red Bluff, but fell short in downtown Sacramento.
Nevertheless, downtown Sacramento on Tuesday totaled a whopping 3.04 inches in 24 hours - from 4 a.m. Tuesday until Wednesday morning.
"That's like 450 percent of normal, honestly," Garcia.
Sacramento's all-time record for the day was 3.63 inches in 1962.
Source Sac Bee
At 6 a.m. 12,817 Sacramento Municipal Utility District customers were still without power. Crews worked all night to restore widespread outages that at the storm's blustery height knocked out power to 90,000 customers.
Carmichael resident David Schlaufman was one of those waiting for the lights to come back on at his residence.
"It's been out all night," he said.
Schlaufman, who said he is concerned about frozen food in his refrigerator, is wondering if the outage would last several days or be a short power failure.
Cities and communities where customers were without power included Sacramento, 2100 customers; Carmichael, 2,119 customers; North Highlands, 1,449; Arden Arcade, 1,385; Citrus Heights, 1,315; and Fair Oaks, 1,078.
"We don't have an estimated time on when everyone will be restored," said SMUD spokesman Robert Tokunaga.
Pacific Gas & Electric also had no estimated time for restoration of power in its service area, where 91,000 customers remained without power. Among the counties near Sacramento where PG&E customers were without electricity were Yolo County, 2,325; Nevada, 1,555; Placer, 4,685; and El Dorado, 3,820.
The section of Interstate 5 between downtown and Old Sacramento was clear with no standing water present this morning. An old pipe clogged with debris on Tuesday during the storm, backing up traffic on the part of the downtown freeway where the state spent $40 million for repairs.
On surface streets, city employees who worked in the pouring rain Tuesday to clear downed limbs and felled trees were at it again -- but this time in better weather.
Joe Benassini of the city of Sacramento said crews will be out in force this morning on the second day of major clean-up from the dramatic winds that toppled more than 300 trees or major branches in Sacramento on Tuesday.
Benassini said crews Tuesday cleared streets for travel and today will be clearing major branches and brush from sidewalks and curbs.
He cautioned that budget cuts will make the task slower and asked residents for patience.
"Everybody is a little understaffed," he said. "We are not going to get this thing cleaned up in hours. It's more a matter of days."
The early commute brought numerous crashes around the region, including a big rig that lost its trailer and was blocking a lane eastbound Interstate 80 at Highway 50 in West Sacramento. Tow trucks were on scene at 6:20 a.m.
CHP's Rich Wetzel said drivers still need to be careful this morning.
"It is not raining in most areas, but the roadways are still slick," he said, "and people are not adjusting their speed for the conditions."
As part of the storm clean-up, CHP beat officers will be checking storm drains this morning and reporting problems to Caltrans.
"We know exactly where the problem spots are," Wetzel said. "Often, the officer is the first one to unplug the drain."
The worst is over, but the National Weather Service reports scattered showers today and some strong winds in the morning gusting up to 35 mph.
"Showers may be heavy at times," meteorologist Felix Garcia said, but they will taper off throughout the day and the sun may even make brief appearances.
Better weather is headed in by tomorrow, with temperatures in the mid-70s.
"It's looking good for the rest of the week," Garcia said.
Tuesday's rains set records in Stockton, Modesto and Red Bluff, but fell short in downtown Sacramento.
Nevertheless, downtown Sacramento on Tuesday totaled a whopping 3.04 inches in 24 hours - from 4 a.m. Tuesday until Wednesday morning.
"That's like 450 percent of normal, honestly," Garcia.
Sacramento's all-time record for the day was 3.63 inches in 1962.
Source Sac Bee
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