Wednesday, March 12, 2008

prepare to buy investment property

Preparing to be in a position to purchase properties in the up coming months you will need a little understanding of some events that may be inevedable. First as seen in the news there is a major mortgage mess...the effect this has on you is that finding financing for the investment property is going to be more difficult. In the past investors could purchase properties with little or no money down,no more. The lenders are changing their qualifiing criteria every week. Lets just focus on one aspect..more and more the lenders are requiring more down payment..20% down on a $200,000 property is $40,000 plus closing fees. If you find that investment property will you have these funds available to you ? One way to get the money would be from the equity you have in an existing property(investment or primary home).If you wait and try to refinance under pressure to access the funds at the same time you are negotiating the purchase it will not only be stressful but it will not be the best postion to negotiate from. Sellers are not ussually fond of contingencies in the purchase offer.Also consider Your properties are probably at a higher value now than they will be in the up comming months. You may want to liquify those equity dollars now to have the funds in place when the oppurtunity arises to make the investment purchase.

Sunday, March 9, 2008

NEW FHA LOAN LIMITS

First time buyers, first time sellers looking to move up in the home market, and also those current property owners struggling with adjustable mortgages should benefit the most by the latest government move which increases FHA loan limits. The new limits should have a positive affect on the housing industry everywhere. In the Bucks, Chester, Delaware and Montgomery county areas of Pennsylvania the limits have been adjusted up about 50% from approx. $285,000 to $420,000. THESE CHANGES ARE SET TO EXPIRE AT THE END OF THE YEAR. These government backed mortgages are generally easier to qualify for and require a very low down payment of 3% in most cases. Housing and Urban Development (HUD)which cooperates with the Federal Housing Administration (FHA) gets to have a major impact on the criteria to qualify for FHA loans. We at JB REALTY SERVICE LLC find these loans are a great tool for those who are just graduating college or trade school and may not have established a long work history, borrowers with low cash reserves that may be getting funds from relatives, and buyers in need of assistance from sellers with monies toward closing costs. Credit score levels are also more forgiving. Buyers must be aware not all lenders are approved to offer these FHA loans. Contact john@jbrealtyservice.com. We can advise you on all your real estate and mortgage needs, also read the blog at http://www.jbrealtyservice.com/.

Friday, March 7, 2008

PREPARE FOR THE WORST

Investors and home owners are in for some rocky times they may not be aware of. The tax cuts are set to end in 2010. One of the changes that interest me is "The Capitol Gaines Tax". The old tax, which it is set to revert back to, as I remember was 28% federal when adding your state tax a total of 30% and higher. How many of you bought a second home or investment property over the last 7 years or so. HOW MANY OF YOU ARE THINKING OF SELLING? You may want to think about selling before the tax resets. How about home owners thinking of retirement or moving out of the area. Currently if you have lived in your property as a primary residence for 2 out of the last 5 years,have not sold another primary residence and the sale is less than $500,000 for a married couple you probably will pay no tax. This benefit may also change,for more information put our team of experts to work for you,contact. john@jbrealtyservice.com . A FREE EVALUATION of your specific situation is available by appointment.call 215-721-6300.Also you can read more at WWW.JBREALTYSERVICE.COM

Wednesday, March 5, 2008

YOU MUST CALL NOW

If you, or anyone you know, have an adjustable and/or sub-prime mortgage, or maybe you don't know what type of mortgage you do have, you could be in for a substantial mortgage payment increase. We will evaluate your current mortgage situation and qualify you for a government assisted program to help reduce these payments. This evaluation is FREE. Read more at my blog at JBrealtyservice.com. We can HELP if you contact us. Call 215-721-6300 or E-mail me at john@jbrealtyservice.com