^[1]RISMEDIA, July 3, 2010—FHA Pros, LLC, a national FHA condo approval service, has developed a list of facts speaking to the top misconceptions associated with FHA loans in order to help home buyers better navigate an already confusing market. FHA loans are mortgages issued by qualified lenders and insured by the Federal Housing Administration (FHA).

“We have seen home buyer interest in FHA loans go from practically zero three years ago to upwards of 87% today,” said Christopher Gardner, founder and president of FHA Pros, LLC. “Despite this rapid rise in popularity, many buyers still do not fully understand the benefits of these loans, and we believe it’s time to change that.”

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. Later this summer, condo buyers interested in FHA loans can visit www.checkfhaapproval.com ^[2] to instantly identify FHA-approved condo associations and review maximum loan amounts for a given location.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

“Now, more than ever, buyers and sellers need to understand the options available to them when it comes time to buy a home,” continued Gardner. “At FHA Pros we have worked with countless HOAs, attorneys and individuals to easily and efficiently navigate the historically tricky FHA-approval process.”

^[1]RISMEDIA, May 25, 2010—Those who missed taking advantage of the first-time buyer tax credit but who are still planning the purchase of their first home, continue to have a wealth of opportunities in today’s marketplace. A few smart steps can save first-time buyers thousands of dollars. Here is a look at some of the ways how:

1. Don’t buy if you don’t plan to stay
If you can’t commit to remaining in one place for at least a few years, then owning is probably not for you, at least not yet. With the transaction costs of buying and selling a home, you may end up losing money if you sell any sooner – even in a rising market. When prices are falling, it’s an even worse proposition.

2. Start by shoring up your credit
Since you probably will need to get a mortgage to buy a house, you must make sure your credit history is as clean as possible. A few months before you start house hunting, get copies of your credit report. Make sure the facts are correct, and fix any problems you discover.

3. Choose carefully between points and rate
When picking a mortgage, you usually have the option of paying additional points- a portion of the interest that you pay at closing- in exchange for a lower interest rate. If you stay in the house for a long time- say three to five years or more- it’s usually a better deal to take the points. The lower interest rate will save you more in the long run.

4. Hire a home inspector
A home inspector can let you know if you’re about to buy a lemon of a house or warn you about potential problems. At best, you can move into the house confident that it’s in good shape; at worst, the inspector’s report can let you back out of the deal if the house has major, unexpected problems. Most typically, the home inspection can allow you to negotiate the home price to account for necessary repairs.

5. Get professional help
Even though the Internet gives buyers unprecedented access to home listings, most new buyers (and many more experienced ones) are better off using a professional agent. Look for an exclusive buyer agent, if possible, who will have your interests at heart and can help you with strategies during the bidding process.

6. Bonus Tip: Be patient
Buying a home is one of the largest purchases most people will make in their lifetime. The key to avoiding buyer’s remorse is to be completely comfortable before signing on the dotted line.

NAROFF ECONOMIC ADVISORS, Inc.

Joel L. Naroff

President and Chief Economist

KEY DATA: Sales: +7.6%; Single-Family: +7.4%; Condos: +9.1%

WHAT IT MEANS:   Existing home sales surged in April as the federal incentives to buy came to an end.  This, of course was expected.

We saw a similar pattern last fall when the first iteration of the home buyers’ incentive neared an end.  This time, even though long-time owners were added to the mix, the run-up in sales was not nearly as dramatic.  Indeed, the peak was about ten percent lower.

That said, there was a really nice pick-up in demand.   Sales of both single-family and condos were solid.  Geographically, the increases were not that well distributed.  Purchases were up over 20% in the Northeast, nearly 10% in the South and West but down over 6% in the West.  I honestly cannot explain the situation in the West, but it is what the National Association of Realtors says it is.

Prices continue to rise, mostly for single-family homes.  As for supply, it increased.  As I have said on many occasions, I expected that to happen and I looked forward to it as a sign that homeowners have rising confidence in the market and they finally think they can unload their albatrosses. 

MARKETS AND FED POLICY IMPLICATIONS:  This was a very solid report but it doesn’t really tell us what condition the housing market is in.  That is because the government has interfered with the market.

We should expect that sales will fall fairly sharply over the next couple of months and only after that adjustment will we get any decent picture of the market.  The terrible mortgage applications numbers clearly point to slowing sales but that was one week of numbers.  It will take a while before the craziness created by the federal policy is washed out of the data.

I believe the housing market will slowly and steadily improve over the second half of the year as extremely low mortgage rates, modestly improving credit availability and job gains convince people to buy.  Rising prices cannot hurt either.  The markets will not probably do much with this number as Europe still seems to be the issue du jour.

There is also a lot of other data coming out this week including consumer confidence.  So caution will likely be the watch word.  This also doesn’t put a whole lot of pressure on the Fed to do anything, not with a possible European slowdown adding another headwind to the recovery.

5 Steps to Buying Before Tax Credit Expires

 The expanded tax credit for U.S. homebuyers, which extends the $8,000 First-Time Homebuyer Credit and creates a new $6,500 credit for most repeat buyers, expires on July 1, 2010. As a buyer, you must be under contract by April 30 to make the deadline. This doesn’t leave much time to start the buying process.

To help you get in under the wire, Lisa Escue (CDPE), with RE/MAX Masters II in Grapevine, Texas outlines these steps:

Step 1. Find a Local Lender You Can Talk To in Person
Local lenders understand your market and know of loan programs that might be beneficial to you.

Check with your lender on any local programs that might help with closing costs or in other ways. Even though the media have pronounced the 100-percent-financing option dead, this is not always the case. Check it out for yourself and then get preapproved for a loan so you know how much house you’re able to buy.

View a video on the homebuyer tax credit

Step 2. Be Specific in the Area You Want To Live
Educate yourself. Familiarize yourself with the neighborhoods you’re interested in, the taxes and school districts. This not only helps you narrow down your search when you need to move fast, but also helps you figure out potential mortgage payments. Search for homes in your desired neighborhoods.

Step 3. Find an Agent Specializing in the Area You Want to Live
This will save you time and effort. Once you’ve identified an agent, trust him or her to do the job. Agents who are thriving in this challenging market have proven their worth. They have the resources and skills to help you find your next home.

Step 4. Don’t Shy Away From Houses That Need Some Work
Just because a house needs some paint or cosmetic fixes doesn’t mean it’s not a good buy. Most real estate agents have an address book full of trusted businesses they work with to help you fix up your new home. There’s an HUD program known as 203(k) that enables you to fold repair money into a primary mortgage; ask a RE/MAX agent in your market about the program.

Step 5. Be Prepared To Act
Sometimes the first home you see is the right one for you. Don’t discount it. Remember, good deals still go fast. Take advantage of the electronic tools your real estate agent has to offer. In many instances, real estate agents have access to better information than what you can find in a standard Internet search.

Shopping for a Condo? Ask These 4 Questions before You Buy

Condominium homes have always been, and will likely always be, an efficient and economical route to becoming a first-time homeowner. They can offer the comfort, prestige, and even luxury appointments that apartment living may lack, often at a cost that is not much different than rent. With the current first-time home buyer tax credit and the deadline for the move-up tax credit fast approaching, I advise you move fast on any condo purchase you may be considering.

With my experience as Member of the Top 5 in Real Estate Network®, I am well aware that not all condominiums are the same, however, so make sure you ask the following four questions before you buy:

What will you own? Read the bylaws and be sure you understand what you will be responsible for and what belongs to the condo association. Will you own the boat dock at the back of your unit? Can you elect to build a spa on your patio? Generally, unit owners own and are responsible for the interior of their condos, while costs for outside maintenance including common areas and sewer lines are the association’s responsibility.

Who lives there? Are the majority of residents owners or renters? Owners generally take more interest in proper maintenance and are more willing than renters to serve on the association board and enforce complex rules and regulations–including the regular collection of homeowner dues.

How effective is the homeowner’s association? Do they have legal counsel, reasonable funds and a capable, caring volunteer board? One way to judge is to check with residents about restrictions, oversight and timeliness of repairs and upgrades. Another is to take a hard look at the grounds and be wary of signs of neglect.

What about special assessments? The association should have the power to special assess for needed, one-time large expenditures. Otherwise, things that need to be done may never get done at all, leaving the complex vulnerable to disrepair and lowered property values.

Don’t miss this great opportunity to become a homeowner or to downsize by buying a condo (remember, the move-up tax credit does not require you to move to a larger or more expensive home). Please e-mail me for more tips on buying a condo and forward this information to any family and friends who may be in the market as well.

SCARPA NAMED AS NEW MANAGER AT RE/MAX CLASSIC BASKING RIDGE

(January 28, 2010) – John Bendall, broker/owner of RE/MAX Classic Group Realtors, announces that Anthony Scarpa has been named Manager of the RE/MAX Classic office in Basking Ridge, NJ.

“We are thrilled to welcome Tony to our RE/MAX Classic team and to have him in charge of our Basking Ridge operation,” Bendall said. “Not only does he bring 30 years of experience to the job, but he also has an extensive background in several key real estate market segments.

“This move clearly demonstrates our ongoing commitment at RE/MAX Classic to give our Realtors the best support possible in the industry to help them capture more market share,” Bendall continued.

During his career, Scarpa has served as a vice president of three different REO divisions, as a branch office manager and as a broker/associate. He is a certified specialist in such areas as relocation and luxury home marketing as well as in land and new construction, the segment in which he got his start in 1980.

Scarpa, who also a New Jersey registered builder, has amassed a total sales volume of more than a quarter-billion dollars over the past three decades and has won numerous state and national awards as a top-producing real estate professional. In addition, he has wide-ranging knowledge in both the foreclosure market and in lender relations.

The RE/MAX Classic Group Realtors office in Basking Ridge is located at 47 South Finley Avenue (ZIP 07920) and can be reached at (908) 766-9300.

In addition to its Somerset County-based offices in Basking Ridge and nearby Branchburg, RE/MAX Classic Group Realtors has operations in Berkeley Heights, Union County, and in West Milford, Passaic County. You can learn more about RE/MAX Classic by visiting their Web site at www.classicgroup.remax-nj.com.

I hope you all had a fantastic weekend and had the opportunity to have some fun while also re-charging your batteries. Unfortunately my Cowboys did not show up for their play-off game, but at least we have the JETS to root for next weekend.  As we look forward to another great week ahead, we should take some time today to observe the Martin Luther King, Jr. Holiday. Today is more than a day off from school or work. It is a day, in my estimation, that shows us that perseverance, passion and hard work are still needed in our society and that anything is possible. Many have said, and I believe, we have come very far. There is still much more work that needs to be done throughout our country and we should all play our part. Today also reminds me that we face new and different struggles both as a nation and individually. We can overcome those obstacles and we can bring about a better future for our families and our communities. Just like we have to do with everything, we must find the strength to hold on and do what is right. We must find the passion to truly believe. We must be tolerant of those that may be or think differently.  We must have the understanding that we all have a place on this earth and a responsibility to one another. As you go through your day today, try and come up with just one thing that you can do to make your family or your community just a little bit better, and do it. 

 THE WORDS of Martin Luther King Jr

All progress is precarious, and the solution of one problem brings us face to face with another problem.
An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.

Darkness cannot drive out darkness; only light can do that. Hate cannot drive out hate; only love can do that.
Faith is taking the first step even when you don’t see the whole staircase.

In the End, we will remember not the words of our enemies, but the silence of our friends.

Life’s most urgent question is: what are you doing for others?

The quality, not the longevity, of one’s life is what is important.

We must accept finite disappointment, but never lose infinite hope.

That old law about ‘an eye for an eye’ leaves everybody blind. The time is always right to do the right thing.

Whatever your life’s work is, do it well. A man should do his job so well that the living, the dead, and the unborn could do it no better.

Welcome to this edition of The Monday Morning Message…..I hope you all had a fantastic weekend filled with fun and enjoyment. I know many of you spent some time doing last minute shopping and final preparations for the upcoming holiday, and I hope you made the most of it. You have worked extremely hard this year and you truly deserve to enjoy this season. I have seen many of you succeed and some of you struggle over the year and I want each one of you to know that I hope you are as proud of yourself as I am of you. Your character, passion, determination, and will to succeed was on display in 2009. Watching great agents like you this past year has reminded me that enormous accomplishments may be had regardless of current circumstances. It was not always easy, but great successes never are. We do not ask for the easy road. We do not pick the short term gain. We do not rise while holding everyone else down. Success has been achieved by all of you. Think about your accomplishments, large or small. Be thankful for them. Be proud of them. Be prepared for more. Thank you for all that you have done and continue to do.

Wishing you all and your families a very Merry Christmas and a Happy Holiday.

ENCOURAGEMENT CORNER…

I wanted to share a word with you that I think is very fitting at this time of year – BELIEVE. I hope that all of you still do, in many things large and small. I hope that all of you share this wonderful concept with all the people you care about. I hope you all never loose this magical idea – Believe.

I Believe we have not come this far to fail or give up now.

I Believe we are meant to go through storms before we see the beautiful sun.

I Believe the kingdom we live in is unshakable.

I Believe family become friends and friends become family.

I Believe all my hard work will pay off.

I Believe 2010 will be the best year of my life so far.

I Believe I have the power to change anything I do not like.

I Believe collectively we are stronger than we are apart.

I Believe love is the solution to all problems.

I Believe time brings about opportunity and thought.

I Believe I have been put on this earth and in this position for a purpose.

I Believe I am capable of anything as long as I have the desire to do it.

I Believe the choices I make are my responsibility alone.

I Believe I am who I am because of all the people in my life.

What do you Believe?

WORDS TO LIVE BY…

I believe that every human mind feels pleasure in doing good to another. Thomas Jefferson

You’ll see it when you believe it. Wayne Dyer

I firmly believe that any man’s finest hour, the greatest fulfillment of all that he holds dear, is that moment when he has worked his heart out in a good cause and lies exhausted on the field of battle – victorious. Vince Lombardi

I believe that unarmed truth and unconditional love will have the final word in reality. This is why right, temporarily defeated, is stronger than evil triumphant. Martin Luther King, Jr.

I can’t believe that God put us on this earth to be ordinary. Lou Holtz

I do not believe a man can ever leave his business. He ought to think of it by day and dream of it by night. Henry Ford

I believe that every right implies a responsibility; every opportunity, an obligation; every possession, a duty. John D Rockefeller

If you believe in what you are doing, then let nothing hold you up in your work. Much of the best work of the world has been done against seeming impossibilities. The thing is to get the work done. Dale Carnegie

LET’S MAKE THIS THE BEST WEEK OF THE YEAR!!!