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A message from friends at Pillar to Post....

VA Loans and Tax Credit Extension

Recently the office of Veteran's Affairs announced a few updates to the VA loan program and now an extension of the tax credit is still available for active members of the armed service. This is very difficult information to find and I wanted to post this out there for all of the men and women that serve our country. They deserve our thanks and help in manners like this that can benefit them to own a home.

Here are some of the details that I was able to find:

• Tax credit is good until April 30, 2011. This means an accepted offer has to close by this time.
• $8,000
• No repayment penalty of the tax credit
• You don't have to live in the home for 3 years. This can be due to a variety of different reasons( reassignment, etc)

VA Loans are still available and are the only loans that are offering 100% financing. !00% financing still means that the veteran can have closing costs, escrow of taxes, and many other costs that will need to be brought to the closing table. A great way for these to be covered entirely or partially is asking the seller to pay up to 3% of the purchase price in closing costs and prepaid. A great resource is http://www.benefits.va.gov/homeloans/docs/2010_county_loan_limits.pdf for loan limits. Here are some other guidelines with a VA Loan:

• Loan limit of $417,000 unless you live in any of the other high cost counties see the pdf above.
• No private mortgage insurance
• 100% Financing
• No Mortgage Insurance
• No Minimum Investment or Down Payment needed from the buyer
• Lenders are limited to only charging 1% Origination Fees
• Seller must pay the entire escrow fee (Lender pays this if it’s a refinance)
• If the property does not appraiser for the sales price, the Veteran’s earnest money is protected
• No Credit Report or Appraisal needed for VA Interest Rate Reduction Refinance Loan (A VA-to-VA refinance with no cash-out. Often called VA Streamline refinances).
• Low rates
• No limit in seller’s concessions used to pay Veteran’s closing costs
• 4% Seller’s concessions for non-VA costs as well as Veteran’s debt (That’s right, the seller can pay off some of the veteran’s debt in the transaction).
• Can be used for a Stick Built House, Manufactured home (must be on land), Condo, Townhouse, and multi-family from 2-4 units
• No Funding Fee for disabled Veterans (It doesn’t matter if the veteran is 10% disbaled or 100% disabled, they won’t be charged a Funding Fee).

Here are some basic guidelines for a VA loan( check with a VA lender to get all of them):

• Most lenders will want the Veteran to have at least a 620 credit score
• You must be 3 years separated from a foreclosure
• You must be 2 years separated from a Bankruptcy
• The Veteran should have at least 3 tradelines on credit to review.
• Nobody can be on the VA Loan with the Veteran other than a Spouse
• Surviving Spouses of deceased Veterans with VA Benefits can also use a VA Loan
• VA Loans are assumable, which means you can sell the house and pass the loan to another Veteran as long as they can cover the difference between the sales price and the existing loan.
• VA Funding Fees, which is a fee that goes directly to the Department of Veterans Affairs, varies depending on whether the Veteran was full-active duty or reserve, how much the Veteran puts down, the type of transaction (Purchase, Streamline refinance or Cash-out Refinance) or if the Veteran is disabled.

Whether you are looking for a home, condo or income property, finding a local lender and local Realtor will help you in the process. Please feel free to pass this along. It is really important that veterans understand all of the benefits available to them.

You Are Not A Lead

More than ever more buyers and sellers of real estate feel like a lead. I have read a lot of articles and watched videos all over the internet where they feel like a lead.

This is disappointing! Having a connection to your clients and providing them what they are interested in is our job as their Realtor. They look to us to provide them with more than just the average agent. They want our knowledge, professionalism, negotiating skills, and marketing! This is why they pay us to help them sell a home or help them buy a home.

Separate yourself from the mass of other agents. Provide service above and beyond their expectations! Make the experience more than they could have imagined and connect with them. Having a client for life is priceless and what a better ad or marketing piece than a past buyer or seller who talks about their experience with you to others.

People talk about real estate and the economy. Know what is happening in your local area. Know the average days on market to sell a home as a whole and the area in which you either have a niche or were your clients are located. Understanding prices and market list price to sale price.

In Madison and the surrounding communities( Fitchburg, Verona, Monona, McFarland, Stoughton, Sun Prairie, Middleton, and Waunakee) the area is healthy and jobs are available. The housing market does have some REO and shortsale transactions, but the majority of sales are traditional sales between a buyer and seller.

Each market is different and each neighborhood is different but the reason we are here is to provide this to our clients and to new customers that are looking for the same level of service, knowledge and professionalism.

Make your clients feel like you are there for them and they are not just a lead! They are with you because of who you are and what you make them feel like and what you proved them. Respect them and in turn you will be successful in the long run.