I don’t have a definition as to what “low Income” means. I’m sure it means different incomes amounts to different individuals. What I am sure of, is most anyone can get Home ownership today, If you are a first time homebuyer or haven’t owned a home in the last three years you can get a home with - NO cash out of pocket - a Monthly payment as low as $380 a month …and in a couple of months you will receive a Tax Refund check from the IRS for several thousand dollars! ….and If you live in the home you bought for 3 years …you don’t even have to give it back!
 
These homes currently range from a $49000  Mobile Home on it’s own lot for $380 a month  - to a $100,000 Modern 3 bedroom 2 bath 2 car garage in town with payments of under $780 a month! Is this a great country or what! (in both cases - cheaper than rent!)
 
I have been accused of being critical of mobile homes as investments and generally speaking I would agree….However as in all generalizations there are exceptions - Here is one exception - a young couple that I know - just married and with brand new twins - are currently renting an apartment for $500 a month. He works a part time job at a convenience store and only makes $900-$1000 a month. His wife stays home in the apartment with the twins. The chances of them making any advances in career employment in the current market conditions for the foreseeable 3-5 years is not very favorable. They could buy this mobile home on it’s own lot for 50% less than the seller paid for it just 2 years ago. Due to the IHA program and the Govt. Stimulus 1st time Home Buyer program currently in effect for the next 90 days (ends April 2010) they could get into this 2 bedroom mobile home on it’s own lot - with no cash from them - at less than $380 a month payment and get their cash Refund of about $3000 to them within 60 days of filing their tax returns.
 
So… for someone in a position that the only way they can get ownership for under $400 a month …and money back…and end up in 3 years with some equity that they can either roll forward …or keep as a rental and make an extra $200 a month to pay for their twins college education in 18 years…Yea I think it is a Great Investment!
 
I heard that when they were told about it, their response was “Oh we really don’t want to live in a mobile home”  Well believe me, I above most people do sincerely appreciate that , however I wouldn’t relish living in a rental apartment either …and if given the choice of the two, I personally would take the mobile home, the $3000 cash in my pocket,  the $200 a month rent  savings, and just suck it up and cry my way to the bank. And when I got home… I would take my 1st month rent savings, and put up a swing set in my own fenced yard, and just enjoy playing with my babies until I could live better!
  
Warm regards,
 
Dale Alverson
e-Pro Certified
Certified Buyer Broker (CBB) - (Only One in Idaho)
Certified Relocation Professional (CRP) (one of 4 in Idaho)
Accredited Buyer Representative (ABR) (#70 of 54,000 USA)
 
36+ years  - Representing Clients - not Sales -
 
43 Degrees North Real Estate
www.teamboise.com <http://www.teamboise.com>
dale@teamboise.com
Direct Cell 208-863-3093
Toll Free 800-359-0855
Fax 208-338-1010

Question + email + Real Town + response + phone call = answer.

Answer + phone call = $$$$ for Buyers $$$$ for sellers $$$$$ for agents= Hero !!

Here is what happened; Early this year when the Stimulus Bill first came out, I was irritated that there was no way for 90% of 1st time home owners to take advantage of the tax rebate for purchase, as most of the potential buyers had no access to the down payment and closing costs needed to purchase. In reality the Bill while sounding good is a bust as it doesn't really help those that could use it.

After many phone calls locally trying in vain to find a path or lender that could loan the Tax Rebate ahead of timeI tried one last chance and sent an email to one of my national e-pro societies (RealTown) - asking if anyone knew of a solution. To my surprise an agent responded and gave me information about the Missouri Housing Program that had found a way to loan the potential home buyers their Tax Rebate in advance. I contacted the Missouri people and received their information and contacted the Director of the Idaho Housing Agency giving them the information about the Missouri program. I received a polite "thank you" and heard nothing more, and finally surrendered with my energy spent.

Two months later Idaho Housing announced a Tax Credit loan program that enabled 1st time home buyers to borrow $7000 of their $8000 Tax Rebate in advance.The following is from the IHA web site:

The American Recovery and Reinvestment Act of 2009 provided a federal income tax credit for first-time home-buyers of 10% of the sales price, up to a maximum of $8,000. This tax credit is available to qualified home buyers who purchase a home by December 1, 2009. In order to help buyers monetize this tax credit for down payment and closing costs when they purchase a home, Idaho Housing and Finance Association (IHFA), through its IdaMortgage lending program, is offering a special short-term Tax Credit 2nd Loan to qualified buyers.

In conjunction with an IdaMortgage loan, a subordinate loan will be offered to qualified first time homebuyers a maximum of 5% of the sales price up to $7,000, not to exceed 100% combined loan to value. A fee will be charged of $250 with $150 refunded upon repayment of the loan on or before the loan due date. The loan will accrue interest at 3.0% with a due date of July 1, 2010. The Tax Credit 2nd Loan is expected to be paid off from the borrower’s tax refund obtained through the application of the federal tax credit. Borrower must be a first-time homebuyer and qualify for an IdaMortgage loan.

Homebuyer Education is required.

Interestingly, I only become aware last week of being the entity responsible for getting this program enacted. It was a second chance meeting with the Director of Idaho Housing who happens to be the step mother of my step son who was visiting here from Florida last week. I came in the door and my son said "you were right" ....to which I said "about what?" He answered that his step mother Julie who was at our house to see him off, informed him that it was my efforts that provided Idaho with the program. I couldn't believe that I had done something so big by merely making a few inquiries through Real Town and a few phone calls to apparently the right people!

My lesson that I wish to share with everyone is "never doubt your abilities to impact a situation that you think is bigger than you no matter how insignificant you may feel your position to be. I am reminded of someone Else's famous quote:

If not you - then who? If not now - then when?

Dale Alverson CBB,ABR,CRP, e-Pro

208-863-3093

43 Degrees North Real Estate Boise, ID

www.teamboise.com

www.43RE.com

35 years Representing Clients - not sales!

Free Money - Is there really such a thing? Well the answer is YES! - if you are a 1st time home owner or have not owned in 3 years.

I hear you - your thinking well it's not free if you have to do something to get it right? Technically your right of course but let's look at this in real life terms.

OK...so you do have to have a FICO score above 640 ...and you do have to be able to afford the monthly payments ...and of course not everyone can, however for those that can, a separate program sponsored by Idaho Housing allows you to borrow $7,000. of your next year $8,000 1st Time Buyer Tax Refund and use the funds for down payment and closing costs today!

Now let's look at an example: Lets say you qualify and you are find a nice home for $150,000. FHA lets you have a loan for 96.5% of the sales price so you will need 3.5% down payment or $5,250 Down and closing costs of about $2,500. Under normal conditions, this would require you to have about $7,750 cash at closing. With the $7,000 loan against your $8,000 Tax credit you are about $750 short of enough to close....but wait these are not normal times are they?

If we get the seller to pay your closing costs of $2,500. (not unusual in this market) you will only have to come to closing with the $5,250 leaving you about $2,600 left after you receive your Tax Refund in 2010 and pay off your Down payment loan.

Bottom Line:You get the house for no money out of pocket and collect $2,600 for passing GO...and have ownership of a home that now allows you to claim a further Tax Deduction for interest paid on your home purchase for the next 30 years.

So tell me is there such a thing as FREEMONEY or not?

Now lets talk about Really Free Money!

If you are a Veteran you can get 100% financing - again have the seller pay your closing costs and get $8000 Tax refund in 2010. - Free probably doesn't get any more Free than this!

**This amazing program currently ends in December of this year.....so now you know ...help me get the word out to your friends - family - acquaintances - anyone you might know that can take advantage of this program. You will help them - you will help the economy - If you have been looking for a way to do your part to move America forward, this is as good a chance as were going to get!

God Bless ,and Thank you in advance for your help - We all appreciate your efforts!

Dale Alverson

Certified Buyer's Agent

43 Degrees North Real Estate

Your personal Real Estate Advocate for life

Direct Cell 208-863-3093

Santa Coming in Spring?..... Well it sure looks that way - Yesterdays unprecedented close to the Bond Market signals an unheard of break through to a very tough layer of resistance closing 138 basis points higher.

Yesterday's result of the Federal reserve's commitment of $1.25 Trillion Dollars to buying long term treasury Bonds and buying back mortgage backed securities is a direct move to lower Mortgage Rates, as well as other consumer debt rates. This unprecedented very aggressive move, is the direct result of a major effort by the Fed to bring us out of this recession.

We don't know as of yet how low this will cause rates to go, however as of today, we are well into the 4% range, and I have confirmed a rumor that there is a local bank that will give a 3.85% 30 year fixed rate loan on bank owned property with 10% down! or 4.87% ZERO Down and NO PMI! (call me for a list of qualifying properties)

I have been saying since the start of this Real Estate bubble burst, that the answer to the problem was not Govt. bail outs to Wall Street. The answer to the whole debacle is much simpler than anyone suspects. The market would  correct almost instantly if the Govt. will put the money back into the Home lending market by providing 3% 30 year fixed financing to every qualified buyer. Maybe they will finally get it right! 

Windows of Opportunity Pass!

Caution*** People miss opportunities like the ones being presented today because they wait until the media tells them that if they don't hurry they will miss the opportunity. The problem is that by the time the media reports it - most of the benefit has passed.

This Window of Opportunity is already under pressure even as it has been created. Because spending this kind of money by the Fed - requires the Fed to print money, it also induces and greatly risks inflation. Yesterday there were early indicators that this is exactly what was happening. The cost of the Euro was 2 cents higher than on Wednesday when the Fed announcement came out. (a significant leap by normal standards)

Bottom Line: If you are waiting for a signal from on high to make a move in the Real Estate Market, DON"T WAIT ANY LONGER - It is TIME! This Fed incentive to the Housing Market will be effective at getting people out and the market will definitely heat up - and as you should know - the more people looking and buying  - the less discount you are  going to receive. Increased sales = increased inflation = less purchase power. What ARE you waiting for - Pick up the phone - Get to the Market Place - Santa has delivered -

Dale Alverson 43 Degrees North RE

35 years representing Clients!  - Not Sales-

Direct Cell 208-863-3093

Today's Blog came about from a referral from my wife/partner (Debbie Sargent Coe). Debbie avails her self to Open Houses on most week-ends ... and always... seems to come back with new people - suspects & prospects for Representation for either seller's or buyer's or both!

What makes Debbie so Special at Open House's is her ability to relate..... and her 33 years of experience understanding the dilemma's that face people looking for a new or different places to live. Most "Realtors" see this business as a "Sales Business" when in reality it is not..nor should it be. Professional Real Estate should be a "People Problem Solving Business".

 The following account should clear up the mis-understanding between being a "Customer" or a "Client" and give you a glimpse into the life of our lives as Agents Representing Clients rather than Realtor's selling houses.

 Back to the story.....When Debbie met the couple they were interested in selling their older remodeled home that they had put a lot of money and time into making it just right.... and now they as aging Boomers were feeling like maybe they might enjoy a less physically stressful lifestyle.They came out to see some of the Patio Homes at Hazelewood Village and literally fell in love with one of the homes that had recently been reduced in price and had just been sold to another couple. The Husband liked the home as well however felt that it was too far from his employment on the far side of the town. They stated that if they could replicate the Sold Home for the same price they would be interested in going forward - Debbie made an appointment to see their home and the next week they were referred to me as a Buyer's agent and we looked at the intended home together, and again they reiterated they would be interested if we could duplicate the home for the same reduced price the other had sold for on a lot with a view of the mountains ( a difficult task)

The Monday after I met them, I called as I promised, and the Wife said they had decided that it just wasn't going to work because the house was: 1. Too far out 2. It was going to cost them $20k-$30k to upgrade and they didn't want to really spend more than their current home was worth. and 3. With the economy being so un-stable, they thought they should do nothing and just stay in their nice little home that was all paid for. ( I found out later that they had been on & off again, looking for nearly 2 years). The Wife( a lovely lady) said we were going to hate her because they were so indecisive and I replied not at all - there was a lot at stake and they should be very concerned about taking action of any kind without really understanding the options. I told her not to worry and that we would keep in touch if they changed their mind.

 Now I had a choice to make. Leave them alone making their decision based on emotion and pray for the best for them - or invest my time to represent their interest and identify their problem, and show them their options. As customers not clients at this point, we were not authorized to"Represent their Interests without a Representation agreement). - Remember: Customer = Selling.. and Agency = Representation.

 The part that bothered me wasn't that I was going to lose a sale. It was the fact that they had a do-able desire and they didn't Understand THEIR PROBLEM... and because they didn't understand that they had a problem... they couldn't possibly understand a solution. The problem that they didn't understand, was the dynamics of this market today - right here and right now! If they indeed stay in their very comfortable abode and don't change their mind after the advantages of this market have disappeared, then they did the right thing. However if a few months or a year from now, the wife finally decides she really wants a "New Home for their last home, and they try to go forward. they chance to lose the entire ability to facilitate the move.

 Here is why:

#1. They are trying to make a very difficult almost lateral move -from a $170k-$180k older smaller home to a New $200k larger home at near the same price ( a very tough task to say the least) 

#2.Today's interest rates are artificially low and at the lowest rate in my 35 year career! This abnormally low rate will not last much longer and especially with coming inflation which will affect not only the ability to buy - but the ability to sell as well-

#3. The type of home they are interested in has been reduced below the cost to build it.. and the only reason they can build it today at the under market value is because we may be able to find a developer in this market, who may consider selling a lot to us for less than he owes on it..and the bank may allow the lot sale in order to provide some debt relief. The builder will in turn offer his sub-contractors less in order to provide them a job.....and suppliers have already rolled back their prices to below 1993 pricing in order to move product. In other words, the home will NEVER be able to built for less than it can today!

#4. The type of lot they desire is the most valuable & desireable lot in any development (a rear East viewing lot with a view of the mountains). After 4 hours of preliminary research I found only 4 possible lots in the entire Valley) In a normal market they wouldn't have a chance of replacing it at $10k-$20k more- 

#5.Their home is under the magic $200k range which is the only price range that is still moving at near normal market time levels, and the ability to sell their home is at a high point of opportunity because of the Stimulus package for 1st time home buyers (this year only)as well as their price range.

#6. When comparing the appreciation advantage of a "New Modern Home" to keeping their remodeled older Home - the difference is decidedly overwhelming advantaged to the New Modern Home which should easily out distance their current home due to **functional obsolescence of thier current home. (**a term Appraisers use to adjust the value of an older home down from comparable sized newer homes)

#7. The New home will not need maintenance items for 8+ years - while the older home will continue to require more and more dollars to keep it in proper state of maintenance.

#8. Last but not least and probably the crowning factor - many if not most economists foresee a major wave of inflation in the near future as China refuses to loan any more Trillions of Dollars to the US, and the Treasury is forced to print money to pay for bloating Government Programs and Continued Government growth because they have no more money. INFLATION will likely cause Interest Rates to accelerate and the ability to purchase an undervalued New Modern Home will be ....well - history -

The choice I have to make as a professional is to decide if it is worth the time & effort to try and educate my customers to become clients so I can save them.... or if I am better off to just let them go and spend my time working with clients that are waiting to hear my counsel. As I said in the beginning - This is NOT a sales business.... it is a People Business. If your into it for the quick $$... then you should just be a "salesman" and try to sell customers before they change their mind. If your into it for the long term career, you take the time - do the research - and try to represent and educate your customers to become clients and Represent their" Best interest"...not your own. Not all customers will become clients,however, without the effort, one can only pretend to be a Professional!

 We will make a final attempt to show these customers their options and hopefully turn them into clients who trust our experience and ability to show them options that work to their advantage. The difficult part of the Boise Real Estate business at this time, is seeing people make decisions based on negative information and not realizing the advantages that are available that they may lose by not being informed.

Sales People prey on customer emotions. Realtors providing Agency should provide balance to clients emotions based on prevailing logic and past experience to try and forsee the future..and use that information for their clients best interests. In some instances it will be in clients best interst to not go forward. In other instances, it will be in their best interests to go forward. It should NEVER be about the Sale - It should be about what is in the best interest of the client period!

Dale Alverson
e-Pro Certified
Certified Buyer Broker (CBB) - (Only One in Idaho)
Certified Relocation Professional (CRP) (one of 4 in Idaho)
Accredited Buyer Representative (ABR) (#70 of 54,000 USA) 35+ years - Representing Clients - not Sales - 43 Degrees North Real Estate
www.teamboise.com
dale@teamboise.com
Direct Cell 208-863-3093
Toll Free 800-359-0855