If you’re thinking of selling your Virginia Beach home, and you expect that the total amount you owe on your mortgage will be greater than the selling price of your home, you may be facing a short sale. A short sale is one where the net proceeds from the sale won’t cover your total mortgage obligation and closing costs, and you don’t have other sources of money to cover the deficiency. A Virginia Beach short sale is different from a foreclosure, which is when your lender takes title of your home through a lengthy legal process and then sells it. 

1. Consider loan modification first. If you are thinking of selling your home because of financial difficulties and you anticipate a short sale, first contact your lender to see if it has any programs to help you stay in your home. Your lender may agree to a modification such as: 

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The National Association of Realtors^® expressed support of President Obama’s broadened focus of the nation’s economic recovery that stresses housing stability and making health care an important component of his economic revitalization strategy, in addition to “restarting lending” and preventing foreclosures.

“We fully agree with President Obama’s emphasis that housing is the backbone of our national economy,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Brokerage in Dallas-Fort Worth. “As he said, when a family buys a home, workers are hired to build it. Those workers spend money and open businesses. As a result, investors return. In short, housing is the key to revitalizing America and we pledge to work with him to help jumpstart our economy.”

Let’s take a look at Hampton Roads real estate sales statistics for January to see how the new year started off:

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Wow, have times changed! A few years ago at the height of the Sellers market, Virginia Beach home sellers wouldn’t think about accepting an offer with a VA loan. Now sellers grateful for an offer with almost any type of financing. Here are some of the benefits of buying your Virginia Beach home with a VA loan:

• 100% Financing (Sales Price + VA Funding Fee)
• No Monthly Mortgage Isurance payments
• Sellers can pay all buyers closing costs, and pre-paid items, plus an additional 4% of the sales price towards buy-down points, or buyer’s consumer debts
• No cash reserves are required
• Interest rate is not based on credit scores

Although VA guidelines do not require a minimum credit score, investors are raising their requirements. Many now require anywhere from 580 to 620 as their minimum.

Examples of what the extra 4% can be used for:

• Rental buy-outs
• New appliances for the home.
• Credit card pay offs
• Any consumer debt pay offs
• Condo dues for the buyer

REMEMBER THAT FIRST TIME VIRGINIA BEACH HOME BUYERS MAY QUALIFY FOR THE VHDA FHA PLUS LOAN, A TOTAL OF 102% FINANCING.

Learn more about using VA loans when buying a Virginia Beach home by visiting ButlerTeamHomes.com or give us a call for more persaonl service.

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It’s official! The $8,000 tax credit for first-time Virginia Beach homebuyers was signed into law yesterday by President Obama.

It is not the $15,000 credit that was proposed by the House of Representatives, but it is a definite improvement over the $7,500 low interest loan that was in last fall’s legislation. Who qualifies:

First-time Virginia Beach homebuyers who purchase this calendar year get an $8,000 tax credit which does not have to be repaid like a similar measure last year. This phases out for people making more than $75,000 individually or $150,000 jointly. “First-time homebuyer” is defined as someone who has not owned a home for the past three years.

The purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as “first time” buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Applying for the credit will be easy – or at least as easy as doing your income taxes. Just claim it on your return. No other forms or papers have to be filed. Taxpayers who have already completed their returns can file amended returns for 2008 to claim the credit.

This legislation does not help the first-time Greenville homebuyer who doesn’t have the cash for a down payment as you have to have closed the deal to qualify. It is more of an $8,000 discount on the price of the home and can give home buyers a cushion for unexpected costs during the first years of homeownership.

Are you a first-time Virginia Beach homebuyer? Give me a call! I am glad to discuss how this new law effects you personally.

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Chalk one up for the Obama Administration. As of Friday, lawmakers were preparing to pass a $789 billion stimulus package to revive our struggling economy. President Obama was hoping for broad bipartisan support for the bill, a cornucopia of sundry government spending and business and personal tax breaks, but it just didn’t materialize. All Republicans, except Senators Susan Collins, Olympia Snow, and Arlen Specter, gave the bill thumbs down. We’ll withhold judgment, because we are unsure (as is everyone, really) how the stimulus plan will play out in the general economy.

That said, we are attracted to a few of the plan’s provisions, not the least of which is the provision to provide first-time home buyers with an $8,000 tax credit, which would not have to be repaid, unlike the current $7,500 tax credit. What’s more, it would extend the credit’s expiration date to December from July. Those eligible for the credit must purchase a home before Dec. 1, 2009.

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Spring is on it’s way and now is the time to get your Virginia Beach home improvement projects organized. The Mid-Atlantic Home & Flower Show, taking place this weekend at the Virginia Beach Convention Center, is a good place to get started….

Mid-Atlantic Home & Flower Show offers education, entertainment for all ages
The annual Mid-Atlantic Home & Flower Show presented by Certified Angus Beef, offers all of the inspiration you’ll need to get ready for spring.

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Virginia Beach Home Ownership 2008 Tax Deductions

Virginia Beach home owners can get an income tax deduction on the mortgage interest they pay. But there are other tax deductions you can take on your principal residence or second home, such as property taxes, and in some cases, for Private Mortgage Insurance. Read 2008 guideline from Turbo Tax:

You can deduct:

Your property taxes. And if you bought the home in 2008, you may be able to deduct more than you think. Don’t forget to include real estate taxes you reimbursed the seller for – taxes the seller had already paid for the time you actually owned the place after your purchase. That amount will be shown on the settlement sheet.

Property taxes for taxpayers who don’t itemize. New for tax year 2008, if you do not itemize deductions for 2008, you can increase your standard deduction by up to $500 of real estate taxes paid in 2008 if you file as a single person, or by up to $1,000 of property taxes paid if you file jointly.

The mortgage interest on your primary residence, as well as any secondary residence you own. (There are limits, but relatively few taxpayers are affected.)

The interest on up to $100,000 borrowed on a home-equity loan or home-equity line of credit, regardless of the reason for the loan.

Points that you paid when you purchased the house (or those that you convinced the seller to pay for you).

The premiums paid for Private Mortgage Insurance (PMI) in 2008, but only for policies issued after 2006. (The right to this deduction disappears as Adjusted Gross Income rises from $100,000 to $110,000 on a joint return, and from $50,000 to $55,000 on a single return.)

Home improvements required for medical care.

How much can I save? 

The actual amount of money you save on your annual income tax bill depends on a variety of factors:

• Your filing status (single, head of household, married filing jointly, married filing separately)
• Your standard deduction amount
• Your other itemized deductions
• Your taxable income

Your home-related deductions, plus your other itemized deductions must add up to more than the standard deduction (increased by the amount of property taxes noted earlier that are allowed to non-itemizers), or they won’t save you any money. 

What can’t I deduct? 

You can’t deduct the following payments for your primary residence:

Dues to a homeowners association

Insurance on your home

Appraisal fees for your home

The cost of improvements to your home. (But keep those receipts. They may help you reduce your taxes when you sell your home.)

Learn more about Virginia Beach home ownership by visiting ButlerTeamHomes.com.

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Stimulus Bill May Be Good News For Virginia Beach Home Buyers

It looks as if our legislators in Washington are finally making positive steps toward fixing the house mess by including housing legislation in the Economic Stimulus Bill.

Yesterday, the Lieberman/Isakson Amendment was included in the senate version of the Economic Stimulus Bill by a unanimous voice vote. This amendment would provide a Tax Credit to all home buyers at the rate of 10% of the sales price up to a limit of $15,000. The credit would be available for a one year period to all purchasers of primary residences.

Now, the senate expects to debate Amendment 353, a proposal by Senator John Ensign (R-NV) that would provide 30 year fixed financing at a rate of about 4%, for anyone purchasing a primary residence.

If these two provisions are included in the final passage of a stimulus bill they could have a positive impact on Virginia Beach real estate.

Dave Liniger, co-founder of RE/MAX International has this to say about the proposed legislation: 

“I feel that these provisions represent real economic stimulus. They will put money in the hands of millions of homeowners, increase sales, stabilize home values and add more revenues to local communities in the form of property taxes.

I urge each of you to contact your senators and representatives to let them know that you believe these provisions are essential components of any stimulus bill. You can go to the official Senate http://www.senate.gov and House http://www.house.gov web sites to locate the email and phone number of your legislators.”

This has passed the Senate, but the entire bill does need to go back to the House, and be signed by the President. There could be many changes before this happens, or not pass at all.

But is it light at the end of the tunnel for Virginia Beach home buyers and would help the housing crisis immensely as you can imagine.

Visit ButlerTeamHomes.com to learn more about Virginia Beach real estate.

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Virginia Beach First-Time Home Buyers Have Loan Options

There is so much negative press about the lending industry these days, many Virginia Beach first time home buyers are scared to death to even consider buying a home. They hear stories that someone’s mortgage payment went from $1,000 to $1,800 almost overnight. They are afraid of the fine print and don’t know who they can trust. 

Subprime loans are loans to borrowers with questionable credit, usually 680 credit score or lower, and at higher interest rates.  

Virginia Beach first time home buyers have other, less scary, mortgage options:

Virginia Housing Development Authority

Virginia offers first-time home buyer loan through the Virginia Housing Development Authority (VHDA). Current offerings include: 

First Choice: Zero downpayment and 25% less monthly payments 

Step Rate: Interest rates are reduced for the first two years. 

Flex Advantage: Financing up to 104% including closing costs. 

If you are a Virginia Beach first time home buyer and need more information on sound, reliable financing options, visit ButlerTeamHomes.com. You can also give me a call for more personal assistance. 

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Is Renting Your Virginia Beach Vacation Home Right For You?

One of the biggest decision Virginia Beach second-home buyers must decide is whether or not to rent their property when they are not using it. According to the U.S. Census Bureau, one-half of all second-home owners leave their home unoccupied for more than 330 days a year. The question becomes, will your vacation home be a financial burden or a financial cow with the rental income is can generate, thus paying for itself

Renting does have its pros and cons. Some owners don’t like the idea of ‘strangers’ in their home. Others don’t want the hassle of being a landlord, especially a long distance landlord. And then there is the decision to give up the prime vacation season for rental income. The flip side is renting your vacation home provides a stream of easy money.

EscapeHomes.com offers advice and tips when considering a Virginia Beach vacation home purchase and deciding whether renting out that home is right for you:

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