Because of the economic downfall and the increased number of foreclosures, the FHA, in an effort to strengthen its capital reserves, as made significant changes to its policies, effective this summer. Basically, the changes involve insurance premiums, FICO scores (credit rating), seller concessions, and increased enforcement of lenders.

Mortgage insurance premiums: The previous upfront premium payment of 1.75% of the loan amount has been raised to 2.25% . The option of financing this amount into the loan is still available. In addition, the FHA has requested the authority to increase the annual MIP from its current .55% in an effort to reduce the upfront MIP costs.

FICO scores: The new minimum score for those with a 3.5% down payment has increased to 580 (up from 500). For those with a score of less than 580, a 10% down payment is required.

Seller concessions: In previous years the seller of Virginia Beach VA real estate could pay up to 6% of the buyer’s closing costs and fees. That amount has been lowered to 3%.

Lender enforcement: The FHA will make public (on the HUD website) lender performance; increase its monitoring of lender performance and adherence to the new guidelines; and pursue further legislation to increase its enforcement capabilities.

Additionally, in November 2009 new rules affecting the insuring of the condominium segment of Virginia Beach VA real estate became effective. FHA insurance availably will be subject to location restrictions based on noise concerns, safety, flood possibility, and wetland disturbance.

Condo-based changes include:

1. Increase the loan limits.

2. Eliminate the practice of separating condo loans from single-family home loans.

3. Set the owner-occupation requirement at 50%.

4. Reduce the unit presale requirement from 50% to 30%

5. Limit the number of FHA loans in any on building to 30%

6. Cap the number of units in any one building which can be owned by one investor at 10%.

7. Replace the “spot check” approval process with a more streamlined one when a condo project has not been previously approved

This is a list of approved condos in the Virginia Beach VA real estate market.

Those who earn an income, either part-time or full-time, by flipping Virginia Beach VA real estate, caution would-be flippers to understand the basics before beginning such a venture, they definitely need to:

• Assess their financial situation

• Have time available to renovate the property

• Possess good negotiation skills

• Have knowledge of what renovation entails and of building codes

• Have a practiced eye for evaluating potential value

• Do a great deal of research to learn about the industry

• Have a good sense of timing

Find trustworthy advisors, such as an agent, a loan officer, and a reliable subcontractor.

Of primary importance is that you have adequate cash available for escrow and loan fees, renovation supplies, subcontractor fees, monthly mortgage payments, insurance, and utility bills. Richard Davis, owner of Trademark Properties and creator of the reality show “Flip This House”, states that he has never seen anyone actually buy a house for no money down. It is also important to note that the FHA requires flippers to hold on to their Virginia Beach VA real estate for at least three months in order to qualify for FHA mortgage insurance. Remember that every day you own the property it costs you money.

Those owners of Virginia Beach VA real estate who wish to flip, far too often have no idea of the actual physical labor and time involved in replacing floors and roofs, installing plumbing, extensive painting, remodeling a kitchen or bathroom, or making major improvements to landscaping. While an owner can hire a subcontractor to do some of the work, that costs money and reduces the amount of the final profit.

Finding the right property is no easy task, either. Just because it is being foreclosed does not make it a steal, and even with a home inspection, problems may not show up until renovation has begun. A potential investor must also beware of being too optimistic about renovation costs or profits.

Time, too, is often of the essence. Once the investor finds a suitable piece of Virginia Beach VA real estate, he must move quickly to obtain a loan, order supplies, hire contractors, complete the renovation, advertise, and sell the house.

So, should someone give up the dream of flipping real estate? Not necessarily, say many experts. They do, however, advise investment property buyers to keep their steady job, with a guaranteed income and health insurance, while they experiment with flipping two or three houses a year. With adequate preparation and a little luck, full-time flipping may just be a possibility for the future!

Search all Virginia Beach VA real estate for sale.

Here are a number of money-saving ways to reduce the amount of tax you owe–or even increase the amount of your refund!

First, let me explain the difference between a tax deduction and a tax credit.  A tax deduction reduces (adjusts) your taxable income. A tax credit reduces your tax dollar for dollar. You do not have to itemize deductions to claim a tax credit.

Tax Deductions for Primary Residence

Tax deductions on your primary residence include:

• Interest paid on your mortgage
• Refinancing points paid in 2009
• Real estate taxes
• Interest on major home improvement loans
• Mortgage insurance premiums
• Home improvements required for medical care
• Any sales commission, legal fees, or closing costs associated with the sale of Virginia Beach VA real estate in 2009

Home Energy Efficiency Improvements Tax Credits

Consumers who purchase and install specific products in their Virginia Beach VA real estate, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost, up to $1,500, for improvements “placed in service” starting January 1, 2009, through December 31, 2010. See Federal Tax Credits for Energy Efficiency for a complete summary of energy efficiency tax credits available to consumers.

Residential Renewable Energy Tax Credits

Consumers who install solar energy systems (including solar water heating and solar electric systems), small wind systems, geothermal heat pumps, and residential fuel cell and microturbine systems can receive a 30% tax credit for systems placed in service before December 31, 2016; the previous tax credit cap no longer applies. Details are explained here.

Home Buyer Tax Credit

• First-time buyers who have not owned a home in the last three years are eligible for a credit of 10% of the purchase price, not to exceed $800,000. Ownership of a vacation home or rental property not used as a prime residence does not disqualify a buyer as a first-timer.
• Current home owners, or those who have owned and lived in a principal residence for at least 5 consecutive years of the last 8, may qualify for a credit of up to $6500.

1. Freedom to pursue other goals in life once the major goal of home ownership is achieved.

Strange as it sounds, many of our first-time buyers have told us that once they bought the house, other things in their life started to fall into place. It’s as if not owning took so much of their mental energy that other goals were not worked on until that big goal was reached. So buy a home and get on with your life!

2. A greater sense of belonging to the community.

Once you own a home, you feel more attached to the city in which you live. You’re more interested in what happens in town, to the roads, schools, and shopping areas. Some people even become involved in local politics.

3. A commitment to something, a sense of stability.

Home ownership is an anchor, something that cannot be pulled out from under you. You’ll never get a notice that you have to move. You’re kids will never have to change schools. It gives you freedom to plan years ahead.

4. You can change things, a feeling of being in control.

It’s your home. You can add to it, remodel it, change the landscaping, do whatever projects you want. You have a feeling of being in control of something in your life. At work we don’t always have control of what happens, but your home is your castle and you have dominion over it. You can see what you’re building take shape before your eyes.

5. More control over the children than in an apartment complex

In a neighborhood, kids usually play in the yards or go to friend’s houses a few doors away. Our clients have told us that in an apartment complex they never knew where the kids were. They could be in any of hundreds of apartments, doing who knows what. In a home you get to know the neighbors and watch out for each other’s kids.

6. Children do better in school and feel more secure.

This one surprised us, but buyers have reported to us that their kids calmed down in school after they bought a house. We don’t know why, but it seems to work that way. We remember a single mom watching her son play in the yard, making steps in the slope and building things. She didn’t have to tell him to leave everything alone, like she did at the apartment complex. I guess kids feel the same need for control we adults do.

7. Time and money saved by not going to the Laundromat.

A small point, but if you have kids, you know the value of this one. You gain a whole evening a week when you buy a house! The wash gets done in between other things, or while you’re at work. What would you do with the extra evening you’ll have? How about going out for dessert with your spouse with all those quarters?

We’ve been in a home of our own for so long; we take these benefits for granted. We forgot what it’s like to be renters! If you have anything you can add to the list, please let us know via email. We would love to hear from you! Start your Virginia Beach VA home search.

Also read: 10 Things You Should Know About the Virginia Beach VA Real Estate Market

              6 Ways To Beat The Stress Of Buying A Virginia Beach Home

Our Real Estate Market Is Different.

The ad continued to read:

It is important not to interpret current home prices and home price appreciation only in the context of the housing market of 2004-2005. Over the long term, home prices in Virginia have increased moderately — and steadily.

• In the 1990s, home prices in Virginia appreciated at an average of about 2% annually.
• From 2000 through the 2nd quarter of 2006, average price increases were about 12% annually.
• In the third quarter of 2007 (latest data available) the house price index for Virginia shows home prices up 3% compared to the 3rd quarter of 2006.

The average sales price for Virginia Beach VA real estate appreciated approximately 6% in 2007 compared to 2006. Read the full report.

Visit VirginiaBeachHomeSellers.com and have the current market value of your home emailed to you. And start your Virginia Beach home search here.

The most important decision you will make when selling your home is the agent you choose to work with. Their expertise and guidance from pricing, to marketing, to staging is invaluable and can make or break a sale.

Selling fast was important to Garen & Anna Marshall when they sold their home and moved to Northern VA. Here is what they had to say about Dave Macklin and the Butler Team:

“This letter is in reference to the superior service that we have received from Dave Macklin.  Two years ago we walked into RE/MAX Allegiance in search of a house and were lucky enough to get set up with Dave Macklin.  From start to finish the transaction went smoothly and we were very pleased.  

Two years later when we decided to sell our home we knew there was no better person suited for the job than Dave, and he has certainly proved us right! In this tough market, we were nervous as to how long it would take for the house to sell, in fact there were several houses in our neighborhood that were on the market for months until the listings eventually expired. Dave assured us he would do everything in his power to get the house sold quickly and he did! We closed within a month!  

We never had to worry about a single thing, because we knew Dave had everything taken care of. It was an absolute pleasure working with such a wonderful, knowledgeable agent and we can not say enough good things about him. Having worked with several other realtors in the past, we can honestly say agents like Dave are few and far in between. Dave is the definition of going above and beyond and you are very lucky to have him!”

The average market in Garen and Anna’s neighborhood is 49 days. Dave was able to sell their home in 26 days, 402Rennie.com. Would you like results like this when selling your Virginia Beach real estate? Visit our website, ButlerTeamHomes.com or give Dave a call at 866-222-0158 #302.

Interested in the current market value of your home? Visit HRHouseValue.com. A current market valuation will be emailed to you.

Also read: 10 Things You Should Know About Today’s Virginia Beach VA Real Estate Market