More parents are taking on the role as mortgage lenders to help their kids take advantage of low home prices and record-low mortgage rates. In fact, one in three first-time home buyers either received a gift or loan from their families for a home purchase made in 2011, according to National Association of REALTORS®’ research.

But parents who enter into a gift-giver or mortgage lender role need to make sure they follow some tax guidelines. We coordinate family like this with CPA’s , attorneys, etc!  

For one, the federal government has rules on how much you’re allowed to gift. For 2012, individuals can give up to $13,000 tax free in one year without having to pay gift taxes. Married couples can give up to $26,000 a year. 

More information at source: “Become Your Kid’s Mortgage Lender,” Fortune (February 2012)

Other news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of Northern California at: www.sierraproperties.com or www.dougandbudzeller.com

The new site enables users to toggle between Spanish and English, a format that is preferred by many bilingual speakers. More than 600 pages of Spanish-language consumer financial educational materials are available to visitors.

Si tiene ud. interes en comprar una casa o conseguir un prestamo, llamenos ahora y nuestro equipo que habla espanol le puede ayudar. Este es el primer paso para comprar una casa!

To access the site, visit http://espanol.myfico.com

More information at: http://www.fico.com/en/Company/News/Pages/01-24-2012.aspx

Call us at (530) 409-8351 or email: zeller123@gmail.com for personal assistance.

Some expect the average monthly rent to rise to as much as $1,101 this year, which Paul Bishop of the National Association of REALTORS® says should prompt more potential home buyers to “think twice before renting.”

Plus, another reason some consider buying is that a limited supply of rentals exist fitting their needs. This has been the case in our Placerville, El Dorado County region of California for the past few years.

 Source: “High Apartment Rents Seen Pushing People to Buy Homes,” Investor’s Business Daily (Jan. 27, 2012

 More news at: www.sierraproperties.com or email: zeller@realtor.com

Home owners are bringing in nearly double the median income they need to cover the cost of an average home, HousingPredictor reports. 

“With interest rates at historically low levels and markets across the country beginning to improve, home ownership is within reach of more households,” Bob Nielsen, chairman of the National Association of Home Builders, said in a statement.

However, some consumers are finding more stringent lending standards for getting a mortgage a roadblock to home ownership, and some housing experts have blamed tighter underwriting standards in recent years for continuing to hold back the housing market. 

Source: “Home Affordability Reaches 1971 Level,” HousingPredictor (Jan. 11, 2012)

More news from the “Sierra Foothills” of El Dorado, Placer, Amador and Sacramento Counties of California at: www.sierraproperties.com or www.dougandbudzeller.com

Women tend to rely on recommendations from their friends when it comes to mortgage rates, while men are more likely to shop around and talk to several lenders in finding the best rate, the researchers note. 

Researchers aimed to shed light on why a 2006 study found that women are 32 percent more likely to get a subprime mortgage than men.

Researchers suggest that “gender disparity in mortgage rates may be addressed by policies aimed at improving women’s financial literacy and search skills.”

Source: “When it Comes to Mortgages, Women Don’t Shop Enough,” AOL Real Estate (Nov. 18, 2011)

More information from the Sierra Foothills, El Dorado, Placer, Amador or Sacramento Counties of California at: www.sierraproperties.com or www.dougandbudzeller.com

Users of sucasa.net can mine for homes using search parameters such as city, price range, and number of bedrooms or bathrooms.  Results are generated as a list or on a map, and driving directions are provided in Spanish. Also, C.A.R. members can forward property links to house-hunters in Spanish. 

“With Spanish ranking as the second most widely spoken language in the U.S. and Spanish speakers making up nearly 35 percent of California’s population, we recognize the market potential for this home buyer population,” said C.A.R. President LeFrancis Arnold.

 Source: “C.A.R. Launches Spanish-Language Property Search Website,” Enhanced Online News (12/01/11)

For Spanish-speaking assistance in the Sierra Foothills, El Dorado, Placer, Amador and Sacramento Counties of California visit: www.sierraproperties.com or www.dougandbudzeller.com or call (530) 409-8351

Groupon, which launched in 2008, offers daily deals on products and services and boasts more than 115 million subscribers in 175 North American markets.

However, recent news reports from around the Placerville, El Dorado County, California regions note you should beware of expiration dates.

Article by Fox Business News highlights how some real estate professionals are using Groupons: “Through list marketing, a real estate agent could send out a promotion to local residents offering home sellers $500 back at closing for $25. The agent could offer the deal October through December, which are typically slow months for home sales. To foster loyalty, the agent could send a similar deal out next year, but only to her previous customers.”

Source: “How to Build Your Own Groupon,” Fox Business (Nov. 8, 2011)

“Market concerns over the European debt market drew investors to U.S. Treasury securities, lowering bond yields and mortgage rates,” says Frank Nothaft, chief economist at Freddie Mac.

Here are how rates fared for the week:

30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent. 

• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent. 
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
• 1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent. 

Source: Freddie Mac

Other real estate information and assistance for the Placerville, El Dorado County, California region at: www.DougandBudZeller.com

Indeed, discounts often can range from to 20 or 40 percent off on a short sale or foreclosure compared to a sales price of a nondistressed home. 

But despite the big bargains, buyers need to tread carefully before jumping in. Blomquist provides some of the following tips in buying a foreclosure in a recent article at Business Insider. These correlate to our region of Placerville, El Doorado County, California. 
 
But, consider these factors:

Beginners may want to focus on REOs ?

Beginners may want to focus on ”distressed properties” ?

Don’t expect appreciation right away!
 
You can read more of Blomquist’s tips at Business Insider.

 Source: “Here Are Five Things You Should Always do if You’re Buying a Foreclosed House,” Business Insider (Oct. 31, 2011)

Here are the five main areas of confusion the survey revealed: 

• Appreciation: About 42 percent of home buyers believe home values will appreciate by 7 percent a year. Reality: Historically, home values in a normal market appreciate by 2 to 5 percent in a year. 
• Mortgage insurance: 41 percent of buyers think they will have to purchase private mortgage insurance, regardless of the amount of their downpayment. Reality: Buyers only need to purchase PMI if their downpayment is less than 20 percent of the home’s purchase price.
• Appraisals: 56 percent of the buyers said the purpose of the appraisal was to determine if a home was in good condition. Reality: That’s the purpose of a home inspection; an appraisal estimates fair market value. 
• Home owner’s insurance: 37 percent of home buyers said that buying home owner’s insurance is optional. Reality: Lenders require homebuyers to purchase homeowner’s insurance. 
• Ownership: 47 percent of home buyers said a prospective buyer owns a home after the purchase contract is signed. Reality: The purchase and sales agreement is the beginning of the closing phase, but it can be a long process until they finally take ownership. 

Source: Zillow Inc. 

Other helpful information regarding the Placerville, El Dorado County, CA. regions at: www.dougandbudzeller.com