Danielle Lazier

Archive for the 'First Time Buyer' Category

The American Dream is taking a Disco-Nap but she ain’t dead yet!

Yes, the economy crashed. Yes, your home’s value is down. Yes, things kind of stink right now and have for while.

Yet, there is a light at the end of the tunnel. The economy will slowly recover and so will the value of San Francisco real estate. In fact, even now, many listings for sale in San Francisco receive multiple offers from ready, willing, and able home buyers. Just last week a Bernal Heights home for sale north of Cortland Avenue received 3 offers and is in contract over the asking price. Why? Because San Francisco has more housing demand than supply. Even in the worst economy in decades, San Francisco real estate trudges on and out-performs almost any other real estate market in the country.

A lot of housing bears quote the Case Shiller Home Price Index to support their claim that we should all abandon the American Dream and just rent. (Wait, wouldn’t the landlord be living the dream, then? Someone’s gotta own it. But, I digress…) So, when I came across this NYTimes Op-Ed on the intrinsic positive values of home ownership, A Dream House After All, by none other than Karl E. Case, the co-creator of the Index, I had to rejoice and of course, post about it!

Mr. Case, writes,

But for people with a more realistic version of the American dream, buying a house now can make a lot of sense…You live in the house and so it provides you with a real flow of valuable services. You can deduct the interest you pay on the mortgage. Interest rates are about as low as they can get. And, don’t forget, home prices are down by 30 percent on average from the peak…

This financial crisis has made us all too aware that we live in a Catch-22 world: the performance of the housing market drives the economy, and the performance of the economy drives the housing market.

But housing has perhaps never been a better bargain, and sooner or later buyers will regain faith, inventories will shrink to reasonable levels, prices will rise and we’ll even start building again. The American dream is not dead — it’s just taking a well-deserved rest.

I know we’re not supposed to “sell” on a real estate blog about San Francisco real estate but I just can’t help myself on this one.

If you have a good job that you like, have some money in the bank, and think you may stay in San Francisco for the next 5+ years, you really need to consider buying a home.  Rock-bottom real estate prices (relative for San Francisco – a world-class city), rock-bottom mortgage interest rates, and a recent uptick in fear in the media = the best housing affordability San Francisco has seen in a long, long time. This is the time for San Francisco first time buyers and those who already own a starter home and are looking to trade-up.

Will you get a 3 bedroom single family home for $500,0o0? No. But will you get the $1,500,000 home for $1,300,000? Yes. And the $900,000 condo for $775,000? Yes. This is a time for “value-conscious” home buyers.

Search ALL San Francisco homes for sale. More accurate than Zillow, Trulia, RedFin, etc.

Tags: case shiller, case-shiller home price index, home ownership

Powerful Home Buying Strategies: Don’t Be Pushed Into Any House. OR How Many Homes Should I See Before Making an Offer?

Powerful Home Buying Strategies: Don’t Be Pushed Into Any House. OR How Many Homes Should I See Before Making an Offer?

A common question from home buyers is, “How many listings should I see before making an offer?” Read the rest of this entry »

Tags: FAQ, First Time Buyer, Frequently Asked Questions, home buying

Carpe Diem – How to get up to $18,000 in State and Federal Tax Credits for Buying a Home in San Francisco

Carpe Diem – How to get up to $18,000 in State and Federal Tax Credits for Buying a Home in San Francisco

For a very limited time, certain San Francisco first time home buyers will benefit from up to $18,000 in tax credits. Not a first time buyer? You may still be eligible for up to $16,500 in combined tax credits.

The deal is that you need to be in escrow by the end of April 2010 and close escrow by the end of June 2010. Three weeks doesn’t sound like a lot of time, does it? Yes and no. For those of you who are serious about buying a home, three weeks is enough time to catch up on the existing homes for sale and zero in on the right home for you. (It helps to work with energetic and responsive San Francisco real estate agents who will help you narrow down your search to the best homes meeting your criteria and then help you see them quickly. Yes, like us. Duh.)

Of course, the timing needs to be right for you and your situation. A tax credit alone does not mean you should buy a home! If it makes more sense to wait, then wait. But if you’ve been procrastinating and have been afraid to pull the trigger and make an offer on a house in San Francisco, maybe this extra dough in your pocket is just the incentive you need.

Zephyr Real Estate and our amazing new SF real estate website has been promoting this golden ticket opportunity but we’re not along. Check out the SFGate article on San Francisco Bay Area home buying, “Good timing could reap double tax credits.”

“Getting both: Both credits require you to buy the home as your primary residence. Both define a first-time buyer as someone who has not owned a home in the three years prior to purchase. In short, to get both credits you must be in contract on or before April 30 and close between May 1 and June 30 – and meet all other requirements.” Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/04/01/BU9G1CNTVN.DTL#ixzz0kiWPYQwZ

Just want the facts?

Courtesy of May Montana* and all of the great mortgage brokers at Guarantee Mortgage, here is a Matrix explaining the 2010 Home Buyer Tax Credits:

2010 Home Buyer Tax Credit Matrix – PDF File

More info:

• Dolores Plaza 1 Bedroom Mission Dolores Condo for Sale -
  • FHA-Approved for 3.5% Down Payment AND
  • Union Bank – Approved for 10% Down Payment with NO mortgage insurance and great interest rates.
• Federal and California Home Buyer Tax Credit and other reasons it may be the right time to buy a home in SF.

* May Montana is an excellent mortgage adviser. Check out our other recommended lenders and San Francisco mortgage brokers. Why do we recommend them? Because we know they are experienced, trustworthy, reliable, competitive with rates and fees… We have NO financial relationship with mortgage brokers. That would be illegal, unethical and totally not worth it. We just like working with these folks and know you will too!

Tags: CA Tax credit, Federal Home Buyer Tax Credit, home buyer tax credit

ABC, it’s as easy as 123. Why you really need to get off your iPad and buy a home in San Francisco – now.

Yes, I am a Realtor so I am biased. Duh. But, honestly, folks. If you have stable employment and some savings (minimal needed for a FHA home purchase), and you’ve been considering the idea of buying your own home in San Francisco or San Mateo County, now really is the time.

Here’s why.

1. Last night during an initial consultation with intelligent, thoughtful first time buyers, I was told, “Listen, Danielle. This is the best time I’ve seen for a buyer in the San Francisco market in a REALLY long time, as in since the 1990s.” Amen, brother.
2. The CA Home Buyer Tax Credit for up to $10,000 signed into law today. Last year, the CA tax credit disappeared months before it was set to expire because of overwhelming home buyer demand.
3. The Federal Home Buyer Tax Credit of up to $8000. Gotta be in escrow by end of April and close escrow by end of June 2010. That’s plenty of time if you’re serious and get started right away.
4. Historically low mortgage interest rates.
5. FHA low down payment financing easier and more available than ever. We’re working with many FHA home buyers and have figured out the kinks…mostly.
6. The San Francisco real estate market appears to have stabilized. I’m not saying prices are headed up anytime soon but most people think we’re pretty much at the bottom of the market. BTW, down turns in the SF housing market seem to occur about every 10-15 YEARS or more. Wanna wait that long for the next one?

Tags: fha, First Time Buyer, home buyer tax credit

California Home Buyer Tax Credit, Assembly Bill 193, Signed Into Law by Governor Schwarzenegger

Today, the Governator or Governor Schwarzenegger signed Assembly Bill 183, the Home buyer Tax Credit legislation, into law.

More details to come but here are the basics:

• First Time Home Buyer Program
• Must buy a principal residence, i.e a home to live in and owner-occupy.
• Must live in the residence for the next 2 years at least.
• Tax Credit is the lesser of either 5% of purchase price or $10,000
  • Credit given in equal installments over 3 years.
• Must close escrow between May 1st 2010 and December 31st, 2010 OR enter into contract before December 31st, 2010 and close escrow by August 1, 2011.
  • In other words, you need to be in escrow in 2010 to qualify.
• This time around, the home buyer tax credit is for either new construction or the resale of existing homes.
• Warning: The state’s previous home buyer tax credit program was so successful that it ran out of tax credits by the end of June 2009, eight months before it was set to expire.

From the California Association of Realtors, “AB 183, formerly SB 4 of the sixth extraordinary session (Ashburn), is part of a package of four bills, passed at the request of the Governor, designed to help stimulate the economy and create jobs.  The bill allocates $100 million for qualified first time home buyers of existing homes and $100 million for purchasers of new, or previously unoccupied, homes. The eligible taxpayer who closes escrow on a qualified principal residence between May 1, 2010 and December, 31, 2010, or who closes escrow on a qualified principal residence on and after December 31, 2010 and before August 1, 2011, pursuant to an enforceable contract executed on or before December 31, 2010, will be able to take the allowed tax credit. This credit is equal to the lesser of 5% of the purchase price or $10,000, taken in equal installments over three consecutive years. Under AB 183 purchasers will be required to live in the home as their principal residence for at least two years or forfeit the credit (i.e. repay it to the state).”

Tags: AB183, CA Tax credit, home buyer tax credit

The Mission District’s Union SF New Construction & Conversion Condo Project Now FHA-Approved for Low Down Payment Home Loan!

Hot tip: The Mission District’s Union SF New Construction & Conversion Condo Project Now FHA-Approved for Low Down Payment Home Loan!

The Union SF condo project is now FHA-Approved for low-down payment home loans. Purchase an awesome new construction condo in the Media Gulch part of the Mission District SF with a down payment as low as 3.5% down. Seriously, this is cool. Plus, act soon and you may also benefit from the Federal Tax Credit when you buy your first home in San Francisco.

Here’s what’s even better. We actually really dig this project. They did a great job converting the old warehouse into new condos. The finishes are beautiful and the building feels like a good integration of old and new in the Mission. Plus, as someone who’s been going to Blowfish Sushi since the ’90s and has even had actual “blowfish,” I think the location rocks. It’s hip and happening yet still urban, diverse and totally San Francisco.

Recommended reading:

• Why work with a Buyer’s Agent rather than the developer’s sales team?
• What condos are FHA-Approved for low down payment home loans in San Francisco?
• What is the Federal Home Buyer Tax Credit?

Tags: fha, FHA home loan, low down payment, the union, union, Union SF

Updated List of FHA-Approved Condos in San Francisco

UPDATE – CHECK OUT THE APRIL 2010 LIST OF SAN FRANCISCO FHA APPROVED CONDOS

Pretty soon, there will be no more so-called spot-approvals for FHA low down payment home loans for SF condo purchases. So, if you want to buy a condo in San Francisco and don’t have 15-20% down payment, you’ll want to know which SF condos are approved for a FHA low down payment home loans.

Here’s an updated List of FHA-Approved Condos in San Francisco:

• 1151 SUTTER STREET CONDOMINIUM
• 4451-4455 MISSION STREET
• SF Blu 631 FOLSOM STREET
• 901 BUSH STREET
• The Garfield 942 MARKET STREET
• ARTERRA
• BAYCREST
• CANDLESTICK COVE
• CANDLESTICK POINT – THE COVE
• CANDLESTICK VIEW CONDOMINIUM
• DIAMOND HEIGHTS VILLAGE
• DIAMOND RIDGE CONDO
• DOLORES PLAZA #1 & #2
• ESPRIT PARK (THE HOMES ON)
• GOLDMINE HILL
• MCALLISTER MEWS CONDOMINIUM  MCALLISTE  SAN FRANCISCO, CA 94115 No  Approved
• MORGAN HEIGHTS
• MOSAICA 601
• MUSEUM PLAZA
• PAGE CONVERSION
• PARKVIEW COMMONS
• PINE STREET
• SUTTER HEIGHTS – TRACT 4083  4083
• SYMPHONY TOWERS,TR# 3645
• THE MONTGOMERY, A CONDOMINIUM
• THE SOMA GRAND – TRACT 3849  SOMAGRAND

Tags: fha, FHA approved condos, hud

What are the FHA Home Loan Limits for San Francisco Real Estate Purchases?

Currently, we are blessed to have increased conforming loan limits for San Francisco real estate purchases making FHA home loans a viable option for many SF home buyers.

If you want to use an FHA home loan to purchase a property in San Francisco or San Mateo Counties with low down payment, the following is a helpful cheat sheet. Of course, you’ll want to contact an experienced San Francisco mortgage broker to get the skinny on your individual situation.

FHA Home Loan Limits for San Francisco & San Mateo Home Buying*:

• 1 Unit (Single Family Home or Condominium**): $729,750
• 2 Units: $934,200
• 3 Units: $1,129,250
• 4 Units: $1,403,400

* There are no purchase price limitations. This is simply the maximum loan amount you can get with an FHA home loan.

** Condominiums must qualify for FHA Financing.

Tags: fha, FHA home loans, fha loan limits, fha loans

Holiday Real Estate Slowdown Less Likely This Season

Wondering if you should sell your home this winter? Considering taking the plunge into home ownership? Not sure if you should wait for the Spring?

Typically, the winter & holiday season is a slower time for real estate. Of course, this depends on your local housing market and frankly, in large part, due to weather. Our local San Francisco real estate market (and temperate climate) isn’t usually as affected as, say, the Minnesota market but you’ll still see some seasonal drop-off.

Will this year be different?

As the Wall St. Journal reports, some experts argue that this year may be different because of the extended Home Buyer Tax Credit.

The credit caps your qualifying purchase to $800,000 or less so not all of San Francisco housing will be affected. Of course, for many home buyers, the current low interest rates are a major draw at any price point. We don’t know when they’ll go up but we do know that it is inevitable.

“House hunting usually slows down this time of year, as people put their searches on hold during the holidays.

This winter could be different, however, thanks to the extension — and expansion — of the first-time home-buyer tax credit.

“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” says Heather Fernandez, vice president of Trulia.com, a real-estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she says…”

“Interest rates are low right now, but will likely rise next year, Ms. Warren says. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying.

“It’s pretty universally accepted that rates will be higher next year,” she says. “What is unknown is how fast and by how much.”

Average rates on 30-year fixed-rate mortgages have been hovering around 5%. But when the Federal Reserve stops buying large amounts of mortgage-backed securities next year, interest rates could rise, Ms. Warren points out. The Fed plans to end its purchase program in March.”

Personally, I always recommend on this SF real estate blog that you make your real estate decisions based on your own life and not what the so-called experts say.

If it makes sense for you to buy a home now, go for it. Take advantage of the relatively lower home prices, the low interest rates, and maybe even the tax credit.

The same goes for those of you considering selling your home. If it makes sense in the overall picture of your life, what are you waiting for? It may be a long time before prices are back at the steroid-enhanced levels of 2005/2006.

Tags: holiday slowdown, home buyer tax credit, winter slowdown

Federal Home Buyer Tax Credit Extended and Improved! Will More SF Buyers Qualify?

The Federal Home Buyer Tax Credit has been extended and improved. This may mean that more San Francisco home buyers will qualify which is good news for both buyers and sellers.

Many clients have asked me what sort of impact the tax credit has had on our local SF real estate market. Given the income caps, I would have to say not too much of one. But now, this should be improved a little… I stress, a little, because the limitations continue to make the tax credit irrelevant for a large part of our market. For example, the limitation on the cost of a home is $800,000.

What are the major changes?

1. The timeline has been extended. You must go into contract on your home purchase before April 30, 2010 and close escrow by July 1, 2010.
2. Current homeowners now qualify. This is to help assist the “move-up” market. My readers know how great a time I believe it is to “trade-up” from your starter home into something more long-term (assuming you have relative job security and equity). (”Move-up” home buyers must have used their property as their “principal residence” for 5 out of the past 8 years.)
3. Income brackets to qualify have increased. Now, up to $125,000 for a single person and $225,000 for a married couple.
4. Purchase price limited to $800,000 or less.

For a complete 2009-NAR-Issue-Brief-Homebuyer-Tax-Credit-Changes-1104-1107.

Tags: Federal Home Buyer Tax Credit, home buyer tax credit, tax credit