Downpayment assistance from MHDC

http://www.mhdc.com/homes/cal/index.htm

Call Boone County National Bank or Flat Branch Mortgage for more details

Cash Assistance Loan (CAL)

Helps enable first-time homebuyers in need of down payment and closing cost assistance.

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Need more information? Call Toll Free 800-246-7973

CAL details:

	Qualified first-time homebuyers are eligible to receive a second mortgage of 3% of the loan amount to be used for down payment and closing costs.
	The second mortgage is a five-year, diminishing loan at 0% interest.
	The second mortgage is forgiven after five years of occupancy by the owner and monthly payments are not required.
	No junk fees are allowed. The lender may charge standard closing costs.

Purchase Price Limits
Type of Home	Non-Target Area	Target Area*
Single family home	$243,945	$293,155
Duplexes	$312,300	$381,700
Note: These limits are subject to change in accordance with regulations. *Target Area: click here

Income Limits
Program	Income Limits
Cash Assistance Loan Program	click here
Additional Income Guideline Information The total gross annual household income for all residents living, or intending to live, in the home, age 18 or older, must be within the limits established for household income. Total gross annual household income is calculated using all sources of income including, but not limited to, wages, overtime, bonuses, child support, alimony, commissions and earnings from a second job, business and investments.

TV News and local Real Estate

Eager homebuyers and nervous sellers are often confused by conflicting news stories, most of which focus upon the more sensational aspects of the housing market and economy. With TV, major newspapers, magazines, and Internet sites bombarding consumers with ever-changing economic news, many are paralyzed in fear of taking action either too soon or too late.

Sellers want to know if home prices are still falling, and if they’ll be able to compete with foreclosures and short-sales. Buyers also want to know if home prices are falling; and if they are, how long they should wait to get the best deal.

Watching the evening news or reading the multitude of print articles only serves to amplify the confusion; one story advises consumers to prepare to be lifetime renters, while another describes the best time to buy a home in decades. There are stories providing data on why homes are a lousy investment, on the difficulty of selling in today’s market, on the changes in demographics that will forever alter the face of housing. And while there may be a kernel of truth in each feature, most articles paint with such a broad brush that much of the information has little bearing on local markets and is worthless to the average consumer.

Eager sellers need to know that while the market is difficult, with most areas having lots of competition, and in some an ample supply of distress sales, that appealing, competitively priced and aggressively marketed homes are selling. In order to compete they will need the advice of an agent familiar with local conditions and who is aware of current prices and the most successful marketing techniques for their area. Additionally, serious sellers must respect their agent’s advice on pricing their home—if they don’t trust them, they’ve chosen the wrong agent.

Finally, there are homes being bought and sold in all markets. Savvy buyers and hopeful sellers can achieve their goals—if they approach the process with a willingness to listen to the professionals, not the talking heads on TV.

Columbia MO in the news

http://finance.yahoo.com/real-estate/article/110830/where-to-buy-a-retirement-home-for-under-$600-a-month?mod=realestate-buy

Quote:

For Americans looking to buy retirement property, the historic real estate crash has created all sorts of opportunities. Home prices in 20 major metropolitan areas have declined roughly 28 percent from their 2006 peaks. Meanwhile, government efforts to ramp up demand for homes have significantly reduced mortgage costs for borrowers. Thirty-year fixed mortgage rates stood at 4.37 percent for the week ending September 16, only slightly above the 39-year lows reached two weeks earlier.

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8. Columbia, Mo.

With 102,000 residents, Columbia, Mo., is the home of the University of Missouri. On account of Columbia's affiliation with the university, area residents can enroll in continuing education programs and cheer on the Tigers at football or basketball games. The median home price in the area was $147,000 in the second quarter of 2010, a slight increase from a year earlier. Buyers who make a down payment of 20 percent--or $29,400--on a median-priced, Columbia-area home will have monthly payments of about $587.

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Columbia, Mo., ranked 13th best college town

If you’re a college student, Columbia, Mo., is the 13th best college town of its size in which to live, according to a new ranking.

The American Institute for Economic Research’s annual College Destinations Index (CDI) ranks the 75 best towns and cities for college students, according to an analysis of 222 metropolitan statistical areas (MSAs) with student populations of 15,000 or more.

Read more: Columbia, Mo., ranked 13th best college town - St. Louis Business Journal

After the tax credit

The $8000 and the $6500 tax credit came and went.

During the last weekend of April, in Columbia Board of Realtor MLS, 54 properties went under contract. That is the highest number I have ever seen.

What happens after April 30th, 2010? Well, this week, since Tues. the new pending number went back to about 10 per day.

In a 'normal' year, during May-Aug, daily deals made average 10-25 per day.

It looks like we will get back to our 'normal' market, business as usual.

Closing cost

Most home buyers need home loans. All home loans come with a closing cost. I have seen closing cost from $1300 to $4700. Why is the difference so big?

Well, one loan officer's quote of closing cost item list is not same as another.

To some, closing cost means:

-- lender's application fee, underwriting fee, document preparation fee, appraisal fee, flood letter fee, credit report fee

To others, it also include:
-- inspection, 1 yr insurance on the home, lawyer fee, etc.

Yet to others, this include prepaids.
-- prepaids apply especially to borrower who have less than 20% downpayment, the lender require to escrow for property taxes and home hazadous insurance. It's usually paid 3-4 month ahead. On a #200,000 home, the tax escrow is about:

$200000 x 0.011 (Columbia MO property tax rate) / 12 x 3 == $550

Insurance escrow is about 1/2 of that.

Prepaids are items homeowners have to pay sooner or later, so it is really not a cost, just some money to be reserved for future payments.

In Missouri, closing cost is relatively low. Lawyers are not needed. Missouri also does not have 'transfer tax' -- like a sales tax for home sales. Some states charge up to 2%. For a $200,000 house, the transfer tax would be $4000.

The following link shows the transfer tax rate by states:

http://www.ncsl.org/default.aspx?tabid=12661

In Columbia MO, without escrow items, closing cost for a $200,000 house is only about $1500-2000.

In the tougher market, some sellers offer to pay some closing cost for the buyer as incentive. Or, the buyer could ask for it in the contract.

Recently Fannie Mae and Freddie Mac are giving closing cost credit as incentive to attract buyers for their properties.

Foreclosures can be good deals. In Columbia MO, the recent foreclosure rate is only 2-3%. Therefore finding that fits your specific need of size and location may be difficult to find.

Back to closing costs, here is a link to average closing cost:

http://www.bankrate.com/brm/news/mortgages/ccMissouri.asp

The fees listed in above link is actually more than what I have seen. Application, processing and underwriting is normal, but the origination is not. Ask your lender about each item. Don't assume you have to pay it. Negotiate. Or, at least compare between different lenders.

Points are not something all borrowers have to pay. Points are upfront money to be paid to lower the interest rate.

The current interest rate is historically low, therefore there is not a good reason to pay points to lower it in current market.

If you have any more questions, drop me a note, and I will try to answer them, or at least point you to the right direction.