Cynthia's Chat

Waiting a few extra days or weeks to purchase a home this spring could cost buyers thousands of extra dollars as the office of Housing and Urban Development (HUD) implements several changes for loans guaranteed by the Federal Housing Authority (FHA).

Coming just weeks before the April 30 deadline for the Home Buyer Tax Credit and just days after the March 31 expiration of the Federal Reserve Board's mortgage backed securities purchase program (which has kept home loan rates artificially low for over a year), these FHA changes make it even more important to act now to save big.

Here are a few reasons why:

On April 5th, the cost of required up-front mortgage insurance for loans guaranteed by the FHA will increase from 1.75% to 2.25%. For a borrower purchasing a $200,000 home with a $7,000 down payment, the up-front mortgage insurance will increase by $965. Up-front mortgage insurance is typically financed in the final loan amount so the impact to a monthly payment will be minimal but overall, the increase is still borne by the borrower both upfront and monthly.

It is important to note that in order to be eligible for the lower cost up-front mortgage insurance, a lender has to order a case number from the FHA before April 5th. A case number can only be generated for loan applications where a property is involved and a fully executed purchase contract exists. Home buyers who have been pre-approved but are not under contract will not be eligible for the reduced premium effective April 5th.

Later this spring, the amount of money that a seller can return to the buyer from their sale proceeds will be reduced from 6% to 3%. The reduction in these "seller concessions" can increase the amount of cash a buyer will be required to pay at closing by $6,000 for a home purchase of $200,000.

There is only one way to avoid being affected by all of these costly changes that lie ahead – submit all FHA mortgage applications by the last week of March.

If I can answer any questions you may have about how these changes could impact you, call me. I appreciate your business.

What happens in Oklahoma when we get an ice-storm followed by snow?  Everything shuts down. 

School was called off and teachers and kids had a couple of play days. 

Even our church closed for Sunday services.

As everyone may know, much of a Realtor's job involves driving.  Driving was out of the question during this snowstorm.  

 This is what my road looked like when I came home from a closing Thursday afternoon. 

My next option was to get some much needed work done on my computer.......searching the MLS for buyers......corresponding by email.....updating my website.

But NO! Appraently the snowstorm was not a good thing for my internet provider service either. 

You see, out here in the boonies, the sticks, the farm where my husband and I live, our internet service provider choices are pretty slim.  In other words, we take what we can get.  And from Thursday through today we got nothing!

So conceding that there was no work that I could do, I gave myself some snow days.

But a farmer never has a day off and snow actually amounts to more work for the farmer and for the farmer's wife.

Heres is a little story about what really happened while "off work" for the snow storm.

What started as sleet and ice progressed to snow.

 This is what my patio looked like when the sleet and ice began.

Even with a major snowstorm the cows still have to be fed.  So Bill put on his insulated coveralls and we loaded up in the pickup to find the cows. 

The cows knew that food was coming, but the gate was frozen shut so they had to wait a little longer while Bill worked on unsticking the gate.

And one of the cows decided that giving birth during the snowstorm would make our lives all that more interesting.  I am happy to report that mother and calf are both doing fine.  I wish I had a picture of the little one, but I don't.

Not to be excluded from the chores, the dogs determined they needed to make sure everything with the cows was "OK".

Baily posed for the camera.

Even poor, old, crippled Shelby did his part.

Oh, and the birds were hungry, too!

We had plenty of firewood for the firelace when we had to come in and thaw out.

By the time the snow stopped, we had quite an accumulation.

Between taking care of the livestock, scraping the roads, and snuggling by the fire, Bill and I enjoyed a lot of "together" time.

So what did YOU do during Snowstorm 2010?

Oklahoma's new state song!

SNOW...klahoma Where the cold front's sweepin' down the plain


And the piles of sleet, beneath your feet, Follow right behind the
freezing rain.


SNOW...klahoma Ev'ry night my honey lamb and I


Travel home from work and hope some jerk, Doesn't wreck our car in passing
by!


We know we belong to the land, But it could use some more salt and sand


That's why we say...WHOA! We're sliding the other way...YIKES! We're only
sayin' You're slick as snot SNOWklahoma SNOWklahoma SNOW-K-L-A-H-O-M-A
SNOWklahoma, SNOW-K!

Just got some exciting news from a trusted lender.  We have a new bond issue for First time homebuyers.  I don't know all the details yet, but it looks like the interest rate will be 5.625% with 3.5% of purchase price in assistance.

What this means is that a buyer could buy a home with an FHA loan which requires a minimum down payment of 3.5%.  If the Seller pays closing costs, the buyer is buying the home with no out of pocket money!

Then, if the house is under contract before the end of April, 2010, and closes within 60 days of the end of April, the buyer could qualify for up to $8000, tax rebate!  New furniture for the new home!  Or a nice nest egg for future improvements!

There will be income and home price restrictions, and I don't have that information right now.  But the money is limited and I wanted to get the word out quickly so those of you who would like to take advantage of this can do it.

- right now!

There may never be a better time to buy a home!

Plenty of homes are available at affordable prices.

Interest rates remain historically low.

And to sweeten the pot, there is a tax credit - up to $8000 for qualified first time buyers whose income is within IRS-established limits and up to $6500 for some existing homeowners.  This is money that never has to be repaid, provided you live in the home for three years.

Tax Credit Basics

• You are considered a first-time buyer if neither you nor your spouse has owned a principal residence in the U.S. within the last three years
• You must sign a purchase contract no later than April 30, 2010 and close by July 1, 2010.
• Exiting homeowners are eligible for up to $6,500 if they have lived in their residence for five of the last eight years.
• There is no minimum income for claiming the credit.  If you don't owe any taxes, you can receive it in cash.
• You can claim the credit when you file your 2009 or 2010 tax return - or, if you'd rather not wait, file an amended 2008 or 2009 return and receive the  money upon purchasing your home. 
• If you co-sign a mortgage to help your non-dependent child buy his or her first home, your eligibility does not affect your child's ability to qualify for the credit.

I can't provide every detail of the program here - and I'm not qualified to give tax advice - but I can help you make sense of the regulations.  Here is a helpful FAQ about the tax credit from the National Association of Realtors:

Q: Existing homeowner credit: Must the new house cost more than the old house? 

A: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.

Q: I am a first time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009.  I will be covered, however, by the new income limits.  When I go to settlement, will I be eligible for the credit?

A: Yes. The new income limitations go into effect as soon as the President signed the bill.  The income limit and other eligibility rules will look to your status as of the date o purchase, which is the settlement date.  So you should be eligible for the credit (or a portion of the credit if you're within the phaseout range)

Q: I am an eligible existing homeowner.  I have a fair amount of equity in my home.  I have found a home with a nonnegotiable price of $825,000.  Will I be able to use any of the $6500 tax credit?

A. No The $800,000 cap on the cost of the purchased home is firm at $800,000.  Any amount above $800,000 makes the home ineligible fr any portion of the credit.  The $8000,00 is an absolute ceiling.

Q: I owned my home for 10 years, but sold it two years ago and have been renting since.  If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?

A: Yes.  Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit.  For example, say John and his wife bought a home in 2000 and lived there until 2008 when they were divorced.  Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years the keyword here is "consecutive."  As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact his eligibility.

Q: I am an eligible first-time homebuyer.  I entered into a contract to purchase on November 1, 2009.  Do I have to go to closing  before December 1?  How does the extension date affect me?

A: You do not have to lose before December 1.  Once the legislation was signed, it was as if the November 30 date had never existed.  Therefore, s long as the binding contract is in place before April 30 and closes by July 1, the purchaser will be eligible for the credit.

Don't wait.  Give me a call and I can help you decide whether now is the time for you to buy.  And if the time is right, I'd be honored to represent you as you seek out your dream home.

938 miles from Edmond takes you to Casper, Wyoming, to the grandchildren and new granddog, SAVO, a 90 pound pup (Rhodesian Ridgeback).  Savo can run long distances and protect Paul from mountain lions.  He will grow to 140 pounds - a monster! 

Bill and I attended the children's school

and my daughter's water aerobics class Fun!  

We left after school Friday, to drive to Yellowstone, about 4 hours away. 

We stayed just outside the park in an area where Buffalo Bill Cody built a lodge before the park opened. 

We stayed warm at breakfast by the giant fire. 

Yellowstone, established in 1872, is the world's first national park.  The park contains more than 2 million acres of steaming geysers, crystalline lakes,thundering waterfalls and panoramic vistas.

We enjoyed as much as humanly possible in the next 2 days.  We were chased by a buffalo and saw evidence of bears (claw marks on trees). We also saw elk and other wildlife, and Old Faithful (of course).

As we drove, hiked and played, I just kept saying, "Wow! This is beautiful!"

If you have never been there - GO! By the way, if you are 62 or older, you can get a lifetime pass to all of the national parks!  A benefit for those of us who have earned a bonus. 

My friend (we were college roommates)of 43 years, Patty (Director of Drama at Kinkaid School in Houston) has been asking me to go to New York with her for years - This year I said YES!

The trek began at 3 AM to make my 6:30 flight (my husband was thrilled) .  I met Patty and Gloria (Patty's friend and coworker) in Houston and the fun began!

It's difficult to comprehend the magnitude of this city - the populace, buildings, cultures.  But I tried - my camera was trying not to miss any famous bridge or building.  Hearing about the city came often times through cab drivers.  One of ours worked at Lehman Brothers, and then was out of work for months and in a depression.  He sold his fashionable home, moved his family into an apartment and started driving a taxi for livelihood.

The first evening in New York, we were to meet a Guru, Sri Anadagiriji,  at the apartment of Paul Allen (co-founder of Microsoft).  The apartment was fabulous.  Gerard Butler and a few other actors, the financial aide to Tony Robbins and several other fascinating people were in attendance.  Many of these people had been to India to find the transformation to Oneness.

Our room overlooked Times Square,  which at any hour of the day or night was a busy place.   

On our second day, Patty and I hired a driver to show us around the city.  We could stop when we wished to see something.  WOW! There is so much to see!  My priorities were: Ground Zero, the financial district, the Stature of Liberty, the Empire State Building, and the Plaza Hotel, just for starters.

That evening, Patty, Gloria and I hosted a party for Kinkaid graduates who were working in New York.  Many are successful writers, playwrights, artists.......conversations were invigorating.

Patty's great-niece, Ashley, who graduated last year from Oklahoma Christian University, now works for Harper's Bazaar.  We met her at the Hurst Building and went on our private tour.

Our first Broadway musical was Avenue Q.  You don't notice the actors....just the puppets.....lots of funny songs.

My favorite show was Billy Elliot, about the coal miner's son who wanted to become a dancer.  It was so good, I cried. (I'm a bit emotional.)

One morning, when Patty and Gloria were at a meeting, I took off on foot to the clothing district by way of the Rockefeller Center, buzzed through Macy's, and ended up in front of Madison Square Gardens.  (I said to myself, 'There's Madison Square Gardens!')

On my walk, I saw a beggar dressed as a muppet!

Then I realized I had to walk BACK to the hotel.  Seeing street vendors, hotdogs, pretzels, knock-off purses, and police at every corner boggled my little Oklahoma brain!

Our last morning in NYC, we went to Central Park where a young man from Prague took us in his bike cart for an hour tour .  Again, I was wowed with the history and the beauty of the city!

I arrived back in OKC, just before a storm hit! (Bill was so happy to pick me up at 11 pm.) We stayed up talking about my excursions until 4:00 AM.  I just could not hush!

It's great to be back home, but every time I travel, I think about what a great country we have and people are wonderful, wherever you go!