Monday, December 15, 2014

Don’t Have a 20% Down Payment? Check Out These Alternatives
By Paula Pant | March 21, 2014

Whether you're a first-time homebuyer or a real estate veteran, there are plenty of options you can explore.
You want to start climbing the property ladder. You want to buy your own home. But there’s just one problem: You don’t have the cash for a 20 percent downpayment. What should you do? First, let’s assess your current situation: Are you a first-time homebuyer? Or do you currently own a home? If you’re already a homeowner, you might be in a better position than you realize.
You might not have $40,000 laying around in a bank account to make a 20 percent downpayment on a $200,000 home. But you do have equity in your existing home. When you sell that home, you can use the equity to pay for your next home. The key is to write an offer that’s contingent on the sale of your current home. This is a common contingency, so your real estate agent will easily be able to include it in your contract. And because this type of contingency is so popular, the seller shouldn’t balk (unless you’re in a hyper-competitive market.) But what if you’re underwater on your mortgage — or a first-time homebuyer?
#1:Apply for an FHA Loan The Federal Housing Administration, or FHA, insures loans for qualified first-time homebuyers. These are known as “FHA Loans.” The FHA itself doesn’t issue the loan. Rather, a financial institution such as a bank or credit union issues the loan, which is then insured by the FHA. This protects the lender from loss. Because the lender carries less risk, they can offer the loan at rock-bottom interest rates. The result: you get a mortgage loan at a low interest rate with as little as 3.5 percent down. However, there are two drawbacks or limitations to taking out an FHA loan. First, you’re only qualified to spend 31 percent of your gross monthly income on all housing-related expenses, including your mortgage, property taxes, insurance, plus any homeowner’s association (HOA) fees. In other words: If you gross $5,000 per month, you can spend no more than $1,550 per month on housing. Of course, that’s not entirely a “drawback.” Yes, it’s a limitation. But it’s a limit that will prevent you from tackling a mortgage that you can’t afford. Second, you’ll be required to pay private mortgage insurance, or PMI, until you reach 20 percent equity. The rates vary, but as a rough ballpark, expect to pay an additional $40 – $50 per month on every $100,000 of mortgage that you carry. (This will be lumped into your 31 percent limitation.)
#2:Look to City Programs Many cities offer downpayment assistance to its residents. For example, a program called Invest Atlanta offers $10,000 – $20,000 in mortgage assistance (in the form of an interest-free second mortgage) to people who buy a home in some cities mandate that you must be a first-time homebuyer; others don’t. Some programs are capped at certain income limits; others aren’t. Research the city, county and state programs in your local area to find out the details of what’s in your neighborhood. Get Information about Your City DownPayment Program by Clicking Here!
#3:Get a VA Loan Qualified military veterans can obtain a mortgage with zero downpayment, thanks to a program administered by the Department of Veteran’s Affairs. Like an FHA Loan, a “VA Loan” is a federally-insured loan that’s issued by a traditional financial institution, like a bank. VA Loans are given to veterans who maintain good credit, meet income requirements, and have a “Certificate of Eligibility” through the VA. These loans don’t require any downpayment, and as an extra bonus, the buyers don’t need to pay PMI, either — making them an even better deal than FHA loans. Furthermore, the VA restricts the amount that the lender can charge for closing costs, which means you’ll have built-in protection from getting ripped-off by ancillary fees.
#4:Apply for a USDA Loan Not an urban-dweller? You may be able to take out a loan that’s insured by the U.S. Department of Agriculture. These “USDA Loans” are designed to encourage homeownership in rural areas. To qualify for a USDA loan, your income can’t be more than 115 percent of the median income within the area in which you reside. Like the VA loan, USDA loans allow you to purchase a home with zero downpayment. However, unlike the VA loan, you will need to pay monthly PMI. There are two drawbacks. First, the USDA only approves certain houses, which means your pool of potential new dwellings will be limited. If you have your heart set on a specific house, and it’s not USDA-qualified, you won’t be able to use this loan to buy that particular abode. Secondly, you’ll be limited to spending no more than 29 percent of your gross income on all housing-related costs (including PMI), and no more than 41 percent of your gross income on all of your combined debt payments, including your mortgage, car payments, student loans, and more.

The Bottom Line Don’t have a 20 percent down payment? Don’t sweat. Regardless of whether you’re a city-slicker or a country-dweller, a first-time homebuyer or a military veteran, there are plenty of options you can explore.
To find out what Mortgage Loan is best for you Click Here and find out!
4 Insiders Reveal How to Slash High Winter Bills
By LearnVest | November 5, 2014

Top of Form
Bottom of Form
Utility costs can heat up in the winter. Learn how to cool them down.
This post originally appeared on LearnVest.
Sunday afternoon football. The smell of pumpkin pie wafting through the house. Stringing up holiday lights.

 Excessive electric use tends to be billed at a higher rate, with your base rate jumping to a higher bracket after a certain amount is used.
Now that the leaves have started to change and crisp nights have set in, there are all sorts of seasonal highlights to look forward to — but are you also envisioning the extra cash you’ll be shelling out to keep those lights twinkling and the heat cranked up?
Of course you’re not.
That’s because, while we’re well aware of the conventional advice for cutting high monthly expenses — ditch the costly cable and pick up Netflix! — we rarely focus on the other sundry utility bills that fill our mailbox each month.
You know, the boring ones — like gas, electric, water and heat.
But those utilities can quickly add up to hundreds of dollars a month in the winter, which is why we rounded up utility employees across the country to share their top energy-saving tips for slashing those costs.
After all, how would you rather spend your fun money this season — on astronomical gas and heating bills or a weekend ski trip?
The Heating Expert
John Vrabel, president of Smart Click Energy, an online heating oil delivery company based in Boston
“If you live in a colder state, I probably don’t need to remind you that heating bills can spike into the triple digits.
In fact, the U.S. Energy Information Administration finds that more than 90% of American homes will get hit with even higher heating expenses this season, thanks to rising natural gas, propane and electricity prices.
Since heating costs can fall under your electric, gas or oil bill, seasonal totals vary greatly — from around $679 for natural gas to $2,046 if you use oil. But making a few smart moves before the mercury falls can result in lower bills later on, no matter your heating method.
My favorite money-saving hacks
Right now—before a chill really sets in—call your utility company and schedule a tune-up to ensure your heating system will operate at peak efficiency. While a technician might cost you around $100, plus any necessary repairs, I can’t emphasize enough that efficient equipment is key. By comparison, faulty heating systems could be costing you hundreds of dollars.
Next, take the time to inspect the insulation around your house. In a typical home, air leaks are responsible for a whopping 25% to 40% of the energy that’s used for heating. But weather-stripping your windows can be done for as little as $6 per window.
Few people know about this, but one of my favorite techniques is to use an energy-efficient humidifier (about $35 to $65) in the living room. In winter months, the air inside your home is pretty dry. To be comfortable in dry air, people require a higher temperature — but they wouldn’t if the air were more humid.
There are also simple cost-saving tweaks that seem obvious, but most people still overlook. For example, if you have a programmable thermostat, make sure warm-air registers aren’t blocked by furniture or drapes, making it harder for those registers to gauge a true temp. Speaking of … if you live in a sunny area, keep curtains and shades up during the day to let sunshine naturally warm your home.
Lastly, I know everyone loves a nice, toasty fire during the winter, but try to use a traditional fireplace sparingly. It may look cozy, but these hearths actually pull heated air up the chimney — and let cold in. At the very least, keep the flue shut tight when you’re not using it.
How much you’ll save
I’d estimate that these simple insulation changes can shave 10% off your home heating bill at a minimum — which could equal $200 or more per season, depending on the size of your house and your heating method.”
The Electricity Expert
Emily Bailard, senior director of solutions at Opower, a company that helps utilities reduce consumption across the globe
“Hacking your electric bill probably isn’t the first thing that comes to mind when you think of fun fall activities. In fact, studies have shown that Americans only think about their electricity for nine minutes a year — and that’s typically only when they receive a high bill or have an outage.
But U.S. Energy Information Administration data shows that, on average, most people are shelling out about $100 a month — and even more during the winter when we spend extra hours huddled indoors, burning lights longer. So if we all devoted just a few more minutes to focusing on dialing back electricity usage, it’s remarkable how much money we could save.
My favorite money-saving hacks
If you haven’t already invested in LED holiday lights, now’s the time. Not only will they reduce your electric use by more than 90%, compared to traditional incandescent bulbs, but they’ll also last longer — upwards of 25,000 hours.
While you’re at it, swap out all of your lightbulbs with energy-efficient ones; the upfront expense is minimal (starting at $9 a bulb), and will pay off big in the long run.
Holiday shopping, ordering seasonal cards and sending out e-vites for wintertime gatherings — they’ve all become much easier to do thanks to computers. But that extra time online can really creep up your electric bill.
Rule of thumb: If you’re not going to use your PC for more than 20 minutes, turn off your monitor. You might even consider unplugging it from a power source, since all electronics that remain plugged in still consume electricity—a waste of about 50 watts per device, or about $50 each per year.
That might not sound like much, but multiply $50 by the myriad electronics you keep running at any given time — TVs, phone chargers, computers — and you can see how quickly that cash adds up.
People don’t often factor it in, but this time of year also leads to extended use of big appliances. More out-of-town guests and entertaining translates to extra sheets and towels to wash and dry, not to mention running the dishwasher constantly.
When it comes to your washing machine, I recommend following detergent instructions to a tee. Most people are too generous with the amount they use — and over-sudsing requires your machine to run energy-zapping extra rinses. Further, use the cold water setting on your washer whenever you can. Surprisingly, it reduces energy use by as much as 94%.
How much you’ll save
You know those LED bulbs you just bought to replace your old ones? It takes about $9 a year to run one through the night, compared to $21 for a conventional bulb. That’s savings of more than 50% right there!
Also, keep in mind that excessive electric use tends to be billed at a higher rate, with your base rate jumping to a higher bracket after a certain amount is used. Translation: The more electricity you save, the more drastic your money savings.
The Water Expert
Lyle Whitney, water conservation supervisor at the Aurora Water Department in Aurora, Colo.
“I find it amazing how much water we use when we’re not thinking about it — and how much savings that can translate to if we are a little more conscious.
The average home uses about 150 gallons of water per capita, per day, which is what we call ‘GPCD.’ In Colorado, a full 42% of that goes toward outside usage, like lawn sprinklers. So the good news is that a fair amount of consumption will creep down in the winter.
But indoor use can easily be scaled back, too, with just a few simple behavior changes and appliance swaps.
My favorite money-saving hacks
Let’s start with the biggest water guzzler in the house: your toilet, which takes up 25% of GPCD. In other words, this is a key area to consider investing in a more efficient appliance.
If you have an older toilet, you’re likely using as much as 3.5 gallons of water per flush — but newer ones flush 1.5 or less, and cost as little as $75. And before you buy, check with your water utility company because many provide rebates for installing more efficient toilets.
Next up: those long, hot showers we indulge in once the weather turns crisp.
In most households, the average shower clocks in at close to nine minutes. Of course, trimming that to five minutes can help a great deal.
But there’s also a lasting fix: While most shower heads release 2.5 gallons of water per minute, energy-efficient models release closer to one gallon per minute. They cost about $20, and most people don’t even notice the reduction in water pressure — but they offer serious savings over the long haul.
Besides water-smart upgrades to your appliances, I swear by small habit changes. For example, making a household rule to only run the washing machine when it’s full, rather than doing that half load of table linens before a holiday party, can save up to 49 gallons of water per wash. Ditto when it comes to the dishwasher.
How much you’ll save
If you tackle the small appliance tweaks above, you can typically scale back usage from 150 to 100 GPCD — and save at least $100 a year.
But I assure you it’s very doable to shave off even more. I average about 40 to 50 gallons a day, thanks to simple habits like taking shorter showers.”
The Gas Expert
Frank Benedetto, vice president of Van Duzer Gas in Southold, N.Y.
“While many newer houses use electric heating units, a full 50% of all homes in the U.S. still use natural gas — a bill that often goes up tremendously during the winter months due to hot water, holiday cooking and heating systems.
But there are small ways to scale back on gas usage — and score pretty decent savings over the course of a season.
My favorite money-saving hacks 
I know this may sound funny, but if you have a gas stove, simply cleaning the burners and wiping away spider webs in the gas lines can greatly boost the efficiency of your cooking range. If you’re uncomfortable doing it, you can have a full cleaning and inspection done by your utility for about $150 to $175.
Further, learning how to optimize your cooking range is really the simplest way to slash your bill.
For example, utilize the smaller burner if you’re just simmering your food instead of bringing it to a boil. And grab the best-fitting pot for the amount you’re cooking, as opposed to the first size you can find. Case in point: Placing a 6-inch pot on an 8-inch burner wastes more than 40% of the burner’s heat.
I’d also recommend making use of the classic crockpot when cooking hearty autumnal dishes. This device consumes far less energy than the oven and burners.
How much you’ll save
Depending on your gas usage, I’d estimate that these simple moves can cut about 15% off your annual bill — that’s nearly $300 in savings this season.”
Curious what the Value of your Home is?  Whether you’re thinking of Selling or Refinancing, it’s smart to know the Market Value of your home at all times.

Your Top 5 Tax Deductions Sellers Don't Want to Miss

5 Tax Deductions Sellers Won’t Want to Miss
By Laura Agadoni | December 5, 2014
Learn which tax benefits you can take advantage of when selling your home.
If you’re like me, you think the IRS wants as much information about your financial life as possible. And that’s typically true — except when you sell a home and make a profit of less than $250,000 (or less than $500,000 when you file a joint return with your spouse).
If you meet those qualifications, and if you have lived in that home for two of the five years before you sell, the IRS doesn’t want to hear about your home sale because the profit you make is excluded from being taxed under U.S. Code 121. Tell your mom about the sale instead, because the IRS isn’t listening.
And now for the deductions …
As if that wasn’t enough, here’s some more good news you should know about: The IRS grants some tax deductions for home sellers. Getting the deductions requires that you itemize your taxes, admittedly a tedious job, but one that is probably worth your while. Here are five tax deductions you should take for 2014.
1. Selling costs
If you don’t qualify for the 121 exclusion, you will owe taxes on any profit, so make sure you deduct all your selling costs from your gain.
You can deduct the following, according to Nolo:
  • Your real estate agent’s commission
  • Legal fees
  • Title insurance
  • Inspection fees
  • Advertising costs
  • Escrow fees
  • Legal fees
And there’s another consideration. Vanessa Borges, an enrolled agent and tax preparation supervisor with the Tax Defense Network, notes that “you might qualify for a partial exclusion if you sell your home due to circumstances involving divorce, change in employment, change in health, or other unforeseen circumstances.”
2. Moving deduction
If you have to sell your house because you’re relocating for work, you might be able to deduct some of your moving expenses, says Chantay Bridges, a licensed senior real estate agent in Los Angeles. Deductions could include transportation costs, travel to the new place, storage costs, and lodging costs.
3. Property tax deduction
“You can deduct your property taxes for the portion of the year that you owned the home,” says Dr. Kimberly R. Goodwin, associate professor of finance and the Parham Bridges Chair of Real Estate at the University of Southern Mississippi.
Deduct the taxes “up to, but not including the date of the sale,” according to the IRS. The buyer pays beginning from the sale date.
4. Home improvements
It’s a sad fact that you sometimes need to improve your home — not for your own benefit and enjoyment — but for the home’s future owners. If you make home improvements that help sell your home, and if they are made within 90 days of the closing, they are considered selling costs, which are deductible, according to Dr. Goodwin.
5. Points
If you paid points to lower your interest rate when you refinanced your home, you might qualify for an additional deduction, says Bridges. Because you can deduct a proportional share of the points until the loan is paid, when you pay off the loan through a sale, you can “deduct the remaining value of those points,” says Dr. Goodwin.
What can’t you deduct?
Tax deductions are fickle. They “can vary from state to state and from year to year,” says Bridges, who suggests that home sellers check with a tax expert to confirm the tax deductions are still available at the time of the sale.
For example, homeowners who qualified used to be able to deduct mortgage insurance premiums, also called PMI, but they won’t be able to do that for the 2014 tax year.
Taxes can be confusing. (Who knew?)
There is also some confusion regarding deductions. Sean P. Storck, a certified financial planner and enrolled agent with Rawdin-Baron Financial in California, explains that many sellers think they can deduct, but can’t. Storck says the biggest misconception concerns repairs and that “generally speaking, anything done in the course of maintaining property for normal use is nondeductible.”

The same goes for what Storck calls “phantom labor,” in which “you do the work of constructing your home on your own.” Although you may have worked your tail off, you still cannot deduct your sweat equity come selling time.
Curious about the Value of your Home? CLICK HERE and find out Now!

Monday, July 28, 2014



Click: http://www.VacavilleForeclosures.com for a current list of Foreclosure deals in Vacaville Ca




Thursday, March 20, 2014

Distressed California Homeowners May Qualify for California's Keep Your Home California, Transition Assistance Program (TAP)
If you're a financially distressed Californian and can no longer afford your home and are pursuing a short sale or a deed in lieu of foreclosure, you may be eligible for financial help.

The funds come from the Transition Assistance Program (TAP), part of the Keep Your HomeCalifornia Program.

The state of California is providing up to $5,000 in transition assistance to qualified homeowners who can no longer afford to stay in their homes.  You can:
  • Apply for the funds through the state's website http://keepyourhomecalifornia.org
  • Contact your local Realtor to help you cut through any red tape and apply for the program for you!
  • Remain in your home until the property is sold or returned to the lender via a negotiated deed in lieu of foreclosure.
For qualified homeowners, these state funds may be used in addition to any other transition assistance that the homeowner may receive by participating in the Federal Home Affordable Foreclosure Alternatives (HAFA) program or in any other pre-offer short sale program.

Your local Realtor can walk you through the process and make this time of transition as easy and seem less as possible. For Assistance if finding a reputable Realtor in your area contact me at: RealEstateReminder@gmail.com  Attn: Christina Howe