With today’s combination of lower home prices, some of the lowest interest rates the industry has ever offered, and the $8000 tax incentive for first-time buyers, buying a home has never been so attractive. The only real hurdle left for many Americans is coming up with a down payment. With this in mind, I have put together some of the most frequently asked questions we get about down payments in today’s market.

Q. Are there any no-down payment programs left?

Yes. While it’s true that most of the popular no-down payment programs disappeared in the wake of the subprime mortgage collapse, there are still two longstanding government-backed programs that offer mortgages with no down payment: the USDA Rural Development Program and the VA Loan Program.

A USDA Guaranteed Loan is a government-insured, 100% purchase loan. YES CAMBRIA QUALIFIES.. inquire about other towns!! This means there is no down payment required if you – and the house you intend to buy – qualify for the program. Not all areas qualify, but you’d be surprised at how many neighborhoods in your area do. There are income and other limitations, but if coming up with a down payment is challenging, you might want to consider this program.

If you or your spouse is a military veteran, you may qualify for a 100% financed loan from the US Department of Veterans Affairs. More than 29 million veterans and service personnel qualify for this service benefit.

 Q. Are there any other government-insured programs that can help someone struggling with a down payment?Yes. In 1965, the federal government created the FHA loan programs to encourage homeownership throughout the country. FHA-insured mortgages offer many benefits, including a minimum down payment of 3.5%. FHA-insured loans have grown in popularity recently due to the seller’s ability to pay closing costs up to 6% and a temporary increase in loan limits up to $729,750 in certain high-cost areas, which allows more potential buyers to utilize this program.

Q. May I use funds from my IRA for my down payment?Yes. First-time home buyers can use funds from an IRA under certain circumstances for a down payment. The rules regarding this option, however, can be complicated, especially with a Roth IRA, and it’s important to understand any and all tax implications before tapping into these accounts. Please talk to your tax professional before making any decisions.

Q. May I use the $8,000 tax credit as my down payment?No. At the time of the writing of this article, qualified first-time home buyers do not have direct access to the $8,000 credit to use as a down payment. In May, HUD officials made an announcement to the contrary, but statements backing the announcement were quickly withdrawn from the HUD website. This doesn’t mean that HUD and lawmakers will not allow this in the future. 

Kellie Williams has sold a total of 149 properties totaling $80,956,098 in sales.

Buying or selling? You can count on Kellie’s local knowledge to assist you in a successful, smooth transaction.

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A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid. For additional information please visit: www.federalhousingtaxcredit.com

Also did you know Cambria qualifies for a USDA Rural development loan? This guaranteed rural housing loan program provides compelling affordable housing options for borrowers and families.  Interest in pursuing these incredible loan opportunities? Call Kellie today.

A recent report finds foreclosures across the nation have dropped, and the numbers are similar right here on the Central Coast.  Foreclosures.com reports California experienced the fewest number of foreclosures in 13 months after numbers show foreclosures dropped by 31 percent. And here on the Central Coast, the numbers of foreclosures filed have also seen a drop, which is good news for many.

“It’s good for everybody. If the foreclosure numbers are down, it means we’re coming to maybe the bottom of our market and things are going to start looking good for buyers and real estate, and the things are going to look good for the owners of real estate to sell too,” said Kevin Irot, vice president of First American Title Company in San Luis Obispo.

From December 2008 to January 2009, San Luis Obispo County saw more than 0.5 percent decrease between the two months.

In that same time period, Santa Barbara County also saw a drop. The number of foreclosure filings decreased about 11 percent, with the bulk of all foreclosures filed mainly in Santa Maria.

Looking for a foreclosure on the Central Coast?  I will locate your ideal foreclosure on the Central Coast.  Call me anytime for assistance 805 927-2269 or drop me an email at brokerkw@aol.com

Pinedorado Parade is a big event in Cambria which has taken place for the last 60 years. The Rotary of Cambria puts on this charitable event in which thousands of tourists and locals love to attend.

This year, I am proud to announce that my bar Mozzi’s Saloon won first place! Mozzi on down to 2262 Main Street, Cambria or visit the website at www.mozzissaloon.com Special thanks to my brother and sister n law who are awesome managers and to all the support from our community.

Events like the Pinedorado Parade create the wonderful sense of community that makes Cambria such a special place to live and visit.

…and the President has stated his intent to sign the 700 page document. Included in the bill are a number of C.A.R. supported provisions that will help to create new homeownership opportunities and begin the process of stabilizing a tumultuous market.

A few of the highlights included in the bill is:

The new loan limit for Fannie Mae and Freddie Mac, which will be the greater of either $417,000 or 115% of an area’s median home price capped at $625,500.

The New FHA loan limit, which will be the greater of $271,050 or 115% of an area’s median home price capped at $625,500. Both new loan limits will be effective at the expiration of the Economic Stimulus limits on December 31, 2008.

Federal Housing Administration (FHA) rescue program, which allows homeowners to refinance their loan with the FHA and convert it to a 30-year fixed loan. Ideally, this will help many homeowners avoid foreclosure.

First time home buyer tax credit:allows first- time home buyers to receive a tax refund worth up to 10 percent of  a home’s purchase price, but no more than $7,500.  The refund serves as an interest -free loan and the homeowner is required to pay it back in equal installments over 15 years.

Provides $4 billion in neigborhood revitalization funds for communities to puchase foreclosed homes.

Cambria Real Estate Information as of Aug. 2008.

In Cambria currently, there are 98 homes on the market with an average list price per square foot of $529. Ranging from $325,000 to $9,900,000.

In Cambria currently, there are 7 homes in escrow ranging from $330,000 to $1,285,000.

In Cambria, there has been 45 homes sold in the last 6 months with an average selling price per square foot of $426. ranging from $315,000 to $2,350,000.

Cayucos Real Estate Information as of Aug. 2008.

In Cayucos currently, there are 51 homes on the market with an average list price per square foot of $886. Ranging from $475,000 to $6,600,000.

In Cayucos currently, there are 7 homes in escrow ranging from $359,000 to $1,950,000.

In Cayucos, there has been 20 homes sold in the last 6 months with an average selling price per square foot of $822, ranging from $420,000 to $3,800,000.

Morro Bay Real Estate Information as of Aug. 2008.

In Morro Bay currently, there are 109 homes on the market ranging from $325,000 to $9,900,000.

In Morro Bay currently, there are 16 homes in escrow ranging from $349,000 to $2,200,000.

In Morro Bay, there has been 61 homes sold in the last 6 months with an average selling price per square foot of $598. ranging from $210,000 to $1,555,000.

San Luis Obispo Real Estate Information as of Aug. 2008.

In San Luis Obispo currently, there are 160 homes on the market with an average list price per square foot of $479. Ranging from $419,000 to $12,000,000.

In San Luis Obispo currently, there are 14 homes in escrow ranging from $399,000 to $839,000.

In San Luis Obispo, there has been 126 homes sold in the last 6 months with an average selling price per square foot of $409. ranging from $415,000 to $2,600,000.

Templeton Real Estate Information as of Aug. 2008.

In Templeton currently, there are 108 homes on the market with an average list price per square foot of $428. Ranging from $299,000 to $4,350,000.

In Templeton currently, there are 16 homes in escrow ranging from $276,000 to $1,950,000.

In Templeton, there has been 31 homes sold in the last 6 months with an average selling price per square foot of $292. ranging from $280,000 to $1,600,000.

Paso Robles Real Estate Information as of Aug. 2008.

In Paso Robles currently, there are 309 homes on the market with an average list price per square foot of $280. Ranging from $184,900 to $2,295,000.

In Paso Robles currently, there are 78 homes in escrow ranging from $171,000 to $1,295,000.

In Paso Robles, there has been 256 homes sold in the last 6 months with an average selling price per square foot of $219. ranging from $156,000 to $750,000.

Atascadero Real Estate Information as of Aug. 2008.

In Atascadero currently, there are 204 homes on the market with an average list price per square foot of $299. Ranging from $155,000 to $2,750,000.

In Atascadero currently, there are 43 homes in escrow ranging from $199,900 to $835,000.

In Atascadero, there has been 115 homes sold in the last 6 months with an average selling price per square foot of $244. ranging from $159,900 to $1,075,000.

How truly exciting!!! Its a really smart time to buy on the Central Coast. I am committed to working hard and providing information to buyers and sellers to make informed choices. I provide assistance with selling or locating foreclosures, shortsales, large ranches, and any residential, commerical real estate needs on the central coast.  Thank you for visiting my website. I can be reached at 805 927-2269.

Kellie Williams Broker Associate/ Realtor  

  Information is reliable however it is not guaranteed, and is subject to change daily.