First Time Homebuyer Tax Credit for Pinellas Real Estate: The Truth, The Whole Truth, and Nothing but the Truth
June 5th, 2009 categories: Mortgage Updates
The American Recovery and Reinvestment Act of 2009 was the heavily debated economic stimulus package that was signed into law in February of 2009. The home buyer tax credit is a component of this package and was created to promote home ownership.
The bill originally provided for an $8,000 tax credit available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
There’s great news, however, if you’re in the market to purchase Pinellas Real Estate! Buyers may now use the credit upfront as extra down payment money, to lower payments, pay discount points (reducing their interest rates), or to supplement closing costs.
The big “BUT” here is that buyers CANNOT use the first time home-buyer tax credit toward the 3.5% minimum that is required of FHA insured loans. The buyer still has to present those down payment funds, yet they can be a gift from a relative.
The Truth About the Misinformation Currently Being Circulated Amongst the Mis-Informed:
There’s a lot of misinformation out there saying that the $8,000 can be used for your down payment, but that’s just not the case! It’s a convoluted mess because HUD originally released this Mortgagee Letter 2009-15, later rescineded it (the details as to why are unclear other than they realized they made a mistake), and now it’s up for public speculation as to what’s going to happen with that aspect of it. For crying out loud, we reported last October that the FHA had just done away with all seller-funded closing costs - now they want to essentially reverse that?! For the real facts, keep checking back, or better yet subscribe to The Pinellas Peach and you’ll be notified automatically.
Eligibility for the $8000 tax credit can be found Read the rest of this entry »
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Beware: Don’t Miss the Boat(s) on Your Pinellas Real Estate Purchase! How Rising Mortgage Interest Rates Hurt Your Bottom Line … Even in a Declining Market
May 30th, 2009 categories: Mortgage Updates
As Pinellas real estate prices have continued to drop each month, some Pinellas home buyers continued to play it cool, sit back and wait until a particular Dunedin Fl neighborhood becomes affordable in their eyes. Beware! There’s another boat you don’t want to miss.
Conventional interest rates had been hovering at historic lows of 4.75% – until this week, where they ended at 5.27%! It is unlikely they will stay in these low ranges, whether the 4’s or the 5’s for any length of time say most experts. Mortgage interest rates are tied to the bond market which has begun to take hits due to the state of the economy. Money.com had this good synopsis Thursday if you want to delve deeper.
So, if you’re waiting for that $200,000 home to fall another $10,000 or 5% – this will take about three months in our current market. Now its September 1st and you’re going to offer $190,000 and save about $50/mo on your mortgage payment. But wait! Interest rates have risen one point to 5.75%. Now your mortgage payment is $125.00 MORE than it would have been last week. This scenario has now cost you an additional $75.00/month – for the next THIRTY YEARS!!
$200,000 home with an 3.5% FHA 30 year loan:
4.75% = $1006.78/ mo payment
5.75% = $1126.30/mo
6.75% = $1251.79/mo
Some will say, “not a big deal.” Really? A 2% jump in interest equates to an additional $3,000 per year and over $162,000 over the life of the loan. Hmmm…
What’s the other boat? Trying to time the bottom of the market. A post for another day!
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A Taste of Pinellas at Vinoy Park in St. Petersburg This Weekend
May 28th, 2009 categories: Eat A Peach Restaurant Reviews, Pinellas Things to Do & Events
A Taste of Pinellas is happening this weekend and it looks like it’s going to be even bigger and better than last year. The setting alone (on the waterfront in Downtown St. Pete) is spectacular, but the celebration of great food and music makes it one of the best annual parties in Tampa Bay. This event is like the Taste of Palm Harbor on steroids! Admission is free and all of the proceeds go to support All Children’s Hospital.
Food and drink can be purchased from the restaurant booths with tickets — a sheet of 8 tickets sells for $5 and can be purchased at the event. There will be a Kids’ Zone for children and a specialty & import beer garden.
But central to this great festival is the tremendous opportunity for local restaurants to present selections from their menus. As of this writing some 40 restaurants are scheduled to set up and show off their extraordinary fare. Just some of the tasty treats will be served up from the ever-popular Bob Evans, the succulent ribs from Brady’s Backyard BBQ, the Courtside Grille , famous Crabby Bills , classic favorites from Five Guys Burgers and Fries , perfect sausage and peppers from Gratzzi Ristorante , and the local favorite, Hurricane Seafood Restaurant.
There will be music for every taste throughout the weekend but the headliners include: Night Ranger with Lita Ford on Friday night, Travis Tritt on Saturday and the ever-consistent KC and the Sunshine Band on Sunday!
Visit the parking and shuttle map to get yourself situated. We hope to see you down at beautiful Vinoy Park in St Petersburg!
Friday, May 29, 5pm-10pm
Saturday, May 30, 12pm-10pm
Sunday, May 31, 12pm-7pm
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Pinellas Real Estate Sales as of March 2009
May 11th, 2009 categories: Market Updates
As Pinellas Realtors, we know that we have challenges ahead. Yet, as we study the statistics here at the Pinellas Peach, the signs are becoming clearer with each passing month that we are in a slow recovery pattern, at least in terms of the absorption rate. In fact, within the Keller Williams Realty Palm Harbor Florida office, we’ve all felt a significant uptick in buyer activity (and truly appreciate those rare days off!). Want proof?
Units Sold: There are more Pinellas condos and Pinellas homes selling now than have since 2007. Single family home sales were up 19.3% year over year in March. Condo sales showed a 17% increase over March of last year. If we had our magic wand, we could tell you if this trend will hold.
Inventory: The number of Pinellas homes on the market continues to drop, and were at their lowest point since March of 2006 when we were still in a boom Pinellas Real Estate Market. The Tampa Tribune reported similar findings in April for all of Tampa Bay.
Absorption Rate (A/R): The Pinellas County Real Estate absorption rates are higher than they have been since a couple of years. Yes, folks, you can sell your Crystal Beach Florida homes if you want to!
Pinellas Homes and Declining Median Sales Prices: OK, every silver lining has it’s dark cloud. Prices are Read the rest of this entry »
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Buying Pinellas Real Estate? FHA Loan Limits Increased!
March 1st, 2009 categories: Mortgage Updates
HOT OFF THE PRESSES: If you’re considering purchasing Dunedin real estate, and have just a little cash for your down payment, note that the FHA loan limits for Pinellas, Hillsborough and Pasco counties just increased back to their early 2008 levels of $292,500.
This news is so fresh the FHA hasn’t even updated its website, but The Peach is here to let you know that you can purchase your Crystal Beach FL home up to $303,000 with only a 3.5% down payment. SWEET! Looking for a Tampa Bay golf course home? We’ll be expanding this section soon so stay tuned.
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Dunedin Home and Shower Curtain For Sale
December 8th, 2008 categories: Bad Pinellas MLS Photos
Taking good bathroom photos is challenging, even with a wide angle lens. Does this shower 
curtain close-up make you want to run out and see this Dunedin home that’s currently on the Pinellas MLS? Do you suppose there’s something lurking behind there? What?!
When you’re house hunting online, what photos do you most like to see?
The most interesting response to these questions wins a Starbucks gift card and a possible feature on The Peach! Please send your response here.
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Prime Dunedin Real Estate in Baywood Shores – Approved Short Sale with Gulf Views
October 24th, 2008 categories: Featured Listings
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4BR 3BA Delightful Dunedin Home with In-Law & Workshop
October 24th, 2008 categories: Featured Listings
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The Pinellas Trail, all 34 Glorious Miles of It and Growing!
September 6th, 2008 categories: Pinellas Things to Do & Events
Of course, here at The Pinellas Peach, we are raving mad about The Pinellas Trail, which is the stupendous 34-mile artery that connects residents from Tarpon Springs to St. Petersburg. 
Originally the Orange Belt Railway in 1884, The Pinellas Trail is now used by over 90,000 bicyclists, runners, roller bladers, and Sunday strollers per month. In 1983, the trail was the brainchild of a man who’s son was killed while riding his bike. By 1990, the first 5-mile section opened connecting Taylor Park in Largo to Seminole Park in Seminole.
The trail has now grown to over 34 miles long as shown on this map, and just this year plans were put in place for the Pinellas Trail Loop, which will connect The Pinellas Trail from downtown St. Petersburg to the East Lake Tarpon!
Along the way, you’ll find bike racks, refreshment stops, restaurants, pay phones (in this day and age?!), parks and bike shops along the trail. It even runs past the causeway to Honeymoon Island where you can take the ferry to Caladesi Island - recently voted the #1 beach in the country.
As Palm Harbor Real Estate Consultants, we have seen first-hand the added value awarded a home that is close to The Pinellas Trail or even backs up to it. Why? People love it – and we do too!
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Seller-Funded Downpayment Assistance for Pinellas Real Estate Purchases Soon to be a Thing of The Past
September 6th, 2008 categories: Mortgage Updates
Effective October 1st, you can no longer have the seller pay your down payment on your Palm Harbor real estate investment, or even a hut in Timbuktu. Unless you’re a veteran of the armed forces, you 
will need at least 3% of your own or gifted money to purchase a home anywhere in the US – with no exceptions. The reason? The recent approval of HR 3221 and all that it entails.
The passage of this bill eliminates ALL seller-funded down payment assistance with FHA-guaranteed loans. In addition, if you were thinking of buying a new home, home buyers will no longer be able to rely on nonprofits that funnel money from home-builders into seller-funded down payment assistance programs.
HR 3221 therefore finalizes HUD’s long quest to end that practice as well. The US Department of Housing and Urban Development (HUD) claims that the provision of monies from the seller causes an artificial inflation in the housing market statistics. This is because the record of the transaction at closing, (known also as the HUD), reflects the price of the home to be higher to compensate for the closing costs paid by the seller (a fair argument).
The belief is also that the odds of the homebuyer defaulting on the loan triples as they are basically buying the home with no money out of their pocket but with money provided by another party. Seller-funded down-payment assistance has become extremely popular as it was used on more than 35 percent of all home purchase loans insured by FHA in fiscal year 2007. This is a dramatic increase compared to less than 2 percent seven years ago. We want you to be aware of how the changes can affect you and your home purchase plans. Feel free to contact us regarding this pending change.
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