Lisa Thompson

With the FASB’s plan on revising and/or limiting mark-to-market accounting rules coming early-April, we will also see increased freedom for markets to sort through the pricing issues that have been preventing any solution to getting these illiquid assets off bank balance sheets so they can extend new credit to businesses and consumers. … Conforming ($200,000 – $417,000) – 1 POINT 30 Year: 4.625%   (5.09% APR) FHA 30 Year: 5.0% (5.21% APR) 15 Year: 4.625%   (4.75% APR) 5/1 ARM: 4.875%   (5.09% APR) Super-Conforming ($417,001 to $625,500 cap by county) – 1 POINT 30 Year: 5.125% (5.2% APR) FHA 30 Year: 5.0% (5.21% APR) Jumbo ($625,500 – $3,500,000) – 1 POINT 30 Year: 6.625 %   (6.83% APR) 10/1 ARM: 6.25%   (6.39% APR) 5/1 ARM: 5.375 %   (5.52% APR) Scenarios assume full doc pricing on purchase or rate/term refi (but not cash-out refi) loans for borrower with 720 FICO score or greater, at least 20% equity (unless FHA), and 6-12 months reserves left over after close (retirement assets counted at 70% of value for reserves).

Qualified buyer: A taxpayer who purchases a single-family residence, whether detached or attached, that has never been occupied, that is purchased to be the principal residence of the taxpayer for a minimum of two years, and that is eligible for the homeowner’s exemption under California Revenue and Taxation Code Section 218. Qualified Principal Residence/New Home: ( Updated ) A qualified principal residence means a single-family residence, whether detached or attached, that has never been occupied and is purchased to be the principal residence of the taxpayer for a minimum of two years and is eligible for the property tax homeowner’s exemption.

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February 21, 2009

Late last week, California lawmakers approved a new budget that cut spending by $13 billion in an effort to reduce the state’s $42 billion deficit. Included in the budget is a provision allocating state funds for a $10,000 tax credit for home buyers.

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The $10,000 tax credit is not a loan and if the home remains your primary residence for 2-years, you do not have to pay any portion of the tax credit back. … The construction of a new home generates more tax revenues than the $10,000 tax credit will cost, so the credit is limited to the purchase of new homes .

At current trends, over the next month: • 563 active SFD listings will be joined by over 250 new SFD listings for a total of over 800: less than 1 out of 8 will go contingent sale (and most of them at the low end). • 674 active Condo listings will be joined by over 350 new Condo listings for a total of over 1000: less than 1 out of 10 will go contingent . • 241 active TIC listings will be joined by over 150 new TIC listings for a total of about 400: about 1 in 16 will go contingent. • 234 2-4 Unit listings will be joined by over 80 new 2-4 U listings for a total of over 300: about 1 in 19 will go contingent .

Carmichael said that in California’s foreclosure-plagued Inland Empire, Riverside and San Bernardino counties east of Los Angeles, the average monthly rent for an apartment is $1,157 and the average after-tax monthly mortgage payment on a median-priced single-family detached home is $1,154 — and is projected to decline to $979 by mid-year. … Existing home sales across the United States rose 6.5 percent to an annual rate of 4.74 million units in December from a rate of 4.45 million in November, a National Association of Realtors report showed on Monday.