Shaking Up Our Homes in Oklahoma

By now, everyone in Oklahoma has felt one of our recent earthquakes or their aftershocks. Tens of thousands of people have reported to the US Geological Survey that they have experienced the recent seismic activity in our state. It's not enough that the Sooner State has had to endure record snow falls, record high and low temperatures, drought, F5 tornadoes, largest hail, highest wind speed, etc. (and that's just in 2011 alone), Oklahoma also has a long history of shifting and shaking and, while we are far away from the "Big One", many of our homeowners are now wondering how their homes are affected.

Because my expertise is mortgages not insurance, I have turned to some trusted professionals that we work with that are experts in homeowners' insurance.

Not all companies offer earthquake insurance. The least expensive coverage is available as an endorsement on your current policy. If your current provider does not offer this, you can get a stand alone policy from a different company but it will cost at least twice as much. 

Estimates for premiums range from $40 to $150 for most Oklahoma homes. Cost is based on many factors such as deductible, amount of coverage, replacement cost coverage, etc. Brian Dudgeon of Farmers Insurance in Stillwater wrote a policy Monday "for a $300,000 home and the policy cost $81 for one year."

Although deductibles range from 2% to 10%, OKC Farmers agent Robert Chaplin says that the price difference is minimal, so 2% provides the best value. 

Value, however, is what you should seek from your insurance dollar. Joshua Lakey of Brookside Market Insurance Agency, an Allstate agent in Tulsa, points out that you should review your entire market basket of insurance to evaluate if earthquake coverage is right for you. For example, a $200,000 home with a 2% deductible would need to sustain more than $4000 worth of quake damage before you would see benefit from this type of coverage.

Lastly, there is a waiting period. Joey Capps, a Farmers agent in OKC, says it depends on proximity to the epicenter. Each company is different, but typically there is a 5-7 day waiting period if your home is located within 40 miles of the epicenter. This waiting period resets if there are aftershocks that measure 5.0 or greater on the Richter scale.

As with mortgages, everyone's needs and circumstances are different. If you have specific questions, contact your agent or one of the trusted professionals that contributed to this:

Oklahoma City - Joey Capps, Farmers Insurance, (405) 759-7100

Oklahoma City - Robert Chaplin, Farmers Insurance, (405) 751-9453

Stillwater - Brian Dudgeon, Farmers Insurance, (405) 707-9200

Tulsa - Joshua Lakey, Brookside Market Insurance Agency (Allstate), (918) 574-2400

Thanks also to my Fairway Mortgage colleagues in Oklahoma for their help compiling this information.

Oklahoma City - Jerry Ashford, (405) 517-4959

Oklahoma City - Jim Steward, (405) 821-1031

Stillwater - Pam Shipman, (405) 372-5363

Next, we will review how earthquakes affect mortgage underwriting.

Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net

Rent Versus Buy Debate Revisited

Buy a house now! Keep renting - Wait out the market!


How many times have you read a similar article about the pros and cons of buying a home versus renting. Of course, there are many points on each side of the debate that are very valid. Each point must also be evaluated by the audience on the merits to their own particular circumstances. 


The attached document shows graphically where the numbers fall. It is based on the following variables: FHA 30 year fixed rate purchase loan, credit score of 640 minimum, normal property taxes and homeowners' insurance, property appreciation & rent increases of 2% per year. Most people stay in their homes 5 years but the longer term benefits after 12 years are also illustrated. 


Even though the monthly payment of $919 is more than the expense of renting at $800, the amount of monthly expense is lower when buying when factoring in the tax deductibility of mortgage interest, mortgage insurance, and real estate taxes. Further, since the principal amount of your payment is actually going toward your equity, the net amount of your monthly housing expense is even less.


The home price used in the example of $125,000 would actually rent in a range of $1000 to $1200 per month. See? You can buy more house than you are renting now and do it for less money!


Most home prices in Oklahoma have remained very stable throughout the burst of the bubble in most of the rest of the country. There are some bargains out there and you should engage a REALTOR® to help you find those bargains.


But before seeking help finding a home, you need to find out how much you can afford. This leads to the best bargain in housing today. Rates continue to be at historic lows, and I will write in an upcoming post about the potential cost of waiting out the real estate market for the lowest home price possible.


Every person's situation is unique. As much as we would like things to be cut-and-dried, I can't recommend anything to any prospective buyer without first having some conversation about your needs, your goals and your circumstances.


Call today to get your self on the Path2Buy your new home.


Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net

It All Started with a Haircut...

(In mortgage lending and finance, a haircut refers to a discount taken from the par value of assets being used as collateral. For this story, its traditional meaning is used.)


Last August, the young lady cutting my hair and I were talking about weather, sports, life, etc. She told me she had moved here from Iowa to go to school. She and her parents missed each other and (unlike this clip) yada, yada, yada, wanted to be able to see more of each other. I told her that if they wanted to buy a home here, that I could refer a couple of REALTORS^® who could help them find a home when the time was right.
Her mother called me the next day and we talked about how to get approved for a mortgage for a second home. Over the next 6 months and through difficult weather, they made various trips to Tulsa to see homes (and their daughter) with Cindy Roberts of Chinowth & Cohen Realtors. 


Right to Privacy laws and my responsibilty to my clients prevent me from more detail, so... yada, yada, yada... They closed today on a home here in Tulsa!


The moral of the story is you never know who will be put in front of you and what there needs are unless you are available and open. Your next opportunity may come from anywhere, even a haircut.
If you are thinking about buying a home in the Tulsa area (or anywhere in Oklahoma), call me. I can help with long and/or short range planning on how you can get the best loan for a home here. 


Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net

Renting Now? Start Paying Yourself "Rent"?

If you are renting a house or apartment now, take a few minutes to review this scenario.

Your rent expense of $800, $750 for rent & $50 for renters' insurance (you are insuring your property, aren't you?), will easily afford you a home of your own. The net payment on an FHA 30 yr fixed-rate mortgage for a  $125000 home is only around $727 on the attached example. You can download a copy of this scenario here.

[Please note that I am always conservative with my projections. I have projected a rate slightly higher than today's market rate and also accounted for the increase in the FHA mortgage insurance premium which will take effect April 18]

Instead of paying someone else rent of almost $50000 over the next 5 years, why not pay yourself? When the tax benefits are considered, your net payment over the same 5 year period is less than $44000. Also, you will have built up almost $10000 in equity in your new home. The benefit grows even greater over more time.

Call me to get a customized scenario for you and ask how you can get on the Path2Buy your new home. Whether your looking now, or waiting 5 months or 5 years, it is important to understand that you will be ready when your time is right.

Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net

You Can't Do Well in the Tournament without a Good Coach

It is NCAA Tournament time. Sixty-eight teams are rewarded for a season of hard work and planning with a chance to win the men's basketball national championship. These teams could not be where they are without executing the plan developed by their coach.


Why should a home buyer expect to go it alone? Many people start to research buying a home by going online to search for homes. They have no idea what they can afford or how their credit stands. Without a good coach and team around them, they have no idea if the information they are hearing in the media is correct or even applies to them or our market in Oklahoma.


With all of the game plans possible to attach a home search, how do you know which strategy will ensure your success and possibly shorten your path to the championship?


As the Certified Path2Buy for the Tulsa area, my job is to help you understand what it takes to be approved for a mortgage and prepare for home ownership. I analyze your income, credit, job security and other factors to get you into the home you are looking for. I give you the information to dis-spell the myths and clarify the media reports about the mortgage market. This is done without cost or obligation to you.


Every serious player starts the season with a game plan to win a championship. They don't start by saying, "I'll shoot better this year" or "I know I don't rebound well, but I'll work on it later in the season."


Why would you say, "Someday, I will buy a house" or "Once my credit gets better..." or "Once I save some money for a down payment"?


It's okay to want to own a home. It's not okay not to have a plan to get you there.


Consider this my request for an interview to get the job as your Path2Buy head coach.



Tim Epps
Sr. Loan Officer
Fairway Independent Mortgage Corp
918-528-4010
tim@myfairway.net

What Do You Want to Know About Mortgages?

I am turning over the content of my next few posts to answering your questions.

What do you want to know about mortgages? This is your chance to get answers in plain English.

Do you want to know about:

• Qualification
• Rates
• Loan types & terms
• Rent vs Buy
• How to select a mortgage professional/REALTOR, etc.
• Should I refinance
  

I will provide straight-forward answers to your pressing mortgage questions. Send an e-mail to tim@myfairway.net or call me with your question. Your contact information and any personal identifying information will be kept confidential.

Tim Epps
918-528-4010
tim@myfairway.net

What Is Today's Mortgage Rate?

When you ask a mortgage professional what his rate is, you must first know if you are rate shopping or evaluating a professional. Borrowers shopping for the lowest rate are almost always guaranteed to pay more for their loan - either in rate, fees, or both. Borrowers who are evaluating what mortgage professional they want to work with are much more likely to get the best loan available for their needs and circumstances. That is, if they understand how to make their evaluation.

A lender who blindly quotes a rate, who responds immediately to your rate question with "4.75%" or "I can get you 4.x", is being dishonest at worst & disingenuous at best. Mortgage rates are not like produce prices, posted in the grocery store for all to see and available to all buyers. Many factors go into getting the best mortgage for you.

Some factors are based on your circumstances:

1. Your credit score
2. Your down payment (or loan-to-value for refinances)
3. The amount of your loan
4. Are you ready to lock your rate now?
5. How long before you need to close?
6. Are you a teacher, veteran, policeman, fireman, first time home buyer, etc?

Other factors are based on your needs:

1. How long do you plan on living in this home?
2. Do you plan on refinancing in the future?
3. Do you prefer a lower payment or lower costs?
4. What is your tolerance for risk?

Only an open, honest conversation with a mortgage professional will illustrate how each of these factors influence the mortgage rate that is available on the best loan for you.

If you are in the market for a home now and would like to discuss your situation or if you have a home and would like to see if you can save by taking advantage of rates near historic lows, contact me. There is no obligation. You owe it to yourself to see what a proper mortgage interview can do for you.

Tim Epps
918-528-4010
tim@myfairway.net

Tax Credit Deadline Looms for Sellers, Too

Home sellers in Oklahoma need to pay attention to the calendar just as much as home buyers, especially if they are in the first time home buyers' price ranges. The American Recovery and Reinvestment Act of 2009 enhanced the tax credit available to first time homebuyers but also provided for expiration of the credit if the purchaser does not close and possess the home on or before November 30.

This is important a home seller because a very large pool of buyers for their home could dry up if a purchase contract is not entered into soon. Fewer buyers that are available for you = Less demand = Lower price.

As of the start of the current Congressional recess, there were no less than 5 bills or resolutions in the US House and the US Senate seeking to extend, and possibly expand, the First Time Home Buyer tax credit. Jay Thompson of Thompson's Realty in Phoenix has a good synopsis on his blog. If one of these proposals survives (like Jay, I think one will), we can proceed past the current deadline. However, as a first time buyer or as a seller to one, do you want to risk this on what Congress might do? Or would you rather act on what we know right now.

The tax credit alone should not be the sole reason for a person to buy a home nor for one to sell their home to a first time buyer. But, if it is a part of your decision making process, you should act soon. There will be a crush of loans to go through underwriting and to close at the title company. Appraisers and inspectors will be booking up. And, of course, if anything comes up that can delay your deal past November 30, the credit is gone (as of now). So sellers, make your deal attractive now or you could be left holding your keys.

If you have questions about how a financing strategy can help you sell your home, call me.

Tim Epps
918-528-4010
tim@myfairway.net

Less Than 3 Months Left to Claim Up to $8000 from Your Rich Uncle

Have you been looking for a home? Thinking about it? It is your first home (or have you not owned a home in 3 years)?

STOP! Stop looking & considering. Start FINDING one.

If you are a first time homebuyer, you must close on the purchase of your first home by the end of November* to earn a tax credit of up to $8000. Note that this is a CREDIT not a deduction. If you are expecting a refund, it will increase your refund by the amount of your credit. If you will owe taxes on your 1040, your taxes will be reduced by the amount of the credit and you will receive a refund if due. Before I continue, as with any tax advice here or from any source that is not your trusted professional, you should review this with your trusted professional to apply to your situation.

First time home buyers (and those that have not owned a home in the last 3 years) can claim a tax credit of 10% of the purchase price of their primary residence. The maximum credit is $8000 and there are income limitations on who can claim.

MORE EXTRA GOOD NEWS - If you buy your home in time to claim this credit, you can amend your 2008 tax return even though your purchase may be in 2009! This will get the money in your hands sooner!

*So, why less than 3 months left if the clock stops at the end of November? Because you must CLOSE your purchase by then. It generally takes 30 days from offer to close (although we can perform faster in many cases).

Let me know if you have any questions that I can help with.

Tim Epps
918-528-4010
tim@myfairway.net

$8000 First Time Home Buyer Tax Credit for FHA Down Payment? NO (and maybe)

Much has been written and Tweeted about the US Department of Housing and Urban Development allowing the use of the $8000 First Time Home Buyer Tax Credit as down payment on a new home. First, HUD said yes. Then, HUD said no. Now, HUD says maybe. Mortgagee Letter 09-15 which was released and then rescinded has now been revised & re-released. Despite fairly clear language in ML 09-15 (below - emphasis mine) there are still many that mis-understand and mis-report.

• Pursuant to 12 U.S.C. 1709(b)(9), the homebuyer’s downpayment required for eligibility for FHA insurance may not consist of any funds (including funds derived from a sale of the homebuyer tax credit) provided by the mortgagee, the seller, or any other person or entity that financially benefits from the transaction (or by any third party or entity that is reimbursed, directly or indirectly, by the financially benefiting person or entity). Accordingly, the proceeds of the sale of the tax credit to FHA approved mortgagees, the seller, or any other person or entity that financially benefits from the transaction (or any third party or entity that is reimbursed, directly or indirectly, by the financing benefiting person or entity), may not be used to meet the 3.5% minimum downpayment, but may be used as additional downpayment, buying down of interest rate, or other closing costs.

IF a buyer is eligible for the credit, and IF there is a lender (or agency) available to do so, buyers can use their tax credit as collateral on an additional loan over and above their FHA mortgage to pay some of their closing costs, pre-paids, points for lowering rate, or down payment IF they are putting down the minimum required 3.5% down payment without those funds. Bottom Line - you MUST still have the 3.5% down payment from funds outside of the tax credit.

Your 3.5% down payment can come from savings, gift from relative or employer, your 401k/IRA, etc. Any use of the tax credit at the time of closing can go toward down payment over the 3.5% minimum ONLY.

The use of the tax credit at closing is as collateral on a loan to help you with costs. However, just because HUD has allowed this on FHA loans does not mean that you will be able to find a lender or agency in your area that will assist with this. As of now, there are precious few opportunities to accomplish this. No one in Oklahoma has announced their participation to date. Also, the major national lenders have yet to release their guidelines for underwriting FHA loans with these secondary liens included.

How then can a First Time Homebuyer use this credit to their advantage? There are many ways - savings, emergency fund, home repairs/renovations, etc. For most buyers, the last resort should be using it in getting an additional loan to help with closing.

Speak to a Mortgage Professional about your specific conditions, needs and goals. Have a conversation - do not be sold. Get the RIGHT loan for YOU.

Tim Epps

918-528-4010

Tim@MyFairway.Net

Broken News! Call a Mortgage Professional to Discuss Your Down Payment Options

Yesterday, Shaun Donovan, the Secretary of Housing & Urban Development (HUD) announced at the morning session of a meeting of the National Association of Realtors (NAR) that HUD intended to allow the use of the First-Time Homebuyer Tax Credit as collateral on a bridge loan to assist borrowers with the 3.5% down payment required for an FHA loan and any closing costs. This was also posted on HUD's website Monday night in Mortgagee Letter 09-15. That posting has since been rescinded and pulled.

Why was this pulled? Because HUD had not fully prepared for this. Thank goodness they did not allow you to print coupons for it. Think if this had been announced on Oprah, and she had said to go to www.unthinkFHA.com? Well, this has happened to an extent.

Many Realtors, home builders, (and even some Mortgage Professionals) who have an active blog or Twitter account, have been shouting from their virtual rooftops that this is now available to First Time Home Buyers. IT IS NOT!!!!! It never was! I waited to post or tweet about this because it is too easy to get expectations built too high without the facts to support them. Secretary Donovan delivered the announcement in a prepared statement so it cannot be said that it was an idle comment by the Secretary. And, the Mortgagee Letter 09-15 was posted for awhile on the HUD website exhibiting that they had full intention of carrying this out. However, many things were not yet in place to allow this to happen at this time. Who would underwrite and fund the bridge loans? Will the IRS allow assignment of the tax credit to a third party?

The moral of this story? Be wary of "Breaking News" in real estate. Seek advice on property matters from your Realtor. A proper Mortgage Professional will always refer you to your Real Estate Professional for advice on selection, pricing, negotiation, etc. But, at the risk of upsetting my Realtor friends, partners and future partners, please seek advice on real estate financing from your Mortgage Professional. There is a vast array of programs and terms to suit prospective homeowners. These programs and guidelines change every day. Rate sheets have a life span of less than 6 hours in today's market. There are many down payment options from no-down and low-down to all you care to put down. This never-even-official program was not the only way to go. Allow your Mortgage Professional to prepare for you the best package of rate and term to meet your situation and desires. Allow your Realtor to find you the best home at the best price to you meet your situation and desires.

My role is to work as a teammate in the purchase of your home. I may post here about home values in our market. I do so, not as an appraiser or Realtor, but as an active participant in the real estate profession and to help Oklahomans understand that much of the national news about home values does not affect us here. National news affects lending guidelines for local buyers but not local values. I will NOT advise a client on the proper price to pay for a home (or to sell it for). I WILL advise them on the amount they can be approved for and how to pay for it. I will NOT advise a client on where to buy a home. I WILL advise them on what loan programs may be available in certain areas. Additionally, although I am knowledgeable on the First Time Home Buyer tax credit and other tax advantages of home ownership, I will NOT attempt to replace their current trusted tax professional or give specific advice on my clients' situation. I WILL link to IRS Form 5405 for reference and convenience.

If I can help you (buyers, Realtors, sellers - you will need approval for a new home), please let me know. It would be my pleasure to serve you with sound advice and not hype.

Tim Epps

918-528-4010

Tim@MyFairway.Net

Has your mortgage professional talked to you about the HVCC?

This is not about your HVAC (Heating Ventilation and Air Conditioning). This is about the HVCC which stands for the Home Valuation Code of Conduct. You can do your own search for its hsitory and draw your own conclusions about its need. But the reality is that the HVCC takes effect on Friday, May 1st, 2009 and it will have an effect on your next mortgage. This Code is currently only directly related to loans originated by mortgage brokers and to conventional loans - those delivered to Fannie Mae & Freddie Mac - originated mortgage bankers. FHA, VA, USDA and some other programs are not required to comply, but many lenders will choose to do so for sake of consistency.

The Home Valuation Code of Conduct essentially puts a wall between mortgage lenders and appraisers so that there can be no influencing of appraisers to manufacture false values. This is well intended and may seem like a small, behind the scenes change. But, in practice the HVCC will make your loan take longer to obtain.

Do not make the mistake of not asking your mortgage lender about the HVCC and how it will effect you.

Mortgage brokers are the ones most impacted since they are seen as having no "skin in the game". Mortgage bankers fund the loans in their own name and have some risk. Mortgage brokers will no longer be able to engage appraisers directly at all. If the broker needs to take your loan to another funder, he will have to order a new appraisal from a different appraisal management company. This will cost you more money. (Note: This post is not intended to enflame or start a debate on the merits of working with a mortgage banker vs. a mortgage broker. This is only intended to inform of the facts of how the HVCC impacts borrowers.)

What is the direct impact to Oklahoma consumers and Realtors who are not getting an FHA/VA,USDA loan OR who are working with mortgage brokers?

• It means that you can’t expect an appraisal to be done in 3 days any more if you are if you are working with a mortgage broker.
• It means that you can’t get an appraisal done with one lender and take it to another lender if you are working with a mortgage broker.
• It means that your mortgage broker no longer has “control” over which appraiser and/or the quality of the appraisers. That control has probably all been relegated by an appraisal management company.
• It means that your either your appraisal will cost more or the appraiser will make less if it is ordered through an appraisal management company.
  
• It means that it’s important to work with a mortgage banker who is on top of things and plans ahead - such as ...

Tim Epps

Fairway Independent Mortgage

918-528-4010

Tim@MyFairway.net

First-Time Homebuyer Seminar - How to get $8000 to buy the home you want!

You will hear about options like: 

•       $8,000.00 tax credits & more
  
•       Lowest interest rates in 40 years
  
•       Bank owned homes
  
•       How to find and get the best deal
  
•       Available homes in your price range
  
•       Meet with industry professionals (Mortgage Lender, Realtor, Insurance Agent) that can show you how to get started
  
•       Q & A session to answer all your questions
  
•       No obligation necessary
  
•       Convenient to all at TCC Southeast campus
  

Event will be held Saturday, April 25, 2009 from 10AM to Noon.

You will be out in time to attend open houses and find your new home!

Call or e-mail TODAY to register – Seating IS limited!

918-528-4010 or Tim@MyFairway.net

Brought to you by:

Tim Epps - Fairway Independent Mortgage - 918-528-4010

Dean Dretske - Keller Williams Realty - 918-340-8303

John Buchanan - Country Financial - 918-481-6900

Mortgage Help Available For Tulsa Homeowners

Mortgage Help Available For Tulsa Homeowners

Posted: March 5, 2009 04:13 PM

Updated: March 6, 2009 07:39 AM

FEATURED VIDEO Mortgage Help Available For Tulsa Homeowners

By Scott Thompson and Dan Bewley, The News On 6

TULSA, OK -- President Obama's $75 billion mortgage relief plan is aimed to help close to 9 million homeowners refinance their mortgages.

Real estate Web site Zillow.com says 38 percent of homeowners in Tulsa and Creek counties are eligible for part of the plan.

But a local mortgage banker says it may not be the best option for area homeowners.

The plan includes two programs and is intended to help one in every nine U.S. homeowners.

One program is aimed to help homeowners with a loan through Fannie Mae or Freddie Mac refinance their loans to lower or fixed interest rates.

The other program allows for the loan to be modified and has strict qualifications: you must have signed your mortgage before Jan. 1; you must be the owner and live in the home; you can't owe more than $729,750 on the loan; you must be able to prove that you can't pay the mortgage because of a financial hardship, like a reduced income or medical problems; and your monthly payment must be more than 31 percent of your monthly income.

Tell us your story. Click here if you plan to use the President's plan to refinance your home.

Not everyone thinks the plan will make a difference.

"I am dubious as to how much it will be able to help even on a national basis," said Tim Epps, a mortgage banker with Fairway Mortgage.

Epps says Tulsa remains insulated from the national housing crisis.

"We've actually still had year over year growth over the last eight years ... moderate, small, but it's been responsible growth," he said.

The numbers back him up. Zillow.com says 5 percent of Tulsa mortgage holders are underwater, meaning they owe more than their home is worth.

The national average is 20 percent.

Epps says there are other options in the area. With interest rates dipping about 5 percent, he recommends homeowners contact their mortgage broker professional and ask for a simple refinance.

He says it may be easier than the government's new plan.

President Obama's mortgage relief plan is intended to help one in every nine U.S. homeowners.

Zillow.com says 5 percent of Tulsa mortgage holders are underwater.

Tim Epps says the mortgage relief plan may not be the best option for area homeowners.

MORE LINKS Financial Stability Web Site Zillow.com Tim Epps 918-528-4010 Tim@MyFairway.net

Black Swans, Pink Dolphins, & the Making Home Affordable Program for Oklahomans

Okay.  It is out. The Obama administration's plan to help homeowners that are underwater (owe more on their home than what it is worth). Will this plan help Tulsa homeowners?

The Tulsa market (as well as the whole state of Oklahoma) has enjoyed fairly stable appreciation of their home values over time. Most of what we get exposed to in the national press refers to the Case-Shiller Index which studies value change in the largest 10 and largest 20 markets in the entire USA. Unfortuneately, our local media often runs the national report each month without reporting the local data that is so important to our local market. While all mortgages are national (subject for a future post), all real estate is local. Even the data that is presented here from Zillow is for the Tulsa MSA (Metropolitan Statistical Area) as a whole. Individual communities (Jenks, Broken Arrow, Owasso, etc.) and even subdivisions will see some differences from the MSA data, but it provides a good basis for our market in comparison to the national values.

The chart below shows that home values have made responsible, steady growth in the Tulsa MSA over this decade. And, while median owner equity has fallen (partly because new buyers are putting smaller amounts down), the Tulsa, OK MSA is not experiencing the extent of negative owner equity being reported elsewhere in our country.

This graphic shows that there is one area of our market that reports over 10% of homeowners having negative equity, or underwater with their mortgage. As with the data above, we are well below the Case-Shiller numbers as well as the national averages.

So, how will Making Home Affordable plan help Tulsans and other Oklahomans with their mortgages? Fewer than most will be able to take advantage of this program. Given our market conditions we are the black swan or pink dolphin of the nation's real estate condition - a beautiful rarity.

Mortgage rates are still very low and most homeowners in our area can qualify for a great refinance without one of these new programs. If you have any questions about whether or not you could benefit from refinancing, call me for a no-obligation consultation.

Check back later for more details (they still are sketchy) on the program, including the Home Affordable Refinance Program, and what it may be able to do for you and your mortgage here in Tulsa, OK. If you can't wait, you can read the fact sheet.

Tim Epps

918-528-4010

Tim@MyFairway.Net

The $8000 First Time Home Buyer Tax Credit Explained

NOW we can finally talk about it since President Obama has signed the ARRA (American Recovery and Reinvestment Act of 2009). After some fits and starts, higher credits approved and removed, etc., the final details were worked out to the betterment of First Time Home Buyers. The act is for buyers who purchase after January 1, 2009 and before December 1, 2009.

What are the major differences affecting Oklahomans?

1. First Time Home Buyers (and those not owning a home in the past 3 years) will now get a tax credit of 10% of the purchase price of their home up to a maximum of $8000.
2. NO REPAYMENT or recapture if home is maintained as your primary residence for 3 years.

This is great news for those in our market looking for their first home.

Now, go FIND YOUR HOME while rates are still great as well.

Call to discuss how this can help you with your purchase (or with the sale of your home to a first time home buyer). As always, also consult a tax advisor for your specific situation.

Tim Epps

918-528-4010

Tim@MyFairway.Net

5244 S Marion Ave, Tulsa - First-Time Homebuyers' Home-of-the-Week

[Click image to see larger]

Great Neighborhood - Quiet Street - Backyard Retreat

Only $125,000! (Previously listed for $132,500)

See below for financing options

This home offers much to all buyers. It has a bright, open living area and vaulted ceilings throughout. The spacious kitchen has a great tile floor and new built-in oven. Newer vinyl windows. New furnace and raised duct system.

Details:

Year:	1956
SQ Feet:	1,350
Story(s):	1

Garage: 0 - See Below Pool: N

Bed(s): 3 Total Baths: 2 Full Baths: 1 3/4 Baths: 0 Half Baths: 1 Acreage: 0.22

AREA INFORMATION

Street Address:	5244 S Marion AVENUE TULSA, OK 74135
Community Name:	Lou North Woodland Acres
Area:	Tulsa
Zip:	74135 (TULSA)
School District:	TULSA - SCH DIST (1)
Elementary School:	Carnegie
Jr. High/Middle School:	Nimitz
High School:	Memorial

The photo here shows a carport, BUT construction started this week to convert that to a GARAGE!

Call Christine Baker of Coldwell Banker Select at 918-630-4381 to see this home today.

Call Tim Epps of Fairway Mortgage at 918-528-4010 to get financing, payment details, and pre-approval tailored to your situation, needs and goals.

Financing options include FHA, VA, or Conventional mortgages. With FHA, the down payment would be $4375 at the $125,000 list price and ... 

First-Time Homebuyers get their $7500 TAX CREDIT! 

Many more options available. 

Your total payment would be less than $1000/month!

Tim Epps

918-528-4010

Tim@MyFairway.Net

First-Time Homebuyers to Get Tips from Industry Professionals

In case you missed last week's post, the Community Action Project of Tulsa County will hold a Homebuyer Education Seminar.

People who have signed up for the free program will receive orientation and a financial readiness assessment from a CAP counselor. Then, they attend this seminar to help guide them through the steps of a home purchase.

Kathryn Jones and Christine Baker of Coldwell Banker Select will teach those in attendance about how a successful home search works.

John Buchanan, Jr. of Country Financial will review what to look for in homeowners' insurance and how to shop properly.

I, Tim Epps of Fairway Mortgage, will talk with the audience about how to obtain the best loan available for their situation and how the mortgage market and process works.

Based on where they select a home, those that enroll and complete this program can be eligible for up to $3500 in down payment assistance from CAP.

With all of the constant changes in real estate, insurance and mortgages, this program can help all buyers get up to date. The adage that "all real estate is local" has never been more true. Values in Oklahoma have not seen the precipitous drops that the largest 10 and 20 markets have seen. Those markets reported in the Case-Schiller Index also saw precipitous rises in value while Tulsa, Oklahoma City, and the rest of the state saw our home values rise at a modest, sustainable rate.

Mortgage guidelines are updated mainly on what happens in the market as a whole, so we are not immune from what happens outside of Oklahoma. But money is still available. Good loans (with good rates and terms) are available for most borrowers.

If you think you may want to buy a home, first time or not, check in to the Community Action Project of Tulsa County's Homebuyer Education Program. It will prepare you for everything they don't show you on House Hunters or Property Virgins.

Tim Epps

918-528-4010

Tim@MyFairway.Net