This post comes to you from James Kelley of VA Benefit Blog. A law school student at the University of Missouri, James Kelley works to educate the public on government financing options for home purchases. James has a great understanding of the VA home loan and the USDA loan

The VA Home Loan

The VA home loan is specifically designed to help veterans and active duty service members achieve homeownership and has helped do so since over 18 million 1944. Because of its specially designed program that is partially backed by the Department of Veteran Affairs, the VA home loan program is able to loan current and former service members up to 100% while offering flexible and competitive loan terms even if they have a less than perfect credit history. Other benefits of the VA loan program include:

• No down payment required
• Mortgage insurance not required
• flexible debt-to-income ratios
• competitive interest rates

In order to apply for a VA home loan, potential borrowers should:

• Have served 181 days on active duty or 3 months during war time
• Or have served 6 years in the National Guard or Reserves
• Or be the spouse of a service member killed in action
• Have a Certificate of Eligibility

The USDA Loan
The USDA loan is specifically designed for those desiring rural housing and provides many benefits to civilians that are similar to those seen with a VA loan. Like the VA loan, the USDA loan requires no down payment or mortgage insurance, but is more geared towards providing housing for those with lower incomes. The Department of Rural Development offers two types of home loans to potential borrowers: a Guaranteed Housing Loan and the Direct Housing loan for lower income households, and also offers additional benefits such as:

• No loan limit
• flexible credit guidelines

In order to be considered eligible for a USDA home loan, potential borrowers should meet the following requirements:

• have a dependable income
• be a U.S citizen
• have a household income that is not higher than the median household income for the area

Although VA and USDA home loan programs each have flexible eligibility requirements, lenders will desire a credit score of at least 620 to secure financing. Potential homebuyers with a less than perfect credit history are still encouraged to apply as borrowers with imperfect credit have been approved in the past.

Your Own Private Peninsula on Gull! $3,900,000 $2,995,000

This is truly one of the best opportunities for top quality real estate in the Brainerd area.

See the official listing.

For More Information or a Private Showing

Call or Email;

Nelson – Torfin Real Estate Group

(218) – 829 -6233

Click Here for the Full Listing

Important points:

Local housing market buyer decreased activity.
Tax credit influencing activity.
Active listings up.
Prices climbed up and Median prices up!!
Percentage of listing price received at sale up versus last year and 2008.
Interest rates extremely low.

Every suburb and every property within that suburb has a unique set of conditions that create the value—or potential selling price—of the property. Regardless of actual prices, properties always hold a value in relation to other properties. I call this the ‘totem pole’ value of a property, and whether prices are booming or busting, properties always stay true to their totem pole value.

A house that is worth 10 per cent more than the house down the road will always be 10 per cent more valuable, whether the house is worth $2 million or $200 000.You will need to work out the value of your property on the local totem pole, as it can give a more accurate reflection of how much you are really investing in a renovation.

There are just two components of a property’s value:

■the land value (this can often be worked out as a rough price per square meter)

■the improved land value (the value of the house, fences, outbuildings, landscaping and other ‘improvements’ to the land).

There are loads and loads of factors that influence the land value and improved land value of a property, and these vary from city to city. These factors relate to supply (how many properties are on the market) and demand (how many buyers there are for that property).The market factors that influence supply and demand can include:

■ Population growth

■ Employment

■ Availability of finance

■ land-release policies (can more land in the area be readily released for sale by the government or authorities?)

■ Local council planning policies (can more apartments or houses be built in the area?).

Factors which reduce supply include national parks, natural coastlines and strict council controls.

The quality of the property will also influence its value; these factors can include:

■ Proximity to places of employment (ever since the industrial revolution, there has been demand for properties close to workplaces)

■ Proximity to shops and transport (people have to eat, people have to get out and about)

■ style of housing—Californian bungalows, Federation houses and Victorian houses are rarer than modern project homes, and often command higher prices than newly built homes in the same area

■ Views—water views are especially valuable, but views of parks, golf courses, city skylines and bush land are also sought after

■ Position—is the property in a good street, is it overlooked by adjoining houses, is it next to a factory, etc.

■ Lifestyle features of a property, including the number of bedrooms and bathrooms.

These constant home price indices cover 20 United States regions. The S&P/Case-Shiller U.S. National Home Price Index is a composite of single-family home price indices for the nine U.S. Census divisions. It is updated quarterly.

The national index attained its all-time high of 189.93 in 2006 Q2. Minneapolis-Saint Paul was 118.89.

Minnesota real estate has a couple interesting trends (year to date) already happening in 2010.

Anyone looking to buy a Minnesota home can take advantage of the bigger selection of homes on the market and when we compare the average price today vs. what it has been in the years past, well, there is undoubtedly savings to be had, incredible savings in fact. And you do not have to look far for the incredible savings! Our last post for example is a perfect example of the many opportunities available now.

Numbers taken from all of MN

Brainerd Real Estate rarely never offers such a high-quality home at this price. The value is of this Gull Lake featured property is outstanding.

• 5 bedrooms
• 4 Baths
• 6,898 Square Feet
• 230′ of Prime Shoreline
• South side of Wilson Bay
• Panoramic Views
• Master Suite with Elegance and Class
• Formal Dining Room
• Elevator
• Professional Landscaping
• Lower Level Offers Guest Quarters and Walkout
• SubZero Refrigerator and Top-Notch Appliances
• Marble Fireplace (Lower Level also Has a Stone Fireplace)
• Custom Maple Woodwork
• Hot Tub/Fitness Room
• Private Study
• and the list keeps going

MLS #161308 is available for showings contact The Nelson-Torfin Real Estate Group at (218)-829-6233. This classic lake home in an exquisite neighborhood provides outstanding views of Wilson Bay while providing an unmatched layout for entertaining and comfortable living. The owner’s suite is stunning having a walk-in closet with views of the lake. Take the elevator down to the lower level with a full second kitchen, wet bar and hot tub room. The lower levels 9′ ceilings and a wall of lake windows plays like another main level. Call/e-mail our office for a complete brochure.

• How has Minnesota real estate trends changed after the first time home buyer tax credit ended.
• Traditional summer activity.
• Economic trends.
• Closings up.
• Seller and buyer activity parallel.
• Minnesota real estate listings and inventory.

Two points worth noting: “Mostly stable with a strong chance of recovery.” and the market did just fine immediatly after the first time home buyer tax incentive ended.

May Still Qualify for the Incentive Program:

* U.S. Military
* Members of Foreign Services
* Intelligence Agency Employees

Anyone who has been serving outside of the States on “Official Duty” may still qualify for the incentive program.

Official extended duty is defined as any period of extended duty outside of the United States for at least 90 days during the period beginning December 31, 2008 and ending before May 1, 2010.

The Worker, Home Ownership, and Business Assistance act of 2009, signed into law by the President, will allow military personnel abroad a year-long chance to buy a home and qualify for the tax incentives.

The Home-buyer’s Tax Credit of up to $8,000 for first-time buyers and up to $6,500 for certain repeat buyers. This means qualified military members must be under contract on a purchase by April 30, 2011 and close on the deal by June 30, 2011.

“Qualified military buyers can also utilize this tax credit along with other available benefits from the Department of Veterans Affairs (VA), making this dollar-for-dollar tax credit extremely financially attractive with today’s lower home prices and lower interest rates. That’s because the VA allows qualified military borrowers to purchase certain homes in certain areas with no money down and no private mortgage insurance.

To be a qualified first-time home buyer and receive a tax credit of up to $8,000, the buyer and his or her spouse cannot have owned a home in the last three years. Unlike the Home Buyer Tax Credit for civilians, however, the maximum purchase price of a home is $800,000 under this program – anything over that and the tax credit is invalid. The credit phases out for individual taxpayers with modified adjusted gross income (MAGI) between $125,000 and $145,000 or between $225,000 and $245,000 for joint filers.

To be a qualified “repeat buyer” or non first-time buyer and receive a tax credit for up to $6,500, a buyer must have lived in his or her current residence for five out of the last eight years. The rest of the requirements are generally the same as the $8,000 tax credit.”