· The Tax Credit is for up to 10 percent of the purchase price, up to a maximum of $8,000.

· For example, a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000, while a first-time buyer of a $70,000 home would be eligible for a tax credit of $7,000.

· The Tax Credit does NOT have to be repaid unless the home is sold within three years.

· Applies only to first-time homebuyers, defined as those who have not owned a home within the previous three tax years.

· The Tax Credit is available only for homes purchased between Jan. 1, 2009, and Dec. 1, 2009.

· Restricted by income; The Tax Credit phases out for individuals with an adjusted gross income of $75,000 or above and for married couples with a combined adjusted gross income of $150,000 or above.

· The credit can be taken on 2008 taxes even when the purchase is made in 2009.

PS: We work with many of the Roanoke area’s most credible Realtors. If you need help finding a Realtor – feel free to let us know & we can help suggest a few we would recommend…

Just this morning we helped one of our Roanoke, VA clients consolidate a few credit cards, personal debts, and her mortgage for a monthly savings of $836! The exciting part isn’t the fact they’re saving money (maybe it is)…it’s the financial plan we’ve help create to get them through retirement & their children to college.

Call or email & let’s grab coffee to talk about how the market affects you.  As always, we’re here to help…

Cheers! – Josh

P.S. – Pass the word…the market’s changing!

We’ve received some of the biggest news to hit newsstands in quite some time and it barely made the spotlight! News that the Treasury Dept has plans to purchase roughly $600 Billion in mortgage-backed securities should be posted on the front page of every news giant across the nation, but instead we see Somali Pirates & OJ’s sentencing… Granted, pirates & OJ do have a knack for capturing our attention on a celebrity level BUT…the Treasury news is news that truly has the potential to start a boom like no other!  Let’s decipher the $600 Billion…

Under this proposal, the Treasury buys mortgage-backed securities…why?  Because by purchasing the securities, it pushes rates down.  Right now, interest rates on a 30-year fixed rate mortgage are hovering around 6% and the goal is to drive them down to 4.5%!! 

If enacted, such a plan would create an unprecedented opportunity for anyone with stable income and decent credit score to refinance at a rate unseen since the early 1960’s…essentially creating the “mother of all refi-booms”!!! 

Refinance boom aside, there are 2 major benefits to our economy:

1. Places IMMEDIATE cash in the pockets of our homeowners able to refinance to lower monthly payments

2. Lower interest rates = more Buyers flooding the market = halt of housing value decline

The goal is to drive mortgage rates so low that housing prices stop falling & actually start to rebound…all the while giving much needed cash flow to current homeowners able to refinance.  The trick, then, becomes truly being ready when the opportunity arrives.  It’s no secret that we’re currently in one of the most volatile markets ever, and it’s not uncommon to see a .75% swing in rates within a 24 hour period.  By preparing now, you absolutely set yourself up for success by being able to call your mortgage professional and say LOCK, LOCK, LOCK that rate, when they start falling!

In the midst of a recession…and, yes – it’s official, we’re in a recession…this is some of the greatest news we could have received! This has the potential to dwarf the boom of 2003 and give our economy the much needed shot of adrenaline we’re all hoping for and although we may be “officially” in a recession…you don’t have to participate! There is good news all around us, it just may not be on the front page…

For more information or to help prepare for the coming plunge in rates…email me & let’s get started.

Cheers!

Josh Perrington

1^st Metropolitan Mortgage

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com | 540.904.0842

2762 Electric Rd, Suite Roanoke, VA 24018

Widow calls reverse mortgage a blessing

The report took a conservative approach and used interest rates in effect March 2008 & did not use the newly instated $417,000 nationwide lending limit.  Using the older limit of $362,790 and accounting for a possible 10% drop in home values they used $124,500 as the median household equity to arrive at roughly a 16% gain in income.

What does all of this mean?

Simply put – it means that by using the annuity-type feature that is provided with a Reverse Mortgage, the homeowner is able to receive additional non-taxable “income” monthly.  This option is not for everyone, but could quite possibly provide a much-needed boost to a homeowner’s financial situation that may be above the age of 62…and have seen a recent sharp decline in their retirement assets.

I would absolutely suggest consulting a licensed Financial Advisor, prior to making any decisions regarding a Reverse Mortgage.  We work very closely with the area’s leading financial experts and would be happy to arrange a meeting. Simply click here to request an introduction.

As always, the consultations are free and tend to provide a wealth of insight into the possibilities that lay ahead.

If you would like more information as to how a Reverse Mortgage may benefit you in this market, please feel free to call me directly at (540) 904-0842 or email me at Josh@1st-Metropolitan.com.  We look forward to helping.

Cheers!

Josh Perrington – Reverse Mortgage Specialist

1^st Metropolitan Mortgage – Roanoke, VA

www.1st-Metropolitan.com | 540.904.0842 | 2762 Electric Rd, Roanoke, VA 24018

You probably know how the process usually works when purchasing a home with a traditional loan. Once the buyer finds the home they want, it’s appraised – then inspected. The lender only approves the loan if the property meets the requirements in value AND condition. In the case of foreclosures, usually the appraised value will be much higher than the selling price, mainly because the seller simply needs to get out from under the debt. So…what do you do when the home won’t pass inspection?

Unless you have an endless supply of cash lying around…start looking at the next best thing…a Renovation Loan (FHA 203k)!!

In the current market many foreclosures sit on the market in disrepair due to neglect. Those properties are considered poor collateral that lenders would normally they’d prefer not to lend on.  However, for Renovation loans the loan is based on the after-repair value (not current value) and includes an escrow account to complete the repairs needed in order to bring the house to a condition that lenders prefer. This means that the current condition of the property is not as important as the condition of the property after the renovation is complete. This provides an outlet to purchase dilapidated properties, many of which have spent extended periods on the market due to the lack of availability to traditional financing, and solves the problem that most lenders face when dealing with property in disrepair. What this means to the home buyer is generally a significant discount to “as-is” value and, quite often, a fantastic deal on the house.

Now, there are 2 types of FHA 203k Renovation loans…how do you know which to choose? 

If your repairs DO NOT require structural repairs OR they are less than $35,000, then you would want the loan known as a Streamline FHA 203K. With this loan you will have two draws (cash disbursements) after closing. Generally, the lender will release 50% upfront and 50% when the work is completed. On most of these the lender will require a final inspection to make sure the work is complete, but on some of the more simple renovations you can provide receipts showing materials have been purchased and that will be sufficient.

The other type is for those homes needing structural repair OR they are over $35,000. These are known as full FHA 203K and the process entails a little more effort.  Many times, when more extensive repair is involved, it’s wise to involve an architect and get architectural drawings so the contractor bids and appraisal are as accurate as possible.  A HUD approved 203K consultant will also be assigned to help determine repairs and administer draws.

Essentially Renovation Loan products can establish equity for the future in the home that is being purchased. While the market is low, BUY these homes at a ‘bargain’ price, renovate it, and then enjoy the financial rewards it will provide when the market comes back.  As the property values recover, your home equity will increase substantially.

We take great joy in helping assemble your renovation team and watch you take advantage of the opportunities today’s market has provided.  Feel free to call or email anytime & let’s get to work!

Cheers!

Josh Perrington – FHA 203k Renovation Sr. Mortgage Planner

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com | 540.904.0842 | Roanoke, VA

1^st things 1^st, we can help with all of the above, but let’s start by asking:

“What makes a Renovation Loan (FHA 203k) different from a Traditional mortgage?”   

A “Traditional Mortgage” is one that the lender only approves based on the current value & condition of the property.  If you find a home (foreclosure) that might truly be worth $300,000, but have arranged for a purchase at $210,000 (great deal btw!) the traditional lender will only lend up to the $210,000 your contract price).  Now, say it’s not a necessary fix, but you want  to upgrade the kitchen & add new windows.  Even though there is already equity in the property, with a Traditional mortgage you would have to pay for the upgrades with your own money.  Common sense may scream “There’s $90,000 worth of equity in the property, why can’t I just include it in the loan?!?!”  The traditional lender doesn’t care…your contract price = the max loan amount.

Here’s the great part…using the same purchase scenario as above, a Renovation Loan (FHA 203k) WILL allow you to make all of the upgrades AND include them in your loan. A FHA 203k Renovation loan lends based on the AFTER-IMPROVED market value of your upgrades/renovation…not the current value.  This changes the game completely!!!  Instead of having to bring an extra $40,000 to closing (assuming that’s what the kitchen & windows cost), now it’s included in the loan and you keep your money in the bank!  Let’s talk about a few more real world examples…

I own a home, but want to renovate…  

Maybe you’ve been watching a lot of ABC’s “Home Extreme Makeover” and want to turn that old 70’s kitchen into the new bright, shining, stunning kitchen of 2008.  You want to knock a few walls down, replace the flooring with hardwood, new appliances, granite countertops, etc… You have primarily two options.  If you already have enough equity in the home, you can simply do what’s called a “Cash Out refinance” – which means we refinance the current mortgage and pull enough cash out to pay for the projected renovation…that simple.  But, what if you don’t have enough equity in the property to pay for the renovation? That’s where the FHA 203k comes in…  Say your home is currently worth $200,000 and you owe $190,000.  You only have $10,000 worth of equity ($200k – $190k) which is not nearly enough to cover the projected $50,000 (example) cost of renovating.  But, say the improvements will cause your home’s value to skyrocket to $270,000 once they’re complete, versus the current value of $200,000.  We would lend on the AFTER-IMPROVED value and simply include the cost of renovation with your current mortgage balance for a total loan amount of $240,000 (original balance of $190k + $50k improvements)…and now instead of having $10,000 of equity…you have $30,000 (new value of $270k – new mortgage of $240k)!! 

My home’s on the market, but it just won’t sell…

Often times, when prospective buyers are walking through “Open Houses” or visiting potential new homes they are stalled by the blemishes or older characteristics…even though the property may be wonderful for them.  It’s difficult for them to maybe see the true potential simply because the windows need to be replaced, or the HVAC system is old, maybe the plumbing needs updated, or even the roof needs replaced – but the current seller may not have the funds needed to make those improvement prior to selling. 

Think about your home through the eyes of a new buyer… Are there traits that may need to be updated?  If so, have your Realtor partner with an FHA 203k Renovation expert to draft a glimpse of what the property could be like AFTER the improvements, that a prospective buyer may want, are complete.  Show them the pot of gold at the end of the rainbow!  Educate the buyers that their improvements CAN be included now in their purchase!  YOU WOULD BE AMAZED AT HOW MANY REALTORS DO NOT KNOW THIS OPTION EXISTS!!! 

I’m thinking of buying a “fixer-upper”…

Just as we talked about above, this is a great option!  With a traditional mortgage, you would have to pay for any of the improvements with cash out-of-pocket in order to buy a property that needed some TLC. 

Now, instead of using out-of-pocket cash to make the improvements, use the Renovation Loan to purchase & allow the equity to work for you!

What can the FHA 203k Renovation Loan be used for?

There is a LONG list of eligible improvements allowed for the 203k.  Pretty much, the only things that wouldn’t be allowed are luxury items that can’t be included as a permanent piece of the property (i.e. 60” Plasma TV’s, etc…).  But, here are a few that can be included:

• Bathroom remodels
• New Siding
• Attic build-outs
• Adding a 2nd floor
• Granite countertops
• Bedroom Remodels
• Upgrading HVAC
• Going GREEN! (Solar panels, energy efficient appliances, etc…)
• Many, Many, Many MORE!!!!

Now, What’s the Loan Process Like?

Apply for Pre-Approval!!!! I honestly can not stress this step enough.  I’ve seen it many times…couples get excited about renovating, they’ve designed the kitchen, picked out the appliances, selected the contractor…only to then find out they can not be approved.  Granted, the requirements are less stringent than a conventional mortgage…but that does not mean everyone will be approved.  So please, do yourself a favor & talk with a Mortgage Planner first…plus…I like joining in on the fun of watching you go through the designing process… J

Here’s what needs to happen (preferably in this order):

• Call Josh Perrington @ 540.904.0842 or email Josh@1st-Metropolitan.com to Apply for Pre-Approval
• On-site consultation with Appraiser, Contractor, & Mortgage Planner
• Receive bids & Architectural designs (if needed)
• Property Appraised
• Loan submitted, underwritten, & conditions cleared
• Loan closed & repairs begin
• Total Loan Time: 30 – 45 Days!!!!

The process for qualification, approval, and fund disbursement is really quite easy on your part.  If you look at the process through the eyes of the lender, it becomes more of a common sense approach than anything else.  If you were the lender and planning to give money to a family, you would want to know that someone in that family has a stable job, has shown their ability to pay loans in the past, and has enough resources currently to stay on time with their payments.  That’s it! Obviously, there are a few other small items that would need to be addressed, but leave that to us…

Wrapping up…

This loan absolutely has the potential to create personal wealth and a huge amount of equity from day one.  Even more significant, it gives a sense of hope & renewal to families in an economic environment that does not foster such characteristics at the moment.  I’m passionate about helping others turn the house they have…into the home they want!

Feel free to call or email us anytime with questions…we’re here to help, and remember, a pre-approval is always free!

Cheers!

Josh Perrington – FHA 203k Renovation Sr. Mortgage Planner

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com | 540.904.0842 | Roanoke, VA

With CMG’s Home Ownership Accelerator (HOA) being temporarily taken off the market, many financial planners & mortgage planners were/are at a complete loss.  Recently I’ve had conversations with many of our referral partners and have heard comments like the following:

“Finally, we found an investment vehicle worth recommending…now it’s gone!”

“It honestly feels like someone just pulled the rug out from under my clients…I can’t believe the Accelerator is off the market!”

Before I bring Santa into the picture, let’s recap what the Accelerator is & why it’s so powerful:

In a nutshell…  When attacking debt, or building equity, or going to war for that matter…doesn’t it make sense to pull all of your available resources (that may be less productive in their current environment) together to focus on the common goal?  That’s exactly what the Home Ownership Accelerator has been able to do extraordinarily well.  It allows a client to pull their checking account, savings accounts, and mortgage account into one large vehicle that’s proven to be beyond effective.  The majority of all of my clients who are now in the Accelerator are on track to pay their home of in roughly 5 yrs versus their old 30 year mortgage!!  That’s not common though and it just speaks to our clients financial backgrounds.  The nationwide average is having clients payoff in less than 13 yrs…still phenomenal!

- Your income lowers your monthly balance.
- The lower balance saves you interest.
- The saved interest becomes extra principal payment.
- This further lowers your balance, saving more interest.
- This frees up even more money to reduce principal.
- This cycle repeats itself each month, compounding your interest savings
  and accelerating the reduction of your debt.

Sounds great right? Unless you remember reading earlier that HOA is now off the market!  THIS IS WHERE SANTA COMES IN!!! 

We received word a few weeks ago that HOA is temporarily off the market…so what happens to my clients and all of the other clients who were in process?  Santa has come early and he’s brought gifts!!  The biggest gift (everyone wants the biggest present 1^st) is called “Ensemble“.  Ensemble acts, feels, and operates just like HOA!!  The best part…the investment is no where near that of the HOA!

In recent weeks, HOA was requiring clients to invest upwards of 5% of the loan amount…that’s correct..5%! Let’s do the math, on a loan amount of $250,000…that’s $12,500 in discount point & origination our clients would need to pay!  Look, I love HOA, but how long will it take an average client to recoup that $12,500 in equity or principle reduction?!?!?

Ensemble, in many cases, requires $0 towards discount/origination & even if it requires 1% – it would STILL save the client $10,000 in closing costs that can now go DIRECTLY towards principle!!

So…why bring Santa into the picture?  Because Ensemble is truly a gift in today’s economy or, at least, how that economy is being perceived.  With this gift, we now have the opportunity to help out clients nationwide be able to…

- BUILD EQUITY FASTER

- TRULY BECOME DEBT FREE

- INCREASE INVESTMENT OPTIONS

and…NOT HAVE TO CHARGE MORE, JUST TO SHOW THEM HOW TO PAY IT OFF!  

There’s more to come, but if you would like info faster –  click here – I would love to hear from you!

Cheers!

Josh Perrington

Josh@1st-Metropolitan.com | www.1st-Metropolitan.com

Area veterans, Vinton town officials and citizens – dedicated to recognizing veterans past & present – wish to honor those who have made and continue to make personal sacrifices for our freedom.  Thus was born the idea of an outdoor, freestanding Veterans monument, constructed to pay homage to all veterans from Vinton and Roanoke County. Because of their bravery, we are “the land of the free and home of the brave.”

To meet the needs of this construction project, the Vinton Vision Committee is reaching out to the community, businesses, and individuals to help provide financial support for the building of the Veterans Monument.

Ways to Give -

DEAR CITIZENS:

The Vinton/Roanoke County Veterans Monument Committee would like to extend to the public an opportunity to be part of an exciting historical endeavor.  This opportunity is to honor veterans that gave the ultimate sacrifice of their own lives and also to honor “those who serve and those who have served” our country from World War II to the present.

The chosen design proposal is called “High Ground.” A star-shaped walkway will surround and lead to the main part of the monument structure. This walk are will have a brick cobblestone effect to help highlight the elegence of the memorial itself.

The brick style pavers are available for individual purchase in honor of a deceased veteran, someone who serves or has served, or a person one would like to recognize for any reason. 

Thank you for considering a donation to the Vinton/Roanoke County Veterans Monument. Please feel free to contact Candye Ann Peters, Assistant Campaign Director, at 540.525.8449 or Mary Beth Layman, Town of Vinton, at 540.983.0613

“We’re extremely proud to help raise the funds needed to complete this project for the Vinton & Roanoke County residents. Portions of our proceeds will continue to be contributed until the monument is complete!”  – Josh Perrington

1st Metropolitan Mortgage, Roanoke, VA 24018

www.1st-Metropolitan.com | Josh@1st-Metropolitan.com

“Specializing in Roanoke area FHA Refinances along with our exclusive Ensemble equity program.”

Video Gallery

Tales were brewing Tuesday as veterans gathered in Roanoke (11/11)

Former Marine Josh Perrington wanted to do something for Veterans Day.  So he invited fellow veterans and anyone who wanted to come to the Daily Grind in Roanoke to share stories. 

As Perrington re-hashed some of his favorite military memories, the one part of it all he truly misses is the brotherhood.  That was why he invited fellow veterans to the coffee shop Tuesday morning to remember and reflect.

The Daily Grind’s owners wanted to do their part.  On Tuesday, veterans didn’t have to pay for their cups of coffee.

1st Metropolitan Mortgage of Roanoke, VA

Specializing in Ensemble (Equity Acceleration) & FHA 203k Renovation

www.1st-Metropolitan.com | 540.904.0842 | Josh@1st-Metropolitan.com