Most potential home buyers come to us thinking that they will have to suffer, scrimp, and save every penny to save for their down payment. Today we are going to look at an option to save money each and every month without having to suffer or scrimp. You will save but believe me you will not suffer.

Jim Hunger is both a friend and a client of ours. Jim is a single dad who shares custody of his son Henry. Jim feeds his family on a budget of $200.00 a month. That’s right $200 a month! There is no scrimping, no suffering to eat fantastically on $200 a month if you follow Jim’s lead! Now having a “tween” for a son makes meal planning a challenge. Or does it? The whole point of Jim’s food budget is to eat well for less money than we think possible. Even if feeding the kids.

Asparagus and Homemade Farmer Cheese

I have been following Jim’s blog Musings on the Path to Frugality for quite some time. I know it has helped our household cut our food budget by quite a bit. I’m not the record keeper that Jim is but I know that my food bill is at least 30% lower and I feed two teenagers every day!  I think that anyone that reads this blog will increase their enjoyment of food and their savings account!

Jim was able to save the money for the down payment of his home in part because of the money he was able to save by spending less on food each month.  It was not the only way he saved the money for the down payment but he says it was the most enjoyable way.

When trying to save the money to buy a house there are many things you can do to save money. We are going to start a series here on Monday’s using one of Jim’s recipes. Nobody said you have to suffer to buy a home! We will also share other creative ways to save money for your down payment or really for anything you want to save money for!

If you have any creative ways that you have used to save money please share them in the comments section of this post.

If you want to read more about Jim’s Musings on the Path to Frugality you can find the blog here. Additionally there is a fan page on Facebook and you can become a fan of Jim and his musings by following this link.

All the best-

Well, today moments ago President Obama signed the necessary paperwork to help you get off the fence. The tax credit has been extended until April 30th. 2010. In my opinion this will be the one and only extension. Public opinion is split on this decision. The cost to taxpayers will be over 10 billion dollars to extend the credit. Many are unhappy with this cost. The flip side is that for many potential home buyers this extension gives you a bit more time to find a home that you can live in and enjoy for years to come.

If you’re a potential home seller you will benefit from this as well. More people will be motivated to purchase your home now. If you’ve owned your home for five or more years you might be eligible to receive a $6,500 tax credit for “moving up” and buying a new home. Does this motivate you?

We will continue to keep you informed to the impact of the tax credit for both buyers and sellers of homes in the greater Tacoma area. If you would like a personal evaluation of your situation please contact us directly. We can look at your situation and see if the tax credit is of value to you.

Let Classic Homes Northwest Lead Your Team to Victory

Just like there are many different styles of quarterbacks. There are many different styles of agents. Depending on who you are and how you want to be represented your choice in a Realtor will impact your transaction. I know how we conduct business but, are we a good fit for you? I honestly do not know. I do know that when we sit down and meet with prospective buyers and sellers that many of you have already read everything we have written here and on other sites that we write for. You come to the meeting having a better idea of who we are. The meeting helps us decide if we can represent you and your needs. I have no problem telling a potential client that we are not the best fit for them. This is not a personal judgment it is a professional decision. Like all quarterbacks we want to make sure that our team owner is on the same page of the playbook. If we are looking at different playbooks nobody will be happy. I can most often suggest another Realtor that will be a great fit for you and your needs at this time. Our goal is raving fans even if they are not our direct clients.

When you’re ready to see the playbook give us a call at (253)-219-1194. We can setup a time to meet and go over some of the basic plays to see if they work for you.

If you would like the article I am referencing is available here for your reading pleasure.

What does this mean to you the home buyer? Well if you qualify you will still be eligible to receive a tax credit if you purchase a home by April 30th.2010 (under contract closing can be up to 60 days later)

What does this mean to you the home seller? Depending on how long you have owned your home you might be eligible for a $6,500 tax credit if you purchase a new home by April 30th. 2010. I will be going into more detail on how to leverage this opportunity to sell your home in early 2010 in a later post. If you want to start the conversation on how to get your home ready to sell now please call me at (253) 219-1194 today.

No matter how you feel about the tax credit if it is extended it will make an impact on our local real estate market. Things have been selling in Tacoma and in the greater Puget Sound region. 1st. time home buyers you will need to have your ducks in a row if you want to take advantage of the opportunity. Please read some of our other posts on how to be a successful 1st. time home buyer.

When you’re ready to talk real estate we’re ready to have the conversation. Call or email us when you’re ready.

Opportunity still exists folks. If one will stop reading the mainstream press (shock and awe reporting) one would see that there are many opportunities to create wealth for many of us. Interest rates are near historic lows making the cost of borrowing money to invest on assets NOT to spend on consumer goods as affordable as we have seen in many years if not decades. Real estate inventory is full of opportunities for the buyer or investor who is patient and savvy. This is where working with a team of professionals will pay you the investor or buyer dividends. The stock market is full of opportunities just months ago Ford looked like it was heading for the same future of Chrysler and GM. Yesterday they announce a third quarter profit of a BILLION Dollar. You could of bought Ford for less than $2.00 a share earlier this year. Today it is trading at $7.50 a share. Most anyone reading this post could of afforded to invest $200.00 in Ford. Today that $200.00 would pay $750.00 would you be rich? No, but you would of had a great return on investment. Warren Buffet’s Berkshire is planning a 50 to 1 stock split! look at the track record of that company and see if you can see the opportunity that is presenting itself there.

Remember you are responsible for your own welfare. The opportunities that exist are there for you to examine and determine if they are a good fit for you. Buying stocks, real estate, or any other investment is a personal decision. Make it for you not because the media is telling you that now is the time to buy or sell. Take charge of your life and your investments. When you’re ready to buy or sell a home I hope you will have a conversation with us. I know we are passionate about what we do and that if we are a good fit for you and you are a good fit for us that the opportunities will be fantastic.

Highlights of what is most likely to be passed.

• $8,000 credit for 1st time buyers extending to April 3oth. 2009
• Homes have to be under contract by April 30th. and close within 60 days following.
• If home is purchased in 2010 the credit can be used by the buyers for 2009 (file an amended return)
• Income limits raising to $125,000 for individuals and $225,000 for a joint return
• Credit will not have to be repaid if buyer lives in the home 36 months or more.
• Anti-fraud language has been added. (kind of like closing the barn door after the cows are out. Don’t ya think?)
• Step up buyers are eligible for a $6,500 tax credit if they have lived in their homes for five years or more. ( equity anyone?)

Stay tuned for more updates. It looks like the status is changing by the hour. For more information you can visit the Treasury Site and read the press release for October 29th 2009 here. CNBC has coverage here.

So who wants to buy a house in Tacoma now? Give us a call at (253) 219-1194 and we can start the conversation.

How does this make you feel?

Does it encourage you to consider buying a home now?

Does it encourage you to consider put your home on the market?

Does it frustrate you that our tax dollars are being spent to bribe people to buy a home?

Lets start a conversation about this.

You will be able to enjoy building tours, exhibits, and music while you tour 15 historic churches and a synagogue.

This event is the by-product of a citywide inventory of pre 1965 religious structures funded by a federal grant obtained by the City of Tacoma. Over 170 building s were identified in the inventory.

Highlights of the project are being published in both print and web-based formats. The publication is available for sale at the October event and available in .PDF format on Historic Tacoma’s website in late October.

This open house event and the publications are available through a grant from the National Society of Colonial Dames of America State of Washington Chapter.

This is an amazing opportunity to explore and learn more about some of our wonderful churches in Tacoma. I hope that many of you will take the afternoon and enjoy the tour. For more information and a complete list of the churches & congregations participating please visit Historic Tacoma’s website.

The program allows qualifies first time home buyers to borrow up to 3.5% of the purchase price of a home to be used towards closing costs or a down payment. This is a loan the interest rate is 0% NO monthly payments are required the loan is due when the home is sold or the borrower no longer lives in the home as their primary residence. The loan is recorded as a second mortgage on the property.

To be eligible applicants must be under 80% of the HUD area median income for their household size.

HUD INCOME GUIDELINES-effective 3/19/09

Household Size Maximum Allowable Annual Income (Gross)

1                                    $38,150

2                                    $43,600

3                                    $49,050

4                                    $54,500

5                                    $58,850

6                                    $63,200

7                                    $67,600

8                                    $71,950

Federal guidelines require that income be based on all anticipated income for the next 12 months. Income for all household members over 18 is included in the calculation regardless of whether or not they are on the loan. See Lender Submission checklist for required income documentation.  Gross Income includes all of the following:

1) The full gross amount of wages including overtime, bonus, tips, and other compensation,

2) Net income from the operation of a business,

3) Interest, annuity, dividend, or rental income,

4) The full amount of Social Security, Pensions, Disability, or death benefits, Including benefits received on behalf of a minor child.

5) Unemployment Compensation,

6) Welfare Assistance (Cash Only),

7) Alimony and/or Child Support,

8 ) All regular pay, special pay, and allowances of a member of the Armed Forces,

9) Income from a second job regardless of time on the job.

10) Income from investment or assets.

11) Income from any non occupant co-borrowers.

The following income can be excluded from gross annual income:

1) Income from children under 18,

2) Foster care payments for children or adults unrelated to the family,

3) Adoption Assistance in excess of $480 per child.

4) Lump Sum payments or additions to family assets,

5) Student Financial Aid,

6) Temporary, non-recurring or sporadic income,

7) Income of an unrelated live in Aide,

8 ) Earnings in excess of $480 for each full time student 18 years or older,

9) Other exclusions as allowed by HUD regulations.

Applicant must also contribute a minimum of $1,000 of their own funds towards the pruchase.

Applicant must be a first time home buyer. (cannot have owned a home in the last 3 years)

Applicant must be able to obtain a FHA, VA , USDA or Conventional first mortgage.

The property must be located in Pierce County outside the city limits of Tacoma and Lakewood

The property must be a single family home, condo, or manufactured home on land.

The property must meet the Pierce County Housing Quality Standards

The property must be priced lower than the limit for FHA 203(B) limits $362,790

If this interests you please call Classic Homes Northwest to discuss how we can help you work with a lender to fill out the application to utilize the Pierce County Down Payment Assistance Program. The funds are expected to go quickly call today to get started 253-219-1194

You’ve found the home you want to buy in Tacoma. You’ve made an offer and it’s been accepted now you are in the process of having the home inspected and you are told that there is an old oil tank on the property. What do you need to do to make sure your purchase moves forward?

First you need to know the size of the tank. If the tank is 1,100 gallons or smaller you can follow the City and State requirement that we will cover here.

Assuming the tank is 1,100 gallons or smaller you will need to apply to the Tacoma City Fire Department for a permit to decommission or remove a single family residence underground tank. At the time of this article (October 2009) the cost is $135.00 per site. The application is usually taken care of by the company you select to handle the removal or decommissioning.  You can find the application here. Here is a snippet of text from the Tacoma Fire Department Information Bulletin on Decommissioning of residential heating oil tanks in Tacoma

“ The Law

Section 3404.2.13 of the International Fire Code requires that tanks and piping serving heating oil tanks (which have been out of service for a period of one year or more) be removed from the ground or abandoned in place.

Section 105.7.6 of the International Fire Code further requires that a permit be obtained to remove, abandon, place temporarily out of service or otherwise dispose of a heating oil tank. Fire Prevention Bureau 3471 S. 35th St. Tacoma, WA 98409 253.591.5740 www.tacomafiredepartment.org”

After the permit has been issued the company that is handling the removal or decommissioning has 3 common options

• Drain the tank and triple wash the interior. Permanently cap the fill tube below grade. If a tank is suspected of leaking it should be removed.

• Drain the tank and triple wash the interior and fill with a mixture of a cement slurry, sand or foam. Also permanently cap the fill tube below grade.

• Remove the tank from the ground and back fill the area with clean fill.

Leaving the tank in the ground while the least expensive of the options does not guarantee the home owner will not have to do additional work if future regulations change and require tanks to be removed.

If the tank is suspected of leaking the State of Washington has a law in place to require the cleanup of the ground that has been contaminated.

The following is from the State of Washington

“Cleanup Requirements

Chapter 173-340 WAC (Model Toxics Control Act – Cleanup) addresses the requirement for expeditious cleanup of contamination and the requirement to conduct remedial action necessary to protect human health and the environment. Reporting requirements address contamination that may pose a threat to human health and the environment.

If contamination from a spill or release from a heating oil tank does not pose an imminent or substantial threat to human health and the environment, cleanup does not have to be accomplished immediately. A property transfer may well prompt a lender or purchaser to require cleanup prior to completion of the property transfer, but there is no legal requirement to effect an immediate cleanup.”

As you can see the State does not require an immediate clean up but your lender might. Our focus here is to help you complete the purchase of your home. If you take a proactive approach to any problems with closing your home purchase you will find that the majority of your problems are really quite straightforward when you approach them with the necessary information.

When you are ready to buy or sell in the greater Tacoma area we will be ready and able to assist you.