Did you know that a Reverse Mortgage could be used to purchase a home?

Meet the Home Equity Conversion Mortgage (HECM) for Purchase. Buyers must be 62 or older to qualify. It’s a federally-insured loan. As long as you live in the home, you will never make a mortgage payment. The loan increases over time and the interest accumulates and is added to the principal balance. The balance is due when you sell, move out for 12 months or more or die.

The catch: it requires about a 50% down payment. That creates enough equity to cover the accrued interest on the loan. The down payment can come from the sale of another home, from savings or a gift from a family member.

You just can’t borrow the down payment. Most folks will use the proceeds from the sale of a home as their down payment.

The Great Recession’s impact on the housing industry has some people wondering if real estate is still a great investment. After all, home values fell nationwide. But as the saying goes, time really does heal all wounds.

If you look at real estate over a long period of time, home values have proven to be resilient. In fact, more than half of U.S. homes are now worth as much or more than they were at the peak of the national housing boom in April 2007! National home prices are expected to rise another 5.5 percent this year.

Visits with Santa, activities with Santa’s elves, holiday music, cookies and hot chocolate. Bring your camera to capture the memories!

A FREE event for the whole family!

Santa will be there 10 AM – 12 PM & 2 – 4 PM

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Lincoln, NE

Many home buyers are willing to compromise on certain characteristics. They’ll give in on price (21%), the condition of the home (19%), the size of the home (18%), and even the distance of the home to their place of work (13%).

But according to the National Association of REALTORS®, the two characteristics home buyers are least willing to compromise on are the quality of schools and distance from schools. Just 4% of recent buyers compromised on the distance to schools, and a mere 2% compromised on the quality of schools.

Twice as many recent buyers were willing to compromise on both the quality of the neighborhood and the distance of their home from family and friends.

Real estate is all about compromise. Did you know that 76 percent of all sellers make at least one concession or compromise? The top concession is lowering the sales price (34 percent), according to a Zillow survey.

What’s surprising is that there’s a big different between women and men when it comes to compromising during a home purchase. NAR (National Association of REALTORS®) research shows that women are better overall at compromising than men. In fact, single males are much more likely to not make any compromises during a home purchase than single females, married couples and unmarried couples.

There are generational differences, too. Millennial sellers – 85 percent – make the most compromises to finalize a home sale, Generation X is next at 75 percent, followed by Silent Generation sellers at 70 percent, and Boomers at 67 percent.

There’s more than one way to become a real estate investor. The fastest, easiest way is to invest is in REITS (Real Estate Investment Trusts). They’re as easy to buy as a stock or mutual fund since you’re not buying a physical property. Made up of commercial real estate, these Trusts include office buildings, retail, apartments and hotels.

You can also buy a 2-4 unit complex, live in one unit and rent out the rest. With this strategy, your loan can be an owner-occupied, Fannie Mae loan. That means a lower interest rate than a standard non-owner occupied loan for a standard rental property. If you decide to purchase an investment property, just make sure you have more money coming in than going out!

Homeowners are expected to spend a near record $317 billion on home improvement this year. The trend is expected to continue, as areas have fewer homes for sale and homeowners have little incentive to move from homes with record low fixed mortgage rates, experts say.

What’s the biggest home improvement mistake that most folks make? Over-improving one’s home can be the costliest, housing experts say. Remodeling magazine found that only attic insulation netted an immediate return on investment (108%). A new entry door was next best (91%). Even the popular minor kitchen remodel only netted an 80% return.

In time, these improvements will net a return. But sometimes homeowners customize and overspend, thinking they’ll sell at a profit in the future, but are unlikely to ever recoup their investments.

One of the scariest things about being a first-time buyer is the unknown. It’s probably one of the main reasons 90 percent of all buyers do hours of online research before deciding to buy a home.

The entire process can be stressful. It’s complicated. It’s filled with paperwork. It’s most likely the biggest financial decision of your life. And it’s peppered with deadlines and boxes that must be checked or the entire deal can fall apart!

Real estate agents are here to uncomplicate the buying process for you. An agent is your matchmaker: he or she will help you define the qualities of your dream house and work hard to turn that dream into a reality. And since they’re pros, they’ll manage the deadlines and check those countless boxes for you so you can make an offer on your dream house with confidence.

Sometimes the desire to own a home is so great that renters just can’t wait, even if they don’t have a down payment to buy a home. How do they do it? Through a contract with a seller called a lease-to-own agreement.

While it’s rare to see in a seller’s market when inventory is low, there are times when sellers will offer this arrangement. Basically, this is a delayed agreement to purchase the home in the future at a price that is fixed today.

How it works:

• The amount of the rent is above the going-market rate.
• Extra funds above the market rate will count towards the renter’s down payment in the future when the home is purchased.
• Lenders typically still allow those above-market funds collected to count towards a down payment as long as everything is documented.

The data is clear: Homes in the best school districts sell for higher prices than similar homes in less-popular school districts. Research also tells us that one of the most important factors that buyers consider when buying a home are schools. One study shows buyers are willing to pay as much as $50 a square foot extra for a home in a better school district.

A 2013 realtor.com® survey of buyers found that 91 percent said school boundaries were important in their search. Buyers are even willing to give up things to buy near a good school district. One in every five buyers would give up a garage or bedroom. One in three would settle for a smaller home to get access to a good school. Over half would sacrifice nearby shopping options for a better school.

Is being near a top school district important to you?

When you’re self-employed, getting a home loan is going to be a little more involved than if you were a salaried employee. There’s more paperwork, tighter qualifying rules, and you’ll need to show a stable income.
The good news is it’s getting easier for you and 14 million other Americans who are self-employed to get approved. Recently, Fannie Mae released new guidelines that are a big plus for self-employed borrowers:

• In certain cases, income documentation is being reduced from two years of federal income tax returns to one.
• A new income calculation is being introduced for business owners with little or no history of distributions.
• The new guidelines are more flexible in dealing with “moonlighting” or extra part-time jobs.

If you’re self-employed, talk to a local lender and learn more.

For decades, buying a second home was pretty much a single-dimensional experience. You bought a place where you would either vacation, or live for several months of the year (often to enjoy a nicer climate).

But with the emergence of home-sharing services like Airbnb, HomeAway and VRBO, second homes are offering you a whole new dimension. Now you can have a place for part-time living, and when you’re not using it, the home can provide you with a regular revenue stream.

Purchasing a second home has become a true investment opportunity, not simply a lifestyle choice. So much so that even major hotel chains like Hyatt are jumping in. The key, as always with real estate, is location, location, location.