First Time Homebuyers Get a Break in Texas!

The Texas First Time Homebuyer Program provides below market interest rate mortgage loans through a network of participating lenders to eligible families and individuals who are purchasing their first home or who have not owned a home in the past three years. Two types of loans are available under this program. An “Unassisted Rate” loan typically offers the lowest interest rates available but does not provide funds for down payment and closing cost assistance. For borrowers needing assistance with their down payment, an “Assisted Rate” loan is offered to income-eligible borrowers that provides grant funds up to 5% of the mortgage amount. These loans are offered at a slightly higher interest rate.

This information is brought to you as a public service of the The HBH Group Realty Team with Keller Williams Realty. You may learn more about us at our websites located at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or contact our offices at (512) 439-3772 or toll-free at (877) 268-1877.

How Did the Sub Prime Loan Mess Get to This Point?

Sub prime mortgage loans have created a financial mess that this country has not seen since the early 1980's when mortgage rates reached 20% on conventional mortgages and subsequently put many banks and savings and loans out of business because they had too many fixed rate loans guaranteed at very low interest rates. Now sub prime loans have put 30 of the top 100 mortgage lenders in the nation out of business and have caused many large financial companies to take billions of dollars in losses, including Morgan Stanley, Citibank, Merrill Lynch and Countrywide Mortgage, the nation's largest mortgage company.

From late 2001 until 2005, mortgage lenders had a huge refinancing boom as rates declined. Then refinancing came to a halt abruptly. Many lenders, especially mortgage companies were wondering how they would stay in business. Unlike banks, mortgage companies do not have their own money to lend; they borrow money on a short term basis and resell the loan shortly after they originate the loan. Their profit is derived from origination fees, discount points and closing costs, but this income stream suddenly decreased when the refinance boom ceased, so they became more creative. They lowered the down payment requirement from 10% to 0%. They offered teaser rates to borrowers a full 3% below the market rates and they loosened the qualifying criterion to make it easier for buyers to qualify. The long standing qualifying income and debt ratios of 28% income and 36% debt ratios were relaxed. They also entered into providing sub prime loans to borrowers with poor credit histories; these people previously were denied home mortgage loans. The teaser rates offered are similar to the zero-down, zero-interest rates offered by auto dealer and furniture stores. They are designed to get buyers to purchase homes and get mortgages. The problem is the teaser rates only last one year to three years then they automatically reset to market rates. The difference in payments can be shocking to the homeowner. For example, monthly payments on a $200,000, 30-year mortgage at 3% would be $844 for principal and interest. At 5%, the payment increases to $1,074. If it goes up to a typical sub prime rate of 9%, the payments are $1,610, that's up $766 a month from the teaser rate, or $9,192 per year.

CLICK HERE to read the rest at our website. This information is brought to you as a public service of the The HBH Group Realty Team with Keller Williams Realty. You may learn more about us at our websites located at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or contact our offices at (512) 439-3772 or toll-free at (877) 268-1877.

Builder Offering Close Out Prices in Pflugerville!

We have been working with a well-known builder in several subdivisions in the last couple of years. Please contact us if you are looking at a new home as we are privy to some fantastic discounts that we can negotiate for you on many homes in one of their developments that is about to close out. So if you are considering a trade-up to a new home, please call our office at the numbers below and we can arrange a showing of all the inventory homes that our builders have available. Almost every builder in town has inventory and most are willing to deal! PLUS if you have a home to sell we can offer you some GREAT incentives to sell your home at a discount when you purchase the new home through us.

Another reason to move now is that mortgage rates have slipped again in the past week and are now back into the 5 percent range on 30 year fixed. We are not sure how long this will last, so now is a great time to check out the options.

The HBH Group Realty Team can represent you as a buyer with no builders and at NO COST to you. We are experts at representing your interests to get you the very best deal, protect you in the building and inspection process AND we can assist you with a discount trade-up package to sell or lease your current home. Learn more about us at our websites: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free at (877) 268-1877.

405 Neill St., Thrall, TX 76578 - Country Home for sale

Lovely restored home with plenty of upgrades to make this look like a brand new place! Quiet, peaceful setting in Thrall, just minutes from SH-130. Nearly everything in the home is recently replaced or upgraded: kitchen with gorgeous cabinets and counter tops, recent appliances, ceramic tile in baths, kitchen and eating areas, recent carpet and paint, master bath has jetted tub and separate glass shower enclosure, upgraded fixtures, recent privacy fence and deck, recent concrete sidewalks and drive way, decorated beautifully, one car detached garage. This home has it all and for only $86,900! So NICE and it won't last long! CLICK HERE to see a virtual tour at our website.

This home is brought to you by The HBH Group Realty Team, experts in real estate marketing and sales. To learn more about us, check out our websites at http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free at (877) 268-1877.

15291 FM 86, Dale, TX 78616 - 30+ acre Ranch for sale

Custom built 2815 SF home with 4 bedrooms and 2 full baths located on 30.836 acres of land in Dale, TX. Includes screened-in pool, hot tub, deck, approx. 20x40 ft steel shop building, stable and large pasture for only $325,000. Plenty of tile and designer paint colors, this home is an outstanding value and is far enough off the road to be completely private. CLICK HERE to see a virtual tour at our website.

This information is brought to you as a public service of the The HBH Group Realty Team with Keller Williams Realty. You may learn more about us at our websites located at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or contact our offices at (512) 439-3772 or toll-free at (877) 268-1877.

Personal Property vs. Real Property

When you negotiate a contract, make sure you know what furniture, fixtures and appliances, if any, are being sold with the property. Technically, anything that’s permanently affixed to or installed in the home is real property. Everything else is the sellers’ personal property. This definition leaves a gray area that can lead to disputes between a buyer and a seller. When The HBH Group lists your property for sale, we will work with you to be very specific in what is included and excluded from the sale. If we are working with you as a buyer, we will also make sure that everything is spelled out clearly and you AND the seller know what you are purchasing contractually.

We always ask our sellers what permanent fixtures they intend to remove and remind them to spell it out clearly in the required disclosure forms. We will help you define what built-in appliances are real or personal property. What about a shelving system? A chandelier? Window coverings? If the buyer wants furniture or other nonpermanent items as a part of the deal, we will work with you to spell out these details in the contract to minimize dispute and problems that can result.

Ask us to go over the standard contracts with you before you receive or make a purchase offer. That way, you’ll know what to expect and be prepared to negotiate the best deal you can get. This offer also goes for FSBO's. If you need our assistance, please call us for a no obligation visit to assist you in being as safe as possible in selling your home.

The Tale of the Foolish Real Estate Investor

We live in an information age where there are always "experts" wanting to sell you a new course on how to get rich in:

1. Real Estate
2. Your Own Business
3. The Internet
4. You Name It!

Wisdom comes as we get more mature and realize that there are really no "quick" solutions to anything and that includes creating wealth. A few years ago here in Williamson County, we saw loads of investors who swarmed into the area and purchased real estate by the bunches. The lenders were handing out 100% finance deals like the money would never end. Many of these "investors" went directly to local builders and bought 2-10 properties in specific subdivisions all at one time and all at 100% financed. I like to refer to this as "the era of irrational exuberance". Many of those of us who work this business full time knew that this was a recipe for disaster and the disaster is here now. We are seeing most of these properties now going to foreclosure right and left and although our foreclosure numbers here are dwarfed by many other areas of the country, they are still greater than we have seen in a long time.

So herein is the purpose of this article. There is a distinct difference between an investor and a "speculator". What we saw here in the past were many speculators, but not true investors. Investors recognize value and invest for the long haul. They recognize that business cycles will ALWAYS repeat themselves and trying to cheat a good investment with NO MONEY DOWN and expecting that there will never be lean times are unrealistic approaches to investing in real estate as a business. We are working with many investors from all over the country and have always attracted the SMART investors: those that recognize that money investments on the front end are required to be a wise real estate investor. There will be some great opportunities in coming months in Central Texas to invest in a growing market. And if you do so in a smart manner, over a period of years you will see a substantial return on your investment.

If you are looking for a REALTOR in this area that can provide sound real estate investment advice, counsel and services, please contact us. We groom new investors as well through our training programs and BLOGS such as this one. We'd love the opportunity to service your real estate investment and management needs!

This message is provided as a public service by The HBH Group, the premiere real estate group in Round Rock and Georgetown Texas. Contact us through our websites at: http://www.TheHBHGroup.com/ and http://www.TheHBHGroup.biz/ or call our offices at (512) 439-3772 or toll-free (877) 268-1877.