This limited time offer is your opportunity to purchase a home and save on each monthly payment for the life of the loan. Read more below . . .

Exclusively offered by First Team Real Estate, this special program provides buyers of owner-occupied residential real estate with a substantial cash savings benefit simply for utilizing an agent of First Team along with First Team’s bundle of essential settlement services (escrow, title, and mortgage lending) in their purchase transaction.

Q. Why is First Team offering this exclusive Program?

A. Recently, Harris Interactive in partnership with the National Association of REALTORS® conducted a public opinion study of consumer preferences when it comes to real estate services. In the study, 96% of the consumers surveyed felt
that receiving all of the real estate services through one provider (known as “one-stop shopping”) would make purchasing a home “more efficient and manageable.” First Team has determined that offering our convenient one-stop shop of essential bundled services, which is the overwhelming preference of the consumer, also provides economies of scale that could enable First Team and certain of its affiliates to join forces in offering a financial reward back to these “one-stop shop” consumers in the form of our exclusive First Team Housing Stimulus Package – a win-win for everyone.

Q. Which Buyers are eligible to apply for the Program?

A. Any buyers of residential real estate who are purchasing as owner-occupants, meaning that the buyers intend to occupy the property as their residence after close of escrow.

Q. What are the requirements to receive the Program benefits?

A. The requirements to receive the Program benefits are relatively simple and straight forward:

1. Buyer(s) must use an agent of First Team to represent them throughout the purchase transaction and must execute a Buyer Representation Agreement, along with the Program Addendum.

2. Buyer(s) may be any purchasers of residential real estate as owner-occupants.

3. Buyer(s) must utilize all three essential bundled Preferred Provider Services affiliated with First Team: Hallmark/Coast Cities Escrow, Western Resources Title, and Bankers Funding (affiliated with Wells Fargo Home Mortgage). (Loans
are subject to GSE Conforming Loan Limit for the respective county of the transaction).

4. Buyer(s) must have an accepted offer on the transaction after August 21, 2010, and no later than October 31, 2010, and close escrow and record title by December 30, 2010.

Q. How are the Program benefits paid?

A. The Program benefits are paid in the form of mortgage payment reductions generated by a one-quarter percent (0.25%) buydown in the mortgage interest rate as published daily by Wells Fargo Home Mortgage. This rate reduction is provided at no additional cost to the Buyer. Other normal loan costs apply, including the normal loan origination fee not to exceed one percent (1.0%).

Q. What’s the size of The First Team Housing Stimulus Package benefit?

A. The total amount of the Program benefit is dependent on the dollar amount of the mortgage taken by the Buyer to complete the transaction and the period of time the mortgage is held. While specific amounts can be calculated for the actual loan amount, examples of the payment reduction, and therefore the cash savings benefit, are estimated in the following page based on the loan amount and the period of time the loan is held by the Buyer:

Q. Is there a limit to the size of the mortgage loan?

A. Yes. The Program is limited to the current GSE Conforming Loan Limits as specified by Federal legislation. The loan limits are defined by the county in which the property is located and are shown in the table above.

Q. Is there a limit to the purchase price?

A. No. While the loan size is limited as shown above, there is no upper limit on the amount of the purchase price.

Q. Can I the Buyer buydown the interest rate even more?

A. Yes. If you wish to lower your interest rate and payments even more, you are free to do so. Consult your First Team agent and Bankers Funding loan officer for further details and costs.

Q. Do the reduced mortgage rate and reduced payments mean I can qualify for
a higher loan amount?

A. Probably so. In most cases reducing the monthly payment amount means that you will be able to qualify for a higher loan amount if you wish, meaning that you could buy more home for the same income. Contact your First Team agent
and Bankers Funding loan officer for more specific details.

Q. What if I as the Buyer am unable to meet all of the Program requirements?

A. While First Team wants every Buyer to take advantage of the excellent benefits of the Program, the benefits can only be paid if all of the Program requirements are met. As explained above, the economies of scale that allow us to offer the program benefits are dependent on the use of all of the essential bundled preferred provider services in the transaction.

Q. How do I get started with the Program?

A. That’s the easiest part. Contact your First Team agent, and we’ll take it from there. We’ll provide our complete services from identifying properties for your consideration to handing you the keys to your new home after closing.

The home purchase must be for a principle residence and it can include a boat, motor home or traditional house, condo or townhome up to an $800,000 limit. There are income limits to the new benefits extention. They are $125,000/yr for a single person and $225,000 for a couple.  A purchase by a dependent is not allowed. See your tax advisor for more details.

The good news is that more people can get tax relief when they purchase their next home through April 30, 2010 or have a binding contract to purchase on April 30th and close by July 1, 2010.

The other good news for home buyers is the historically low mortgage interest rate and the reduced market values for homes. This is a combination that probably won’t be seen again in our lifetimes. Contact your realtor to find the best buying opportunites in your area.

I have lovely coastal homes in all price ranges from Orange County to Long Beach, CA. I will find the right one for you. I’m only a click away!

Many of these first-timers bought “starter” homes that were bank owned or in the foreclosure process or distressed “fixers” that needed TLC.  The investor-buyer has also benefitted with the significantly reduced values (down 25% to 40%), often buying distressed homes in “bulk”, fixing them and selling them for a profit.  The inventory of “low-end” properties in California is down and the demand is up.

All of this activity has put a floor (of sorts) in the Cailifornia market so that the CAR is now forecasting a slight increase in values for 2010.  All real esate is local and markets vary.  So, it’s important to find a knowledgeable realtor to assess your niche market value.

The bottom line for California going forward is an opportunity for the “move-up” buyer = someone who currently owns their home and wants to move into the next bigger, better, newer home while the “getting” is good.  Mortgage rates are historically low for everyone.  But they won’t stay low forever. Property values are low, but they are destined to go up again. First-time buyers are buying. That’s why NOW makes sense for the move-up seller.

Some economists predict an increase in interest rates as early as the second quarter of 2010.  Home values may or may not go down a little more in the coming months.  The banks are not dumping their “shadow inventory” of foreclosed homes, but releasing them slowly to maintain values or selling them in bulk to investors.  The window of opportunity will be open only so long.  Anyone who can buy a property and hold it for 2 to 3 years will be glad they bought in 2009/2010.

For first-time home buyers there is a provision to allow up to $8,000 in housing credit for purchases made after Jan. 1, 2009 and before Dec. 1, 2009.  The credit does not have to be paid back if the buyer stays in the home for at least three years. To be eligible as a “first-time home buyer” you either never owned a house before or you haven’t owned (or co-owned) a house within the last three years. The credit is hinged to the buyers income as well with eligibility limited to household incomes of $75,000 annual adjusted gross income for a single taxpayer and $150,000 for a couple filing jointly.  The house/home must be a principal residence purchase (not a second home or investment). A principal residence can be a house trailer, houseboat, co-op apartment or a condominium as well as a single family house.

Under the stimulus plan there is an increase in the conforming loan limits permitted under FHA, Fannie Mae and Freddie Mac to the 2008 high-cost area limits of a maximum of $729,750 (up from $625,500). This is important to all buyers who can now obtain lower interest rate financing to buy even median priced houses in high-cost areas like Southern California. The plan reinstates 2008 loan limits through Dec. 31, 2009.

There is also incentives in the “stim plan” for qualified energy efficiency improvements in existing homes. These credits can be applied to improvements in air-conditioning systems or natural gas and propane furnaces and water heaters. Funds are also allocated for local governments and non-profit groups to acquire and renovate foreclosed and vacant houses that are depressing property values in neighborhoods hit hard by the housing downturn.

The preceding information was obtained through the California Association of Realtors and an LA Times article written by Kenneth R. Harney, published Sunday, Feb. 22, 2009.