Housing programs available through the City include rental and home ownership. For the purposes of this article we will look at programs available to those wishing to become homeowners. For those people who do meet the requirements, a few caveats also come along. These may or may not change depending upon the program you are applying for:

1. Eligibility – restrictions are imposed on who can and cannot qualify.
2. Owner Occupied – if you are going to be a recipient of the program, you must also live in the unit. Forget the “would be” landlords aspiring to let the property and collect a rental check.
3. Income Limits – due to the generosity and intent of the program, income limits have been placed on the applicants wishing to apply for the aid. These income limits are determined for low to medium income households as determined by a formula using the median income for LA County as determined by the U.S. Department of Housing and Development. Income limits vary by the number of people in a household.
4. Restrictions on Selling – the City may receive a “first right of refusal” to purchase the property or may share in the increased equity, once you decide its time to move on.
5. Increasing Income – rising income may impair your ability for ongoing participation in the program

As with anything, a critical implied component is timing. Timing is important since federal, state and local money is the source of funds. These programs will usually have a predetermined annual budget. In other words, you need to know when the money becomes available and take the necessary steps towards application. Once the money is gone, you will more than likely be waiting until next year.

Down Payment Assistance

Known as the Homeownership Opportunity Program, this option is available as long as the purchase price does not exceed $425,000 and offers down payment assistance in the form of a second trust deed up to $200,000 with a 45 year term. To sweeten the deal, interest and principal for the first 5 years are waived. Plus, the interest on the second trust deed may be as low as 1.5%. A purchaser has to make a minimum of a 3% down payment which can also be a gift and must be a first-time homebuyer. The critical factor is your ability to meet the qualification terms of the first loan. Also participants have to attend a special homebuyer education class.

Pasadena Inclusionary Housing

As you drive through town slowing down at the construction zones, you probably did not realize that some of those units being constructed are reserved for Low to Moderate Income Households as Affordable Housing. Before the City of Pasadena agrees to green light new development, the Developer has agreed to set aside 15% of the available units for this special program. Priority is given to eligible households that live and work in the City of Pasadena. I should also preface this paragraph by saying that other options are available to Developers if they choose not to set aside the required ratio of mandated units. They may offer a payment In-Lieu fee, may build other affordable housing off site, or may convey other land to the City. Each development project is different and may hinge on whether the developer was granted a density bonus as to the choice of action they pursue. Unlike the HOP (above), being a first time buyer is not a prerequisite for the program.

To find out what other programs are available as well as which projects may be participating, I would suggest checking with the City of Pasadena or working with a local Pasadena Real Estate Agent who can help you navigate the process.

Pasadena Home Buyer Assistance Programs is a post from: Up2Date

About 40 years ago the Clampett’s loaded up the truck and moved to Beverly, Hills that is, swimming pools, movie stars. Jed knew that California afforded a unique opportunity he couldn’t find elsewhere. The same can be said of the opportunities available today in the Pasadena real estate market and surrounding cities. It is a Seller’s market characterized by multiple offers and homes being sold over their asking price. There is however only one problem, the sellers are not there.

As many home sellers still grapple with declining equity, bank owned homes and short sales are driving the market. In the October market report on sales of Pasadena homes, sale prices under $500,000 are having a negative impact on median prices, but also on surrounding home values as well. If you are a homeowner who still has equity in your property (congratulations by the way), the rising inventory of distressed properties may be forcing you to rethink your sale price. It’s very hard to compete when you have 20 – 30 properties in some stage of the foreclosure process, in a quarter mile radius of your home.

Buying a bank owned home or distressed property can offer the opportunity to buy the house under market value. Banks generally are concerned with only the selling price. No emotional attachment with the property. Strictly a business decision. In other words “mark it down and leave town”. Imagine having some instant equity on the day of closing.

Many investors and home buyers find themselves in a real estate market many thought we would never see again. Homes are becoming more affordable. If you need to invest your money, what are your options these days? People who have been forced to leave their homes need someplace to live. Paying rent is more easily done than paying property taxes on a declining asset along with the possibility of a mortgage reset and higher payments, down the road.

However, one needs to proceed cautiously. The feeding frenzy that develops may force you to pay higher than what you had anticipated, defeating your initial purpose. Know the market prices in the area and set parameters on what you are willing to offer. If you are in the market to purchase or just want to see what is available, we offer free foreclosure listings of property in California. Someone once said “you make money when you buy, not when you sell”.

Y’all come back now, hear!

Pasadena Real Estate, A Returning Sellers Market? is a post from: Up2Date

Your options are many. Are you concerned with a prestigious name and a store front on a main street? All of the employees are licensed by the state, but what makes one person either more highly skilled or more capable if they work in a no frills, low overhead office or in a higher priced, recognizable office with more employees with expensive fees and an office location. Both companies have the same tools available to their employees. The question is “Am I discussing real estate offices or hair salons”?

There happens to be a perception in a service based economy that the more you pay, the better the service. And it does not matter if it is right or wrong, what does matter is that perception is reality. What really is important is that you have convinced yourself that when you pay more you get more. Otherwise, why would you do it?

There is also a stigma associated with a product or service that is priced too low. How can someone do it so cheap? What am I giving up and are these guys for real? There must be additional hidden costs associated with such a low priced offer. We tend to stay away from these because our own skepticism keeps us from investigating further. A formidable challenge to the status quo may not receive the attention it deserves due to the market domination of the bigger competitors. They may feel their margins threatened and therefore may question the experience or integrity of their competitive counterparts. We have all heard “You get what you pay for”, but do you?

Is a bigger name better of is it more impersonal? Do you think you are more likely to get a person with superior skills by using a bigger branded company? Chances are you will never find out unless you speak to a few different organizations and see what they have to offer. Since real estate is a highly personalized service oriented transaction you owe it to yourself to find one that is capable and that you feel you can work with. Since you may be contractually obligated for up to 6 months.

Lastly, since you have so many candidates from which to choose, how many of these people can actually provide you with a difference you can distinguish? Why makes Joe’s business different than Mary’s? Maybe you have convinced yourself that the neighborhood specialist for the last 25 years is your choice. We know these people as the ones who do not know how to use a computer. If they don’t understand technology, how many online real estate sites is your house likely to appear on? Most people begin their home search on the internet these days. This might be an important factor to consider.

An informed consumer is an intelligent consumer. Talk to at least three agents if you are thinking of selling your home. Also you should talk to a couple of different service providers, not just the “full commission” companies. At a minimum, you lessen your chances of getting “clipped”.

What Does Hair Styling have to do with Pasadena Real Estate? is a post from: Up2Date