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Year to Date Market Stats!

by Pat Wattam

The general real estate Market for the Greater Baton Rouge Area is moving along nicely!  With interest rates remaining low, the demand for housing continues.  Here is a quick snapshot, year to date, of our entire market as well as the 3 parishes we mainly serve.

Pay particular attention to the list to sales price ratio when making an offer on a house.

Call the Pat Wattam Team any time for a free consulation - whether you are selling or buying - let us guide you! 

Another Source for a Down Payment on Your Home

by Pat Wattam

Another Source for a Down Payment

 

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Most taxpayers know that they will pay a 10% penalty if they withdraw funds from their IRA before they turn 59.5 years old.  There is an exception for first-time home buyers that allows a penalty-free withdrawal of up to $10,000 per person if they haven’t owned a home in the previous two years.

 

This would allow a married couple who each have an IRA to withdraw a lifetime maximum of $10,000 each, penalty-free for a home purchase.

In many cases, the money would be used for a down payment or closing costs.   However, some buyers might consider this source to increase their down payment so they could qualify for a loan without mortgage insurance.

If the taxpayer qualifies for the penalty-free withdrawal, there may still be taxes due.  Contributions to traditional IRAs are made with before-tax dollars and the tax is paid when the funds are withdrawn.  Since Roth IRAs are made with after-tax dollars, there is no tax due when the funds are withdrawn.

Another interesting fact about this provision is that the taxpayer making the withdrawal can help a qualified relative which includes children, grandchildren, parents and grandparents.

Homebuyers who are considering using IRA funds for a home purchase should get expert advice from their tax professional concerning their individual situation.

When calculating how much downpayment you will need we first need to determine what kind of loan is best for you.  FHA only requires 3.5% of the sales price as a downpayment.  Conventionl loans typically are 5% but in special cases, sometimes as low as 3%.  Rural Development loans are 100% financing.  Don't know which one is right for you?  Give us a call today at the Pat Wattam Team and we'll help you determine which loan works best for your situation.

Now that we have the downpayment options broadened, time to start shopping for a home in the greater Baton Rouge Area!!

Now that you have another way to fund your downpayment, let's talk about houses!  

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Photo of Pat Wattam Real Estate
Pat Wattam
RE/MAX First, Independently Owned and Operated
4750 Sherwood Common
Baton Rouge LA 70816
Office Direct: 225-298-6900
Office Main: 225-291-1234
Fax: 225-295-1234

RE/MAX First
Each Office Independently Owned and Operated
Main: 225-291-1234

Licensed by the Louisiana Real Estate Commission