Wells Fargo is accepting FHA mortgages for borrowers with credit scores as low as 500. The move comes after the National Association of Realtors and FHA Commissioner David Stevens, among others, late last year criticized the country's major banks for requiring credit scores as high as 650 in some cases before making loans. Wells Fargo will now accept borrowers with credit scores of 500 to 579 if they put down 10 percent, with no gifted funds or down payment assistance. For borrowers with credit scores of 580 to 599, borrowers must put down 5 percent, with the same restriction on gifts and assistance funds. Borrowers with credit scores of 600 or higher can make a 3.5 percent down payment. The new policy took effect January 15.

New rules from the Federal Reserve require lenders to notify mortgage applicants when they don't qualify for a financing rate that's comparable to what other applicants get because of negative marks in their credit scores. The notification is supposed to include information on how applicants can et a copy of their credit scores for free so they can make sure the negative marks aren't the result of errors. The Fed rules were released under the Truth in Lending Act and took effect on January 1, 2011.

Here is some helpful advice from Trulia for making your next home purchase:

1. Minimize your holiday spending and save your cash. Instead of using the holiday sales to acquire a new winter wardrobe of cashmere sweaters, hold the discretionary spending down so you can give yourself the gift of homeownership! If you are serious about buying a home next year, don't run up additional credit card debt on gifts this year. Instead, make homemade cards or write holiday letters this year for everyone except the kiddos. And even for the kids, consider scaling back on the stuff, spending more of your time with them than your money, and getting started now saving toward your home purchase.

Kickstart your 2011 homebuying resolution by starting a "Home" savings account at an high-interest, online bank (the discipline-boosting goal is a bank that isn't super easy to transfer funds out of when you run low on cash), and set up an automatic deposit into it every payday. To get specific about your savings goal, if you're cash-flush, obviously a 20% down payment will get you top notch interest rates and provide you with the maximum ability to manage your monthly payments. If you're going to be more of a bootstrapping buyer, an FHA loan might be right up your alley - they offer a down payment of 3.5% of the purchase price.

All buyers should plan to have at least 3 percent of the purchase price saved up for closing costs, even if you want the seller to chip in. The lower-priced the home you want to buy, the more percentage points you should be willing to chip in for closing costs. It's easy for closing costs on an $150,000 FHA loan to run as high as $4,000 or more, considering transfer taxes, inspections, appraisals and mortgage insurance fees. So, even the scrappiest buyer should have a savings target somewhere around 6.5% of their target home's price. To buy a $200,000 home, for example, that would mean a savings target of $13,000.

2. Research financing, areas homes, prices, agents and online. Smart homebuying takes a lot of research and knowledge-gathering. Since most buyers find it much harder to qualify for a mortgage than it is to find a home you'd love to live in, start with studying up on home financing and what it will take for you to get a home loan (note: FHA loans are preferred by the average homebuyer on today's market who has less than a 10% down payment, so start your research there).

If you're considering relocating next year, now's the time to start narrowing down states, cities and even neighborhoods that may or may not work for you. Take into account the job market, housing and other costs of living, and income and property tax rates, as well as the critical lifestyle inputs that vary from state-to-state, like weather and whether the place is a personality fit for you and the life you want to live, be it urban sophisticate or outdoors adventurer.

Also, start to develop a feel for home prices in a what-you-get-for-your-money type way, and start narrowing down the home styles and even neighborhoods that might fit your aesthetic preferences and lifestyle.

3. Rehab your credit, if you need to. Go to AnnualCreditReport.com and check out your credit reports - from all 3 bureaus - for free. (Note - these will not give you your credit score for free - that costs extra, but it will give you the actual detailed credit reports.) Audit them for errors and do the work of disputing inaccuracies to have them corrected. Pay particular attention to: accounts that are not yours/you never opened, derogatory information that should have "aged off" your report by now (i.e., 7 years for late payments, 10 for bankruptcies) and balances or credit limits that are inaccurate (i.e., your credit card balance is listed at $2500, but you actually only owe $250.) These are the errors most likely to foul up your financing, so follow the instructions each bureau provides to correct them, stat. While you're at it, don't close any accounts, even if you are able to pay some down or off - actually, check out these tips for getting the bank to give you the best possible home loan, without unintentionally making your score worse!

4. Run your numbers. In the past, some overextended homeowners complained that they felt pushed into a mortgage they couldn't afford. Pundits blamed that on the real estate and mortgage industry, but I have witnessed firsthand many a homebuyer push themselves or their spouses into buying too expensive of a home. Eliminate this issue entirely by doing this - run your own numbers, before you ever even talk to a salesperson or start looking at homes beyond your means. (I assure you, once you see the million dollar home you think you can afford, the $250,000 home you can actually afford will be underwhelming.)

Get your monthly finances in order, and get a clear read on how much your monthly bills are - outside of housing. Decide how much you can afford to spend every month for housing, when you buy your home. Get clear on exactly how much cash you plan to have at hand to put into your transaction up front. When, in the next step, you begin working with a mortgage broker, you'll want to share these numbers with them, early on in your conversation, to empower them to tell you what home price you can afford - not based on their rubrics, but based on what you say you want to spend every month and what you want to put down.

5. Talk to a real estate and mortgage broker (1 of each). We at New Mexico Mountain Properties have all the info you need for finding and financing a wonderful home in Taos or Angel Fire. Just email us or call and let us know you'd like to work on putting an action plan together for buying a home next year, and would like to talk with us about what action steps need to go on the list. We'll brief you on the timeline of a transaction in our market, and point out for you things like when along the process you'll need to bring money in, when you'll need to miss work and come into our office or the closing office. We offer conveniences like digital document signing, and we can advise you on the local standard practices about which you'll need to know. Depending on your target home purchase timeline, we'll take you to look at a few properties to reality-check your expectations or narrow down a broad wish list.

When you get in touch with the mortgage maven, if you're serious about buying, you will want them to actually pull your credit report, check the actual FICO scores that come up on their system and give you their professional recommendations for what final tweaks you can do to your debts to get your credit score where it needs to be.

Again, we're here to help you achieve your homebuying goals for next year. Give us a call today and let New Mexico Mountain Properties help you get in the game!

Lots of people are concerned about their liability for capital gains tax these days. Following is an informative perspective from Jennifer Pendizeck of Asset Preservation that may shed some light for you on this confusing subject:

"It is imperative to understand how you can avoid paying capital gain tax when selling any investment property. Currently, the federal long-term capital gain, which applies to assets held for a year or more, is at a lower rate than the short-term capital gain tax rate. The long term rate was reduced in 2003 to 15% for most taxpayers.

"The reduced tax rate is effective through 2010. Beginning January 1, 2011 the long term tax rate is scheduled to sunset and revert to the prior rate, which was generally 20%. Additionally, state income tax applies, and any depreciation taken over the years is recaptured at a federal rate as high as 25%.

"By performing a 1031 Exchange, you can defer all of the capital gain taxes due on the sale of a property. To fully defer the taxes, you must buy property or properties equal to or greater than the sales price of the one you are selling and spend all of the proceeds. If you buy for less, you can partially defer your taxes.

"Any taxpayer contemplating an exchange of a vacation home should be able to substantiate that their primary objective in owning the property is to hold it for investment, rather than personal use. Efforts to rent the property should be documented and rental income should be reported on their tax return.

"In an effort to make it easier to determine if your property would constitute an investment property Revenue Procedure 2008-16 has created a safe harbor for exchanges involving vacation properties , under which the IRS will not challenge whether a dwelling unit qualifies . The safe harbor will apply where: (1) the relinquished property is owned by the taxpayer for 24 months immediately prior to the exchange and the replacement property is owned for at least 24 months immediately after the exchange (the "qualifying use period"); and (2) within each of the two 12 month periods constituting the qualifying use period, the taxpayer has:

a) Rented the property to another person or persons at a fair market rent for 14 or more days; and

b) The taxpayer's personal use of the dwelling unit does not exceed the greater of 14 days, or 10 percent of the number of days during the 12 month period the dwelling unit is rented at a fair market rent.

"Property that does not meet the terms of the safe harbor may also constitute qualifying investment property depending on the specific facts and circumstances. To be sure, any taxpayer contemplating a 1031 exchange should consult with their legal and tax-advisor."

With the ski season in full gear, you may be thinking about purchasing a condo in Angel Fire or a Taos Ski Valley condo. If so, there are several things you should know prior to purchasing property in Angel Fire or a Taos condo or townhome.

When you buy a condo you become an owner of the common areas as well as a member of a homeowners association (HOA). Evaluating the HOA is as important as having the condo inspected or any other due diligence you would perform prior to making a purchase.

The following are several questions you should ask regarding the HOA.

1. How large is the HOA?

A small HOA offers owners the opportunity to get involved in the management whereas a larger HOA may hire a professional management team which would mean that you would not have as much input.

2. What are the Rules and Regulations of the HOA and how do they work for you? 3. Is the HOA financially stable?

Go over the budget to make sure that dues are kept current and that there is sufficient reserve money to meet maintenance expenses without having to charge special assessments.

4. Are there any hidden problems?

Go over the minutes of the HOA meetings to determine if there were any problems with property management, member disputes, structural, financial and legal issues.

5. Will you require additional insurance?

HOA insurance policies cover many structural aspects, but check with your lender about additional coverage you may need.

6. What type of loan do you need?

Review the project with your lender to determine whether you will qualify for a traditional loan. Some determining factors include the percentage of the condo property used for commercial purposes and the percentage of units rented.

Ski today and stay forever. Our Taos property or Angel Fire real estate specialists can assist you in finding your dream home or condo in Angel Fire, Red River or the Taos Ski Valley. Come visit us for the Best in Taos Real Estate or Real Estate in Angel Fire. We have offices in both Taos and Angel Fire for your convenience. Allow us to assist you in making your dream of vacation, retirement or investment property come true.

If you are thinking of taking advantage of the Buyer Tax Credit, here are some surprising facts you should know taken from REALTOR Magazine. "The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.

To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively. Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.

Buyers who claim the credit in 2009 can't file electronically because the Internal Revenue Service hasn't put the required forms on line. The wait for a refund is three or four months.

The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn't qualify.

The home can't be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.

A buyer who earns no taxable income or doesn't owe any federal income tax can qualify for the tax credit and file a tax return just to claim it."

Now is the perfect time to buy a home. Interest rates are still low, but they may be going up this spring. So give one of our experienced agents a call today and we will be happy to assist you with buying a home in Taos or an Angel Fire home.

With offices in Taos and in Angel Fire, we can offer you the best in Taos Real Estate or Real Estate in Angel Fire.

Don't forget that we also have a large selection of lots in the Angel Fire Resort - some are even Ski/In, Ski/Out for those avid skiers and snowboarders who want to be right on the slopes! If more acreage is what you are looking for, we also have fabulous 10-20 acre parcels available in Taos Pines Ranch and Hidden Lake (LAKEFRONT AVAILABLE).

You can search all Taos Real Estate and Angel Fire Real Estate through the Taos Real Estate Multiple Listing Service on the website home page "Quick Search". Just e-mail us with the MLS numbers you are interested in.

Thank you for visiting my blog. Let me know if I can be of further assistance with your Angel Fire or Taos Real Estate needs.

Spring is here and the selling season is upon us. For those of you interested in selling your home...here are a few things to avoid:

When selling your home try to model your home decorating after Martha Stewart not good ole Aunt Martha with all of her collectibles. The following common mistakes are often enough to cause the potential buyers to take one look and walk right back out the door:

1. Failure to thoroughly clean the house -- particularly the kitchen and bathrooms. Sure it's clean enough for you, but potential buyers are giving your home the white glove treatment. Deep clean all countertops and tile surfaces. Replace or steam-clean carpets. Get into all of the corners and make those floors gleam. Refinish any wood floors that are scratched or scuffed.

2. Failure to remove clutter. Your clutter, whether inside or outside, stands in the way of the buyer's ability to focus on the home and its best features. Clutter also makes the rooms appear smaller.

3. Leaving the home full of personal items. You want potential buyers to visualize themselves in your home. Those photographs lining the stairways may prevent them from feeling ready to move into the home.

4. Brightly painted rooms. So your daughter chose vivid purple, and your son chose army green for the walls of their rooms. Paint those walls a neutral color! If it always made you feel happy to drive up to your bright blue home, you need to realize that most people will not feel that way and will probably tell the Realtor to drive on by. Soft shades and hues allow buyers to see the room without being turned off by someone else's color choice.

5. Dirty windows and window coverings. Your awesome views will lack luster if the buyer is looking through a dirty or streaked window.

6. Leaving evidence of pets. You love your pets, but a stranger could easily find their food dish or litter box a turnoff. Dog or cat hair on the sofa means it is also on all of the carpets as well. Remove all traces of your pet, and especially get rid of any lingering pet odors. You may need an outside "sniffer" to identify odors.

7. Failure to make a good first impression. The exterior of your home and landscaping or lack thereof may be your only chance to make an impression. A little effort in this area goes a long way to making your home appealing. Plant some flowers to brighten up your home and get buyers through the front door.

Whether you are trying to sell a home elsewhere so that you can buy a vacation home in Angel Fire, or you are selling your present home in Taos to buy that special Taos property to build your dream home, you need to look at the home you are selling from a fresh perspective. Sure your ski condo has special mementos from every ski vacation you have ever taken, but remember that those memories are yours and not the buyer's. Get rid of the clutter, personal items and other distractions and sell that condo or vacation home.

For a FREE comparitive market anaysis of your home or for more helpul hints on the best way to get your Taos home or Angel Fire condo on the market, give our agents at New Mexico Mountain Properties a call today. We are here to serve your real estate requirements throughout the Enchanted Circle with offices in Taos and Angel Fire.

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By now most of us are feeling savvy about using 1031-exchanges to defer paying capital gains tax. It makes sense to use a 1031-exchange when selling property elsewhere to purchase your dream mountain home in Angel Fire. Or maybe you already own a Taos home and are ready to upgrade to a unique property for sale in Taos you have had your eye on for years. Do you see great potential in a property in Angel Fire, but it needs a little work to truly become the mountain home of your dreams? Has your family outgrown your Taos ski condo and you are ready to purchase a larger condo which needs renovating? You can use 1031 exchange money for improvements on your replacement property. This exchange option is ideal for exchangers who have additional funds left over after closing on their replacement property; it is called a "build to suit" or "improvement" exchange.

Within certain guidelines a "build to suit," also referred to as a "construction," or "improvement" like-kind exchange allows you the flexibility to build, construct, or make capital improvements to your replacement property. To accomplish this type of exchange, an Exchange Accommodation Titleholder (EAT) temporarily holds title to a property during construction. Payment of construction costs goes through the Qualified Intermediary in control of the exchange funds for acquisition of your replacement property.

At the end of the 180-day holding period for the exchange, improvements to your replacement property may already be complete. If you discovered the perfect New Mexico horse property only to find a not-so-perfect cabin sitting on it that would never appraise higher than your relinquished property, a build-to-suit exchange may allow you to purchase a replacement property of lower value and make capital improvements to increase the value to equal or greater than the relinquished property. Visit our Taos Real Estate office or the Angel Fire real esta office where our knowledgeable Realtors are eager to show you the majestic beauty of northern New Mexico.

Title insurance is a guarantee to a buyer that a seller is giving them good title to the property. It guarantees to the buyers that the seller is truly the owner of the property and has no outstanding claims against the property such as mortgages, liens, building restrictions and other encumbrances.

In New Mexico, lenders require title insurance before they approve a mortgage on the property. It gives the lender a guarantee that they will have clear title to the property in the event a borrower defaults. In addition, each time a mortgage is refinanced, a new title insurance policy must be purchased.

It is the title insurance company's role to search for any such problems with the property and to insure that the title is good. The price of title insurance is tied to the value of the home.

Feel free to contact our experienced brokers at New Mexico Mountain Properties with any of your real estate questions whether you are interested in purchasing a home in Taos or land in Angel Fire, or listing your property for sale, our knowledgeable staff is here to serve you.

New Mexico Mountain Properties is the premier real estate company within the Enchanted Circle representing Angel Fire real estate and real estate in Taos, NM. With our fabulous ski mountains blanketed in snow, perhaps you are looking for a ski-in and ski-out lot in Angel Fire, a condo in Taos, or a vacation home in Red River? You can depend on our experienced broker team to help you locate your dream mountain property so call us today!

As they say..."a stitch in time saves nine" this is so true with home maintenance. Annual home maintenance prevents small problems from turning into big headaches. The following are maintenance tasks that will save you from costly repairs: Inside Maintenance: Change furnace filters monthly- this will increase furnace efficiency Drain the water heater at least once per year -this will prolong the heater's life by draining away sediment. Clean the coils of baseboard heating units to maximize efficiency. Test the circuit breakers in your electric circuit box twice per year, turning them off and then on again. A faulty circuit breaker could mean a short in the wiring inside your walls. Check for drips- check under sinks to check for leaks. Also use a plunger for sinks and tubs whenever water doesn't drain normally. Replace regularly: Water heaters, furnaces, and the roof should be replaced before they fail. A good rule of thumb...replace the roof every 13-15 years; replace water heaters every 7-15 years; replace a furnace every 15-50 years; paint the exterior every 5-10 years; stain decks every 4-7 years Outside Maintenance: Keep water out - check each season for any signs of water damage especially around doors and windows and flashing between roofs and chimneys Check the foundation - check for gaps and cracks that could cause water damage or homes for varmints. Check for any settling of the ground around the house. Check the chimneys - clean inside of chimneys every 2-3 years and outside for any loose or missing bricks and morter. Check the roof and gutters - look for loose shingles and clean all gutters of leaves and debris All of these maintenance "must-dos" will save you money and keep your investment in top condition. For more tips on home maintenance or for any of your real estate needs, contact our real estate specialists at New Mexico Mountain Properties. We bring you the best in Taos real estate and real estate in Angel Fire New Mexico. Whether you are looking for a home in Taos or a condo in Angel Fire, our experienced agents can guide you. If you are considering listing your home in Taos or mountain home in Angel Fire, we can assist you in preparing a comparative market analysis and show you ways to best market your Taos property or Angel Fire property.

In an emergency effort to boost the US economy, the Federal Reserve has cut two key interest rates by 3/4 of a point. This marks the biggest rate cut since October of 1984! The discount rate was cut to 4%. This is the rate at which banks borrow from the central bank. In addition, the feds cut the federal funds rate to 3.50%, down from 4.25%. This is the rate at which private banks lend money and affects credit card, auto loans and home equity rates. Many experts feel that the Feds will make even more cuts this coming week at the Federal Open Market Committee meeting. What does all this mean for buyers and sellers in the Taos real estate market? The chief economist of the National Association of Realtors stated, "Today's 75 basis-point cut in the Feds funds rate to 3.50% is a very good step in the right direction to boost the economy and sends a clear message to both the market and to consumers. This strong rate cut will help lower mortgage rates and lessen the burden of adustable-rate loans that are resetting in the current environment. It can also help stimulate business investment." So, it seems that this is the perfefct time to buy investment property in Taos, perhaps a Taos Ski Valley condo, or that home in Taos you always dreamed of owning. Take advantage of the lower interst rates now! New Mexico Mountain Properties has access to all the great real estate deals in Taos and surrounding areas. Give us a call today or check out the Taos Multiple Listing Service which can be accessed from this website www.HighMountainProperty.com