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As part of an ongoing effort to increase neighborhood stabilization, Fannie Mae is offering financial incentives! Buyers can qualify for up to 3.5% in closing cost assistance on the purchase of any HomePath properties through October 31, 2011.
“Attracting qualified buyers to the market and reducing the inventory of vacant homes remains essential to stabilizing neighborhoods and helping the market recover,” says Terry Edwards, Fannie Mae Executive Vice President of Credit Portfolio Management. “Since interest rates remain low, the incentive will go a long way toward helping even more families buy a new home.”
What are HomePath properties?
HomePath homes are properties that were unable to avoid foreclosure, and Fannie Mae now owns, as it was the investor in the mortgage. Fannie Mae’s goal is to sell these homes in a timely manner to help boost local housing markets and minimize the effect of foreclosed properties on communities.
HomePath properties vary in size, location and price, and include detached homes (also known as single family houses), condominiums, and town houses located in neighborhoods across the country.
Search all available HomePath properties online at www.homepath.com.
Am I eligible for financial assistance?
Buyers must meet certain qualifications to be eligible for the incentive, including:
- The incentive must be requested at the initial offer submission.
- The initial offer must be submitted on or after June 14, 2011 and the sale must close on or before October 31, 2011.
View all eligibility requirements, terms and conditions online at www.homepath.com/incentive/index.html.
Have questions? Interested in seeing a property? Contact me!
Category : Blog
Looking for relief from summer cooling costs? I’ve come up with a few projects just in time for the summer heat! Whether you’re preparing to put your house on the market, or you want to make your house more environmentally-friendly, here are a few tips to make your house greener and more efficient.
There are suggestions to fit your varying time and budget constraints, from inexpensive projects that practically put money back in your pocket, to green ideas that help you invest in your home.
- Replace incandescent light bulbs with compact florescent lamps (CFLs). These bulbs use 75% less energy than standard lighting and last nearly ten times longer than incandescents!
- Electronics and appliances use power when plugged in, even if they’re not turned on. Turn off lights and appliances when you leave a room, and unplug electronics when not in use.
- Install low-flow water fixtures on faucets and showers, and repair leaking pipes to reduce your water consumption.
- Install insulation to your walls and attic. Adding insulation helps slow down the rate of air flowing into, and out of your house. Effective insulation reduces your cooling costs in the summer and your heating costs in the winter.
- Take the time to inspect all window panes, storm windows and screens for cracks and/or tears, when swapping out your storm windows for screens, and screen doors. Properly seal the envelope of your home (windows, doors, etc.) with caulking and weather stripping.
- Install a high-efficiency water heater and turn the temperature setting down a few degrees. Add insulation to your hot water lines so they don’t cool off as quickly between uses.
- Have your furnace inspected or replaced with a high-efficiency HVAC unit! Change the furnace filter from winter heating season, especially if your home uses central air conditioning, or your heating system fan also circulates air in the summer.
Every little bit helps you conserve energy, and can reduce your heating and cooling costs. Take the time to make simple upgrades and improvements, and you’ll see the savings before you know it!
Category : Blog
Welcome to 30 Millcrest Court! Nestled at the end of a quiet cul-de-sac in Mill Creek Towne, this home shows like a model and is priced to sell. Listed at only $339,900, it may be the least expensive detached home within 2 miles of Shady Grove Metro station, the last stop on the Red line. Easy access to the metro is only the beginning of this commuter’s dream. Only 2 miles to I-270, I-370, and the soon to be completed ICC, and just a short walk to shops & restaurants. Not only is it priced like a town-home, but it has been upgraded and well cared for. The kitchen & bathrooms have been beautifully upgraded, newer appliances, new flooring throughout the main level, and new carpet/paint throughout the rest of this impeccable move-in ready home. The back yard is fully fenced, so feel free to soak in the hot tub or relax on the rear patio.
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Category : Blog
Ok, so we all know(or should know) the federal tax credit expires on April 30th. Just to clarify, you must have a ratified contract by April 30th and must settle by June 30th. Obviously this has been a strong motivational factor to buy for a very long time. Especially when the incentives were increased to $8,000 for a first time home buyer and $6,500 for move up/repeat home buyers.
However, on top of the tax credit expiring, we now have some changes to FHA loans that buyers need to consider as well. These changes will be effective April 5th so if you’re looking to buy right now you need a FHA case file by that date in order to use the old changes. If you’re obtaining a conventional loan than this will not apply. FHA(Federal Housing Administration) is raising it’s upfront MIP (Mortgage Insurance Premium) from 1.75% of the sales price to 2.25% of the sales price. This insurance premium is financed into the loan so it is not an exuberant amount, but will change the monthly payment. Here’s an example:
Sales Price: $400,000 Loan Amount Minus Minimal 3.5% DP: $386,000
FHA MIP @ 1.75% of $386,000: $6,755 Total Loan Amount: $386k + $6,755=$392,755
FHA MIP @ 2.25% of &386,000: $8,685 Total Loan Amount: $386k + $8685=$394,685
So, while it is a rather small amount when financed over 30 years, it’s still more money you will need to pay.
The other change that will become effective for all FHA loans not filed before April 5th is the amount of seller subsidy a buyer will be allowed to obtain. Currently a buyer could receive 6% closing help/seller subsidy on all FHA loans. However, it will soon be only 3%. Typically, your closing costs are no more than 3% when obtaining a loan, but buyers have been getting additional money to buy down their interest rate. However, that will no longer be an option and with whispers of potential interest rate hikes, this could be critical to some. The best thing to do now if you’re looking to obtain any type of loan and buy a home is speak with an experienced loan officer and an experienced real estate agent to make sure you are informed on all the upcoming changes and guided to a successful purchase and loan.
Ben White-Montgomery County Specialist
The Choice Real Estate Team
ReMax Town Center
Category : Blog
With the first time home buyers tax credit expiration date coming to an end April 30th, the Germantown housing market has become very aggressive. A large number of my clients are first time home buyers and desire either TH or newer condo. Typically, these buyers would like their monthly payment to be at or around $1500 a month with all taxes, fees , and insurance included. This would make their price cap about $200,000. Contact a Loan Officer for greater pricing details.
It is possible to obtain a town home or newer/updated condo in that price range, but trust me, there will be competition. Germantown homes in this price range do not stay on the market long and more often then not there are multiple offers to compete with. On numerous occasions over the past year I have written up to 10 offers for one particular buyer in this price range because they may have been out-bid on other properties by other anxious buyers. Now, with a final push to have a ratified contract before April 30th, the market is more competitive then ever.
If you would like more information or are looking in this range, contact a local Germantown Agent who knows the market and can guide you to a successful offer. It is also imperative to have an official MLS search set up as I spoke about in my last blog.
Ben White- Montgomery County Agent
Category : Blog
Are you searching online for a new home? Odds show that if you have even thought about buying, you began your house hunt online. Percentage wise, more 90% of all home buyers begin the process on their computer. As a Realtor who meets a large number of his clients on The Choice Real Estate Teams website, I am very familiar with the online search process.
One of the most common questions I receive on an initial inquiry is, “What is the status of this home”. While searching online is clearly a great resource and easy way to do it yourself, it may not always give you the most recent status. Despite what most people believe, the market is actually very hot right now and if a home is priced well in Montgomery County it doesn’t last long. Especially in lower prices ranges where first time home buyers are scrambling to utilize the $8000 tax credit.
All third party sites are synchronized off of the Multiple Listing Service which licensed agents only have access to. Often times it takes a few days to have the correct status update on a property. My suggestions: If you’re a serious buyer, contact a real estate agent in order to have an automated Multiple Listing Service search set up. This way you will receive new listing within minutes of them going on the market and all status updates will be correct.
Ben White-Montgomery County Realtor
Category : Blog
A lot of people moving to or within Montgomery County inquire about school assignments. Elementary, middle and high schools are broken down into specific clusters. On the Montgomery County Public Schools website http://gis.mcpsmd.org/gis/facilityinformation.asp you can search for schools by putting in the exact address of your property or the general area you are looking to buy in. You can find information and maps depicting the service areas and school locations for the elementary, middle and high schools that compose a specific areas cluster.
Despite common belief, clusters are not always assigned to areas you would assume them to be. They do not necessarily include neighborhoods and towns closest to them. Clusters are determined by demographics, population, bus routes, etc.
If you’re moving to Montgomery County or changing locations within it, and schools will play a major part in the decision, then the MCPS website will be very helpful. When working with your Realtor they should refer you to the website because school service areas change often.
Category : Blog
Due to the so called “Real Estate Bubble and Market Crash” many property values have been driven down tremendously. However, with the huge influx of buyers in some particular price ranges or locations these values are slowly starting to rise. Nonetheless, an appraiser must use the most recent comps and often times the appraisal may come in lower than the purchase price and/or loan amount. When this occurs there are two options: The seller can reduce the sales price accordingly, or the buyer can come up with the cash to offset the difference.
In most cases it’s as simple as this: Buyers don’t want to pay more than what a licensed appraiser determines the value of the property to be, so the seller will reduce the price because that’s all they can expect to sell their home for. Still, what if the seller or buyer thinks the appraisal is poorly done?
If both feel that the appraisal was poorly done than they can request a second one and then try to dispute the value with the bank providing their loan. Sometimes a second appraisal or dispute will raise the value, but not very often. If that happens and the seller refuses to reduce the price then the buyer has the option to come up with the difference in cash. For example: If the purchase price is $200,000 and the appraisal comes in for $190,000 the buyer has to come up with $10,000 IN ADDITION to the expected down payment amount. If the seller wont come down and the buyer wont come up with the cash difference, then the deal is dead.
If you’re obtaining financing for your loan then you will need to know the importance of the appraisal contingency and what exactly it pertains to. Speak with a loan officer to become more educated on all the financing steps that must be taken when buying a home. A real estate agent can help you best determine the value by running a CMA, but again, property values are rising in some areas and price ranges. As a buyer, if you feel an appraisal is low, but feel comfortable paying more than the appraisal amount, come up with the cash!
Ben White-Montgomery County Real Estate Specialist
Category : Blog
In this day and age, many buyers are looking to buy a home in a newer, planned mix use community. In Montgomery County and to be more specific, Gaithersburg & Rockville, there are three very good options. King Farm, Falls Grove, and the Kentlands.
All boast different styles of homes built within the last decade and sooner. In each community you have the option of a detached home, townhome, or condo. Each have easy access to I-270 and All communities have restaurants, grocery stores, and a few bars amongst other nice amenities such as parks and paths to run, walk, or take your dog out for a stroll. What sets them apart?
The biggest advantage in all of the communities is Kings Farms proximity to the Metro. The last stop on the red line, Shady grove, is within walking distance for pretty much all of King Farm. King Farm has some great common areas and parks/playgrounds continue to be built. There is a great and new Safeway to shop at along with a few restaurants, coffee shops, and salons.
Falls Grove is only about a mile away from some parts of King Farm, but the walk to the Metro would not be an easy one. The smallest of the three, Falls Grove has less shopping than any others, but borders the Potomac area that is very sought after and offers more upscale shopping and restaurants. It is the newest of the three and offers all the same amenities, just not on such a large scale.
Finally, the Kentlands & Lakelands is by far the largest and most well planned mixed use development. The community has been widely recognized and many planners model their new neighborhoods on the Kentlands model. Set in between Great Seneca highway, Quince Orchard Rd. and route 28 (Darnestown Rd), the Kentlands and Lakelands have a wide variety of styles of homes. Some mirror the Victorian style, other go for a classic colonial historic feel, and even some “New Orleans Style” homes can be found. Beautiful pools, playgrounds, lakes, and paths are all prevalent. As well as nice basketball and tennis courts. Kentlands also has a Whole Foods and a restaurant for pretty much any cuisine. Personally, I run into a large number of relocating buyers who specifically request the Kentlands or Lakelands and are not interested in any other areas.
So, while all three are similar and will give a buyer looking for a community with everything in walking distance, they all have their perks.
Ben White Agent, Rockville & Gaithersburg Specialist
Category : Blog
Have you ever wondered about the crime rate in a town where you want to find a home?
Or, what the school cluster of a certain home is?
Here are the answers: http://www.crimereports.com/
http://www.montgomeryschoolsmd.org/
Crime Reports allows you to search in a CITY, TOWN, STATE, even ZIP CODE, for every form of crime that may have been committed in a specific area – even underage drinking is listed.
The added bonus is the fact that you can also view Registered Sex Offenders specific location when you have that option checked off. The report is displayed over a google map that is very interactive and allows you to scroll through the area you are searching in and click on specific listings to view more information about it.
The School site offers a number of links and options to find out what you want to know about a certain school or what school your potential home would feed into.
You must know that a real estate agent cannot legally comment on crime so this is one of the best places to research. As an agent we must also refer you to the public school site because we cannot guarantee that the cluster won’t change.
Category : Blog
When buying a property with a HOA there are a few things a buyer must know. The most important being the rules of reviewing the HOA documents. The state of Maryland allows a buyer five days to review the HOA documents/resale package that must be provided by the seller prior to settlement. Once under contract the seller will order the package. Some seller may have already ordered it, but it must be recent. The docs must be no more than 60 days old. Upon review of the docs the buyer can terminate the contract and has no obligation to give an explanation.
The information will include all the rules, covenants, and regulations of the neighborhood amongst other valuable information about the community and the property. Personally, I have had a buyer terminate the contract because the HOA docs did not permit the owner have a satellite dish bigger than a standard TV dish on the property. This particular buyer had a job that required a large satellite be constructed in the back yard. Once he found out that this was not allowed, he had to terminate the contract. Other reasons may include parking regulations, pet regulations, or even gardening regulations. They HOA will usually mandate certain exterior colors be used and any exterior changes to the house or yard must receive approval as well.
Also, you will pay a fee for the HOA. You must include this in your estimated monthly payment, because it must be paid or a lien can be filed. The HOA fee does have it’s positives though. What the fee covers will vary, but the may include lawn maintenance, snow and trash removal, general maintenance or certain amenities like pools & playgrounds etc.
When looking to buy be sure to have your real estate agent look into the community and obtain your re-sale package asap. You will also want your loan officer to include the HOA fee in your Good Faith Estimate. Be sure you review the docs thoroughly and are prepared to make the required payment.
Ben White, Gaithersburg Real Estate Agent
Category : Blog
Over the last few years the real estate market has been flooded with foreclosed properties. Also known as REO(Real Estate Owned) and bank owned properties. Depending on a buyers price range and expectations, they may be looking at a majority for bank owned properties. Most of these listings will fall under $400,000. This price range overwhelmingly first time home buyers looking to take advantage of the tax credit before it expires. I work with a lot of buyers that fit this description and there are a few things you must know before making an offer or even beginning you house-hunt.
First, most people already know that they are being sold “AS-IS”. This means that the seller will not make any repairs to the property whatsoever. However, the buyer can still have a home inspection contingency and have the option to terminate the contract should the results be unsatisfactory. It is considered a General Inspection Contingency. I have found that this is widely unknown and good news to buyers who may be looking at a majority of As-IS properties. Similarly, you must know that the condition of the property must be sufficient enough for financing. Again, most buyers in this price range will be obtaining an FHA loan. Well, The Federal Housing Administration requires that the property have no health, safety, or hazard issues and be considered livable. To pass this inspection done by an FHA approved appraiser, the property must have working main appliances(stove/oven, refrigerator). A dishwasher and washer/dryer are not required. There must be no exposed wires, mold, broken windows, missing handrails etc. It must have a working hot water heater and the heat must work too. The inspector must also determine that the roof has a minimum of 3 years life. Problem is, most bank owned properties have some of these issues and it can be difficult to purchase one with an FHA loan.
Next, the buyer must understand that they may not get an immediate response from the seller/bank and often times it could take about to a week depending on whether or not a weekend falls within those days. Yes, other offers may come in and you may now be in a multiple offer situation. You must know that it may take some time when writing the offer. Buyers can become very impatient and nervous during this process, but there is nothing that can be done. The banks move as quick as possible and have hundreds if not thousands of offers they are dealing with.
Lastly, they are may often times be delays in settlement due to issues with the title and/or deed. Sometimes the bank has not fully received possession of the property amongst many other logistical issues that can go awry. Yes you may be able to get a great deal, but these are a few things buyers should know going into this market.
Ben White, Montgomery County Specialist
Search for homes at http://www.choicerealestate.net/
Category : Blog