Montgomery County real estate
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
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
Are you one of the many first time home buyers who are just getting started? Has the tax credit lit a fire underneath you and sparked an interest in buying? Does the high inventory and low prices have you curious as to what you might be able to buy? You’re not alone! I have spoken to an unheard of amount of potential buyers who are really just getting started and don’t really know what style of home they want or can afford.
In Montgomery County you have many different options. From the standard detached(Single family) home/town home to condo style TH’s, condo’s, duplex style homes, and more. What can you afford? Well, if you yearn for the yard and some privacy you may be able to get a detached home in certain areas for under $250k. If you want to go as far north as Germantown you may get a detached home with some age(15+ years old) and will definitely need some cosmetic repairs at the least. There are also a large number of smaller detached homes built in the 1950′s and 60′s in Rockville, Wheaton, Takoma Park, and Silver Spring that may fall into that price range.
Town Homes vary so much in age, style, and size that you could get one for around $150,000 or one for upwards of 1 million depending upon the location. Some of the upper end TH’s have elevators and 2 or 3 car garages. The most notorious TH’s are located in the new “Park Potomac” subdivision. You may have seen this development driving on I-270 near the Montrose Road exit. On the other end, you can find tons of smaller TH’s varying in price all throughout the county.
If you’re the buyer who wants no exterior maintenance, doesn’t need or want a lot of space, and may have a limited budget than a condo is a great option. Even if you don’t have a limited budget but want a nice condo, Montgomery County can accommodate thoroughly. From brand new high end condos in Bethesda, Rockville, & Silver Spring to affordable older condos all over the place. Much like TH’s. However, when buying a condo you must always keep the condo fee in mind. You do pay a premium to have all the exterior areas, common areas, and amenities maintained. Some may include a few utilities, but it is always a case by case basis.
So, if you’re just getting started and considering your options contact a loan officer and real estate agent first. The loan officer will be able to show you want you are approved for and are comfortable paying. The agent can help you weigh the pros and cons of all of your options. of course, the loan officer and agent will do much more than that, but that will be the first step in your process. Good Luck to all!
Category : Uncategorized