ShareThisCDA (DSELP) Providing Up To $5,000 To First-Time Home Buyers!
An individual or family who are approved to purchase a home using a CDA first mortgage loan can apply for a DSELP. DSELP is a Downpayment and Settlement Expense Loan Program. This program helps eligible borrowers by funding a portion of their closing costs. DSELP was allowing buyers to borrow up to $3,500 but has increased the amount buyers can borrow to $5,000. DSELP is a deferred loan that is repayable when you payoff or refinance the home or upon sale or transfer of the house you financed through CDA.
DSELP can only be used with a CDA first mortgage and some counties require that a buyer take a homebuyer education workshop and have a housing counseling certificate before the buyer signs a contract of sale. Check out www.mmprogram.org for more details. Also you can contact me and I will review the process with you. The current interest rate for CDA is 4.25% with 0 Points.
Vacant Homes Pose Insurance Risks
As the U.S. housing market struggles to rebound, many homeowners are stuck with hard-to-sell properties longer than expected. Some frustrated home sellers who much relocate for a new job opportunity, want to downsize or simply want to buy a new place have left homes empty. Vacant or unoccupied homes can leave the homeowner exposed to loss and liability that may not be covered by their insurance, according to the National Association of Insurance Commissioners.
Homeowners policies are meant to insure homes that are occupied, so they generally include exclusions for neglect or property abandonment on a home left vacant or unoccupied for a specified number of consecutive days. In insurance terms, a vacant home is one the resident has moved out of and taken his/her belongings with him/her. An unoccupied home is one where the resident is not staying at the home, but the furniture and other belongings remain.
Because vacant and unoccupied homes pose a higher risk for damage than occupied homes, insurance companies insure these properties differently and usually at a higher price. These risks include:
Break-ins: When a home has been unoccupied for awhile, it can show signs that nobody is around-unkept lawn, full mailbox, no lights on- that can tip off burglars to an easy target.
No emergency response: Without anyone home to call 911 or respond to emergencies, a manageable problem- such as a small electrical fire-can turn into a much larger, more costly disaster.
Property liability: There is no one present to prevent others from entering the property or to supervise activity, which could increase the likeliness of an accident on the premises or property damage when the owner is not there.
Fannie Mae Intensifies Penalties for Strategic Defaulters
Fannie Mae is boosting penalties for strategic defaulters by prohibiting them from getting a mortgage, backed by the company, for seven years from the foreclosure date. Fannie Mae says it will also take legal action to recoup debt and will be instructing services to monitor delinquent loans and recommend cases that need deficiency judgments. In a statement Fannie said policy changes designed to encourage borrowers to work with their services and pursue alternatives to foreclosure. “Defaulting borrowers who walk away and had the capacity to pay or did not complete a workout alternative in good faith will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the date of foreclosure,” the company said in a statement. “Borrowers who have extenuating circumstances may be eligible for new loan in a shorter timeframe.
Senate Approves Extension of Tax Credit Closing Deadline
The U.S. Senate has passed an amendment that would extend the closing deadline of the homebuyer tax credit by three months. Right now, qualifying homebuyers who were under contract by April 3oth have until June 3oth to close the deal. But because of the large volume of applications for lenders to process, concerns have begun to surface that some buyers may miss out on the tax break simple because of the backlogged pipeline.
The National Association of Realtors (NAR) says it has received reports that as many as a third of the buyers eligible for the credit have already been notified by their lender that they won’t make the June 30th deadline. The Senate’s amendment, approved Wednesday by a vote of 60 to 37, would give homebuyers and their lenders until September 30th to complete their transaction.
FHA 203k Financing Program: A Good Option!
The FHA 203k Financing Program is a good option for anyone looking to purchase a home that needs updating or repairs that the seller is unable or unwilling to fix due to the property being a short sale, foreclosure or estate sales. A 203k loan can help buyers finance both minor and major repairs and improvements. It can also help buyers compete with investors when bidding for short sales and foreclosures.
In the past 203k loans were tedious and difficult. I use to avoid them as much as possible but I would still end up assisting about 2- 3 clients a year to navigate through the process. Most lenders during those days did not specialize in 203k financing so many were learning with each transaction. We never went to settlement on time because a step was always missed and we had to back track. Today I can gladly tell you that is no longer the case. Most lenders who offer FHA 203k financing have a 203k department and loan officers that specialize in the process. I have 2 clients this year who have used FHA 203k financing and both went smooth.
Streamline vs Traditional
Buyers today have the option of doing a streamline or the traditional 203k. A streamline 203k is good for a buyer who is financing $35,000 or less in repairs. The buyer receives half the repair money at settlement. If you go over the $35,000 for repairs you must use the traditional 203k financing. I recommended that my clients who were first-time home buyers to use the traditional 203k instead of the streamline option even though their repair amount was less than $35,000 for several reasons. My first thought was that I wanted my clients to have a good experience and lessen their risk and potential loss of money. The traditional 203k requires that the contractor the buyer has chosen do the work before he gets paid. If the contractor puts in a new kitchen for the buyer a FHA Fee Inspector must come to the property look at the work and sign off on the repairs with the buyers permission before the contractor will get paid. This insures that the contractors does the work correctly the first time or make any necessary modification before receiving his/her money. When a buyer does the streamline 203k and receives half the money up front most of the time they will give it to the contractor and if the buyer is not satisfied with the work the contractor has been paid some or most of the money. Most contractors will not start the work without receiving money in advance. I have found several contractors that specialize in traditional 203k financing and are willing to put up their money and get paid when their work is completed. And my clients are having a wonderful experience. In the past most 203k’s did not work because of issues with contractors. Things have changed for the better and I now recommend FHA 203k financing to my clients its a Good Option!
Federal Home Loan Bank of Atlanta (FHLB) Program Starts April 19, 2010 up to $7,500 in Grant Money for First-Time Home Buyers!
The Federal Home Loan Bank of Atlanta first-time home buyer program (FHP) will start on April 19, 2010. Through its FHP, the Bank will provide up to $7,500 in matching funds per eligible household for down payments and closing costs. The Bank has preliminarily allocated approximately $11 million dollars of funds for the 2010 FHP offering.
Since 1999, the Bank has funded over $59 million in FHP dollars to help more than 9,700 families purchase their first home. More information should be available soon about the program requirements and the funding process. Last year several of my clients used this program to purchase their first home. Don’t miss out! Contact me for more details.
Park Potomac Place-Luxury Highrise Garage Condo Living!
Yesterday my wife and I previewed the condos at Park Potomac Place. Prices range from $682,900 to $1,121,900 with condo fees starting at $690.00 to $951.00 a month. Park Potomac Place has easy access to Montrose Road, I-270 and the area’s many main thoroughfares. It is also convenient to fine dining, anchored by a Harris Teeter and Kimpton Hotel & Spa coming soon. The community is anchored by specialty boutiques, golf courses, cinemas and Strathmore Hall exhibits and performances.  It is close to the C & O Canal and also has a community nature trail and easy walking distance to Cabin John Park.
The building has an elegant lobby with beautiful finished limestone flooring, grand staircase, sitting area and staffed front desk with concierge. I loved the private fitness center including cardiovascular equipment with individual flat screen TVs and state-of-the-art strength equipment. Park Potomac Place has a large circular pool and adjacent arbor. Expansive landscaped courtyard, with grill area, arbor and water wall feature. There are private suites for overnight guest, spacious clubroom with fireplace, wet bar, catering kitchen, and a dining/conference room.  Each unit includes controlled-access underground parking.
Some of the high-end luxury appointments are included in the sales price and have been selected and coordinated by one of the area’s most exclusive design teams, with a wide variety of cabinet, flooring, granite, marble or natural stone baths and Viking, Bosch and Sub-Zero appliances. Custom upgrades also include crown moldings, designer backsplashes, fireplaces, and window coverings.
Contact me to tour these luxurious condos!
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The Luxury Residential Market Could Feel the Strain if the Commercial Market Collapse in 2010
On 1/11/2010, DS News ran an article on the expected collapse of the commercial real estate market in 2010. Here are some excerpts:
According to the Emerging Trends in Real Estate 2010 report, issued by the Urban Land Institute and PricewaterhouseCoopers, most investors will recognize massive losses in the commercial real estate market. Value declines will eventually total 40 to 50 percent of market highs, and surveys in the report indicate 2010 will be the worst time for investors to sell properties in the report’s 30-year history.
“A lackluster economic recovery characterized by problematic job growth will hamper the pace of any real estate market resurgence,” the report said.
Richard Parkus, Deutche Bank commercial real estate analyst, believes this is just the tip of the iceberg. He predicts enormous losses and a large number of banks failing as a result of the declining commercial real estate market.
As tenants go bankrupt, downsize, or invoke their escape clauses, commercial real estate property owners have begun to feel the serious effects of the economy. By the end of 2010, the national vacancy rate is expected to reach 18.5 to 19 percent, the highest recorded since 1986.
A lack of tenants causes a lack of cash flow, and this makes it difficult for commercial property owners to make their impending balloon payments. as a result, some property owners may face foreclosure.
How does this affect the luxury residential market? As you know the investors, brokers, developers, tenants (business owners), and other players in the commercial market are often potential buyers and sellers of luxury homes. Even in markets that are generally stabilizing or improving in 2010 this could mean trouble in the upper tier.
Questions You Need To Ask When You Buy A Condo!
Before you buy a condo you should get the answers to the following questions from the Condo Association. In the process, you’ll learn how responsive-and organized- its members are. You’ll also be alerted to potential problems with the property.
1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.
2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date can’t rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them.
3. How much does the association keep in reserve? Plus, find out how that money is being invested.
4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.
5. What does and doesn’t the assessment cover? Does the assessment include common-area maintenance, recreational facilities, trash collection, and snow removal?
6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about condition of the building or the board’s fiscal policy.
7. How much turnover occurs in the building? This will tell you if residents are generally happy with the building. According to research by the National Association of REALTORS, owners of condos in two-to-four unit buildings stay for a median of five years, and owners of condos in a building with five or more units stay for a median of four years.
8. Is the condo building in litigation? This is never a good sign. If the builders or home owners are involved in a lawsuit, reserves can be depleted quickly.
9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can.
10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you’re buying, may require separate assessments.Â
Beautiful NV Wynterhall in Perry Hall, MD.!
This NV Home features 4 Bedrooms, 4 Full Baths, and 1 Half Bath. This property is a must see for  $515,000. This home features luxury appointments throughout such as, a double door front entrance leading to a spacious 2 story foyer. There are columns throughout create an open floor plan.There is a  gourmet kitchen with granite counters, butlers pantry and a 2 story family room off the kitchen. Front and rear staircases on the main level for your ultimate convenience. The upper level features double door entry to a spacious master suite that features a sunken master bath and so much more. Take a look at the photos below. If you would like to view this Beautiful home located at 9414 Ryans Way contact me at 410-977-7176.
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