What does the Stimulus Package mean to me – the first time home buyer?
February 18, 2009 by Bob Carney
Filed under Real Estate Topics
You can read over the stimulus plan for yourself it is all right here (House Bill part A) and here (House Bill part B) for your entertainment. It is broken into two sections because it is HUGE (don’t open links if you are on dial-up, the package would of expired by the time you got to read it.) I think they want to bore the public to death with all the verbiage to hide all the garbage that is going elsewhere. But I am not here to talk politics; I vowed not to bring politics into this little blog of mine. I don’t need the endless bantering about the democrats and the republicans.
I just want Frederick First time home buyers to know what’s in it for them. You have heard of that old radio station WII FM (What’s In It For Me.) Well here’s the low down on it.
- $8,000 Tax Credit
- You got less than one year! This offer expires 12/01/2009
- Must be your principal residence.
- This is a tax credit and you can get a refund for unused amount when you file.
- You can’t earn more than $75,000 by yourself or $150,000 jointly
- First time buyer is defined as not owning a home in the last three years
- No repayment unless you sell before owning for three years
- Effective date 1/1/2009 – NOW!
Here’s the document that outline the changes from the previous credit. You can see it for yourself.
Now what do you need to do? Well, get off the fence first of all. Everyone has been waiting for the golden opportunity. Unfortunately without Madame Cleo Tarot card, we can’t look into the future. (That’s a joke, her cards didn’t work either.) If we knew when the market was going to peak or stop tumbling, we would all be Warren Buffet, but we are not. We are sitting close to the Perfect Storm for buyers. The sellers had their day in the earlier part of this decade. You have near rock bottom prices on homes, a tax credit worth 8 grand, interest rates at the best they ever been and an inventory full of possibilities.
- Contact a local lender and get pre-approved
- Contact me to send you a list of homes that meet your needs
- Contact your friends to show them your new home
Have a great day
The Market Update for Rentals in Frederick County
April 12, 2008 by Bob Carney
Filed under Market Conditions, Real Estate Topics
As the housing market sits in some turmoil the rental market always seems to grow legs. With the unfortunate increase in foreclosures, families still have to live somewhere.
The average time a single family home has been on the market in Frederick County is 65 days with an average price of $1900. The average time for a non detached home (i.e. Town House, or Condo) has been a little short at 44 days and with an average price of $1420 a month. This information does not reflect homes that have been listed and rented through property management companies. During the sad time in the housing market the rental prices usually increase until you get to a saturation point. This is where the common renter says they have enough!!!
Below is a chart on what you could possibly purchase with the equivalent rental payment. This chart does not take in considerations for property taxes or insurance. Use it only as a gauge…see your lender for more personalized numbers. Times are good for buyer that has good credit, income and nothing to sell.
Rent vs Loan Amount
5% 6% 7% 8% 9% $1,000 $186,282 $166,792 $150,308 $136,283 $124,282 $1,100 $204,910 $183,471 $165,338 $149,912 $136,710 $1,200 $223,538 $200,150 $180,369 $163,540 $149,138 $1,300 $242,166 $216,829 $195,400 $177,169 $161,566 $1,400 $260,794 $233,508 $210,431 $190,797 $173,995 $1,500 $279,422 $250,187 $225,461 $204,425 $186,423 $1,600 $298,051 $266,867 $240,492 $218,054 $198,851 $1,700 $316,679 $283,546 $255,523 $231,682 $211,279 $1,800 $335,307 $300,225 $270,554 $245,310 $223,707 $1,900 $353,935 $316,904 $285,584 $258,939 $236,136 $2,000 $372,563 $333,583 $300,615 $272,567 $248,564
Across the top is the interest rates and down the left side is the payment. In the middle is the POTENTIAL loan amount. Normal house payments include Principal, Interest, Taxes and Insurance. (PITI) Calculations based on a 30 year fixed loan.
- Current list of Single Family Homes for April 11th
- Current Non Detached Rentals for April 11th
- PMP Inc, Property Management People. Ask for Shannon Netro (she rocks)
- Noahs’ Preferred Property
- Professional Property Services
- Frederick County Associations of REALTORS® Resource page
Information about the actual rentals were provided by Metropolitan Regional Information Systems.
If you would like assistance in finding a rental property please feel free to contact me.
Down Payment Assistance – How do I get it?
April 2, 2008 by Bob Carney
Filed under Buyer, Friday, Real Estate Topics
I just listed a home in a troubled area for pricing…imagine that! All the condos around this one is heading to foreclosure and subject to third party approval, in other words, a short sale. The pre-foreclosure market is skyrocketing higher everyday. There are 163 homes listed in RealtyTrac as Pre-Foreclosure today, while there were only 48 two months ago.
So I had to come up with a strategy to help this seller maximize her sales price and make it more marketable than the lower priced counter parts. This seller knows her stuff and had already remodeled the whole unit. She completely remodeled the Bathrooms…no one else’s cooties. Updated the kitchen with ceramic tile. New carpeting throughout the rest of the condo. And of course no remodel is not complete without a fresh coat of neutral paint. This type of upgrade is almost a given in this market if you want to be competitive. And by the way, the other condos are list “as is”…which means you, the buyer does AAALLLL the repairs. Not such a good deal after all.
But we still needed one more up on our competition…more so than Closing Cost assistance. Banks look at todays market as a “Declining” or “Soft” market, which makes it harder for the average joe to secure a loan. Most banks are requiring at leasta a 5% down payment in order to swing the loan.
In comes the Down Payment assistance programs. Since most lenders have a cap on how much assistance a seller can give the buyer, buyers either have to have the extra money in their banks accounts (chances are very slim for first time home buyers.) or they need a gift from someone. This gift is usually from a relative like Mom and Dad or everyone’s favorite rich uncle. There are a few non-profit organizations that realize the not everyone has that rich uncle, but the sellers are willing to help in order to sell the house.
Two programs that I heard success are successful and easy to use are the AmeriDream and the Nehimiah Down Payment Assistance Programs. Key things about these programs the seller has to agree to it, because they make the donation to these organizations. In turn, they give the donation back to the buyer as a gift minus a nominal fee…(a new rich uncle)
At AmeriDream, our goal is helping first-time, and low and moderate income individuals and families become homeowners. AmeriDream’s Downpayment Gift Program gives buyers up to 10% of the sales price of a home for a down payment or closing costs, removing the largest barrier for many prospective homeowners.
For this home I recommended the Nehimiah Program, ordered up some signs from them along with some program flyer’s and advertised “Down Payment Assistance Available”
- Gift funds up to 6% of the final contract sales towards your downpayment and/or closing costs
- Gift funds for both first time and repeat homebuyers
(Nehemiah charges a nominal processing fee that may be paid by the seller, homebuyer, or lender.)- Gift funds for both new construction and resale homes
- No repayment of gift money
- No income or asset limits
- No geographical restrictions
The listing is brand spanking new (literally and figuratively) so I will let you know how it goes. This is one solution I offer to help sellers attract buyers. Each home is unique…so the marketing needs to be just as unique.
Contact me today, if you are ready to put your house on the market.
Here’s a peek at this diamond in the rough.
Have a great day.
Bob Carney
