Buying or working on a "fixer upper"?

Whether you are considering purchasing a home in need of some light updates, major renovations or anything in between, a renovation loan may be something worth thinking about. Although a somewhat quick summary, below you will find some more information about the revovation loan process.

WHY do buyers consider renovation loans?

When considering the following:

Estate/Short Sales/Foreclosures

Older homes needing updates

Expansion/Finishing needs

HOW is the loan structured?

Total Acquisition Price = Purchase Price plus Renovation Costs

WHAT are some of the different types of loan options? 

FHA 203 K (Full or Streamline K), EEM, EIM

* Streamline - Max of 35k,  No Minimum, No contingency reserve, No Structural Repairs

* Full - Minimum 5k, Structural Repairs Ok, HUD Consultant required, Contingency reserve required, One contractor

* EEM/EIM - Energy Efficient/Energy Improvement Mortgage - allows lender to increase buyers income by estimating cost savings from energy efficient improvements

WHO are these types of loans for? 

Buyers with 640 Minimum Credit Score

Buyers who would be subject to normal FHA and Conventional Guidelines

Contractors that are MHIC licensed, have at least 2% reserve fund (cash or credit access) and can have estimated repair completion of 60 days from contract acceptance date

Please let me know if you are interested in getting some more information about a 203k loan.

Erik Hart
REALTOR®, BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
http://www.erikhart.lnf.com/
http://www.topofthemarket.blogspot.com/

Still paying your mortgage eventhough you are underwater?

Over the last few years, the real estate market has seen some serious up and downs. People lost homes, investors made great deals and the rental market really heated up. But more recently, things are starting to look up. Locally, inventory is tight with list to sale price hovering above 95%. Nationally, new home sales are up...they "rose in September to the highest level in more than two years." (U.S. Census Bureau). But what about those homeowners that are fighting each month to pay their mortgage? These are those people that know that their house has lost market value due to the economic collapse, but are still making payments - on time each and every month. Although these people may have had a hardship - unemployment, decrease in salary, death in the family - they are still making their mortgage payment. On time each and every month. Starting November 1, there may be some hope for these homeowners. Under the current rules, eventhough they will now allow a nondelinquent borrower eligibility for a short sale, their credit may still take a negative hit. Following the below link will bring you to more information - but should'nt the "powers that be" come to a realistic solution to FICO score analysis to allow these homeowners some relief?

http://www.inman.com/news/2012/10/23/damage-credit-scores-could-trip-new-fannie-freddie-short-sale-program

What do you think?

Erik Hart
REALTOR®, BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
www.erikhart.lnf.com
www.topofthemarket.blogspot.com

Not too hot for an Open House

It is going to be hot.

We need to be smart.

Here are some of things that I consider on those especially hot days...

Plan for activities indoors. A good movie, an indoor rock gym or maybe a competitive game of bowling will not only provide some entertainment but also keep you cool.

Ceiling fans can provide some great relief, but remember that they cool you, not the room, so be sure to turn them off when you your family are not around.

I love to get out and hike or ride my bike when there is time...but there is a time and place for exercising outdoors. Stay inside when it is too hot.

Plenty of H2O please...and try to avoid that extra cup of coffee and alcohol.

Multiple coats of sunscreen is recommended. For my very fair skinned kids, an extra coat of sunscreen can really make a difference.

For those of you that are not in to movies, rock gyms or bowling, come say hello in Annapolis today.

Open House - 12-2pm, July 7th

Impeccably maintained home mins from downtown Annapolis! Updates everywhere...chef's kitchen w/stainless appl, updated BAs, custom paint colors, pergo flooring & more. Lg family room w/fireplace & door leading to oversized rear deck. More outdoor space on quaint front porch & lower level patio. Finished lower level w/walkout access to lg backyard. Kitch appl, W/D & hot water heater only 1 yr old!
Directions:
Route 50 to Rowe Blvd (Rt 436). Right onto Taylor Avenue. Left on Melrose Street to Genessee. Turn left on Genessee Home will be on your right List Price: $325,000 Erik Hart REALTOR®, BPI Analyst Severna Park Sales Long and Foster Realtors 410-544-4000 Office 443-889-6860 Cell www.erikhart.lnf.com www.topofthemarket.blogspot.com

Chesapeake Bay and Insurance Thoughts

Ahh, the Chesapeake Bay. One of the many things that I love about Maryland. Whether it is getting out on a boat near the Choptank, looking for sharks teeth down at Chesapeake Beach or fishing off the pier at Downs, the Chesapeake Bay offers recreational activities galore.

But did you also know the following about the Chesapeake?

The surface area of the Bay and its tidal tributaries is approximately 4,480 square miles.

Two of the United States’ five major North Atlantic ports – Baltimore and Hampton Roads – are on the Bay.

The Bay is surprisingly shallow. Its average depth, including all tidal tributaries, is about 21  feet.    A person who is 6 feet tall could wade through more than 700,000 acres of the Bay and never get his   or her hat wet.

About 150 streams, creeks and rivers drain to the Chesapeake Bay watershed.

There are more than 700 public access points on the Chesapeake Bay and its tributaries.

The Bay produces about 500 million pounds of seafood per year.

Forests cover 58 percent of the Chesapeake Bay watershed. The region loses about 100 acres of forest each day to development.

Source: www.chesapeakebay.net

But living so close to a this great body of water can also raise some concerns...did you hear about this...?

Bill Could Increase Flood Insurance Premiums

Daily Real Estate News / Tuesday, June 26, 2012

A bill winding its way through Congress has the potential to more than double flood insurance premiums over the next four years for owners of vacation homes and commercial properties in flood-prone areas, The Wall Street Journal reports.

The proposed jump in premiums is to help ramp up finances for the National Flood Insurance Program, which is a government run program that makes flood insurance mandatory for certain property owners in flood-prone areas. The program currently owes the Treasury Department nearly $18 billion. The increase in premiums is expected to save NFIP $4.7 billion by 2021.

More than 20 percent of the home owners currently in the program receive subsidized rates. The bill would set out to gradually remove subsidies for second homes, commercial properties, and properties with a history of multiple flood damage, The Wall Street Journal reports. Some residential property owners will continue to receive subsidies.

The proposed increases under the bill would likely more than double premiums for about 44,000 policy holders, according to estimates. Those policy holders currently pay on average $1,174 per year.

The Senate is expected to consider the bill this week.

Source: "Senate Bill Would Drive Up Flood-Insurance Premiums, The Wall Street Journal (June 25 2012)

What are your thoughts?

Erik Hart
REALTOR®, BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
http://www.erikhart.lnf.com/
http://www.topofthemarket.blogspot.com/

 

Incentives, Incentives...

For qualified home buyers, now is a great time to buy. When you take the inventory that is out there, factor in the lower prices that homes are now selling for as well as the incredibly low interest rates, home buying seems like a great choice. However, if you combine the downpayment and settlement cost assistance through various incentive programs, home buying can almost seem like a no brainer.

From http://www.mdhousing.org/, check out the article below on some of the programs that the Maryland Mortgage Program is featuring in recognition of June as National Homeownership Month.

Maryland Mortgage Program Unveils Special Home Buying Incentives for Baltimore City and Other Maryland Targeted Areas

Announcement Promotes June Homeownership Month

CROWNSVILLE, MD (May 31, 2012) – The Maryland Mortgage Program announced today that it is offering a reduced interest rate of 2.875% (APR 3.675%) in targeted areas around the state, including the entire jurisdiction of Baltimore City. The promotion, which commemorates June’s National Homeownership Month, was announced by Maryland Housing Secretary Raymond A. Skinner at a home for sale in the Barclay-Old Goucher community. Joining Secretary Skinner at the event were Baltimore City Mayor Stephanie Rawlings-Blake, City Housing Commissioner Paul Graziano, Healthy Neighborhoods, Inc. President Mark Sissman, Catherine Stokes, Sr. Project Manager of developer Telesis Corp., and homebuyer Sara Prammawat.
"Homeownership is an important goal for many families and young professionals and we want to help them achieve this dream," said Secretary Skinner. "We recognize that Maryland has a top notch workforce and we are offering this attractive low interest rate as a strong incentive to these talented individuals and families to buy homes and invest within Baltimore City and other targeted areas around the state."
The Maryland Mortgage Program offers a variety of low-interest, fixed-rate mortgage loan options with downpayment and closing cost assistance for first-time homebuyers; purchasers in a targeted area are eligible for a one-time exemption to the first-time homebuyer requirement. The reduced rate of 2.875% (APR 3.675%) will be offered to all qualified buyers for approximately three months or until the entire $30 million earmarked for this incentive is committed.
This special promotion also includes incentives for eligible buyers of any foreclosed or short sale property (collectively referred to as the Save-a-Home Loan Progam) in a non-targeted area. The interest rate for this program will be three-fourths percent below the regular Maryland Mortgage Program with a floor of 3.25% (APR 4.082%) and will only be available for the month of June.
Earlier this month Mayor Rawlings-Blake announced the launch of a second round of funding of an additional $500,000 for the Vacants to Value Homeownership Program, making it a total of $1 million for the first 100 buyers of Vacants to Value eligible homes. Other Baltimore City programs include the First Time Homebuyer Program, Buying into Baltimore, Live Near Your Work and the Employee Homeownership program.
"This is an amazing program that will support our goal of bringing 10,000 new residents into the City of Baltimore," said Mayor Rawlings-Blake. "I applaud Governor O'Malley and Secretary Skinner for being innovative with programs that will help Maryland's real estate economy and also serve as a huge boon for Baltimore."
The Maryland Department of Housing and Community Development and Baltimore City Housing are proud to join a strong network of housing organizations that promote home buying in Baltimore City. Additional incentives and resources offered by the following partners can be combined with Maryland Mortgage Program benefits and each other to maximize savings for homebuyers in Baltimore City.
Healthy Neighborhoods, Inc. (HNI) helps strong but undervalued neighborhoods increase home values, market their communities, create high standards for property improvement and build strong connections among neighbors. HNI offers two major home buying programs:

• The Healthy Neighborhoods Loan Program offers low-interest loans to acquire/rehab, refinance/rehab, or make home improvements to residential property. Incentives include a 3% downpayment, loan amounts up to 110% of after-rehab value, no private mortgage insurance, and free design advice.
• The Neighborhood Stabilization Program offers:
  
  1. $6,000 in closing cost assistance when purchasing a home that is fully renovated by one of our developer partners; and
  2. $25,000 to purchase a foreclosed, abandoned or short-sale property in a targeted neighborhood.

More information on Healthy Neighborhoods, Inc., can be found on http://www.healthyneighborhoods.org/
Live Baltimore is the most comprehensive organization focused on Baltimore City Living. It aims to market the City of Baltimore as a great place to live and grow the city's population. Live Baltimore offers numerous education and marketing outreach to the public and details can be found on the organization’s website, http://www.livebaltimore.org/

# # #

Maryland’s flagship mortgage purchase program has been under the purview of the department’s Community Development Administration for more than 30 years. Program loans are administered by a network of approximately 35 private lending institutions across the state. For more information on the Maryland Mortgage Program, especially details on income and purchase price limits and a map of targeted areas, please visit http://www.mmprogram.org/ or contact the Community Development Administration by phone at 410-514-7535 or by e-mail at SingleFamilyHousing@mdhousing.org
The Maryland Department of Housing and Community Development works with partners to finance housing opportunities and revitalize great places for Maryland citizens to live, work and prosper. To learn more about DHCD’s programs, visit http://www.mdhousing.org/.
News updates also are available by following DHCD on Twitter (www.twitter.com/MDHousing) and Facebook (www.facebook.com/marylandhousing).

For more information:

Erlene Wilson
Director, Office of Communications and Marketing
410-514-7704
wilson@mdhousing.org
Rosa Cruz
Deputy Director, Office of Communications and Marketing
410-514-7712
cruz@mdhousing.org
Andy DeVilbiss
410-514-7710
devilbiss@mdhousing.org

Erik Hart
REALTOR®, BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
www.erikhart.lnf.com
http://www.topofthemarket.blogspot.com/

Summertime To Dos

Now that we can ask everyone “How was your Memorial Day weekend”, thoughts of long summer days are now in the minds of many. Although you may have made the plans for the summertime activities for the kids, many have not given much thought as to their plans for the summer time maintenance of their home. Whether you are a homeowner that has no plans to move or someone that has been patiently waiting for school to let out to buy or sell a home, following are a few items that many homeowners should consider adding to their summertime home maintenance list along with a few reputable service providers:

Air Conditioning – Having a functional and efficient air conditioning system in a house is something that many people cannot go without. Some simple maintenance, such as changing the filters or cleaning the return/supply vents, can be completed with little effort and knowledge. However, when it comes to cleaning the evaporator or condenser, adding Freon or maintaining the thermostat, professional help is often needed. Jarboe Mechanical and Preferred Heating and Cooling, LLC

Lawn Care – A combination of warm weather and a few good rainstorms can result in a dormant lawn transforming into a bi-weekly chore being added to your list. Although many homeowners prefer to have the frequently mentioned “meditative time” to care and maintain their lawns, many others do not have the time, patience or desire to do so. Martillo Contractors, EarthKare, SidebySide Lawn Care, Gutters and Home Staging, LLC

Pool Inspection – Summertime for many means long warm days that are often filled with barbeques, flip flops and suntan lotion. Summertime also means that many back yard pools are now in business for the season. In addition to ensuring that the pool is clean and there are enough beach towels for everyone, it is also a good time to make sure there are no safety or mechanical issues with your backyard oasis. If you are new to a home or never had one completed, a pool inspection can really provide some good information as to the current condition of your pool. AmeriSpec Home Inspections, AAA Quality Home Inspections, Inc., SafeHome Home Inspection Services

Pressure Washing – Backyard gatherings filled with water slides, popsicles and horseshoes are the ideal weekend activity for many on a warm summer day. Although guests of these gatherings are often tasked with bringing another side dish or drinks for the kids, the hosts of these gatherings are often stressed out with making sure their domain is in the appropriate show stage for their guests. One way to go about this is to get some pressure washing done. Whether it is the side of the house that has mysteriously taken on a green color, the driveway that is in need of some TLC or the deck that is filled with leaves, pressure washing can solve many outdoor cleaning problems. S&J Painting and Remodeling, Jiffy Window & Power Washing Service, EarthKare, SidebySide Lawn Care, Gutter and Home Staging, LLC.

For more tips on home maintenance and to find a dedicated service provider in your area, please contact me or visit www.homeserviceconnections.com.

Erik Hart
REALTOR , BPI Analyst
Severna Park Sales
Long and Foster Realtors
410-544-4000 Office
443-889-6860 Cell
www.erikhart.lnf.com
www.topofthemarket.blogspot.com

April Update

A quick housing trend update for Anne Arundel County for April 2012.

(Note - All figures are compared to April of 2011)

Units Sold - 484, up 3%
Active Inventory - 2817, down 24%  (3865 units)
Median Sale Price - $300,000, up 11% ($270,000)
Days on Market - 105, no change
New Listings - 874, down 15% (1,031)
Current Contracts - 639, up 30% (492)
Sold vs. List Price - 95.9%, down .5%
Months of Supply - 5.8, down 29%
(Months of supply is calculated by dividing current inventory by current sales. Months of supply indicates how many months would be needed to sell all of the inventory available at current rate of demand.)

If you are interested in a market update for your area, just let me know.

Stay on Top of the Market,

Erik Hart

REALTOR®, BPI Analyst

Severna Park Sales

Long and Foster Realtors

410-544-4000 Office

443-889-6860 Cell

www.erikhart.lnf.com

www.topofthemarket.blogspot.com