Monday, March 30, 2009

Working With Repair Loans

Great Time to Franchise!!

Renting vs Buying

Friday, March 27, 2009

Kiddie Condo

March Newsletter!!!

The Corporate Owner wants a SOLID CONTRACT this weekend, on this New and Completed 4 Level Townhome with Rooftop Terrace. The is a very contemporary unit with Hardwoods, Granite, Stainless Appliance Package, and Rooftop Terrace with a night view of the downtown Atlanta.

The Corporate Owner is reviewing all offers $180,000 and above, Thursday (26 Mar 09), through Monday (30 Mar 09), and decision/acceptance to the highest offer/net to seller, Monday, 30 Mar 09, at 3 P.M.
Contact me!

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A basic calculatorImage via Wikipedia

With an “flukey” economic system and the recent modifications in first time home buyer incentives, calculating out if you should rent or buy can be tricky. Can you afford the down payment? Or, is it cheaper to rent? Luckily, here are two awesome tools to help you make that hefty decision. First, find a home you like. Then, try the Rent vs. Buy calculator to ascertain how much you will be able to save by renting or buying. Or, use the Mortgage calculator to get an idea of what your monthly payments would be. What do you have to lose?

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Teacher Next Door Program

If you are a teacher or know of a teacher who DOES NOT OWN A HOME please pass this on to them.

The Teacher Next Door program was established by the Department of Housing and Urban Development (HUD) to offer single-family houses, townhouses and condominiums for sale to a teacher at a 50 percent discount. The goal through the Good Neighbor Next Door program is to encourage teachers to buy homes in low and moderate-income neighborhoods.

Who can participate?

The Teacher Next Door program is open to any person "employed full-time by a public school, private school, or federal, state, county, or municipal educational agency as a state-certified classroom teacher or administrator in grades K-12." Participants must certify that they are employed by an educational agency that serves the school district/jurisdiction in which the home they are purchasing is located.

A teacher wishing to purchase a home under the Teacher Next Door program must be in good standing with their employer. Your employer must certify that you are a full-time teacher or school administrator. You don't have to be a first-time homebuyer to participate. However, you cannot own any other home at the time you close on your Teacher Next Door home. You must agree to live in the HUD home as your only residence for 3-years after you move into it.

What Are the Benefits for the Teacher?

The selected bidder may purchase the property at a 50 percent discount from the list price. For example, if a HUD home is listed for $100,000, an officer can buy it for $50,000. To make a HUD home even more affordable, you may apply for an FHA-insured mortgage with a downpayment of only $100 and you may finance all closing costs.

Qualifying homes are restricted to specifically designated single family homes, townhomes and condominiums that are located within the revitalization areas. Other types of properties, such as a duplex or triplex, do not qualify for this program. In addition, the homes must be HUD acquired homes and cannot be other real estate for sale in the area (i.e. VA foreclosure homes, resale homes or new construction). HUD sells all qualifying homes as-is. In other words, HUD does not provide any guarantees or warranties.

If the home you want to purchase needs repairs, you may use FHA's 203(k) mortgage program. This program allows you to finance both the purchase of the home and the cost of needed repairs. You have the benefit of one loan for both costs and one monthly payment.

Because homes sold through the Teach Next Door program are located in Revitalization Areas there may be additional assistance from state or local government sources. Local or state governments want to encourage families and businesses to move into

How do I participate?

Teacher Next Door property is listed and sold exclusively over the internet. Properties are single-family homes located in Revitalization Areas. Properties available through the program are marked with a special Teacher Next Door button. Bids are awarded once each week. Your bid must be the amount of the list price. You may submit your bid directly or utilize the services of a real estate broker. Winning bids are randomly selected by computer. The winning bid is posted each week on the web site where you made your bid.

In all cases, HUD requires that you sign a second mortgage and note for the discount amount. No interest or payments are required on this "silent second" provided that you fulfill the three-year occupancy requirement.

What happens if I can’t fulfill my obligation or I am no longer a Teacher?

Depending upon the circumstances, failure to fulfill the three year residency requirement may have serious consequences. HUD may restrict the home owner from selling the property for no more than 110% of the original sales price. In addition, HUD may require all or part of the discounted amount to be repaid. Generally the pro-rated repayment amount goes as follows: repayment of 90% of the discounted amount during the first year, repayment of 60% of the discounted amount during the second year, and repayment of 30% of the discounted amount during the third year. Should fraud or other serious charges suspected, HUD may file criminal charges against the Officer, ban the Officer from further participation from any HUD, FHA, and other Federal programs, and may face the possibility of serious fines and potential prison time. HUD will conduct "spot checks" during the first three years to insure that the residency requirement is being fulfilled.

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Monday, March 23, 2009

Sent from my BlackBerry® smartphone with SprintSpeed

From: "Bullsboro Crossing"
Date: Mon, 23 Mar 2009 08:40:41 -0500
To: <>
Subject: Limited Time Price Reductions and 30-Day Closings Available.

To continue to receive new home agent promotions from, please add to your address book.
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Limited Time Price Reductions & 30-Day Closings Available at Bullsboro Crossing
Homes Ready for Immediate Move-in.
Bullsboro Crossing  |  From the $150s in Newnan  |  770-304-9799  |
See flyer below for more details!

Price Reductions at Bullsboro Crossing
Full Brick Fronts with Hardi-Siding from the $150s

Limited Time Price Reductions & 30-Day Closings Available at Bullsboro Crossing
Homes Ready for Immediate Move-in.
Bullsboro Crossing  |  From the $150s in Newnan  |  770-304-9799  |

This email was sent by: Atlanta New Homes
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Sunday, March 22, 2009

FHA Kiddie Condo Program

A Mother and fathers 20-year-old son was preparing to attend Clark Atlanta University. The parents questioned whether he should shell out money for his son's rent, or invest in a condominium where his son could spend his college years.

He decided to buy.

To rent a home in the university area is not comparable to buying. Many rentals are located in areas with high crime rates and congestion, he adds. And paying rent would not earn a financial return on his investment.The parent is buying a brand-new, 800-square-foot oversized studio near the AU for $129,000. The monthly mortgage payment will be between $700 and $900, a little more than what he was planning to pay for rent. In addition, the parents will in all likelihood be able to recoup college expenses by selling or renting the property after his son completes school.

These parents are one of many parents throughout the country choosing this route. The rationale is fueled by a number of factors: The ever-escalating costs of college; the attraction of real estate as a relatively safe investment; and the possibility of making a profit in a short amount of time during the current real estate boom.
And it's not just parents who are the potential buyers. Many college students laugh at the idea of buying a home because they say they're broke or they just don't understand the process.I saw my college friends go through college and live in questionable and curious places and I saw how they lived and threw money away.
I have created a hip and colorful tri-fold brochure, which I place at spots around the AU Center area, which lays out the very basics of buying a home, defining things like mortgages, appreciation, down payments and equity.I have addressed many students who couldn't grasp the idea andI found they needed to be educated. They need to be equipped.
I have started this new venture early this year and have had the pleasure on being a part of many success stories

Nationally, students attending four-year, postsecondary public schools disbursed an average of $6,222 for room and board expenses in 2007-2008, up from $5,475 in 2006-2007, according to statistics from The College Board, a nonprofit association comprising more than 4,700 schools, colleges, universities and other educational organizations. Tuition and fees rose during the same period from $4,645 to $5,132 per year.If someone buys a home for $150,000 with 5 percent ($7,500) down and an interest rate of 6 percent, the monthly mortgage payment would be $854. At the end of four years, equity in the home will have increased to more than $19,000. If the home appreciates at an annual rate of 3 percent during the same period, the amount equity will jump to more than $34,000 -- full reimbursement for the average tuition costs for four years, as well as additional income.

The altogether point of this post is to generate thought on your part on how you perhaps may be able to use a FHA "Kiddie Condo" loan as a resource to make your childs' college education more financially palatable or even possible for you to manage. The child/student could obtain a FHA loan with the parent(s) signing as non-occupant co-borrowers. The following example or scenario is presented. You can substitute your own numbers to any of this based on your own research.
Housing expense will range all over the board as well. For discussion and illustration purposes in this post I will use $6000 a school year or annualized...$500 monthly. Quite frequently
Single Family 3/2 home, purchase price $160,000, interest rate of 6.25% fixed for 30 years, 2.25% down payment. A calculation of 5% of purchase price for total required investment (down payment and settlement costs) or $8000. This will obviously vary somewhat based on the typical costs for the area.

Utilizing the above terms the monthly housing expense is $950 principle and interest, estimated $350 for taxes, insurance and mortgage insurance premium for a total of $1300 monthly piti. Because your child will not be in dormitory housing we will add $300 each month for utilities bringing the total monthly housing cost to $1600 a month or $19,200 on an annualized basis. Yes, quite a chunk of change! But let's do a stubby pencil drill and tweak the numbers to further explore the possibilities.

In this scenario we're purchasing a three bedroom home which would house from 3 to 6 students depending on how you choose to set up your concept. Let's use 5 (your child and 4 tenant students) which would probably give your child a bedroom/study area to themselves. Let's assume that you set the student tenant rents at $4800 per year in an effort to attract tenants with the affordability. $4800 x 4 is $19,200 per year in gross rental receipts. This means that you have saved $6000 a year, $24,000 over the span of a 4 year college degree and your child has lived there for free. Not to shabby....right? Right....and it gets even better!!

Let's go over your achievements which can be any one thing or any combination of things. Your child has lived at that place for free, you have utilized this savings to offset the cost of tuition and fees, you have eliminated or reduced the amount of student loans called for to get your youngster through college, etc, etc.,.....and you've increased the the equity position in the home. First by approximately $8000 in principle decrease and using a humble appreciation rate of 4% year over year an additional $25,000+/- for a total of $33,000. You have helped your child to start a credit record which will pay many dividends down the line.

Monthly mortgage payments also can be extenuated by renting extra rooms to other college students. In comparability, THIS IS THE KEY!!!rental payments are gone for good.
There's no question more parents of college-aged kids are looking at investing in real estate rather than paying rent.

There is a numerous number of condominium, townhome and mixed-use projects near the AU Center. Over the past few years, 30 percent to 40 percent of the units I've sold in the university area -- about four to five a year -- are to parents of college students. Most of the sales were for homes priced at less than $200,000 and very near to AU.

Properties near AU are appealing for many from an investment standpoint because they tend to retain their value and can be rented at a later date, not to mention the possiblitly of qualifying for City grants that can net you up $100,000 off the price of your home. Homes in the AU area have some of the highest rates of appreciation in the city.

Many parents and their college-aged minors use the nonoccupying, co-borrower loan program, also referred to as a "Kiddie Condo" loan, under the Federal Housing Administration. A direct blood relative can co-sign on the loan with the college student. The FHA will lend up to 97 percent of the purchase price, meaning a down payment of only 3 percent is often required. Interest rates depend on debt-to-income ratios of both parties.

Allow me to assist you in working with the Kiddie Condo loan program.Absolutely a brilliant strategy

Without doubt, college and career prep is one of the hardest issues for most American families to deal with. Like a lot things in life, the cost of a college education has soared over the past few years. Still if your child is advantaged enough to obtain scholarship assistance paying for their education can still be unreachable for many families.

Annual tuition and fees can range all over the board depending on the College or University, whether it is public (in-state, out-of-state) or private. In all likelihood $10,000 to $30,000+ annually. If your child has obtained scholarship(s) you are further ahead than most American families. Tuition and fees, for the most part, are going to be what they are going to be. Housing expense will be the chief expense that may be more controllable for you.

1. Sell and recoup funds
2. Payoff student loans
3. Sell and contribute toward graduate school
4. Sell and contribute to your child's purchase of their first "real" home to start of their new life and career
5. Keep as rental investment property to further fund graduate school
6. Follow-on college bound children to occupy and continue the savings and equity building
7. Whatever else is important to you and your child....dare to imagine!

There is nothing absolutely new about this concept....but centering can be lost or data doesn't always continue to flow steadily....or it just never crosses the mind that is why as professionals look forward to educating the consumer.So if you are consumer with college bound children...explore these possibilities! As a Real Estate professional or a mortgage loan officer please let us help you understand the "Kiddie Condo" concept!

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Baby Boomers Impact!!

There Will Be Fewer Buyers from the Boomer Generation

Many Baby Boomers will not be buying another home anytime soon according to the Center for Economic Policy and Research report “The Wealth of the Baby Boom Cohorts after the Collapse of the Housing Bubble” dated February 2009 and written by David Rosnick and Dean Baker.

For precision, the Boomer generation was divided into Late Boomers between the ages of 45 to 54 and Early Boomers between the ages of 55 and 64 (the findings of the report exclude any benefits from defined benefit pensions). The findings of the report indicated:

1. Late Boomers Median household wealth fell by more than 45 percent between 2004 and 2009, from $172,400 in 2004 to just $94,200 in 2009 (all amounts are in 2009 dollars). After a life time of work and wealth accumulation the median late boomer household has only enough wealth left to pay for 55% of the price for a typical house and they have no other assets whatsoever. Sadly, they would still owe approximately 45 percent of the price of a typical house.

2. Early Boomers Median household wealth fell by almost 50% from $315,400 in 2004 to $159,800 in 2009. This net worth would be sufficient to allow these households, who are at the peak ages for wealth accumulation, to cover approximately 90% of the cost of the typical house, if they had no other assets.

Consequently, as a result of the collapse in house prices, many boomers now have little or no equity in their home. Of those who own their primary residence:

1. Nearly 30% of the late boomer households, if they were to sell their home, will need to bring money to their closing (to cover their mortgage and transactions costs).

2. More than 15% of the early boomers will need to bring money to a closing if and when they sell their home.

In my opinion, Real Estate markets where boomers shopped for second homes and/or retirement homes will experience a sharp decline in sales and a slow recovery.

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Tuesday, March 17, 2009

Great Interest rates!!

Monday, March 16, 2009

Tuesday, March 10, 2009

The 30 Year fixed remains under the 5% threshold at 4.875%.. The yield has slipped somewhat, but still very solid. The discount to 4.5% has gone down slightly as well, to 1.674. Remember that the discount number shows up on the GFE in the 800 block as Discount Points, right under Origination Points. A point is 1% of the loan amount. Example: $200,000.00 x 1.674 in discount = $3348.00 charged to the borrower to get a 4.5% rate.

The 10 and 15 year terms are both very solid at 4.75%. Which is up compared to weeks past. A discount of 1.057 will yield a rate of 4.25%

$200,000.00 x 120 months(10 years)@ 4.75% = $2095.00 P&I payment

$200,000.00 x 180 months(15 years)@ 4.75% = $1556.00 P&I payment

$200,000.00 x 360 months(30 Years)@ 4.875% = $1058.00 P&I Payment

Short term money is not for everybody.

ARM money remains the best rates on the board Today at 4.25% for both the 3/1 and 5/1, no discount to a lower rate is available. With the 30 year fixed under 5%, it is case by case on whether your customer will benefit by the lower rate. As the 30 Year moves closer the short term money, it is doubtful that ARM's will be used much, except for specific loan scenarios. Either way, everyone benefits with cheap money, especially your customers.

Interest Only loans remain cheap, with the 3/1 and 5/1 at 4.25%. As I said yesterday, even the 30 Year fixed is attractive at 6.375%. Remember your customer will need to qualify for the full PITI payment, not just the IO payment. Interest Only loans work better for the higher loan amounts, rather that the 150k and under amounts.

$200,000.00 x 30 year fixed @ 5% = $1074.00 P&I, fully amortized

$200,000.00 x 30 year fixed @ 6.375% = $833.00 P&I Interest Only

Keep the IO loan scenario's in play if you have a payment buyer.

Jumbo money is ridiculous right now. There are a couple of niche players that are offering jumbo and super jumbo in the 5% range on ARM money, but nothing fixed. LTV's and FICO adjustments remain restrictive. The minimum FICO scores are going up as well, with investors at 600 or 620 mid. Some investors are going above the 620 mid.

There is simply no appetite for Risk.

Government money remains steady at the 5% level for both FHA and VA. ARM money mirrors the conforming money at 4.25%. You or your company should have a separate marketing plan for the First Time Homebuyer market. Understandably the market is very tough right now, however this may be the best buying opportunity for this market, EVER.

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House passes Mortgage Bill!!

Tuesday, March 3, 2009

Sky Lofts is perfectly located in downtown Atlanta which stipulates the property for numerous City Grants and Down Payment Assistance Programs. Sky Lofts has the following grants available:

* Beltline Grant - 20% Grant
* Capital Gateway - $20,000 Grant
* A.H.O.P - $10,000 Grant
* M.A.P.P - up to $50,000 Grant

And the awe-inspiring thing is if you qualify, the grants can be layered which could give you up to $100K off the purchase price ! Contact me and will also explain the details of $8,000 first-time homebuyers tax credit.

Sky Lofts is City of Atlanta Tax Abated through the year 2015, prices have been reduced and these Atlanta Lofts are FHA Approved which means that you can put less money down and it’s easier to qualify for a loan.

There are one and two bedroom Atlanta lofts and townhomes have hardwoods, granite countertops, stainless steel appliances and 11 different floorplans to choose from. Sky Lofts is literally 3 minutes away from downtown Atlanta with easy access to highways I-20, 75/85 and I-285. This community features a sparkling swimming pool, clubroom, fitness center and over 9,000 sq. ft. of retail space housing shops and restaurants for homeowners to enjoy. The Builder, Russell New Urban Development, has spent $2 million on new sidewalks, trees, streetlights, and other streetscape improvements around the community , which makes Sky Lofts a MUST SEE!

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Housing Poised for a comback..

more about "Housing Positioned for a Comeback", posted with vodpod


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