Tucked away in Matthews, NC. is Crestdale Crossing. A small subdivison made up of 110 homes. A popular spot among young familes this 8 year old subdivison is an affordable place to live within the Matthews school district.
History has shown this community has done well in this down Real Estate market. The numbers below are sales from January 1 to december 31 for the respective year.
3 years ago there were 14 homes that sold. the average sale price was $127,450. They lasted on the market an average of 32 days.
2 years ago there were 4 homes that sold. The average sale price was $121,875. They were on the market for an average of 23 days.
Last year there were 5 homes that sold. The average sale price was $122,500. They were on the market for an average of 60 days.
Currently there are 2 homes actively on the market right now.
Based on current inventory levels and home sale trends we are at a balanced market in regards to Crestdale Crossing. Six months of inventory tends to be an average market. It favors neither the seller or the buyer.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Thursday, January 6, 2011
Wednesday, January 5, 2011
Financing A Foreclsoed Home With A Rehab Loan
Yesterday I wrote about trying to finance a foreclosed home that needed some work to the home. Because of the tighter guidelines it has made it very difficult for people to purchase a foreclosed home through conventional means of financing. But all hope is not lost for someone looking to buy one of these homes. There are options availble that will allow you to finance the cost of repairs into the new loan. The tricky part of it though is you need to qualify for the mortgage with the cost of reparis added in. They are known as a FHA 203K loan. If you are purchasing a Fannie Mae (governement owned) foreclosed home they offer homepath renvoation mortgage as an option.
The nice part of these loans is that you can add in the cost of the repairs to the home into your loan and still only have to come up with the 3.5% down payment needed for a FHA loan. You are required to have a slightly higher and better credit score than if you would qualify for a regular FHA loan; but if you qualify it can be very good program.
Not only can you amortize the cost of the reparis over the term of the loan (typically 30 years). But at today's low interest rates it would have to be less expensive than paying for it out of your pocket. And all the work is done on the home for you by liscenced contractors.
A home does not only have to be a foreclosed home to qualify for this program. It can be any home that would not normally qualify for a FHA loan right now due to the repairs it needs. Just be careful that with the reparis done on the home; the cost does not exceed what looked like a good deal initally.
I recently had a deal where the price of the home was exceptional for the area. Once entering and looking in the home we realized why. The buyer decided to check into and go the route of a FHA203k loan. By the time we got all the estimates for the reparis that needed to be done to the home and the carpet replaced the cost was no longer that good of a deal. In fact; a ready to move in home a few houses down from this one ended up being less expensive than the house that needed repairs once the costs were added in.
So, yes there are programs that exist to help buy homes in need of repairs. They are very attractive programs if you can purchase the home for the right price and have all the work done on it for you with it just being added to your mortgage payment.....
Dave diCecco
Realtor/Broker
www.davedicecco.com
The nice part of these loans is that you can add in the cost of the repairs to the home into your loan and still only have to come up with the 3.5% down payment needed for a FHA loan. You are required to have a slightly higher and better credit score than if you would qualify for a regular FHA loan; but if you qualify it can be very good program.
Not only can you amortize the cost of the reparis over the term of the loan (typically 30 years). But at today's low interest rates it would have to be less expensive than paying for it out of your pocket. And all the work is done on the home for you by liscenced contractors.
A home does not only have to be a foreclosed home to qualify for this program. It can be any home that would not normally qualify for a FHA loan right now due to the repairs it needs. Just be careful that with the reparis done on the home; the cost does not exceed what looked like a good deal initally.
I recently had a deal where the price of the home was exceptional for the area. Once entering and looking in the home we realized why. The buyer decided to check into and go the route of a FHA203k loan. By the time we got all the estimates for the reparis that needed to be done to the home and the carpet replaced the cost was no longer that good of a deal. In fact; a ready to move in home a few houses down from this one ended up being less expensive than the house that needed repairs once the costs were added in.
So, yes there are programs that exist to help buy homes in need of repairs. They are very attractive programs if you can purchase the home for the right price and have all the work done on it for you with it just being added to your mortgage payment.....
Dave diCecco
Realtor/Broker
www.davedicecco.com
Tuesday, January 4, 2011
Financing A Foreclosed Home...Not As Easy As FHA
In the market we are currently in right now; buyers are starting their searches looking for bank owned properties or better known as foreclosures. Historically known for their decreased price value they can offer someone a better deal on a house than one that is not foreclosed on in the same neighborhood. However; like anything if it is to good to be true it may just be that.
As banks and mortgage companies are trying to recover from the vast majority of people who have short saled their homes and the ones that have let their homes go back to the bank.... credit guidleines have tightened. Banks and appraisers are under a greater scrutiny right now as they are more accountable for the loans they process and the value placed on homes. (the primary reason we are in the predictament we are in right now)
Most bank foreclosures are homes that need some work. Now, some are minor repairs or cosmetic work that makes them a very good investment for the buyer who does not mind doing the repairs themselves. But, what if the house you want to buy is in need of "minor" repairs? What type of loan will you qualify for in order to receive the financing on that home?
The vast majority (82% according to the latest figures) finance through the FHA program, VA loan program or the USDA. The programs are very popular because you only need 3.5% down of the sale price on a FHA loan and the VA and USDA will finance 100% of the purchase price. So you qualify for one of these programs and have selected a bank owned home to purchase .....what is wrong?
The appraisal has become the number one reason foreclosed homes do NOT close. The FHA and the VA especially have some strict guidelines in order to qualify the home for their financing. Most foreclosed homes do not qualify for these types of loans becuase the appraiser will demand that certain repairs be performed on the home in order for them to pass it through the appraisal process. If those repairs are not performed to the satisfaction of the apprasier the house will not pass the appraisal process and cannot close.
So, what alternatives do you have? One is to go the route of a conventional loan. This will allow you to have less rigid guidelines than the other forms of financing and in most cases the house will appraise without issues (assuming the price is in line). The problem is today most people do not have 10% to 20% of the sale price to put down on a home. That is the minimum requirement needed in order to get a conventional loan.
To give you an example. On a $150,000 sale price home; you would need $5250.00 down to get a FHA loan. Not a small feat but manageable for most people. On a VA or USDA loan you would need no down payment. However; on a conventional loan that dollar amount goes up to $15,000 to $30,000 down. Not the amount of money most people have or would want to put down. Chances are if you have the money and the home will not qualify for FHA loan; you are going to be using the money to do the necessary repairs on the home.
Though the news reports and friends are telling everyone go look at a bank foreclosure....make sure you know what your options are before you start your search.You may not be able to get the home of your dreams and the right one could be right down the road for a little more money but less down payment.
Dave diCecco
Realtor/Broker
www.davedicecco.com
As banks and mortgage companies are trying to recover from the vast majority of people who have short saled their homes and the ones that have let their homes go back to the bank.... credit guidleines have tightened. Banks and appraisers are under a greater scrutiny right now as they are more accountable for the loans they process and the value placed on homes. (the primary reason we are in the predictament we are in right now)
Most bank foreclosures are homes that need some work. Now, some are minor repairs or cosmetic work that makes them a very good investment for the buyer who does not mind doing the repairs themselves. But, what if the house you want to buy is in need of "minor" repairs? What type of loan will you qualify for in order to receive the financing on that home?
The vast majority (82% according to the latest figures) finance through the FHA program, VA loan program or the USDA. The programs are very popular because you only need 3.5% down of the sale price on a FHA loan and the VA and USDA will finance 100% of the purchase price. So you qualify for one of these programs and have selected a bank owned home to purchase .....what is wrong?
The appraisal has become the number one reason foreclosed homes do NOT close. The FHA and the VA especially have some strict guidelines in order to qualify the home for their financing. Most foreclosed homes do not qualify for these types of loans becuase the appraiser will demand that certain repairs be performed on the home in order for them to pass it through the appraisal process. If those repairs are not performed to the satisfaction of the apprasier the house will not pass the appraisal process and cannot close.
So, what alternatives do you have? One is to go the route of a conventional loan. This will allow you to have less rigid guidelines than the other forms of financing and in most cases the house will appraise without issues (assuming the price is in line). The problem is today most people do not have 10% to 20% of the sale price to put down on a home. That is the minimum requirement needed in order to get a conventional loan.
To give you an example. On a $150,000 sale price home; you would need $5250.00 down to get a FHA loan. Not a small feat but manageable for most people. On a VA or USDA loan you would need no down payment. However; on a conventional loan that dollar amount goes up to $15,000 to $30,000 down. Not the amount of money most people have or would want to put down. Chances are if you have the money and the home will not qualify for FHA loan; you are going to be using the money to do the necessary repairs on the home.
Though the news reports and friends are telling everyone go look at a bank foreclosure....make sure you know what your options are before you start your search.You may not be able to get the home of your dreams and the right one could be right down the road for a little more money but less down payment.
Dave diCecco
Realtor/Broker
www.davedicecco.com
Monday, January 3, 2011
New Listing: 2531 Milton Place Charlotte, NC. 28215
2531 Milton Road in Charlotte is offered for only $99900. Best part is that it is part of the house charlotte program and can be purchased with no money down. Why rent when you can own for less? This 3 bedroom 1.5 bath home boasts hardwood floors throughout most of the living area. A split level home that has a large living room, formal dining area and three good sixzed bedrooms. The lower level has a large family room and a utility room that once was two separate rooms. however; the owner took out the wall to make ti a large room. Could easily be converted back into a four bedroom home.
The home has been upgraded to central air throughout the house. It has a large back yard that is completely fenced in and has a separate storage facility in the back. great place for the kids to play.
Located off Sharon Amity and W.T. Harris Blvd. this home has great easy access to restaurants, supermarkets and shopping. Convient location makes it an ideal access to major thoroughways and proximity to highways.
Dave diCecco
Realtor/Broker
www.davedicecco.com
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