You Can Purchase A Home With Less Than Perfect Credit

In today's economy most people have suffered some blemishes to their credit becuase of the recession. Unfortunately, as banks tightened their credit standards it made it even tougher for those people to purchase a home. As the banks were restructuring home buyers were getting discouraged as they were unable to purchase a home becuase of their credit score. Well, the leading bank for FHA loans has loosened their standards to help people relaize the dream of home ownership.

Wells Fargo Bank has adopted and changed their policies around to reflect what the federal government will back and insure for FHA loans. There are some guidleines that still need to be followed but here is the synopisis of how they have changed their guidelines:

If you have an average credit score of at least 600 you will still qualify for a standard FHA mortgage as before. The required down payment is still only 3.5% and part of that down payment can be gifted to you.

If your credit score falls between 580 and 599 you will need a minimum of 5% down payment. other restrictiosn will apply.

If your credit score falls between 500 and 579 you will need a minimum of 10% down payment and other restrcitions will apply.

The other restrcitions for scores below 600 are as follows:

Maximum debt to income ratio cannot exceed 43%. This means when you pay the mortgage and any other credit cards, student loans or car payments that total dollar amount cannot exceed 43% of your gross monthly income.

Your down payment has to come from your own funds. It cannot be a gift from anyone. You can use your tax return refund as down payment though.

You cannot have ANY late payments or derogatory credit in the past 12 months prior to applying. (medical collections and hospital bills are excluded).

If you have a bankruptcy on your credit report it must be discharged at least 2 years.

If you have a repossession it must be at least one year removed.

Absolutely NO derogatory credit with Wells Fargo on your credit report.

You will need to have potentially two months of mortgage payments in the bank after closing. However; that money can be a gift from someone.

There may be other restrictiosn that apply. This is by no means all inclusive. However; this is the basic guidelines that most people will fall within.

As we approach tax season and you are receiving tax returns your buying power might be better than you anticipated. the path to home ownership may once again be an option to you again sooner than later.....

Dave diCecco
Realtor/Broker
www.davedicecco.com

Housing Market In Charlotte Poised For Strong Recovery

Yesterday I was reading an article on CNN Money. The article was defining the top ten large metro areas where housing prices are expected to see the largest gains. The great news for sellers in Charlotte region was according to the article Charlotte ranks ninth best in likelihood of home prices increasing and the percentage of increase.

Charlotte is home to the second largest banking center in the United States. With Bank of America calling Charlotte home; it has always been an attractive place for professionals to move to. As economic confidence on the financial sector is steadily improving; jobs are openign up and more people are migrating to those areas.

That along with major companies relocating to the Charlotte region has made this a very desireable place for people to move to looking for jobs. As more companies are moving to the Charlotte area; it is attractign more professionals looking for jobs and careers to the area.

It also has not hurt Charlotte that we were awarded the Democratic National Convention for 2012. If nothing else it will help exemplify the reason Charlotte is one of the largest and fastest growing areas and why more peopel are calling Charlotte home everyday.

The bigggest indicator of positive price gains on home prices is the premium builders are now paying for land. As they see the market trending back upwards and pockets of the country poised to do better; they are purchasing land. And they are now going into multiple offer situations competing against others for the best parcels of land right now.

However; based on what we saw happen a few years ago with the skyrocketing price increases and then the dramatic price decreases...I would not expect the prices to climb at a extremely high rate. In fact anaylsts are predicting a 3% increase in prices year over year. That is considered a steady growth.

Dave diCecco
Realtor/Broker
www.davedicecco.com

Crestdale Crossing Matthews, NC. Market Report February 2011

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 February 1 to January 31.

3 years ago there were 13 homes that sold. the average sale price was $128177. They lasted on the market an average of 34 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. Over the paast two years the trend has been less homes sold. In addition, less people have tried to sell their home during this time period as well..

Dave dicecco
Realtor/Broker
www.davedicecco.com

Are You Considering The Property Taxes When Looking at Homes?

When you are looking at homes to purchase most people are tying to stay within a certain budget. They have arrived at a price they are comfortable with; that price is based on the monthly payment that they have been estimated for. There is one large variable that has dramatically changed the wya people look at the process though....

Foreclosures and short sales have lowered the prices well below tax value. Now, that house you are looking at for $120,000 has a tax value of $180,000 (based on the last time it was evaluated). That extra $60,000 in tax value can change your payment $50-$60 a month more.

The problem is when you figure out the price range you want to look at; the system does not knwo the tax value yet (becuase you do not have a house). So, it estiamtes taxes based on the tax value being equivalent to the sale price.

So, if the house you are looking at has a signifcantly lower tax value; then chances are your payment will be lower. The same goes true in the other direction as well. And becuase your taxes are divided over a twelve month period the small amount can add a large sum to your monthy payment.

I had two clients purchasing homes in the same price range. In fact, after negotiations they were less than $1000.00 apart in sale price. With comparable interest rates and down payment one is paying over $80.00 a month more than the other. The reason is the proerty taxes on their house was signifcantly higher than the sale price of the house while the other home property tax was close to the sale price.

So, if you are looking at homes, and considering placing an offer on a home....check what the taxes are for the year. Make sure they line up with what you were budgeting in for. The last thing you want is to arrive at the closing table and find out your monthly payment is signifcantly higher than you thought; becuase of the property taxes....

Dave diCecco
Realtor/Broker
www.davedicecco.com