1119 JADE DR, BEL AIR, MD 21014

1119 JADE DR, BEL AIR, MD 21014

1119 JADE DR, BEL AIR, MD 21014

1119 JADE DR, BEL AIR, MD 21014

5101 HOLDER AVE, BALTIMORE, MD 21214

5101 HOLDER AVE, BALTIMORE, MD 21214

430 HARDIN DR, JOPPA, MD 21085

430 HARDIN DR, JOPPA, MD 21085

Buying a Home with a VA Loan in Maryland

The average cost of a home in Maryland is higher than in most areas of the United States. Homes in Maryland average around $250,000 with homes priced higher than $500,000 not being uncommon. To the prospective homebuyer in Maryland, trying to find financing to secure a higher priced home can seem like a daunting task, but if you are a veteran, active duty member, or an eligible spouse, securing financing for your home in Maryland is easy with the VA home loan program.
What is a VA Home Loan?
Since 1944, the VA has provided millions of veterans and active duty service members the chance to achieve homeownership through the VA home loan program. The VA partially insures each loan which allows the VA loan program to provide excellent benefits to service members that they wouldn't be able to find with regular lending programs. Some of the VA programs more popular benefits are competitive interest rates, flexible eligibility requirements, and lenient loan terms, but also include:
• Zero down payment required
• No mortgage insurance required
• Flexible debt-to-income ratios allowed
• Regulated closing costs

Who is Eligible for a VA Home Loan?
The VA home loan program is dedicated to helping veterans and active duty service members purchase homes. Because of the nature of the real estate economy across the country, it is becoming harder and harder to finance homes (or refinance existing home loans) in the conventional manner. Nearly 80% of all veterans and active duty service members who obtain financing through the VA loan program would not have been able to do so through a conventional loan program. To initially meet eligibility requirements for a VA home loan, borrowers must obtain a Certificate of Eligibility and:
• Have served 181 days on active duty or 3 months during war time
• Or have served 6 years in the National Guard or Reserves
• Or be the spouse of a service member who was killed during active duty

Although the eligibility requirements to secure financing through the VA home loan program are limited, most VA-approved lenders will require a mid-range credit score of at least 620 to qualify a borrower. Even those who are skeptical of their eligibility are still encouraged to apply for a VA loan as even those with an imperfect credit history have been approved.


Thanks to James Kelley of vabenefitblog.com for this useful info.

1809 DARRICH DR, PARKVILLE, MD 21234

1809 DARRICH DR, PARKVILLE, MD 21234

FHA to Implement Policy Changes

Congress passed H.R. 5981 a few days ago. This bill allows FHA to change some policies and guideline in regards to issuing loans to home buyers. The main changes are as follows:

1. The upfrom mortgage insurance premium will be REDUCED from 2.25% to 1.0%. This is great news, right. Well hold on for a minute....

2. The monthly paid MIP rate which currently has a cap of .55% of the loan amount divided by 12 months, will now have a cap of up to 1.55%. This is where the impact come in.


Most home buyers using an FHA loan have little cash at hand. The typical buyer can come up with the required 3.5% downpayment and not much else. Usually the buyer asks the seller for "help" with their closing cost and right now the seller is allowed to "help" up to 6% of the purchase price. This may seem like a lot, but Maryland's fees and taxes for purchasing a home are some of the highest in the US. The upfront MIP is allowed to be rolled into the loan amount, so the buyer has never had to tackle this expense right out of their pocket with cash, it has always just increased their monthly payment marginally.

Now, however, the monthly MIP will be increasing the monthly payment for all buyers. These changes are set to effect FHA case numbers issued after September 7th, 2010. For an example of how this would effect a buyer, go to : http://www.allhomes4me.com/ and click on current real estate news.

Housing Prices Up!!!!

Well, looks like we are in the clear! Housing prices are on the rise so all should be good, right? Are you as skeptical as I am about all of the local reports of "Housing prices up 5% in June" or "Home sales on the rise!"? Being a Realtor, I feel like the public perception of the current state of our economy, and more specific the real estate market, is like an empty bottle out at sea. It gets tossed back and forth and if a good sized wave comes along, it goes under, only to resurface and bob around a little more. As professionals, Realtors need to be honest and direct with those we come in contact with. The media plays up or down current events, or doesn't cover them at all.



How can the general public know what to make of buying or selling a property at any given time? My suggestion is to contact someone who sees homes being bought and sold everyday.



The reports of home values being "up" are fine if you report the facts. The fact is, unless you compare what a specific house sold for 4 years ago to that same home selling now, then you can't really claim that values are up. Just like the loved term "median sales price". What does that mean, median? Who cares what the median sales price is? All median sales price refers to is the price of the house that is between the higher and lower half of homes that sold. So, if 3 homes sold ( $25,000 , $200,000 and $800,000), then $200,000 would be the median price. What does that tell you? The average sales price would have been $341,xxx. The median sales price really doesn't convey anything other than the price of a house that sold in the middle of a group or other sales.



I get frustrated when I hear polarizing information in the news about the economy. Why is there need to toy with the public perception? Why not report that home sales were rolling right along until the home buyer's tax credit expired, then they slowed down slightly? Also, consider that were are in the middle of the prime selling/buying time period in our market. I anticipate new contracts of sale to settle down in mid-September and crawl to a snails pace by November, but guess what, this happens every year. September will probably be a good month for property closings, so be prepared to hear the media report high property sale numbers at that time.





If you'd like a complete list of current sales in your neighborhood, city or county, feel free to contact me and I would be happy to send it to you.

Improving Real Estate Market

Market Classification Changes!



Recently, as of April 19, 2010 , the classification for the real estate market in Maryland has changed from "severely distressed/class 4" to "soft/class 2". What does this mean? While this doesn't mean that we are back to "normal", it is a move in the right direction. With the recent reclassification, banks are now able to offer some more attractive loan options for home buyers. In a class 2 market, buyers with a credit score of 700 or better will now qualify for a conventional 5% down loan! Keep in mind FHA just increased their MIP and are soon to increase their required down payment. When comparing apples to apples, cash to close on a property may be slightly higher with the conventional 5% down loan, but the overall loan amount will be lower. If you would like to know what type of homes are available or what type of loan / loan amount you qualify for, feel free to contact me. Thanks!

Another Real Estate Slump?

Well, we're on the cusp of the Home Buyer's Tax Credit Expiration, again. Last year when the 1st expiration date approached, market activity slowed and slumped for roughly 2 months. Was this just because buyer's we're throwing in the towel and giving up on the tax credit or was this due to other factors( weather, time of year...)?

This time around, interest rates are poised to rise slightly and FHA has decided now is a good time to increase the cost of buying a home (MIP increase). Will this mean another slump or will the annual spring warm-up keep us from creeping to a halt?

I think this is a time of opportunity. As a seller, you have buyers who are nervous to miss out on the potential $8,000/$6,500 credit and they are feverishly searching for a home, now is the time to strike a deal. Also, as a buyer you have a slight pyscological advantage. Sellers are worried that after April 30th, buyers will give up searching and pack in their efforts to find a home.

As with any real estate market, there are chances to capitalize. Both for buyers and sellers, now is as good a time as any in recent history. I am experiencing increased optomism in both buyers and sellers and overall activity is up over this time last year. With the ample supply of short sale listings, REO properties, foreclosed homes and traditional resale listings, buyers have more than enough to choose from and property owners are vying for your business.

Overall, this real estate market takes knowing your surroundings. Know what you are looking for and what you can look for. If you need to take possession within 45 days, then a short sale may not be your best option. If you can't make repairs, then an REO or foreclosed home may not be a smart choice. If you do find yourself open to looking for a distressed property, make sure you choose a Realtor with sufficent experience/training to walk you through the process.

If you have questions or need my help advice for your real estate questions, feel free to visit my website http://www.allhomes4me.com/ or contact me.

FHA Property Flip Waiver Renewed!!!!

Previously there has been a "waiting" period, for a buyer using an FHA insured loan, to buy a home......