My sources tell me that as of May 1st. VHFA will no longer offer 100% financing. I am not sure how that will affect loans currently in the pipeline that are scheduled to close after May 1st.
Good news..I can still get 100% financing through Coldwell Banker Mortgage with a 3% gift from the seller and the rate is the same or less than VHFA (depending on credit). Credit scores can be as low as 580!
100% Financing April 13, 2008
Tax Time Brings Up the Age Old Debate April 10, 2008
Renting vs. Owning
Unlike renting, homeowners get part of their monthly payments back at tax time. That’s because the mortgage interest they pay is (in most cases) fully tax deductible.
For a mortgage payment of $1,000 (principal and interest only), you could purchase a home for $151,426 if you put a 10% down payment on a 30-year loan at 8% (note: many can qualify for interest rates as low as 6%!).
If your payments started in January, your first-year mortgage-interest tax deduction would be $10,862.
Assuming you are in the 27.5% tax bracket, you would save $3,041 in taxes–that’s $249 per month. So the $1,000 payment mentioned earlier is really $751 when computing the homeowner’s tax advantage. +
Quick Plug for Smugglers’ Notch Cottages for Rent April 1, 2008
I’ve recently taken over property management for 2 cottages at Smugglers’ Notch, VT and we’re running some super specials through April 15th for Spring Skiing. $199/night for the 2 bedroom and $249/night for the 3 bedroom.
Check out our website www.greenviewcottages.com.
Also After Tax Special for $225/night from April 15th forward.
And coming this summer, fishing packages and bike tours, again, check out the webpage www.greenviewcottages.com.
And if you book a week from now until August 31st by April 15th, we’ll give you one night free!!
he knew it was right by the way it hit him March 27, 2008
I was helping a friend/client try to find a snowmobiling camp up in Island Pond, VT (which is about 2 hours out of my regular area). We tried to pack as many camps as we could per trip, we had a list of 7 places and a pretty tight schedule. At the 5th one, I knew it was just what he was looking for, but I knew to keep my opinions to myself and let him work it out in his head. As he was getting that look in his eye, I suggested that he check out the loft area. Now he’s a big guy, prolly 6′4″ and had to duck his head up there, but I could tell he was really digging the place. He turned around and smiled down at us and walked straight into the rotating ceiling fan.
I don’t think I’ve ever laughed so hard or so long in my life. It knocked his sunglasses off his head and left quite a mark on his noggin. The Seller, who was present for the showing, couldn’t believe that I was laughing so much over a bump in the head.
Even a month later at the closing when the Seller brought it up, I laughed all over again.
Don’t wait! It might be too late! March 24, 2008
I got this email from one of my lenders recently and thought it worth sharing.
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Hello Ms. Nadeau,
I noticed that you had a price reduction on a condo in Colonial Condos. I wanted to send you this note to share with your buyers about the “danger” of waiting for home prices to fall.
This winter, many lenders have had to tighten their guidelines. This, with rising rates, has hurt many prospective buyers who were waiting for homes to become “more affordable.”
For example:
2 bd, 1/2 ba Condo listed on 1/26 for $172,500
Conventional Loan options available on 1/26
0% down, rate of 6.50% = $1092/mo
3% down, rate of 5.75% = $977/mo
5% down, rate of 5.5% = $931/mo
Price reduced on 3/11 to $169,000
Conventional Loan options available on 3/11
0% down…..NOT AVAILABLE
3% down, rate of 6.25% = $1010/mo
5% down, rate of 5.875% = $950 / mo
As your mortgage Advisor, I beg you to get the word out….”BUY NOW”
Sue Ryan
Coldwell Banker Mortgage
802-318-0823
Who Represents You? – Great Article from Realtor.org March 22, 2008
Who Represents You?
By John Adams
One of the hot topics facing the world of real estate right now is the issue of agency. Some would have you believe that it really doesn’t affect you, the buyer, and that nothing much has changed. But they are wrong.
The topic of agency is important to you because it answers the most basic and fundamental question that can be asked of any real estate professional: Who do you represent in this transaction?
Until that question is answered, you may be left with the impression that all agents who work with buyers actually represent those buyers, and that you have somebody going to bat for you in this transaction. Well, the issue of agency is important because without it, we can never be sure who represents who.
Here’s the scenario:
You meet a really nice agent at an open house named Bonnie. Even though Bonnie’s house is not right for you, she tells you she has others to show you that fit your needs exactly. You spend an hour or so with Bonnie looking at a half dozen homes and talking about your needs and your wants. During the course of the conversation, you volunteer that you have $100,000 cash to spend and that you will not go over $100,000 purchase price no matter what. Then you find the perfect house. Asking price is $100,000 but you decide to offer $92,500 based on recent sales in the area. During negotiations, the seller asks Bonnie directly how much cash you have and how high will you go? What does Bonnie say?
Here’s the answer: Unless you have signed a “Buyer Agency Agreement” with Bonnie making her your buyer agent, she is most likely acting as a sub-agent to the listing broker who represents the seller. If that is the case, she has a fiduciary obligation to the seller to disclose to him any information she has that might “promote or protect his interest” in the transaction. Guess what? Bonnie has that information.
The Seller, now having knowledge of your financial position, counters at a full $100,000. He knows you can afford it and that this price falls within your desired range. He also knows that you have seen a number of other homes and that his is the one you want.
Regardless of what eventually happens in this scenario, it can hardly be called an even playing field. So, how can you protect yourself from a possible disclosure required of a seller’s agent?
1. Make sure that the agent you are working with has agreed, in writing, to represent you as a “Buyer’s Agent.” This will mean signing a buyer brokerage agreement in which you promise to work only with that particular agent for a specific period of time, often 90 days. It also means that you promise not to buy from anybody else, even FSBOs, without involving your buyer’s agent. In almost every case, the commission will still come from the seller, but your agent must present the offer.
2. Never say anything to anybody unless you would be willing to have that information repeated into a seller’s ear. Assume that everybody, and I mean everybody, is working for a seller unless you have specifically hired them to work for you. And even then, be discreet. During the second world war, the military promoted a phrase designed to stop idle gossip: Loose lips sink ships! You would do well to adopt that philosophy in your home-buying as well.
**So even if the Realtor is your best friend, unless you have signed a Buyer Broker Agreement, they are still working for the seller. Now what that boils down to is that you don’t tell them anything you wouldn’t want the seller to know, and the Agent is still required to disclose anything about the house that you should know. They can still help you with the transaction, but you won’t get the advice on price that you might get otherwise. Just know that you have the right to representation.
Hope this helps!
Allyson
Lenders Going Back To Basics March 20, 2008
With the latest “Bear Stearns” collapse, many loan programs have been discontinued. Lending Guidelines are going “back to the basics”.
Gone are the days of lax lending rules….
Bye-bye no doc loans, 100% financing and 80/20 combo loans. Hello, full documentation, low debt ratio, 3% down, good credit only approvals.
In the last few days, PMI companies have adjusted their guidelines to minimize their loses (see article below). Many lenders are now finding that loans set to close may not be able to get PMI coverage (hence, not be able to close). Many buyers have a pre-approval that is longer valid.
If you are a buyer with a preapproval letter dated prior to March 17th, call your lender and have it updated ASAP.
If you need a lender, let me know and I’ll be happy to lead you in the right direction.
