Hill Slowinski • Real Estate: Blog: May 2009

Good for Closing Costs, Rate Buy Down, But Not Minimum Down Payment

The first-time homebuyer tax credit, worth up to $8,000, is available to households that haven't owned a home in at least three years.  The credit is a true credit, not a loan, and does not have to be repaid, and is fully reimbursable, so households can get their credit returned to them in the form of a payment. It was enacted last year to help encourage households to enter the housing market while interest rates are low and affordability is high.

FHA-approved lenders received the go-ahead this week to develop bridge-loan products that enable first-time buyers to use the benefits of the federal tax credit upfront, according the U.S. Department of Housing and Urban Development May 29.  Under the guidance, FHA-approved lenders can develop bridge loans that home buyers can use to help cover their closing costs, buy down their interest rate, or put down more than the minimum 3.5 percent. However, the loans can't be used to cover the minimum 3.5 percent down payment.

Buyers applying for FHA-backed financing with an FHA-approved lender that offers a bridge-loan program can get a bridge loan to bring down the upfront costs of buying a home significantly but would still have to come up with the minimum 3.5 percent downpayment.

Source:  Daily Real Estate News,  May 29, 2009

Hill Slowinski, licensed in DC, MD, and VA

W.C. & A.N. Miller Realtors, A Long & Foster Company

4701 Sangamore Road,  Bethesda, Maryland  20816

Cell: 301-452-1409  Direct: 301-320-8430  Ofc: 301-229-4000

Email: hslowinski@longandfoster.com or Hill@HillSlowinski.com

Yes, we are handling more of these transactions in our office now than ever before.  I am finding myself more frequently in conversations with clients regarding the matter of foreclosures in our area.  They believe that the correction in the economy will necessarily generate more of these in the closer-in Washington Metropolitan region.  

I have access to a database that provides reliable information on foreclosure properties. This information is from a separate information source and not derived from the MLS listings.

What does this mean to you?  

• If you are planning to sell, I will check if any homes in your neighborhood are in process and whether that may affect our strategy for selling your home. 
• If you are buying, I will determine if any targets are in pre-foreclosure or scheduled for auction. 
• If you are interested in buying challenged properties, I will search for bank-owned properties that may be new opportunities. 
• I can help find pre-foreclosure and auction opportunities for you and investors working with you.

I can research for you properties in all stages of the foreclosure process.  The foreclosure process is complex and my research results will include foreclosure-effected properties in one of three stages: Pre-foreclosure, Auction and Bank Owned/Real Estate Owned (REO):

• Pre-foreclosure - identifies "short sales", homes on which lenders or other parties have begun the default against delinquent property owners. This can help you locate short sale opportunities.
• Auction - identifies "foreclosures", homes that have an auction date to sell the property as a result of a default and foreclosure related proceedings. This can help you locate investment opportunities.
• Bank Owned/Real Estate Owned (REO) - identifies properties currently owned by a bank, lender, or other financial institution due to a foreclosure-related proceeding. This can help you locate listing opportunities.

In addition, I will produce and email reports that include approximately 20 data fields that provide a comprehensive record of the foreclosure process.  Contact me for more information at: Hill@HillSlowinski.com or HSlowinski@LNF.com

 Hill Slowinski

W.C. & A.N. Miller Realtors, A Long&Foster Company

4701 Sangamore Road,  Bethesda, Maryland  20816

Cell: 301-452-1409  Direct: 301-320-8430  Ofc: 301-229-4000

Email: hslowinski@longandfoster.com or Hill@HillSlowinski.com

Now that conventional loan limits have increased to $729,750, our clients have been able to take advantage of a higher loan at rates below 5% with a fraction of points.  For example, in markets such as the Washington DC area, buyers with 20% down payments who have been waiting can move on homes whose prices are now within the acceptable price ranges for their financing planning.

Just to give you an idea of where zero point rates are right now (assuming good credit)...

• Conventional:  Up to $417,000 = 4.875%;  $417,000 - $729,750 = 5.125%;  Over $729,750 = 6.25% fixed;  Over $729,750 = 5.25% 5/1 ARM
• FHA:  Up to $417,000 = 5.0%;  $417,000 - $729,750 = 5.375%; 

Of course rates are very dependent on credit scores and down payments.  These are the kind of rates our clients received as of Friday, May 1.   

  Hill Slowinski

WC&AN Miller Realtors, A Long&Foster Company

4701 Sangamore Road,  Bethesda, Maryland  20816

Cell: 301-452-1409  Direct: 301-320-8430  Ofc: 301-229-4000

Email: hslowinski@longandfoster.com or Hill@HillSlowinski.com