I’m Digging This Dwellicious Thing!

So last night, in my feverish haze, I decided to check out Dwellicious.

Business has been really busy lately, and I’ve noticed my clients needing a better way to track properties they’re interested in.  In comes Dwellicious to the rescue!

This thing is really cool.  Basically, you sign up for a free account.  Set-up a simple link in your browser’s toolbar. Find listings online (on pretty much any web site).  Then you bookmark them with Dwellicious’ button on your browser.

Not only will it organize properties for you, but it also has a bunch of neat tools like links to recent sales, your walk score, neighborhood info, financing estimates, etc.  It also keeps track of price changes.  And if you link in with me as your Realtor, we can discuss properties together on Dwellicious, almost like commenting on a blog.  This will make everyone’s lives easier

To sign up, go to:

http://dwellicious.com/citychic/signup

It’s free and worth a try!

Federal Tax Credit Gets Sweeter

The federal government has just made buying a home easier with FHA financing.  You can now use the $8,000 first time homebuyer tax credit toward your down payment, when financing through an FHA/HUD approved lender.  Income restrictions apply to the credit, and a first time homebuyer is defined as someone who hasn’t owned a home in the past 3 years.

To see the full article on this newest incentive, check out:

http://money.cnn.com/2009/05/29/real_estate/tax_credit_as_downpayment/?postversion=2009060109

Interesting Article on Bidding Wars…

The Wall Street Journal reported last week (while I was on vacation in Mexico) that DC and some other parts on the country are experiencing a shortage of mid-priced homes.  Not surprising is that bidding wars are happening on well priced foreclosure properties.

Check it out here:

http://online.wsj.com/article/SB124044612611045827.html

The Year of Property Virgins

Over half of all homebuyers in 2009 will be first timers!  53.5% to be exact.  This is according to a survey conducted by Move.com on behalf of the National Association of Realtors.

To read the entire article, go to:

http://www.realtor.com/realestate-news/National-Homeownership-Survey-March2009.asp

Where is 2009 Going?

I’m staring at my calendar now, as I type this, and I can’t believe Spring is almost here.

In real estate, this is the time to get moving, whether you’re looking to buy or sell.  Spring is notoriously the most busy time of year.  Things have been steadily getting busier.  More property virgins are looking for a new place to call home.  And I’m happy to say, they are giving me a call (or more often than not, sending an e-mail). 

This year is different from years prior though…not as much “good stuff” is on the market.  What do I mean by “good stuff”?  You know EXACTLY what I mean…that dream condo in your choice DC neighborhood, decked out with stainless steel, granite countertops and hardwood flooring, under $300k.  Maybe even a walk-in closet!  Oh my, I’m starting to drool a bit.

The reality is that this Spring is going to be a bit different.  There isn’t going to be enough “good stuff” to go around.  For example, in the zip codes 20036, 20005 and 20009 there are only sixteen 1+ bedroom condos under $300k (not including that extremely distressed building on 12th Street or 1330 Mass).  That’s not a lot to choose from.  When something new and shiny comes on the market, you aren’t the only one who wants to pounce on it!

The National Association of Realtors thinks it’s a great time to buy a house…of course they do!  I will say you have more incentives to buy now, than I did when I bought my first place 3 years ago.  Let me enlighten you:

- Amazingly low interest rates

- A $8,000 first time home buyer tax credit (expires on December 1, 2009…don’t miss out)

- Back to earth pricing

- DC has one of the best job markets in the country

Where will you be at the end of 2009?  Hopefully employed, happy and a homeowner.  Plan ahead, it pays off.

How Long Should Stuff Last?

A common question I receive from first time homebuyers is, “How long will this last?”  There was a great chart in Realtor Magazine that I thought I’d share with you all.  It tells you how long the major things in your home should last.  Check it out!

How Long Should it Last?

What’s the Deal With the Stimulus Bill?

It has been awhile, and I apologize.  Between vacations, cold season and the spring market heating up, I have neglected my duty as blogmaster.  Since this has been a hot topic of conversation, I will breakdown some points relevant to property virgins.

First and foremost, everyone is talking about the $8,000 federal tax credit.  This one doesn’t have to be repaid, unlike the $7,500 credit enacted last year.  However, there are income limits, so if you make too much, you lose.  There is also still the DC First Time Homebuyer tax credit of $5,000, which you may still qualify for. 

Second, the loan limits, which were set to expire at the end of 2008, have been extended through the end of 2009.  This means you can get FHA financing up to $729,750 in most of the metropolitan area.

There are a whole bunch of other areas of spending, which don’t affect first time buyers as much.  You can read about them here:

American Recovery and Reinvestment Act of 2009 - From Realtor.org

How Low Can We Go?

Interest rates are playing a serious game of limbo lately.  Locking into these rates AND taking advantage of low prices might be something you want to think about.

Rates are expected to drop to under 5%.  With some discount points you are there!

Another financing sidenote…the FHA financing downpayment goes up January 1st.  You will need 3.5%, up from 3%.

Condos and FHA Financing 101

I’ve been dealing with this a lot lately, property virgins who only have 3% to put down. This leaves them with only one financing option, FHA.

So let’s take this scenario. You’re being a responsible buyer, you get pre-approved. You’re thinking, “Hooray, this is great. I can buy any home I want now.” Well not really. I’m going to burst some bubbles here, but that’s why I’m writing this.

You can’t get FHA financing on every condo.
 

Condos must meet certain criteria in order to be FHA approved. So if FHA is your ONLY financing choice, you have two options:

1. Purchase a condo that is already FHA approved.  Search for FHA Approved Condos

2. Have your lender get an FHA Spot Approval for your specific purchase.

Of course if the condo you’re looking at is already on the approved list, you are good to go! The spot approval is where it gets a little tricky.

The condo must meet certain criteria before it can receive a spot approval. You can view the full list here: FHA Spot Approval Form. If you’re not in the mood to read a lot, here are the highlights.

• The project is complete, including common elements
• 90% of the condos are sold
• 51% of the condos are owner occupied
• No special assessments pending (like new roof, windows, lobby renovations)
• No deferred maintenance
• The condo association must be run by the homeowners for at least 1 year
• Satisfactory reserve plan and reserve funds

These requirements knock out many new construction projects. There can be exceptions made, to certain items, but the 51% owner occupied is a deal killer. So if the building has a lot of renters, you should probably look elsewhere.

FHA reality check complete.

Until next time, keep your head up! DC rocks…who wouldn’t want to live here?

Another One Bites the Dust :(

Last Friday was your last chance to get purchase assistance from HPAP (Housing Purchase Assistance Program) in DC. The program was frozen due to a projected $131 million shortfall in the 2009 DC budget.

HPAP isn’t gone forever, but when it comes back, it will be renewed and revised. Sources say the income cap will be lowered, which in turn lowers the number of buyers that qualify for the program.

The good news is FHA financing is still out there, but you’ll need 3.5% down. If there’s no hope for FHA, you’ll need a cool 10%. Time to start saving…or hit up grandma and grandpa.