MarketWatch is reporting this morning that the Senate has struck a deal to expand on this program.

Many Realtors are seeing this tax credit as the main motivation of home sales this year.  In 2008 there was a “tax credit” that was really a no interest loan to First Time Buyers.  This year that was changed to a real tax credit of $8000 for these buyers.

The report is that today’s agreed upon credit would extend to ANY buyer who has lived in their home for 5 consecutive years, as well as the First Time Home Buyer.

Here is the report from MarketWatch:

 By Robert Schroeder, MarketWatch  

WASHINGTON (MarketWatch) — Senators have struck a deal to extend a popular tax credit for home buyers beyond those buying their first house, Senate Majority Leader Harry Reid’s office said Wednesday.

 Legislators also have agreed to extend the tax credit through the end of April, according to a Reuters report.

An $8,000 credit for first-time home buyers is set to expire at the end of November. Under a compromise reached by senators, the credit would be expanded to those who have lived in their home for five consecutive years, a Reid spokeswoman said.

 The credit for repeat buyers would be $6,500.

 The credit reportedly would be available for individuals making up to $125,000 a year and couples earning up to $225,000 per year, up from the current income limits of $75,000 and $150,000, respectively. Reid wants to attach the tax-credit measure to a bill that would extend unemployment benefits. 

Natick has luxury condominiums at the Natick Mall going to auction on October 4th.  The minimum bids are significantly less than what the asking prices have been over the past year.

Some people may respond that they were overpriced to begin with, but only time will tell whether these unique Metrowest properties will hold their value.  The fact is, there is nothing else like them in our area.

The auction process is also difficult to determine what will be the result.  This process requires attending the auction with a $10,000 cashiers check, signing a Purchase & Sale Agreement that day, and closing within a month.  Not a process to be going thru blindly!

Holliston is now offering affordable condo options at The Orchards at Holliston.  This 72 unit complex is currently under construction.  The location is 353 Highland Street, towards the Ashland town line.  Four of these units are available for buyers who fit certain income criteria.

The selling price of these few units is $166,500.  The deadline for applications on these units is November 9th.  The luxury units have 1,580 square feet of space and are townhouse style.

If you meet the following income guidelines, it is a great opportunity:

$46,300     one person Household

$52,550     two person Household

$59,550     three person Household

$66,150     four person Household

There is an informational meeting at Holliston Town Hall in Room 105 on Oct 21st from 6-8pm.

We find ourselves in a time when mortgage rates are close to 30 year lows, affordability indexes are looking their best in decades, and there are some motivated sellers.  Nobody will be able to determine if we have hit the low point in the real estate market until we look back in history, but indicators show it is a good point, if not the low point.

Natick has one-of-a-kind luxury condos that are going on the auction block next month.  The Nouvelle at Natick is a 215 unit project that is connected with the mall.  About 20% of the units are going to be auctioned October 4th.

The developers are in trouble.  They built this development just as the economy was going into a tailspin.  They have sold or put under contract only a total of 37 condos.  Ouch! 

Using town records, I was only able to verify 18 sold units, and selling prices ranged from $369900 to $1.2 million.  The following are the units being auctioned:

• 1 Bedroom & 1 BR + Study     $160K-$210K

796-1078 sq ft units

• 2 Bedroom & 2 BR + Study     $220K-$315K 

1068-1591 sq ft units

• 3 Bedroom (only 1 unit auctioned)  $350,000 

1774 sq ft

• Penthouse (2 units)          $375K-$475K 

1596-2110 sq ft units

The marketing department has tried everything to entice the local Realtor community to sell these units.  Incentives for months of condo fees or mortgage payments have not worked to bring in sales.  These prices have just been too high for such a unique housing option in Metrowest.  

You will need a deposit of $10,000 on auction day, and I would highly recommend doing all your homework about unit locations, pricing, and mortgage financing.  If you are an investor you likely will need 20-25% down payment to get your financing.

These very unique Metrowest condo options were never a good investment to consider, until now.  Feel free to contact me for all details of the process and the property options.  The developer will pay the commission of your Buyer Agent when bidding on these units, so take advantage of this guidance. 

If you own a home in Holliston, you are not concerned with national real estate numbers…  you are concerned with Holliston values!

Real estate is local.  So let me provide you with some bullet points of how our town is doing in the real estate department:

Median prices up 2%

Thru August, the median home selling price was $357,000 for the year.  It was $350,000 at this time in 2008.

Taking longer to Sell

It takes 136 days on average to market a home in Holliston to sell.  In 2008 it took 117 days on average thru August.

More homes Sold in 2009 vs. 2008

We have 83 sales in town for 2009 compared to 74 over the same period in 2008.

Holliston did not go through this economic downturn unscathed.  Going back in time just one more year and we find that the town’s median price is still down 10% since 2007 ($397,900 median sold values Jan-Aug 2007). 

Perhaps this data will help to put into perspective how well most family’s largest investment is holding up.

Just a quick post: 

This is a graph of mortgage rates over the course of the past 40 years. 

Fielding calls about interest rates and client’s worry about where they are heading, I lose perspective about these numbers.

People, you can’t get much better than this… don’t worry about an eighth of a percent, lock it in!

Ed Daniels, of Re/max Executive Realty, can be reached at 508-341-7880.  He is an 11 year veteran of the real estate market in Metrowest Boston, and has great mortgage broker contacts to answer all your specific questions.

I found my name on the Abandoned Property list that the State Treasurer manages.  Click here for the list.  Granted, I did have to somehow prove that I was living at that address all those years back, but they accepted my previous address listed on my credit report.

Now after about 2 months of processing, I have in my hand a nice dinner out!

Thank you Tim Cahill, for holding onto my cash.

(Don’t tell my past roommates, I guess I should be splitting this 4 ways)

A past client gave glowing remarks regarding the work done by Royal Thermal View, based out of Mendon, Massachusetts.  I added him on this site’s Business Directory.

Steve Palmer is the salesman that my client dealt with, and also that I spoke to today.  He can be reached at 781-820-6306.

The website is www.RoyalThermalView.com, but be ready because they have a surprising drum audio when you enter each page (I have to talk to Steve about that!).

The company seems to have a focus on doors, windows and vinyl siding.

One last tidbit that I got from talking with Steve…

I mentioned how perhaps the difficulty of getting equity lines in this market for homeowners may be cutting into his business, and his solution is to offer financing directly.  A terrific solution to adjust to the current market!

If you are shopping right now, buy or forever hold your peace.

Single family homes:

Median Prices and Number of Sales have climbed since February. 

Feb $252,500          1,647 sales

March $255,000          2,234 sales

April $275,000           2,448 sales

Condos:

Median Prices and Number of Sales have rebounding since Jan.

Jan $204,000          629 sales

Feb $213,250          691 sales

March $224,500          877 sales

April $236,000         916 sales

As you readers well know, these stats also get compared to how they were at the same time last year and perhaps even historically each year.  Well, those results are not as much fun to report!

April sales results have not been this slow since April 1995 for Single Family homes and April 1998 for Condos.

April Single Family home prices have dropped 13% from last April.

April Condo prices have fallen 14.2% since last April.

Last September the bottom fell out of the economy and the bailouts began.  When we start comparing previous year’s results after September, our stats are going to be abnormally strong.

I won’t be fooled and I am sure my readers will not be either.  I do believe that we are out of the slide in our local real estate market.

If you are a first time buyer or a “move-up” buyer, now is the time.  Don’t hesitate with the best interest rates in decades, as well as affordability being the best in 30 years+.

Call our team and get in the game before prices climb again.

What types of mortgages are still available today?

Michael Dunsky, of Mortgage Master in Walpole MA, sent over a terrific summary of the programs and their main features.  Here they are:

FHA-   The “Vogue” Loan!  

• Although FHA has not set a minimum FICO score, the industry has dictated a minimum 620+ score.
• Minimum Down Payment is 3.5%.
• Buyer must make a 3.5% down payment but there is no minimum required amount that has to be from the borrower’s own funds
• Seller can contribute up to 6% of the Sales Price provided that the buyer has the minimum 3.5% down payment
• Standard ratio guidelines are 31/43 but could go higher with Automated Underwriting approval
• No Termite Inspection Required
• No Non-Allowables required for the seller
• Buyer can currently be in a Chapter 13 Bankruptcy and still purchase*;   They can also purchase three years after a foreclosure and two years after a Chapter 7*
• It is an assumable loan (important when rates go to 8% and they are at 6%).
• Buyer can have Federal Tax Liens and not have to pay them off!* (*Subject to credit scores and industry guidelines).
• FHA uses the standard Fannie Mae appraisal form- No VC sheets!

Mike Dunsky’s team has never had a FHA loan denied.  Don’t let inexperienced loan officers “practice” on your clients- let them help! 

Freddie/Fannie

• Conforming interest rates up to $417,000
• AU (Automatic Underwriting) has tightened their guidelines somewhat
• Minimum of 5% down payment
• Risked based pricing began 4/1/08 and increased again on 10/1/08 (this means that the better the credit score, the lower the rate… and vice versa)
• Most PMI companies now requires a minimum of 680 FICO score and income/expense ratios 41%, but 45% on exception basis only
• Most PMI companies requiring buyer to have a minimum of three lines of credit open for at least 12 -24 months
• With 5% down, seller can pay up to 3% of buyer’s closing cost and pre-paids with down payment of 5-9.99% down
• Seller can pay up to 6% of buyer’s closing cost and pre-paids with down payment of 10%+ down.

 USDA

• No Down Payment to Qualified Borrowers
• Minimum 620+ credit score
• No Monthly Mortgage Insurance.
• Seller can pay UNLIMITED toward closing costs and pre-paids AND/OR all cost can be rolled into the note if the house appraises!
• Standard ratio guidelines are 29/41 (but keep in mind, very inflexible)
• No Cash Reserve Requirements
• Must Purchase in an Eligible Rural Area* and be in guidelines for income limitations
• Cannot own another property (although they do not need to be a First Time Home Buyer) 

 VA – for Veterans

• There is NO down payment required!
• Although VA has not set a minimum FICO score, the industry has dictated a minimum 620+ score
• VA has become very strict on collections (discuss this with Mike)
• Seller can pay any/all of reasonable buyer’s closing cost!
• Ratios (Income vs Expenses) and Residual Income (VA calculation of monies left over after debt) must be in guidelines
• Standard Debt to Income ratio guidelines are 41%, but could go higher with AU approval
• Buyer CAN currently be in Chapter 13 BANKRUPTCY*
• Buyers can purchase 2 years after a Foreclosure and/or Bankruptcy 7**Subject to credit scores and industry guidelines.

VA loans are unique- trust them only to loan teams who know them well- Mike’s Team are experts in these- let them help!  

Investor Financing – Investment Properties

• $417,000 for qualified full doc borrowers w/ 25% down (Freddie/Fannie) as PMI cannot be obtained – some instances allow 20% down payment.
• Buyer must have 6 months PITI reserves for all properties owned.

Remember the 100% investment, stated income financing?…… Not going to happen again for a very long time. 

Jumbo Loans

• Pricing is much higher for fixed rate loans as risk is greater.
• Loans up to 2,000,000 will require anywhere from 20-30% down (depending on multiple factors).
• Minimum 680+ FICO
• Financing criteria is much, much stricter!
• Reduced Doc Loans (i.e., Stated Income, No Doc, No Ratio loans) currently not available in the market other than private money with significant down payments.

Great Jumbo ARM rates!!!

Michael Dunsky can be reached at 508-850-4124 or www.Dunsky.com.  He is a very knowledgable and professional mortgage professional.  Don’t play games with your financing, service is even more critical than rates in this marketplace!

Ed Daniels of Re/Max Executive Realty in Hopkinton, MA can be reached at 508-341-7880 for any additional real estate questions.

The amount of funds is too small to make any noticable effect on these neighborhoods.

The 51 page Application Package describes the 15 documents that an interested party would have to submit.   Some are simple affidavits, but most are huge undertakings, such as construction costs based upon 3 bids from General Contractors.

These regions covered are essentially Roxbury, Dorchester, Mattapan, and Hyde Park.  These areas hold 1271 foreclosed properties.

We all suffer in our home values when there is a local foreclosed home priced at a discount.  This is not the way to turn it around.  Using all taxpayer’s money to produce complicated programs and free money helps very few in the end.  Why are we helping out the City of Boston?  The south side of Framingham has been crushed in values by REO properties, so why not funds for them? 

My real estate team is selling foreclosure properties in the Metrowest area each month.  I would estimate that over the past year, my Buyer Clients have 80% of these listings getting multiple offers on them!  The banks need to suck up the loss on these properties and move on.  The buyers are out there for correctly priced homes.

How many bureaucrats created these 51 pages of complicated applications? 

Who will review all the documents provided by the applicants?  How many additional government workers will need to sort thru the information?  See the waste at the Dept of Neighborhood Development - they are busy with monthly press releases about new programs they create!

This program will not just hand out $4 Million to a few savvy developers, but will create another $4 Million in bureaucacy!

Who will benefit the most from the program?  Tom Menino.  A few press releases and ammunition that he has “done something significant” to help the blighted neighborhoods.  Terrific, just where I want my taxes to go!