For those in the market for a new house now, that search may stretch into the new year. There was some talk, and concern even, among Realtors and those in the mortgage industry that there may be a reduction in the maximum loan limits for loans underwritten following standards of Fannie Mae and Freddie Mac. Great news! The loan limits for conventional financing are remaining fixed into 2014 in our area (and most of the country). In Maryland and DC, here are some relevant caps for high balance conforming loans.
Montgomery County = $625,500
Prince George's County = $625,500
Frederick County = $625,500
Anne Arundel County = $494,500
Talbot County = $417,000
Washington, DC = $625,500
And for my friends and family in Wisconsin, all counties in that state have the $417,000 limit. If you would like to know your loan limits if you live elsewhere in the US, I can let you know based on your state and county.
By the way, I have a terrific listing for a house for sale in College Park, MD, listed at $274,000, which is in Prince George's County, through my brokerage, McEnearney Associates, Inc; main office: 202-552-5600; or email or call me directly.
Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts
Wednesday, December 4, 2013
Friday, November 22, 2013
DC Buyer Programs
For first time homebuyers in Washington, DC, there are some great options you should investigate if you are considering a purchase.
First is the DC Tax Abatement program. This program has two components and is based on household income to qualify. Qualification guidelines are available elsewhere and each buyer should consult their licensed real estate agent and a settlement agent or attorney about their specific situation.
The first component of this program is the elimination of the DC Recordation Tax (for properties under $400,000 purchase price, this is 1.1% of the sales price for each side of the transaction) and a possible seller credit of the other 1.1% of the DC Transfer Tax.
The second portion is potentially more impactive. Starting in the first tax year following purchase, with the DC property tax cycle running October 1 to September 30, the buyer is exempt from DC property taxes for 5 years, assuming you live in the property as your primary residence for that full period.
In addition to these tax programs, there are currently a number of mortgage programs aimed at DC first time buyers, too. For example, the DC Open Doors program is one option available through specific mortgage lenders. There are low down payment requirements and potential down payment assistance (in some cases through a low or no-interest loan) for qualified buyers.
I have one buyer client now (and potentially a second client) working with a mortgage lender on a Community Reinvestment Act (CRA) loan for first time homebuyers. This has a low interest rate, low down payment requirements, and no private mortgage insurance.
A skilled and experienced Realtor can guide you to programs that could help make your dream of home ownership a reality, within your means, and with the right loan, and home, for you.
First is the DC Tax Abatement program. This program has two components and is based on household income to qualify. Qualification guidelines are available elsewhere and each buyer should consult their licensed real estate agent and a settlement agent or attorney about their specific situation.
The first component of this program is the elimination of the DC Recordation Tax (for properties under $400,000 purchase price, this is 1.1% of the sales price for each side of the transaction) and a possible seller credit of the other 1.1% of the DC Transfer Tax.
The second portion is potentially more impactive. Starting in the first tax year following purchase, with the DC property tax cycle running October 1 to September 30, the buyer is exempt from DC property taxes for 5 years, assuming you live in the property as your primary residence for that full period.
In addition to these tax programs, there are currently a number of mortgage programs aimed at DC first time buyers, too. For example, the DC Open Doors program is one option available through specific mortgage lenders. There are low down payment requirements and potential down payment assistance (in some cases through a low or no-interest loan) for qualified buyers.
I have one buyer client now (and potentially a second client) working with a mortgage lender on a Community Reinvestment Act (CRA) loan for first time homebuyers. This has a low interest rate, low down payment requirements, and no private mortgage insurance.
A skilled and experienced Realtor can guide you to programs that could help make your dream of home ownership a reality, within your means, and with the right loan, and home, for you.
Friday, November 15, 2013
Mortgage Debt Limits
I am currently reading an interesting, though a little depressing, book called "At Home: A Short History of Private Life" by Bill Bryson. I am certain I will be blogging about this book more in the future because it is filled with interesting information about the history of homes and rooms in homes more specifically.
Early in the book I read something that gave me a unique perspective on a topic many home buyers face today: debt-to-income ratios. Basically, through typical underwriting requirements for home mortgages, most lenders dictate a maximum total debt-to-income ratio of 38% for their average borrower, and that their housing debt be no more than between 28% and 33% of their monthly gross (pre-tax) income.
According to Bryson, in nineteenth century England, "Up to 80 percent of all household expenditure... was spent on food, and up to 80 percent of that went toward bread."
Think about that for a minute. Almost two-thirds of all money was spent on bread! Today, my understanding is that the average American household (appreciating that there are likely wide variations) spends about 25% on food. Housing is a high expense for many people, but I was stunned by this glimpse into history.
Early in the book I read something that gave me a unique perspective on a topic many home buyers face today: debt-to-income ratios. Basically, through typical underwriting requirements for home mortgages, most lenders dictate a maximum total debt-to-income ratio of 38% for their average borrower, and that their housing debt be no more than between 28% and 33% of their monthly gross (pre-tax) income.
According to Bryson, in nineteenth century England, "Up to 80 percent of all household expenditure... was spent on food, and up to 80 percent of that went toward bread."
Think about that for a minute. Almost two-thirds of all money was spent on bread! Today, my understanding is that the average American household (appreciating that there are likely wide variations) spends about 25% on food. Housing is a high expense for many people, but I was stunned by this glimpse into history.
Wednesday, November 13, 2013
Three Beautiful Words
Three beautiful words in the Language of Real Estate.
Cleared To Close
Mortgage lending is a complex process in today's market and for many good reasons. The underwriting guidelines are strict and buyers often have to produce multiple documents and some in the final few days prior to settlement.
So when my buyers' lender sent the email today saying Cleared To Close, I did a little happy dance. My buyers will be able to close on their future home on Friday morning! Congratulations to them.
Cleared To Close
Mortgage lending is a complex process in today's market and for many good reasons. The underwriting guidelines are strict and buyers often have to produce multiple documents and some in the final few days prior to settlement.
So when my buyers' lender sent the email today saying Cleared To Close, I did a little happy dance. My buyers will be able to close on their future home on Friday morning! Congratulations to them.
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