Real Estate Information Archive

Blog

Displaying blog entries 11-18 of 18

New Property Search System for Ann Arbor Real Estate

Saturday, January 8, 2011
by Tom Stachler from Group One Realty Team - Real Est

This is our new MLS listings service packed FULL OF FEATURES!  

If this Page doesn't display full width, then just click on the link above titled "All MLS Listings" for a clean full page demonstration.  One you have a full page, then Add or delete areas by typing in the section bottom left and then hit search at the bottom for your results.  Thanks for your consideration Cool

 Rated ***** "Best Realty Search System Available"
Start by Adjusting Your Criteria, Price & Area - Move Quickly Thru Fields Using Tab Key
Next Hit Search at the Bottom for Your Results - Remember to Save Your Search for Automatic Updates
Click Map Icon or Property in Left Column Results for a Detailed Listing View (School Ratings,Mapping & WalkScores)

Add Comment

Economic Recovery Act Update FHA loan limits to Increase

Thursday, January 29, 2009
by Group One Realty Team - Real Estate One

Mortgage Limits

You probably heard last night that the house of Representatives passed the American Recovery and Reinvestment Act of 2009 (i.e. the Stimulus Bill). 

The bill does include provisions to re-establish the 2008 mortgage limits for the remainder of 2009 for both FHA and Fannie Mae and Freddie Mac.   Accordingly, if and when the final Stimulus bill is passed,  the 2008 limits will be in effect again.  Barring an unexpected surprise, we expect this bill to pass by mid-February and the 2008 limits should be effective virtually  immediately. 

We do not think there is a significant risk in taking loan applications  at the higher limits w/ the appropriate qualifiers.  We would not recommend closing loans until the legislation passed.  

On reverse mortgage limits, the legislation appears to raise the maximum limits to as high as $625,500.

Rural Housing Service Funding

The bill also includes funding for the Rural Housing Service.  This funding will permit RHS to start guaranteeing loans again. 

Tax Credit Improvement

The bill also includes a provision that eliminates the repayment feature of the tax credit.  It still is for first-time homebuyers only.   NAR is working to improve this requirement in the Senate including having it expanded to include all purchasers.

A copy of  the mortgage limit and RHS provisions are provided below.

  SEC. 12002. FHA LOAN LIMITS FOR 2009.

(a) Loan Limit Floor Based on 2008 Levels- For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, if the dollar amount limitation on the principal obligation of a mortgage determined under section 203(b)(2) of the National Housing Act (12 U.S.C. 1709(b)(2)) for any size residence for any area is less than such dollar amount limitation that was in effect for such size residence for such area for 2008 pursuant to section 202 of the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 620), notwithstanding any other provision of law, the maximum dollar amount limitation on the principal obligation of a mortgage for such size residence for such area for purposes of such section 203(b)(2) shall be considered (except for purposes of section 255(g) of such Act (12 U.S.C. 1715z-20(g))) to be such dollar amount limitation in effect for such size residence for such area for 2008.

(b) Discretionary Authority for Sub-Areas- Notwithstanding any other provision of law, if the Secretary of Housing and Urban Development determines, for any geographic area that is smaller than an area for which dollar amount limitations on the principal obligation of a mortgage are determined under section 203(b)(2) of the National Housing Act, that a higher such maximum dollar amount limitation is warranted for any particular size or sizes of residences in such sub-area by higher median Home prices in such sub-area, the Secretary may, for mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, increase the maximum dollar amount limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to subsection (a) of this section), but in no case to an amount that exceeds the amount specified in section 202(a)(2) of the Economic Stimulus Act of 2008.

SEC. 12003. GSE CONFORMING LOAN LIMITS FOR 2009.

(a) Loan Limit Floor Based on 2008 Levels- For mortgages originated during calendar year 2009, if the limitation on the maximum original principal obligation of a mortgage that may purchased by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation determined under section 302(b)(2) of the Federal National Mortgage Association Charter Act (12 U.S.C. 1717(b)(2)) or section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1754(a)(2)), respectively, for any size residence for any area is less than such maximum original principal obligation limitation that was in effect for such size residence for such area for 2008 pursuant to section 201 of the Economic Stimulus Act of 2008 (Public Law 110-185; 122 Stat. 619), notwithstanding any other provision of law, the limitation on the maximum original principal obligation of a mortgage for such Association and Corporation for such size residence for such area shall be such maximum limitation in effect for such size residence for such area for 2008.

(b) Discretionary Authority for Sub-Areas- Notwithstanding any other provision of law, if the Director of the Federal Housing Finance Agency determines, for any geographic area that is smaller than an area for which limitations on the maximum original principal obligation of a mortgage are determined for the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation, that a higher such maximum original principal obligation limitation is warranted for any particular size or sizes of residences in such sub-area by higher median home prices in such sub-area, the Director may, for mortgages originated during 2009, increase the maximum original principal obligation limitation for such size or sizes of residences for such sub-area that is otherwise in effect (including pursuant to subsection (a) of this section) for such Association and Corporation, but in no case to an amount that exceeds the amount specified in the matter following the comma in section 201(a)(1)(B) of the Economic Stimulus Act of 2008.

SEC. 12004. FHA REVERSE MORTGAGE LOAN LIMITS FOR 2009.

For mortgages for which the mortgagee issues credit approval for the borrower during calendar year 2009, the second sentence of section 255(g) of the National Housing Act (12 U.S.C. 171520(g)) shall be considered to require that in no case may the benefits of insurance under such section 255 exceed 150 percent of the maximum dollar amount in effect under the sixth sentence of section 305(a)(2) of the Federal Home Loan Mortgage Corporation Act (12 U.S.C. 1454(a)(2)).

 Rural Housing Service

 rural housing insurance fund program account

(including transfers of funds)

For an additional amount of gross obligations for the principal amount of direct and guaranteed loans as authorized by title V of the Housing Act of 1949, to be available from funds in the rural housing insurance fund, as follows: $22,129,000,000 for loans to section 502 borrowers, of which $4,018,000,000 shall be for direct loans, and of which $18,111,000,000 shall be for unsubsidized guaranteed loans.

For an additional amount for the cost of direct and guaranteed loans, including the cost of modifying loans, as defined in section 502 of the Congressional Budget Act of 1974, as follows: section 502 loans, $500,000,000, of which $270,000,000 shall be for direct loans, and of which $230,000,000 shall be for unsubsidized guaranteed loans.

In addition to other available funds, the Secretary of Agriculture may use not more than 3 percent of the funds made available under this account for administrative costs to carry out loans and loan guarantees funded under this account, of which $1,750,000 will be committed to agency projects associated with maintaining the compliance, safety, and soundness of the portfolio of loans guaranteed through the section 502 guaranteed loan program: Provided, These funds shall be transferred and merged with the appropriation for `Rural Development, Salaries and Expenses': Provided further, That the authority provided in this paragraph shall apply to appropriations under this heading in lieu of the provisions of section 1106 of this Act.

Funds appropriated by this Act to the Rural Housing Insurance Fund Program account for section 502 direct loans and unsubsidized guaranteed loans may be transferred between these programs: Provided, That the Committees on Appropriations of the House of Representatives and the Senate shall be notified at least 15 days in advance of any transfer.

To get the latest listings on Foreclosures, short sales and resales click here

Add Comment

A few parting words for the senators who squashed the auto rescue

Monday, December 22, 2008
by Group One Realty Team - Real Estate One

By MITCH ALBOM • FREE PRESS COLUMNIST • December 13, 2008

Do you want to watch us drown? Is that it? Do want to see the last gurgle of economic air spit from our lips? If so, senators, know this: You’ll go down with us. America isn’t America without an auto industry. You can argue whether $14 billion would have saved it, but you surely tried to kill it.

We have grease on our hands.

You have blood.

Kill the car, kill the country. History will show that when America was on its knees, a handful of lawmakers tried to cut off its feet. And blame the workers. How suddenly did the workers — a small percentage of a car’s cost — become justification for crushing an industry?

And when did Detroit become the symbol of economic dysfunction? Are you kidding? Have you looked in the mirror lately, Washington?

In a world where banks hemorrhaged trillions in a high-priced gamble called credit derivative swaps that YOU failed to regulate, how on earth do WE need to be punished? In a bailout era where you shoveled billions, with no demands, to banks and financial firms, why do WE need to be schooled on how to run a business?

Who is more dysfunctional in business than YOU? Who blows more money? Who wastes more trillions on favors, payback and pork?

At least in the auto industry, if folks don’t like what you make, they don’t have to buy it. In government, even your worst mistakes, we have to live with.

And now Detroit should die with this?

In bed with the foreign automakers

Kill the car, kill the country. Sen. Richard Shelby, Sen. Bob Corker, Sen. Mitch McConnell, your names will not be forgotten. It’s amazing how you pretend to speak for America when you are only watching out for your political party, which would love to cripple unions, and your states, which house foreign auto plants.

Corker, you’ve got Nissan there and Volkswagen coming. Shelby, you’ve got Hyundai, Honda, Mercedes-Benz and — like McConnell — Toyota. Oh, don’t kid yourself. They didn’t come because you earned their business, a subject on which you enjoy lecturing the Detroit Three. No, they came because you threw billions in state tax breaks to lure them.

And now you want those foreign companies, which you lured, and which get help from their governments, to dictate to American workers how much they should be paid? Tell you what. You’re so fond of the foreign model, why don’t you do what Japanese ministers do when they screw up the country’s finances?

They cut their salaries.

Or they resign in shame.

When was the last time a U.S. senator resigned over a failed policy?

Yet you want to fire Rick Wagoner?

Who are you people?

More money for the lords of Wall Street

There ought to be a law — against the hypocrisy our government has demonstrated. The speed with which wheelbarrows of money were dumped on Wall Street versus the slow noose hung on the auto companies’ necks is reprehensible. Some of those same banks we bailed out are now saying they won’t extend credit to auto dealers. Wasn’t that why we gave them the money? To loosen credit?

Where’s your tight grip on those funds, senators? Where’s your micromanaging of the wages in banking? Or do you just enjoy having your hands around blue-collared throats?

No matter what the president does, history will not forget this: At our nation’s most uncertain hour, you senators stood ready to plunge hundreds of thousands of American families into oblivion. Leave them unemployed, with no health care, on public assistance. And you were willing to put our nation’s security at risk — by squashing the manufacturing base we must have in times of war.

And why? So you could stand on some phony principle? Crush a union? Play to your base? How is our nation better off today now that you kept $14 billion in the treasury? Are you going to balance the budget with that?

Don’t make us laugh.

Kill the car, kill the country. You tried to slam a stake into our chest; you don’t realize how close you are to the nation’s heart. Shame on your pettiness. Shame on your hypocrisy. This is how lawmakers behave two weeks before Christmas? Honestly. What has become of this country?

Add Comment

The Changing View of Home Sales

Sunday, December 21, 2008
by Group One Realty Team - Real Estate One

In our current Buyer’s market, the type of Home that is selling has shifted from the traditional profile of the past 20 years. It is therefore important to understand where your home fits into the overall market activity. Although traditional owner occupied homes make up a majority of the current homes available for sale, the majority of the homes being sold are bank owned or financial hardship related sales. This puts downward pressure on values and causes pricing to take a more significant roll in marketing. As a traditional seller, in order to stand out in a crowded field, (made even smaller by the Buyer’s focus on bank owned) flexibility on pricing, terms, Lease vs. sale, or lease to own becomes imperative.

Click here for an interesting graphic showing these changes.

Add Comment

HR 3221, the Housing and Economic Recovery Act of 2008

Monday, July 28, 2008
by Group One Realty Team - Real Estate One
Summary

(as of 7/24/08)

 

H.R. 3221, the “Housing and Economic Recovery Act of 2008,” passed the house on July 23rd by a vote of 272-152.  The Senate must now approve the language adopted by the House.  The Senate is expected to approve the bill on Friday, July 25th or Saturday, July 26th.   The President has said he will sign the bill.  It includes:

 

·         GSE Reform – including a strong independent regulator, and permanent conforming loan limits up to the greater of $417,000 or 115% local area median Home price, capped at $625,500.  The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

 

·         FHA Reform – including permanent FHA loan limits at the greater of $271,050 or 115% of local area median Home Price, capped at $625,500; streamlined processing for FHA condos; reforms to the HECM program, and reforms to the FHA manufactured housing program. The effective date for reforms is immediate upon enactment, but the loan limits will not go into effect until the expiration of the Economic Stimulus limits (December 31, 2008).

 

·         Homebuyer Tax Credit - a $7500 tax credit that would be would be available for any qualified purchase between April 8, 2008 and June 30, 2009.  The credit is repayable over 15 years (making it, in effect, an interest free loan).

 

·         FHA foreclosure rescue – development of a refinance program for homebuyers with problematic subprime loans.  Lenders would write down qualified mortgages to 85% of the current appraised value and qualified borrowers would get a new FHA 30-year fixed mortgage at 90% of appraised value.  Borrowers would have to share 50% of all future appreciation with FHA.  The loan limit for this program is $550,440 nationwide.  Program is effective on October 1, 2008.

 

·         Seller-funded downpayment assistance programs – codifies existing FHA proposal to prohibit the use of downpayment assistance programs funded by those who have a financial interest in the sale; does not prohibit other assistance programs provided by nonprofits funded by other sources, churches, employers, or family members.  This prohibition does not go into effect until October 1, 2008.

 

·         VA loan limits – temporarily increases the VA home loan guarantee loan limits to the same level as the Economic Stimulus limits through December 31, 2008.

 

·         Risk-based pricing – puts a moratorium on FHA using risk-based pricing for one year.  This provision does will be effective from October 1, 2008 through September 30, 2009.

 

·         GSE Stabilization – includes language proposed by the Treasury Department to authorize Treasury to make loans to and buy stock from the GSEs to make sure that Freddie Mac and Fannie Mae could not fail.

 

·         Mortgage Revenue Bond Authority – authorizes $10 billion in mortgage revenue bonds for refinancing subprime mortgages.

 

·         National Affordable Housing Trust Fund – Develops a Trust Fund funded by a percentage of profits from the GSEs.  In its first years, the Trust Fund would cover costs of any defaulted loans in FHA foreclosure program.  In out years, the Trust Fund would be used for the development of affordable housing.

 

·         CDBG Funding – Provides $4 billion in neighborhood revitalization funds for communities to purchase foreclosed homes.

 

·         LIHTC – Modernizes the Low Income Housing Tax Credit program to make it more efficient.

·         Loan Originator Requirements – Strengthens the existing state-run nationwide mortgage originator licensing and registration system (and requires a parallel HUD system for states that fail to participate).  Federal bank regulators will establish a parallel registration system for FDIC-insured banks.  The purpose is to prevent fraud and require minimum licensing and education requirements.  The bill exempts those who only perform real estate brokerage activities and are licensed or registered by a state, unless they are compensated by a lender, mortgage broker, or other loan originator.


Click here for a copy of the bill lanuage.

Time to look for Property. Seller paid concessions run out on FHA loans Oct 1, 2008!.  Click here to get started with direct MLS Access for the Ann Arbor Michigan Area.

Add Comment

Ways Buyers Can Save Money at Close

Wednesday, January 9, 2008
by Group One Realty Team - Real Estate One

Seller Concessions:

Percentage of purchase price towards allowable costs (percentage depends on program and downpayment, see chart below).

 

In addition to concessions, sellers can pay for the following:

1. Seller can waive tax pro­-rations from the buyer on the purchase agreement.

2. Disburse Use and Occupancy fee's (if any) to Buyer at clos­ing.

3. Pre-­pay association fee directly to the association. By giving the buyer a paid receipt allows this cost to remain off the final HUD.

Conventional

Down Payment

Allowable Concession

0 - ­10%

3%

11 - ­24%

6%

25% or more

9%

FHA and Non­-Conforming

Down Payment

Allowable Concession

3%

6% for costs/3% for down­payment (through 3/31-­2008)

VA

Down Payment

Allowable Concession

0%

6%

Investment Properties

Down Payment

Allowable Concession

All down payments

2%

Add Comment

Ann Arbor Area July Real Estate Housing Statistics

Friday, August 10, 2007
by Group One Realty Team - Real Estate One
HOUSING MARKET HOLDS STEADY

The housing market will hold close to present levels in the months ahead, according to Lawrence Yun, the National Association of REALTORS® senior economist. "Existing-Home sales should be relatively stable over the next few months, holding in a modest range, with some pent-up demand growing from buyers who’ve been on the sidelines," he said.

"Mortgage disruptions will hold back sales over the short term, but long-term fundamentals are favorable. A modest up turn is projected for existing-home sales toward the end of the year, with broader improvement to include the new-home market by the middle of 2008."

The Ann Arbor Area Board of REALTORS® July Housing Statistics demonstrate the economic outlook of Lawrence Yun’s projections. When compared with July 2006, median residential and condominium sales prices are on the rise. New listings show a decline of 13 percent, while pending sales increased 21 percent and average list and sale prices increased by $2,730 and $3,970 respectively.

Add Comment

How to Figure Out Income Property Return Numbers

Sunday, August 5, 2007
by Group One Realty Team - Real Estate One

I have to say, one of the smartest investments I have ever made has been to buy residential and commercial income property.  The earlier you buy it the better.  If you are not in a position to buy property on your own, I would suggest that you get together with family or friends and form a sub-chapter S corporation or LLC to purchase larger properties using your combined credit and purchasing power. Shares, estate planning or future transfers can more easily be accomplished without having to either cash out or divest of your investment property using these company investment shells.. 

So how does one get started finding and then selecting the best property available?  I have a rental worksheet that I have used for many years to help me reduce the prospective investment property to "bottom line" numbers.  This really helps in determining which is the best property for you.  I would suggest you download the form and make several copies of it.  Use the sheet while you are in the field looking at the subject property.  Fill it out as you walk through the property, asking questions, noting how many meters are present, who pays the utilities, and confirm what the current rental rates are for the different units.  If you have questions about terms like net operating income (NOI), internal rate of return (IRR), cap rate, gross Rent multiplier (GRM), sinking funds, vacancy factors, etc. please do not hesitate to contact me .  I also converted this rental worksheet to a excel file file as well should you want to use this medium later on.

So how do you get a list of the better properties?  Just click here to search for property and I can always help you find selections that have more potential for income and equity increase.  I most often find when doing a property search that whenever you can make a change in the subject's usage, you stand to increase your equity more that others without that option.  As an example, I once purchased a 4 unit apartment building that was made up of two bedroom units having their own private laundry rooms.  I converted the laundry rooms to bedrooms and was able to offer three bedroom units for rent at a greater monthly rental rate.  I spent about $3,000. to make the conversion and increased the buildings annual income $4,800. (100/mth extra x 12 mths x 4 units).   Using a 10% cap rate, my $3000 investment increased the value of the property $48,000 (4800. x 10%) and provided an equity increase of $45,000 ($48,000 less $3,000) so a good  management adjustment planned as part of the original property investment.  The numbers before this plan were only average which is why we have two sets of numbers on the property field sheet referenced above.  Contact me for more details because it is a Great Time to Buy!

Add Comment

Displaying blog entries 11-18 of 18

Syndication

Categories

Archives