FHA Loan Changes and what it means to YOU!

FHA loans has been the primary source of home financing over the past 2 years. There are some changes over the next few months that homebuyers need to be aware of if thinking about purchasing a home.

FHA MORTGAGE INSURANCE PREMIUM
The increase in FHA Up Front Mortgage Insurance Premium (effective April 1, 2010). UFMIP went up from 1.75% of the loan amount to 2.25% of the loan amount.

WHAT DOES IT ME FOR YOU?
Higher up front and/or monthly expense if the fee is financed.

FHA MORTGAGE INSURANCE
Mortgage insurance is a policy that protects lenders against some or most of the losses that result from defaults on home mortgages and it's required primarily for borrowers making a down payment of less than 20%. There is a planned increase of FHA Monthly Mortgage Insurance.

WHAT DOES IT ME FOR YOU?
Buyers with tight debt ratios will qualify for lower loan amounts. It will be an increased monthly expense to consumers.

SELLER CONCESSIONS
The sellers in today's market attract many buyers by offering to contribute monies toward the homebuyers' closing costs, known as seller concession or closing help. FHA will be decreasing the maximum seller contribution from 6% to 3% of contract price.

WHAT DOES IT ME FOR YOU?
The homebuyers who depend on seller contributions will no longer be in a position to purchase a home, which will negatively affect sales in some markets.



Call me at 301-452-4767 if you have any real estate questions.

Property of the Week: The Lacey

LOCATION
"The Lacey is a 26-unit condo development, located at 2250 11th Street on the corner of Florida Avenue and 11th Street. The development sits on the border of Columbia Heights and the U Street Corridor. It is about three blocks from the U Street/Cardozo Metro station on the green line, and about five blocks east of Meridian Hill park.



DESIGN
The Lacey was designed by Division1 Architects, a DC-based architecture firm founded in 1994 that also designed The Drost, a condo development at 2106 10th Street NW, and Lima, a restaurant and lounge at 1401 K Street." (dc.urbanturf.com)





PRICE
The building is now FHA approved with 1 bedrooms starting at $495,000 and 2 bedrooms starting at $575,000. The condo fees start at $345 per month. The building is pet-friendly, but alas NO fitness center or rooftop deck. For more information give me a call at 301-452-4767.





Call me at 301-452-4767 if you have any real estate questions.

Living in DC: Tenleytown/American University Park

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Tenleytown/American University which is located in the upper Northwest part of the city.



This is the historic site of Fort Reno, "one of the forts that formed a ring around Washington D.C. during the Civil War to protect the capital against invasions. It proved to be the crucial lookout point for preventing a siege of Washington (indeed, it is the highest natural point in the District of Columbia--429 feet above sea level)." (Wikipedia)

SHOPPING & RESTAURANTS
Tenleytown has a large variety of restaurants and shopping with stores like Bestbuy, Guapos, Payless, Whole Foods, Papa Johns Pizza, Starbucks, Robecks, Crispy & Juicy, etc. There many local eateries such as Steak & Eggs, a great local dinner in the heart of Tenleytown's residential area.



AMERICAN UNIVERSITY PARK
Tenleytown is home of American University, a private United Methodist-affiliated research university in Washington, D.C. Developed in the 1920s, the American University Park neighborhood surrounding American University, consists almost entirely of single-family homes. A wide variety of architectural styles are present such as Victorian, Colonial styles, and most homes have been modified or expanded since the 1930s--there are approximately 2700 homes within closely spaced area. The single-family home prices start from $849,000.



CONTEMPORARY CONDOMINIUMS
There are very few condominiums in this area, but one such building is Cityline at Tenley located at 4500 Wisconsin Ave. and 4101 Albemarle St. In 2003, this award-winning project boasted the city’s first Best Buy and Container Store – both of which have enjoyed tremendous success. The over 200 residential condominiums were almost entirely sold out before construction was complete. The condos starting price is $370,000.



Call me at 301-452-4767 if you have any real estate questions.

What is the biggest concern for home sellers today?

The biggest concern of every home seller is the SAME as in any market...

How much money will I get for my home?

It is important for sellers to understand that if you are planning to sell your home in a Buyer's market you will ALWAYS make less money than if you were selling during a Seller's market.

Just as important if not more important is...HOW LONG will my home stay on the market?

In a Buyer's market, PRICING directly affects how long your property will stay on the market. As more properties stay on the market longer, home prices are more inclined to be negatively affected by the high inventory of foreclosures and short sales. A seller must be adaptable and realistic when weighing PRICING vs. TIMEFRAME.

Here are some things to consider before selling:
1. Comparable Home Prices
2. Timeframe allotted for selling
3. Condition of the property (ie. Does your property show well?)
4. Buyer Incentives (ie. closing help, etc.)
5. Worst-case scenario option (ie. Renting the property)



Call me at 301-452-4767 if you have any real estate questions.

What is the difference between Short Sales vs. Foreclosures?

In today's market, especially within the suburbs of Maryland and Virginia, neighborhoods are bombarded with short sales and foreclosures. Each one has a negative effect on housing values in any given area.

The common question I get from homebuyers is "What is the difference between Short Sales and Foreclosures?"

My answer: "Foreclosures are the better purchase of the two options!"

Now, I have NOT answered the question.

A Short Sale is the process before a property goes into foreclosure. Ideally during this period, the owner is currently delinquent and has the opportunity to negotiate with the bank to sell the home at a lower price than what is owed by the owner on his/her mortgage. Notice I say "Ideally!" This process can take 45 days to 365 days to settle...keep in mind while this short sale might be approved by the bank, the Foreclosure department is still foreclosing on the home. The Short Sale and Foreclosure are two independent departments which DO NOT communicate with each other.

A Foreclosure is after the short sale process and the bank fully owns the property. This process can take 30 to 45 days to settle.

From a Buyer's perspective, the foreclosure transaction is a more straightforward process of purchasing a home. From a Seller's perspective, the short sale is less detrimental to their credit score.

Keep in mind, if you are thinking about selling your home as a Short Sale...you will have to be able to show "financial hardship" to be approved by bank.



Call me at 301-452-4767 if you have any real estate questions.

Living in DC: LOGAN CIRCLE

When looking at DC neighborhoods to reside, there are many options to choose from depending on your living criteria. One such residential neighborhood is the Logan Circle which is located in the downtown area. This historic area, during the Civil War was home to "Camp Barker, former barracks converted into a refugee camp for newly freed slaves from nearby Virginia and Maryland.



Originally known as Iowa Circle, the park was renamed by Congress in 1930 in honor of John A. Logan, Commander of the Army of the Tennessee during the Civil War, Commander of the Grand Army of the Republic, and Representative and Senator for the state of Illinois, who lived at 4 Logan Circle from 1885 until his death the following year." (Wikipedia)

SHOPPING & RESTAURANTS
Since the early 1900s, the 14th Street corridor has always been a prominent area for shopping, restaurants, and nightlife. The residents of Logan Circle enjoy fresh groceries from the local Whole Foods and convenience of local restaurants like Logan Tavern, Commissary, Rice, Masa 14, Saint-Ex, etc.



ARTS OVERLAY
The 14th Street corridor is well-known for its art galleries and the Studio Theatre. The Studio Theatre is the home of live contemporary performances in Washington DC. Visit www.studiotheatre.org/ for upcoming shows.



VICTORIAN ROWHOMES
Logan Circle is known for its Victorian-style rowhomes which were built since the Civil War. These rowhomes are historic landmarks throughout the city.



CONTEMPORARY CONDOMINIUMS
Along with Victorian rowhomes, Logan Circle is full of contemporary mid-rise condominiums throughout the neighborhood. These buildings are targeted to young professionals with amenities such as fitness centers, rooftop decks, etc. A Great Buy for first-time homebuyers or people looking to be in the heart of Washington DC. The average home prices begin at $330K.



Call me at 301-452-4767 if you have any real estate questions.

DC Renting: Landlords and Tenant Duties

Washington DC is known as the 6th expensive rental market in the country: average 1 bedroom is $1,495 per month. Due to increased demand for rentals and the lack of supply, it is essential that both Landlords and Tenants be aware of their duties and responsibilities under DC Rental Laws.

Rent Control--DC is a rent control city which refers to laws that limit the amounts of rent and the amounts that rent can be increased in any year.

Eviction--The landlord must have a good reason for the eviction such as nonpayment of rent, breach of the rental agreement like pets that aren’t allowed, or illegal activity.

Security Deposit--A landlord cannot charge you more than one month's rent as a security deposit, and it can only be collected once.

Joint Liability--Each tenant is responsible for the full amount to be paid at the beginning of each month. If a roommate moves out, it is the responsibility of the remaining roommates to find another person to pay missing portion of the rent, not the landlord.

First Right of Refusal (aka TOPA)--Landlord has the right to market the property for sale but must first give the current tenant the opportunity to purchase before marketing the property to the general public. The Landlord must provide written notice of intent to sell to tenant. The tenant has 30 days to decide whether to purchase.



Call me at 301-452-4767 if you have any real estate questions.