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Archive for Financing
Short Sales: When is Offer ‘Accepted’?
There has been some confusion about when a short sale offer is “accepted.” A short sale is a sale of a house in which the proceeds fall short of what the owner still owes on the mortgage. The owner will request that the lender (third party) agree to take less and forgive the rest of what [...]
Who is a First-Time Home Buyer?
“First-time home buyer” is defined by the Cranston-Gonzalez National Affordable Housing Act of 1990. The code specifies: The term “first-time home buyer” means an individual and his or her spouse who have not owned a home during the 3- year period prior to purchase of a home with assistance under subchapter II of this chapter, [...]
Long-Term Mortgage Rates Hit Record Low!
The Washington Business journal reported that the 30-year fixed-rate mortgage rate has dropped to its lowest level on record. The average rate is the lowest in McLean-based Freddie Mac’s weekly survey dating to 1971. Freddie Mac says its Primary Mortgage Market Survey shows the 30-year fixed-rate mortgage averaged 4.85 percent with an average 0.7 point [...]
What Is A 1031 Exchange?
Created by the I.R.S. in 1990, section 1031 of the Internal Revenue Code allows taxpayers, with the aid of a Qualified Intermediary, to sell investment or income property solely for the purchase of other “like-kind” property within 180 days and to defer the capital gains taxes normally associated with such a sale. In essence, the [...]
CDA Lowered Their Rates!
Effective February 1st CDA rates were dropped to the following; 0 Points- 5.875% 1 Point - 5.75% 2 Points- 5.625% 3 Points- 5.5%
Wednesday’s Rate Cut Was Needed!
The Federal Reserve on Wednesday January 30, 2008, cut a key interest rate for the second time in just over a week. In a brief statement explaining their decision, Federal Reserve Chairman Ben Bernanke and his colleagues said that “financial markets remain under considerable stress.” The rate cut marked the fifth time that the Fed [...]
FHA Loan Limits for Maryland Counties
Did you know that FHA has loan limits for each Maryland county? What that means is anyone who uses FHA financing can only purchase a property up to the maximum sales price allowed for that county. The buyer can make up the difference between what is allowed and the sales price. For example if the sales [...]
FHA Is Back!
From 2003 thru early 2007 it was very difficult to get sellers in Maryland to accept a contract in which a buyer was using FHA financing. FHA stands for the Federal Housing Administration. Traditionally this type of financing was great for first time home buyers but once we got deep into a sellers market FHA became a dirty [...]
What Is A Short Sale?
For the past week I have been forwarding properties to my clients with the following remarks in the listing, ”property subject to third party approval- short sale.” Some of my clients have called me wanting to know “what is a short sale?” This is what I explained to them. For homeowners who can no longer afford [...]
