Buyer's Should Consider a Light Fixer

Finance able fixer home sold last year

This real estate market is pretty robust, but buyers are still more interested in move-in ready properties. That leaves fixers as a value proposition especially in the entry level price range under the county-wide median price.

Not all fixers are problems. Buyers using a conventional style loan can by a cosmetically rough house for tens of thousands less than the future market value when fixed up. A little do it yourself action can go a long ways.

FHA and VA buyers are in a little tougher spot when looking at fixers. These are government backed loans and as such the property is scrutinized by the lender a bit more. That doesn't mean a light cosmetic fixer won't fly, it very well may be fine. I have helped buyers on a budget using VA and FHA loans to get into a light to medium fixer. Choosing an experienced local agent that understands the nuances of the various loan programs can go a long way towards getting a home under market that needs a little TLC.

The combination of a cosmetic discount and the ridiculously low rates for a mortgage right now, could lead a savvy buyer to a huge equity gain in the short term. Buyers seeking that perfect move in house may have to fight off some competitors but with loan rates dipping into the 2's for well qualified borrowers, now is definitely a good time to buy a house.

Sellers with a home to sell that is tidy and ready for the market, you are in the proverbial 'catbird seat' with swarms of eager buyers waiting to snatch up you home.

Veterans Should Take Advantage of GI Benefits

I posted this last year on this blog. It has been slightly updated this time. The author is not affiliated with any government agency and is providing general information about available products in the real estate marketplace. 

Vets can check the VA website here

Are you a veteran? If you served honorably in the armed forces there is a good chance you qualify for a VA loan. The VA loan is probably the best mortgage loan product available. And it is for our veterans only.

What makes the VA loan so good? It is not any one thing but rather the whole package. The VA loan is a ZERO down program. The veteran does not need to save up a down payment for the house. VA loans are typically priced with the some of the lowest interest rates in the market. The VA loan does not have monthly mortgage insurance. These are strong features that make a VA loan hard to beat.

The VA loan does have a few minor drawbacks. It has a "funding fee" that runs around 2.25%. (funding fee may be waived for qualifying disabled vets) The veteran may finance that fee so the loan remains a truly no down product. The Veterans Administration requires that the property pass not just a standard appraisal, but a special VA appraisal that looks more closely at the quality of the property being financed. This can lead to the veteran having to be a little more selective with offers.

In the current low interest climate, the VA loan has another great feature. VA loans are assumable. A veteran buying a home now will likely have a great low interest rate. In the future when the vet wishes to sell, rates may not be so low. The veteran's ability to allow another veteran to "assume" his loan may make his property more marketable in the future.

Loan products have many variables. If you are a veteran of the US Armed forces I would strongly encourage you to talk to a lender and find out what is available for you. A qualified loan officer can give you all the details about what is required and how the program works. Our veterans have served this country with honor and they deserve an opportunity to own a home without excessive burden. The VA loan is a big step to making that a reality.

Disabled veterans often qualify for additional benefits. I run in to many people some veterans and some not who don't think they can buy a home. All to often they in fact can and many times for a savings over comparable rent.

If you are veteran look into the VA benefits and the VA Home Loan today. It may be the best thing you ever do.

Veterans Should Take Advantage of GI Benefits

Vets can check the VA website here

Are you a veteran? If you served honorably in the armed forces there is a good chance you qualify for a VA loan. The VA loan is probably the best mortgage loan product available. and it is for our veterans only.

What makes the VA loan so good? It is not any one thing but rather the whole package. The VA loan is a ZERO down program. The veteran does not need to save up a down payment for the house. VA loans are typically priced with the some of the lowest interest rates in the market. The VA loan does not have monthly mortgage insurance. These are strong features that make a VA loan hard to beat.

The VA loan does have a few minor drawbacks. It has a "funding fee" that runs around 2.25%. The veteran may finance that fee so the loan remains a truly no down product. The Veterans Administration requires that the property pass not just a standard appraisal, but a special VA appraisal that looks more closely at the quality of the property being financed. This can lead to the veteran having to be a little more selective with offers.

In the current low interest climate, the VA loan has another great feature. VA loans are assumable. A veteran buying a home now will likely have a great low interest rate. In the future when the vet wishes to sell, rates may not be so low. The veteran's ability to allow another veteran to "assume" his loan may make his property more marketable in the future.

Loan products have many variables. If you are a veteran of the US Armed forces I would strongly encourage you to talk to a lender and find out what is available for you. A qualified loan officer can give you all the details about what is required and how the program works. Our veterans have served this country with honor and they deserve an opportunity to own a home without excessive burden. The VA loan is a big step to making that a reality.

Disabled veterans often qualify for additional benefits. I run in to many people some veterans and some not who don't think they can buy a home. All to often they in fact can and many times for a savings over comparable rent.

If you are veteran look into the VA benefits and the VA Home Loan today. It may be the best thing you ever do.

It's Getting Tough to Buy Condos with FHA or VA

500 Broadway, Vancouver, WA
Condos on the upper floors

Many buyers are interested in a condominium home. There are many advantages to this type of home. The homeowner is only responsible for the interior of the unit and they pay an HOA to manage the grounds, external facilities and common areas. Small modestly built condos can also be less expensive than a comparable home. There are disadvantages as well but once a buyer has decided that a condo is for them, they must be certain that they can finance it.

If the buyer is a veteran looking to use a VA loan or is intent on an FHA loan, they must be certain the condo is approved by HUD (Federal Government, Department of Housing and Urban Development). HUD has stopped approving condos on an individual basis and is requiring the entire complex to be approved. In the Clark County, Washington market I am finding that the overwhelming majority of condos are either expired or not approved at all.

If the condo is approved, the buyer and their agent ought be certain that the approval does not expire before the sale closes. This is paramount should the condo be a short sale. Short sales take much longer to close. Buyers should have at least 6 months and preferably a year of approval left is wise when offering on a short sale condo.

The good news for FHA buyers is that some banks are offering a 95% conventional loan. These loans do not require FHA approval on the condo unit or complex. They will however have some underwriting requirements that could pose problems. For example, most banks are looking for at least 50% owner occupied units in a condo project. These conventional loans require a slightly higher down payment than an FHA loan but offer superior terms regarding mortgage insurance. It is always a good idea for buyers to meet with a mortgage professional prior to home hunting.

When offering on a condo, buyers should be certain that their agent is thorough in vetting any potential issues with financing.

Since I am on the subject of condos, I will touch on HOA issues as well. Condo projects have HOAs that oversee the common areas and buildings. Since the unit owner only owns the space inside, the HOA owns the buildings and land. The HOA is a common ownership of all the unit owners. Essentially condo owners have two things they own. They hold title to the unit (interior space of their unit) solely as an individual and then they hold title to the whole complex property as a partial owner, usually held as tenants in common. They have an equal share with each of the other owners or possibly proportionate to the relative value or size of their unit.

HOAs are required to keep to state standards for financial disclosure and management. Before buyers commit to a purchase on a condo or other property with an HOA, they should be certain to check out the HOAs financial and legal status. There are times when an HOA is involved in litigation. They can be either the plaintiff or the defendant. In either case, financing is nearly impossible to obtain while there is an open litigation or a judgement is in force.

Attached Townhouse in Camas, WA
This is not a condo

Condos should not be confused with other homes in planned unit developments. Many neighborhoods and attached housing projects have an HOA but they are NOT condos. A condo is unique in the ownership as just the space inside the walls. Attached housing with common walls such as a townhouse or row houses are often held in ownership the same as detached housing. The owner owns the structure and the land. Typically the HOA (if present) takes care of keeping the neighborhood consistent by enforcing rules designed to protect its integrity. These HOAs may also provide upkeep and care of other amenities such as a neighborhood park, swimming pool, etc. In these scenarios, the HOA is not responsible for the structure of the buyers home, roof, siding, etc. The dues are likely to be lower than those in a condo. The FHA and VA loans will not require HUD condo project approval on these types of developments.

Buyers should work with an experienced agent when considering a condominium home. They can be a wonderful opportunity for quality living, but they have a few quirks that require thorough care during the purchase process.