Entries categorized as ‘Auction’

Types of loans available for REO homes

December 9, 2009 · Leave a Comment

In today’s current economy, REO homes – or bank-owned homes – present an advantageous opportunity for buyers looking for a good deal. However, there is a misconception about REO homes, as many people seem to think that there are limited loan options when purchasing an REO property. Actually, two very popular loan types are available for REO home purchases: FHA and Rural Housing loans.

FHA is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration that is issued by federally qualified lenders. Benefits include:

 - Lower down payment than conventional financing – only a 3.5% down payment required

 - More forgiving credit standards

 - Gift funds are allowed for closing costs and down payment

 - Seller concessions are available up to 6%

 - Asset reserves are not required at closing

 - The maximum loan limit is $346,250 for the Atlanta area

 - There are multiple loan limits, including 15-, 20-, 25- and 30-year loans

The USDA Guaranteed Rural Development Loans program (Rural Housing) offers attractive terms for eligible buyers purchasing eligible rural properties. We can help you determine if your buyers can take advantage of these program benefits, such as:

 - No mortgage insurance (PMI)

 - 100% financing

 - Loans are available up to $417,000

 - Non-traditional credit is even allowed in some circumstances

 - And asset reserves are not required

There are different guidelines for each loan type, dependent upon product type, condition of the house and the buyer’s circumstances. Speak to your mortgage counselor about your specific needs to determine if either of these loan types are an option for you. You can also visit www.hud.gov for additional information about FHA loans and www.rurdev.usda.gov for additional details about Rural Housing loans.

“Types of loans avialbe for REO homes” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

Categories: Auction · Bank Owned · FHA financing · First-time homebuyer · Real Estate

More Condo Auctions – Good or Bad for the Atlanta Market

April 24, 2009 · Leave a Comment

By:  Leslie Williamson

As reported in the recent AJC Article two more new condo communities will be on the auction block.  What are the pros and cons in relation to the Altanta market?

1) The auctions aid in moving inventory of new product off the market quickly. 

2) The auctions also set or reset the  current Atlanta market prices among new condo communities and resales.

3) The auctions stimulate the economy and bring ready, willing and able buyers to the table, excited to take advantage of the discounted pricing!

4) Auctions take buyers out of the market  - many buyers wait and see the response to the actual auction before moving forward with their own buying decision.

If you are looking for a deal or a steal, take advantage of the auctions, but also do your research, the same deal could be just around the corner offering auction pricing with the auction.

Categories: Auction · First-time homebuyer · Real Estate
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There’s never a second chance to be a first-time homebuyer

March 10, 2009 · 2 Comments

By: Leslie Williamson

There are many firsts in life that I wouldn’t care to do over again – my first day of school, my first date or my first job interview.

But I would love to be in the process of buying my first home all over again.

I wish I had the same opportunities that first-time homebuyers do now.  Prices on new homes – including single family, condos and townhomes – have been discounted and interest rates are at an all time historical low. Developers and home builders are pushing the $8,000 first-time home buyer stimulus as well as offering alternative incentives to entice contracts.  Many of our developer clients are offering stimulus packages that include FHA financing, alternative financing choices, buy-down interest rates, buyer bonuses, and paid closing costs.

And there seem to be plenty of first-time homebuyers taking advantage of these opportunities.  The auction of condos at The Element illustrated that there are first time home buyers in the market.  In fact, CNN’s lead story today talked about the great opportunities for first-time homebuyers and focused one homebuyer who went to an auction planning to purchase a home for his family.  As he told the CNN reporter, “I just have a feeling that in six to nine months, we’re going to start to see a resurgence in the market. So, I think now is the time for us to get into it, if we can.”

This is a great opportunity for the first time home buyer to get off the fence and take advantage of a real estate opportunity that will not get any better.  I just wish I could be one of them.

Categories: Auction · FHA financing · First-time homebuyer
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