Wednesday, July 6, 2011
Just Listed-Hurry priced to sell fast...visit www.5894apia.com for a virtual tour
Open House Dates:
Thur. July 7th 10am-1pm
Fri. July 8th 3pm-6pm
Sat. July 9th 1pm-4pm
Sun. July 10th 1pm-4pm
Hurry, 97% of our homes sell within the first 30 days!
Tuesday, June 14, 2011
Fannie Mae is currently offering buyers up to 3.5% in closing cost assistance through October 31, 2011.
HomePath® Buyer Incentive: June 14 – October 31
Terms and Conditions:
Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer.
Initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. Initial offers made prior to June 14 are not eligible for the June 14 – October 31 incentive.
Sale must close on or before October 31, 2011. No exceptions will be made to this deadline. (Note: Initial offers submitted after September 15, 2011 may not close by the incentive deadline of October 31, 2011.)
Buyers must be purchasing a HomePath property to use as their primary residence to receive closing cost assistance. Second homes and investment properties are excluded from the incentive.
Sales closed via the retail channel are eligible, including those utilizing public funds. Pool and auction sales are ineligible.
Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.
Properties where Fannie Mae acquired the property in connection with financing under a reverse mortgage are not eligible. Ask the listing agent for details.
Buyers should consult their lenders for guidance on financing. Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.
Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.
Terms and Conditions:
Buyers and/or selling agents (the agent representing the buyer) must request the incentive upon submission of initial offer.
Initial offer must be submitted on or after June 14, 2011 and close by October 31, 2011. Initial offers made prior to June 14 are not eligible for the June 14 – October 31 incentive.
Sale must close on or before October 31, 2011. No exceptions will be made to this deadline. (Note: Initial offers submitted after September 15, 2011 may not close by the incentive deadline of October 31, 2011.)
Buyers must be purchasing a HomePath property to use as their primary residence to receive closing cost assistance. Second homes and investment properties are excluded from the incentive.
Sales closed via the retail channel are eligible, including those utilizing public funds. Pool and auction sales are ineligible.
Buyers must sign the Owner Occupant Certification Rider to the Real Estate Purchase Addendum.
Buyers with total closing costs under 3.5% are not eligible to receive the difference as a credit.
Properties where Fannie Mae acquired the property in connection with financing under a reverse mortgage are not eligible. Ask the listing agent for details.
Buyers should consult their lenders for guidance on financing. Lenders and mortgage products may impose their own limitations on the use of the 3.5% incentive. For example, the lender may consider the incentive a Seller Contribution and limit the amount to 3.0%. In those instances, the remaining 0.5% will no longer be available to the buyer.
Fannie Mae reserves the right to remove any property from promotion or end the promotion at any time. Any dispute over the payment of the incentive shall be resolved by Fannie Mae in its sole discretion.
Thursday, June 2, 2011
Open House Jun 4 (1pm-4pm) 4512 E. Vermont Long Beach, 90803 (Belmont Heights) Only 1 mile to the BEACH!
Remodeled/New Construction, Contemporary 3 bedroom 3 bath Home Only 1 mile to the BEACH! New Family Room and New 2 car detached garage with roll up door. Light & Bright Living Room with 25 year liminate floors and Venetian Plaster Fireplace. New Kitchen w/Granite Counters, Pantry, & Stainless Steel Appliances including Gas Cooktop, Oven, Dishwasher, & Breakfast Bar that opens to Dinning Area. Master Bedroom Suite with a New Bathroom that has travertine flooring, Skylight tube, and Granite Vanity. New Family Room opens to New Wooden Deck with a view of the Private Peaceful Backyard. 25 years 12mm Laminate Floors throughout. New: Roof,Copper Plumbing, Tankless Water Heater, Ceiling Insulation, Wall Furnace, Doors, Paint, Top of the line Designer Sinks & Fixtures, Sod, Sprinklers, Drip System, and some Windows. Come see this Gorgeous Belmont Heights Home!!!
Tuesday, May 31, 2011
Flip this Property-New FHA Rules you need to know before buying a Flipped Property
This is an excellent article that discusses the rules that FHA has put in place for "flipped" properties (homes that are sold within 90 days of purchasing them).
Via Michael Deery (Citywide Financial Corp):
Buying and selling flipped properties can be a real pain in this market. For example, did you know that lenders require a 2nd appraisal on flipped properties where the seller is making more than 20% within 90 days and is selling to a FHA buyer, and the buyer is not allowed to pay for this 2nd appraisal? Last month over 26% of all homes purchased in California came from investors, 31% were all cash buyers, and the median price paid by these investors was $198k. These are the homes that are being flipped and sold to first time buyers usually within a 90 period. As most first time buyers are using FHA financing, understanding the rules that are in place to get FHA financing on flipped properties is essential for success in today’s market place. Here are 5 important rules to follow that will ensure these transactions will close.
FHA Flip Rule Update
First of all here is an update about flipped financing from the FHA. Just recently the FHA announced that they do allow financing on flipped properties within 90 days of resale as long as certain requirements are met. But NOT all FHA lenders are offering financing on flipped properties within 90 days, as some of them are choosing not to fund this type of transaction. As there are only a few lenders that allow financing when the seller has both a net profit of OVER 20% and the property is being resold within 90 days, very strict rules are in place.
We have been funding quite a few of these flipped transactions over the past few months, so here are 5 of the most important rules you need to know to ensure the transaction will close.
5 Important Flip Rules to Follow to Ensure closings
* These rules apply to a property that is being resold within 90 days and there is more than a 20% profit to the seller. *Not all of these rules apply to a flipped property that is being resold that is more than 90 days old.
1. A 2nd Appraisal is required if more than 20% profit
Almost all the lenders I know that are offering FHA financing on flipped properties are requiring a 2nd appraisal if there is more than 20% profit to the seller within 90 days of purchasing the property. The appraisal must clearly address the completed repairs and/or renovation to substantiate the increased value. Also very important, the FHA does not allow the buyer to pay for the 2nd appraisal, yes someone else must pay for the 2nd appraisal fee! So make sure to get this addressed upfront who will pay for this 2nd appraisal fee.
2. A home inspection is required on all flips
A home inspection is required on all flips by the lenders. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection for any party other than the borrower. Usually any and all repairs that are listed on the inspection report will be called out by the underwriter to be fixed by the seller. Remember on FHA financing the buyer is not allowed to pay for any repairs, so if there are going to be repairs needed, make sure these are addressed with the seller ahead of time so there are no last minute surprises at funding.
3. Health & Safety repairs
Any health and safety repairs noted on the inspection reportt, not already called for by the appraisers, will be required to be repaired as a “concurrent with funding” condition, documented with a CIR to include photos.
4. All transactions must be arms-length
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. For example, some lenders do not allow the escrow company to be affiliated with the buyer or the seller as this is an identity of interest, otherwise a new escrow will have to be opened up during the transaction. Many times the investor who is selling the property will have an escrow company too, this is not allowed by some lenders, so make sure this is checked up front if there is an affiliation with any two parties on the transaction.
5. A minimum 12-month chain of title is required
A minimum 12-month chain of title will be required on the preliminary title report to determine no pattern of previous flipping activity exists for the subject. If the property has been flipped twice in the past 12 months, it will not qualify for FHA financing.
I hope you found some of these tips above helpful.
If you have any questions about a FHA flipped property scenario please do not hesitate to contact me directly at 562-449-7607
Via Michael Deery (Citywide Financial Corp):
Buying and selling flipped properties can be a real pain in this market. For example, did you know that lenders require a 2nd appraisal on flipped properties where the seller is making more than 20% within 90 days and is selling to a FHA buyer, and the buyer is not allowed to pay for this 2nd appraisal? Last month over 26% of all homes purchased in California came from investors, 31% were all cash buyers, and the median price paid by these investors was $198k. These are the homes that are being flipped and sold to first time buyers usually within a 90 period. As most first time buyers are using FHA financing, understanding the rules that are in place to get FHA financing on flipped properties is essential for success in today’s market place. Here are 5 important rules to follow that will ensure these transactions will close.
FHA Flip Rule Update
First of all here is an update about flipped financing from the FHA. Just recently the FHA announced that they do allow financing on flipped properties within 90 days of resale as long as certain requirements are met. But NOT all FHA lenders are offering financing on flipped properties within 90 days, as some of them are choosing not to fund this type of transaction. As there are only a few lenders that allow financing when the seller has both a net profit of OVER 20% and the property is being resold within 90 days, very strict rules are in place.
We have been funding quite a few of these flipped transactions over the past few months, so here are 5 of the most important rules you need to know to ensure the transaction will close.
5 Important Flip Rules to Follow to Ensure closings
* These rules apply to a property that is being resold within 90 days and there is more than a 20% profit to the seller. *Not all of these rules apply to a flipped property that is being resold that is more than 90 days old.
1. A 2nd Appraisal is required if more than 20% profit
Almost all the lenders I know that are offering FHA financing on flipped properties are requiring a 2nd appraisal if there is more than 20% profit to the seller within 90 days of purchasing the property. The appraisal must clearly address the completed repairs and/or renovation to substantiate the increased value. Also very important, the FHA does not allow the buyer to pay for the 2nd appraisal, yes someone else must pay for the 2nd appraisal fee! So make sure to get this addressed upfront who will pay for this 2nd appraisal fee.
2. A home inspection is required on all flips
A home inspection is required on all flips by the lenders. The inspector must have no interest in the property or relationship with the seller, and must not receive compensation for the inspection for any party other than the borrower. Usually any and all repairs that are listed on the inspection report will be called out by the underwriter to be fixed by the seller. Remember on FHA financing the buyer is not allowed to pay for any repairs, so if there are going to be repairs needed, make sure these are addressed with the seller ahead of time so there are no last minute surprises at funding.
3. Health & Safety repairs
Any health and safety repairs noted on the inspection reportt, not already called for by the appraisers, will be required to be repaired as a “concurrent with funding” condition, documented with a CIR to include photos.
4. All transactions must be arms-length
All transactions must be arms-length, with no identity of interest between the buyer and seller or other parties participating in the sales transaction. For example, some lenders do not allow the escrow company to be affiliated with the buyer or the seller as this is an identity of interest, otherwise a new escrow will have to be opened up during the transaction. Many times the investor who is selling the property will have an escrow company too, this is not allowed by some lenders, so make sure this is checked up front if there is an affiliation with any two parties on the transaction.
5. A minimum 12-month chain of title is required
A minimum 12-month chain of title will be required on the preliminary title report to determine no pattern of previous flipping activity exists for the subject. If the property has been flipped twice in the past 12 months, it will not qualify for FHA financing.
I hope you found some of these tips above helpful.
If you have any questions about a FHA flipped property scenario please do not hesitate to contact me directly at 562-449-7607
Friday, May 13, 2011
Just Opened Escrow on 415 Burris
Listed Burris on Thursday and opened escrow on Monday. We don't mess around, we sell our homes at Top Value in the shortest amount of time.
Call now if you have a home to sell and want it Sold fast.
Friday, May 6, 2011
Monday, March 14, 2011
Want to pay less on your property taxes? Apply for a decline-in-value eassessment.
| What is a Decline-in-Value Reassessment The values of single-family residences and condominiums throughout the State have been declining. While the declines in Los Angeles County have not been as dramatic as those in other parts of the State, property values have dropped in nearly every area of Los Angeles County. How does this impact your property taxes? In 1978, California voters passed a constitutional amendment that allows a temporary reduction in assessed value when a property suffers a "decline-in-value." A decline-in-value occurs when the current market value of your property is less than the assessed value as of January 1. The assessed value is the value shown on your most recent property tax bill. Typically, an application is required to initiate a review of your property’s value by the Assessor. However, in 2008 the Los Angeles County Assessor’s Office began doing a proactive review of single-family residences and condominiums based on an analysis of market trends in Los Angeles County. For 2008, single-family residences and condominiums purchased between July 1, 2004 and June 30, 2007 were reviewed. For 2009, the review was expanded to include single-family residences and condominiums purchased between July 1, 2003 and June 30, 2008. For 2010, the review included single-family residences and condominiums purchased between July 1, 2003 and June 30, 2009. In some particularly hard-hit areas of the county, the review included properties purchased prior to July 1, 2003. You can check our "Will My Property Be Reviewed for a 2011 Decline-in-Value" webpage to find out if your property automatically qualified for a review. Property owners whose property was included in the review were notified of the results in writing by June 2010. Click the Title of this article to take you to the Assessor's website. |
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