Favorites on the list include: Carlota, Carmel, Del Diablo, Via Cajita, Warmlands, and Woodshadow.
Only a handful on the list are active listings. Because the good ones tend to sell quickly, I wanted to give you time to evaluate before they hit the open market – most aren’t listed yet. There’s no telling exactly when they’ll hit the market, or for how much.
But we know they’ll probably be eligible for HomePath financing – here are the terms:
HomePath Mortgages:
Minimum Down Payment is 3%.
Investor’s minimum down payment is 10% down.
2-unit properties require 20% down regardless of occupancy.
3-4 units require 25% down regardless of occupancy.
An appraisal is not required.
Regardless of down payment, mortgage insurance is not required.
Most closings can occur within 30 days.
The interest rate is usually .375% higher than market.
The payment on a HomePath Mortgage will always be lower than an FHA payment.
Condos in Arizona, California, Florida, Michigan and Nevada are not eligible.
Minimum credit score is 660 unless the down payment is 20% then the minimum score is 620.
The minimum loan amount is $50,000. The maximum loan amount is $417,000.
The seller can pay up to 6% of the sales price towards buyers closing costs, regardless of LTV.
HomePath Renovation Mortgages:
Minimum Down Payment is 3% but the fees to do this will exceed 2% of the loan amount.
The sales price on the contract should not include the cost of repairs.
A list of required repairs will not be provided.
The borrower must rely on their inspection.
Sweat equity is not allowed.
Borrowers must hire one credible General Contractor to bid the entire project.
Multiple bids are not allowed. The General Contractor must attend closing.
The repairs are completed after closing.
The minimum down payment for investors is 15%.
2-unit properties require 25% down regardless of occupancy.
3-4 unit properties require 30% down regardless of occupancy.
Condominiums, manufactured housing and co ops are not eligible.
Renovation funds can be used for cosmetic renovations.
The bid must include all required repairs necessary to bring the house up to average condition.
Barns and pools cannot be added.
$35,000 is the maximum the borrower can escrow, but additional repair costs can be paid in cash.
If we catch a lull in the market, there could be an excess of Fannie Mae listings laying around.
The guy from the TV show, Flip This House, wants to show you how to do it too.
He has a seminar tomorrow to discuss how he is going to make $150,000 profit on this house at 1036 Edgemont in South Park.
The house had been purchased at the trustee sale by our favorite flipper J.Mann for $330,000 (corrected, $269,800) in March, but apparently things didn’t work out, and he sold to our new flipper for $270,000 a month ago.
The new guy has invested enough that he’s looking for $600,000+ now. Link.
Here is his website promoting the seminar, with video: Link.
Hat tip to JP for sending this along, fromUSAToday.com:
In the aftermath of the nation’s housing-market collapse and recession, more than 500 midsize and large cities have seen a rise in the share of homes that are rented rather than owned, according to a USA TODAY analysis of Census data.
Nationally, 34.9% of occupied homes were rented in 2010 compared with 33.8% in 2000, according to Census data.
Almost 4 million homes have been lost to foreclosures in the past five years, turning many former owner-occupied homes into rentals.
The shift to rental housing is potentially long-lasting and portends changes for neighborhood stability and how people build wealth, economists say.
“The changes are big but glacial,” says Mark Zandi, economist at Moody’s Analytics.
Are you an investor who wants a rental survey before purchasing the next income property? Or are you thinking of leasing a home in an area where you’re not familar with local rents?
A couple of tests came out fairly accurate, and they map the other rentals nearby! Finestexpert.com also does a financial analysis, and has for-sale comps too.
While investors believe they will be able to outbid first-time buyers in the “rush” to snap up houses at today’s bargain-basement prices, a large majority apparently plan to use a combination of cash and credit to purchase properties as they build their inventories.
According to a new survey by Move Inc., which operates a number of key real estate-related web sites, three out of every four investors will finance at least part of their deals. And more than half will put up less than half the purchase price out of their own pockets.
That flies in the face of conventional wisdom that today’s investors are mostly cash buyers, said Steve Berkowitz, CEO of the Campbell, Calif.-based company, which runs Realtor.com, the official website of the National Association of Realtors, and Mortgagematch.com, a site which helps consumers find financing.
And it suggests, Berkowitz says, that investors are tapping into their credit sources, including taking out second trusts or home equity loans on properties they already own, to take advantage of what they see once-in-a-lifetime opportunities.
The survey also found that even though just one in five investors will be all-cash buyers, they believe the difficulties first-time buyers are experiencing in qualifying for financing will make it easier for them to compete for properties.
Another interesting finding: Today’s investors are not “flippers” who buy and sell right away. Instead, only 11% plan to hold for less than a year, whereas two-thirds say they are in their deals for the long-term. In addition, three out of five are new to real estate investment.
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