Down Payment Assistance Grant
The earlier article which gave notice that the seller funded downpayment assistance programs could very well be coming to and end is still on track. However here is a new program that has the blessing of HUD (The Department of Housing and Urban Development). Simply stated the program is a 5:1 downpayment grant. What this means is that for every dollar that the buyer puts towards the purchase of their home it will be matched 5 times, up to a maximum of $10,000.00.
|
Borrower Funds Contributed |
Grant Amount |
|
$500 |
$2,500 |
|
$1,000 |
$5,000 |
|
$2,000 |
$10,000 |
The grant is handled in the form of a second lien with no monthly payment and is forgiven after 5 years. If the homeowner sells the home prior to the end of the five year period the grant is to be repaid as a percentage of the time the home was occupied. For example if the property sells in 2-1/2 years and the grant was for $5,000 then the seller would have to pay $2,500 of the grant back.
There are some income qualifications that are required to participate in this first time buyer program and it only pertains to primary residences. At the time of enrollment the household income for all parties living in the home must be considered to determine qualification. The maximum allowable household income, determined by family size for the Metro Atlanta area is as follows:
- 1 person = $39,840
- 2 person = $45,550
- 3 person = $51,250
- 4 person = $56,950
- 5 person = $61,500
- 6 person = $66,050
- 7 person = $70,650
- 8 person = $75,200
Normal FHA guidelines apply to the first mortgage and after it is underwritten the loan must also be approved by Federal Home Loan Bank. Here are some of the highlights about this exclusive first time buyer grant:
- Secured second mortgage up to a maximum of $10,000 that if forgiven after 5 years if the borrower still occupies the property.
- No monthly payments are due on the second mortgage.
- Up to 6% seller contributions towards closing costs are allowed.
- Home Buyer education by a HUD or FNMA Certified Counselor is required.
- No additional fees are required
For an in depth consultation to determine how this program can benefit you, contact Mack.
Down Payment Assistance Done
With the recent signing into law of the Housing and Economic Recovery Act of 2008, as of October 1, 2008 seller contributions (interested third parties) to non-profit down payment assistance programs are finished. Nehemiah Corporation of America, the leading non-profit down payment assistance provider in America, estimates that in the next year alone approximately 300,000 families will be locked out from buying a home due to this provision in the bill. Of course this may change as new legislation is being introduced to revive this type program, but with congress on vacation for 5 weeks (damn I wish I could do that) no one knows if or when the program would be reinstated.
What does this mean to First Time Home Buyers in Greater Atlanta? If you are looking to purchase a home using a down payment assistance program you need to get busy NOW. You must find your home and get closed by September 30, 2008 or you run the risk of not being able to utilize this type program. Also the minimum down payment will be increasing from 3% to 3.5%.
I have heard rumors of another program that will assist first time buyers and as soon as I can confirm it I will post it here. See you soon.
Vacation Time
Good friends, good times, good food and not so good golf (well everything can’t be perfect) was the way our first week at the beach went. The highlight of the week for Millie and I was our grandson Lincoln’s first beach trip. Being there for his first steps in the Atlantic Ocean was a thrill for us. Of course this is just one of the joys that the little man brought us while he was visiting. Just having him around for six days was a real pleasure. We kept him two nights for his parents to go out and enjoy dinner, a movie and a little R and R of their own. They thought we were doing them a favor when in essence they were doing us one.
Would you believe the little man actually let his parents and us help build a sand castle. The construction equipment (plastic buckets, shovels etc.) wasn’t very expensive but was well worth it. OK enough reporting from the beach, it’s vacation time 2008 and I need more sun.
Vacation Homes Near Atlanta
One thing that is common for all of us who vacation is that we have to have some place to stay. The question is how do we want to pay for it? Do you want to rent, buy or possible look at another form of ownership? For many of the more affluent, the answer is easy. Just buy a vacation home and use it whenever the mode strikes. I see this type scenario in some of the mountain and lake areas that just a short drive away. For those of us who just can’t go with out a little sand in our bathing suits the beaches of South Georgia and Florida call out to us annually. Perhaps because the drive is considerably longer, the vacation homes in these locations may be purchased as a time share or interval ownership.
Let me be the first to say that if you are looking for an investment, in my opinion a time share is probably one of the worst investments you can make. If you are looking for a place that you can trade in order to visit other time share facilities it can work out nicely. One lady in my office bought a Florida time share with her husband and they have never been to it. They trade it in every year and visit another location. For my wife and I, we purchase a time share in Daytona Beach Florida about 20 years ago. We have gone to it every year and we vacation with many of the same people each year. One nice thing about our situation is we don’t have to worry about who we may be playing golf with. There is always a foursome ready to go play. We have seen children grow up and are now visiting with the grandchildren. This will be our case this year. If you follow this blog or put it into your RSS Feed Reader, you may even see a picture of our grandson Lincoln playing on the beach or in the kids pool. Bet you will!
Accessibility to vacation areas and vacation homes from the Greater Atlanta area is one feature that we have over many other metro areas of the country. Let’s look at some of the areas that are in close proximity to Metro Atlanta.
- The North Georgia Mountains – About an hour and a half north of the city
- The Blue Ridge Mountains – About three hours northeast of the city
- Lake Lanier – About forty five minutes northeast of the city
- Savannah and Tybee Island – About four hours southeast of the city
- Jekyll Island – About five and a half hours southeast of the city
- The Florida Panhandle – About five hours southwest of the city
- Daytona Beach Florida – about seven hours southeast of the city
Georgia License for Builders and Remodelers
As of July first of this year all builders and remodelers in the state of Georgia are to be licensed by the State Licensing Board for Residential and General Contractors. There are three types of contractors that must obtain a license by July 1, 2008.
* Residential-Basic Contractor (Contractor work relative to detached one-family and two-family residences and one-family townhouses not over three stories in height).
* Residential-Light Commercial Contractor (Contractor work or activity related to multifamily and multiuse light commercial buildings and structures).
* General Contractor (Contractor work or activity that is unlimited in scope regarding any residential or commercial projects).
A fourth classification of contractor is the specialty contractor who is not required to be licensensed. This classification would include painters and roofers for example and they are not allowed to hire subcontractors.
I would think that the purpose of this law would be to help protect innocent homeowners and home buyers from unscrupulous contractors. We have all heard horror stories about homes and projects that have not worked out as originally planned. One big advantage of this law is the requirement for contractors to meet minimum standards for education, financial stability and workers compensation.
So what will the down side of this law be? Since Atlanta is so close to Florida, some of what happens there makes its way to our news programs. When a major event such as a hurricane hits Florida, it can sometimes take additional time to even get bids on getting work done much less getting the work itself performed.
Charles Bannister Gwinnett County
Well it’s election season in Gwinnett County as well as the rest of the nation. I don’t know about you but I am already tired of all the TV ads. Well advertising in Gwinnett County went to another level for me today. Someone stuck a flier for Charles Bannister on my front door. I don’t mean they put a flier on my front door, I mean they STUCK the damn thing on my front door. I took 3 pictures for every one to see. One picture is of the front of the flier, one is of the back of the flier (with a nice chunk of it missing) and the third is of the mess they made of my front door.
On the front of the flier it states “It’s been an honor to serve you, my neighbors. I promise to continue focusing on reducing traffic, enhancing our police force, combating illegal immigration and bringing new businesses and jobs to Gwinnett County”. I wonder if they will be coming out to clean and possibly repaint my door?
Chasing The Market
The real estate market is quite unique at this particular point in time. History tells us that even though we have seen ups and downs, we just have not experienced a market like this. Increases and decreases in property values occur all the time just like the stock market. Generally speaking, over the long haul the value goes up. So what makes this market so unique?
What Happened To the Mortgages?
Up until several months ago there was a mortgage program for just about everyone. Then came the sub-prime market shake up and loan programs were reduced to some of the most basic. On top of that, investors tightened up the qualification parameters for applicants. Many first time buyers utilized 100% financing programs which went away. That breathed new life into the down payment assistance programs, which congress may soon do away with. The number of buyers who can qualify for a mortgage in today’s market has declined which therefore creates a negative impact.
Price Your Home Right
Pricing a home correctly when it first goes on the market is more important now than ever. In the past sellers market, when the market was appreciating and mortgage programs followed freely, it was an accepted practice to price your home slightly above value to allow some negotiating room. In today’s buyer’s market this just is not the case. As a seller you don’t want to put yourself in the position of “Chasing the Market”. So how do you avoid this pitfall? The easiest and most comprehensive way is to have your home appraised by an independent third party who is a licensed appraiser.
Help Buyers Buy Your Home
What other factors influence a buyer’s decision of whether or not to make an offer on your home? The main ones are appearance, appearance and appearance. Make sure that the exterior is inviting, remember you only get one chance to make a good first impression. Removing clutter and having clean carpets along with fresh paint will help tremendously. If your home is not in show ready condition and properly priced it is almost certain that you will be chasing the market instead of having the market chase you!
Lawrenceville Home for Sale - Brookwood High School District
Located in the “Lakes” section of the Flowers Crossing at The Mill Subdivision in Lawrenceville is 1264 Williston Drive. This brick front ranch style home with Hardiplank® siding features an open floor plan and has 3 bedrooms and 2 baths on the main level with a 4th bedroom/bonus room up. The oversized master suite has a sitting area, double vanity, jetted tub, separate shower and a walk-in closet. Both additional bedrooms on the main level are quite ample in size and afford families the benefit of single level living. The Kitchen is appointed with hardwood flooring, cherry stained cabinets, Corian® counter tops, a breakfast area and is open to the dining room and den. The den has a volume ceiling, fireplace with gas logs and of course cable for enjoying your favorite programming with family or friends. Upgraded ceiling fans are found throughout this home.
Flowers Crossing at The Mill is a family oriented active subdivision. Amenities include 10 tennis courts, 2 pools and a community center which is aptly named “Kids Towne Hall”. Year round activities are available for both children and adults and include Easter Egg Hunts, a community Garage Sale, Chastain Night at The Lakes, both adult and youth Christmas Parties along with much more.
Schools are an important part of any family residential area and this one is no different. This home is service by three of Gwinnett Counties finest schools; Craig Elementary, A C Crews Middle and Brookwood High School.
For additional pictures and information on 1264 Williston Drive, please view this page; http://www.mackperryhomes.com/property/1264-williston-drive/
Johns Creek Condos
When you think of ranch style condos, the first thing that comes to many of our minds is an active adult community. While this may be the case for most one story condo communities, I was pleased to find a community that was not so restrictive. Ideal for active adults as well as single parents and young professionals, I had the pleasure of previewing “The Villas of Johns Creek”. The first thing that impressed me was the location. After all, in real estate we hear the three most important words are location, location and location. Being near the intersection of Peachtree Parkway (141) and Abbotts Bridge Road (120) The Villas of Johns Creek are convenient to shopping, dining, recreation and commerce and are in the prestigious Northview High School District.
The clubhouse and heated pool were impressive. Inside the clubhouse several amenities stood out. The complete exercise room, the resident’s game and media room just to name a few. The grand room of the clubhouse featured card tables along with a full kitchen for resident events.
The Villas of Johns Creek is a planned 70 unit luxury ranch style condominium community. The condos are built utilizing a quad design and feature 2 or 3 bedrooms. Priced from the mid 250’s, these maintenance free homes are perfect for all ages to enjoy. Let someone else take care of the yard work while you spend you free time doing the things you enjoy most.
You can view the available properties at The Villas of Johns Creek here.
Homeowners Association Gone Wild
How would you like to receive a letter from your homeowner’s association that starts out like this? During a recent inspection it was noted that you were in violation of the Covenants and Architectural Guidelines for the following reason:
General Maintenance - Paint Metal Roof: "Each homeowner shall keep and maintain each Lot and Structure owner by him, as well as all landscaping located thereon, in good condition and repair…"
Specifically please paint the metal roof on the front of the house to match the shutters.
We will recheck your property in approximately twenty (20) days from the date of this letter. Please note that violations that are not corrected by that date or continue to be repeat violations will incur a fine of $25 per day. The association has the right of abatement (the right to correct the violation at your expense) and the right to membership suspension. Please refer to the Covenants.
In my subdivision many of the bay windows and Queen Anne returns are covered with copper. Now if the copper roof is to be painted the same color as the shutters, then just on my cul-de-sac of 7 homes there would be grey, taupe, reddish orange, blue and black painted copper. I think it is easy to visualize just how silly that would look. Obviously the individual that wrote this letter was not very well versed about copper roofs and their maintenance. For those who don’t know as it ages, copper naturally goes through several stages. Rather than educating themselves first, it is sad that the homeowner’s association just sent out this letter for no good reason.
After several phone conversations and countless hours of research obtaining documentation about copper roofs along with emailing these documents to the homeowner’s association the violation was dropped. The resident was guilty until proven innocent. Seems a bit backwards from the way we have all been brought up don’t you think? Below you will see a picture of a monument that started out as bright shiny cooper and been going through the aging process for some time. I think we can all agree that it would be a shame to paint this structure.
