Down Payment Assistance in Atlanta
May 13, 2008 | Leave a Comment
The Nehemiah Program
This morning I had the privilege of attending a seminar about down payment assistance and how it can benefit both buyers and sellers in the greater Atlanta market. The seminar was taught by Leslie Kane, Area Manager, of The Nehemiah Program. The Nehemiah Program is charitable organization that has helped over 40,000 families in Georgia achieve their dream of home ownership.
The Nehemiah Program began in Sacramento, California in 1994 and was designed to help a particular community become more stable. The program gets its name, Nehemiah, from a biblical figure that helped rebuild the walls of Jerusalem and since the program was being utilized to help rebuild a community it just seemed to fit.
How Down Payment Assistance Works
If a buyer is qualified to purchase a home using FHA financing then they are automatically qualified to purchase a home using the Nehemiah Program. The home being purchased must be owner occupied and can be single family, duplex, triplex, quadraplex or a FHA approved a condo. With FHA loans the buyer is required to make a minimum down payment of 3% of the loan amount. By utilizing the Nehemiah Program the seller contributes the down payment for the buyer. At the time of entering into a contract with a buyer for the purchase of the home, the seller agrees to contribute the down payment and a small processing fee to the program. This is accomplished using the Participating Home Agreement form from Nehemiah. The program in turn contributes the down payment for the buyer. The buyer completes a Gift Letter form detailing where the gift funds came from and what address they will be used for purchasing. This type program can only be performed by a charitable organization. (Sellers are only committed to pay the contribution and fee if a buyer utilizes The Nehemiah Program to purchase the home.)
Who Benefits From a Down Payment Assistance Program?
The Nehemiah Program is helping both buyers and sellers in the greater Atlanta market. Obviously buyers benefit by being able to purchase homes with little or no money out of pocket. Generally speaking this type program would be for buyers with credit that is good enough for them to be able to purchase a home but they lack having the funds for a down payment. Typically prospective buyers who are currently renting or living at home are good candidates for this type program.
Sellers are also benefiting from this program. With the recent increase in FHA loan limits to $346,250 in the metro Atlanta area and $271,000 in outlying areas, more home sellers find themselves in a position to participate in this type program.
Who Qualifies For Down Payment Assistance?
As was stated earlier, if a buyer is qualified to purchase utilizing a FHA loan then they are automatically qualified to participate in this down payment assistance program. To find out if you qualify for FHA financing and down payment assistance Contact Mack.
Atlanta FHA Loan Limits Raised
March 6, 2008 | 2 Comments
So what exactly does the FHA do? The FHA provides mortgage insurance on loans made by FHA approved lenders throughout the United States. Since it inception in 1934 FHA has insured more that 34 million loans. Generally FHA loans are easier for buyers to qualify for as they do not have the more strict underwriting guidelines of conventional loans.
We have known that it was coming, we just didn’t know how high the limits would be raised. Well we got the answer today. The Federal Housing Administration, FHA, has increased the loan limits on a FHA insured home loan in Metro Atlanta to $346,250 up from $252,890, an increase of 27%.
This action by FHA should help spur the housing industry in the Atlanta market. Any home priced below $346,250 just became easier for more buyers to qualify for.
Atlanta Real Estate Conditions
February 27, 2008 | Leave a Comment
The Atlanta Real Estate Market has escaped from many of the problems that have affected other major markets. It has been pointed out that the resiliency of the Atlanta market is due to our sector being fueled by jobs and relocation rather than speculative buying as has happened in some of the condominium resort areas. Just how lucky are we? Below you can see one of the policies lenders have adopted that affect buyers in other areas of the county.
In certain areas of the country lenders have implemented what is called a “Declining Markets Policy”. In essence what this policy calls for is for buyers, purchasing property in what the lender has identified as a declining market, to increase their stake in the property. Most lenders are requiring the loan-to-value (LTV) ratio if one loan is being utilized or the combined-loan-to value (CLTV) ratio if multiple loans are being utilized to be reduced by five (5) percent. An example would be rather than being able to obtain 100% financing in a declining market, a buyer could only obtain 95% financing. The exception to this policy would apply for FHA and VA loans. For these government backed loans a second level underwriter review is called for, thus making qualifying more difficult.
Lenders are identifying the declining markets by both city and county in the various effected states. Several sources are being used to determine which areas are included. Standard and Poors Case-Schiller Home Price Indices, The Federal National Mortgage Association, The Federal Home Loan Mortgage Corporation, The Office of Federal Housing Enterprise Oversight Index along with statistics from The National Association of REALTORS are the most common sources used in identifying these areas.
Not only are there declining markets, but several of the lenders are also looking more closely at what have been identified as “Soft Markets”. While these areas are not as drastically affected, the lenders are requiring a second level underwriting review for soft market identified locations.
In the latest report I have been able to obtain, the Atlanta Market has not been identified as either a declining or soft market as defined by these lender guidelines. This doesn’t mean that the buyers market is gone. It just suggests that the Atlanta Market has not been as decimated as some of the other major metropolitan markets. Conditions remain favorable toward buyers with sellers making considerable concessions and interest rates remaining low. To find more information about Homes for Sale, just let me know what your requirements are. I am here to help.
Atlanta Real Estate Market Update
February 24, 2008 | 2 Comments
It’s A Buyers Market
If you didn’t know it before, you certainly will know it now by way of the most current stats for real estate in the Atlanta Market. Unfortunately for sellers 2008 has started much in the same fashion that 2007 ended, with a market that continues to decline. Inventory continues to increase and the average days on the market for single family homes is at it’s highest level in 10 years at over 101 days on the market.
Available Inventory Increasing
Here are some of the facts comparing months supply of available homes 1-2006 vs 1-2008:
New Single Family Homes up over 81%
Resale Single Family Homes up over 91%
New Condos and Townhomes up over 125%
Resale Condos and Townhomes up over 26%
Additional Good News for Buyers
The other factor that generally goes hand in hand with increasing days on the market and additional inventory is an overall average price decline of sold properties. The situation at this time confirms this factor. The average sale price for both single family residences and condo/townhomes declined in January.
Even More Good News
If you take the abundance of inventory to choose from and the lower average prices then add to it the notoriously low interest rates, you now have all the components of a full fledged buyers market in Atlanta. Sellers are saying bring all offers. Why don’t we get together and help them sell their home at a deep discount?
The Enclave at Milton Park
February 6, 2008 | Leave a Comment
Convenient Location
Conveniently located just minutes from GA 400 and the North Point shopping area of Alpharetta is the Enclave at Milton Park, a maintenance free luxury townhome community by The Providence Group. Community amenities include a lake, gazebo, sidewalks, streetlights and access to the Alpharetta Big Creek Greenway, which features over six miles of walking and biking trails, for homeowner enjoyment.
Luxury Appointments
Each of these 2 and 3 bedroom townhomes features a detailed trim package, 9-foot ceilings, hardwood flooring, Victorian style windows and marble trim around the fireplace. Entertaining is made easier with gourmet kitchens which are appointed with granite counter tops, stainless steel appliances, and separate gas cook tops. The master retreat of each home features a trey ceiling, his and her vanities, large garden tubs and separate tile surround showers.
They Are Going Fast
In just over one year the Enclave at Milton Park has sold more than 50% of the 74 home sites that will be built in this community. One of the first homeowners, Vickie Scaffe, selected the community for it’s abundance of green space and the convenience of being close to everything. She stated that she can ride her bike to the park, church or even to North Point Mall.
To view available homes at The Enclave at Milton Park just Click Here.
Jamestown In Alpharetta
January 23, 2008 | 5 Comments
Conveniently located at the intersection of McGinnis Ferry and Union Hill Roads in Alpharetta, The Providence Group is currently building another of their impressive communities. Jamestown, while featuring a prestigious Alpharetta address, is in Forsyth County and takes advantage of the lower real estate taxes there. The community is made up of two neighborhoods - The Parc which offers townhomes priced from the high $200’s to Mid $300’s and The Overlook which features single family homes priced from the low$400’s to the low $500’s. Both neighborhoods feature a variety of elevations including brick, stone and siding.
Spacious Well Appointed Floor Plans
The inviting exterior view of the community continues to the interior of the homes as well. Floor plans in Jamestown reflect the needs and requirements of today’s demanding buyers and include some plans with the master bedroom on the main as well as some that offer basements. The spacious interiors include hardwood floors, granite counter tops, built-in cabinetry, stainless appliances, vaulted ceilings and provide plenty of room for entertaining family and friends.
Jamestown Amenities
Jamestown is a gated community that includes winding sidewalks, streetlights and professional landscaping that give it a true neighborhood feel. Homeowners in Jamestown also get to enjoy the community clubhouse, pool, tennis courts and playgrounds. Coupled with the close proximity to shopping, dining and public entertainment area along with being located in the South Forsyth High School district makes Jamestown a must see for buyer’s looking for Alpharetta new homes.
