Open House: Historic Home in Clover

Living in the Washington Metro Area, history abounds. Such is the case with many of Alexandria's quiet neighborhoods, including Clover, where Gerald Ford and his family used to live - as in President Gerald Ford - the site of today's open house.

Built in 1952, this traditional colonial home was state-of-the-art when the Ford family took up residence there. In addition to designation on the National Register of Historic Homes, the address offers nicely-proportioned rooms throughout with 4 bedrooms, 2 full bathrooms and 3 half baths, and a nicely landscaped yard with a swimming pool.

And, the home is conveniently located five minutes from Old Town Alexandria. Have a look for yourself...

Join me today, Sunday, March 8, 2009 from 1pm to 4pm.

That's My 2 Cents' Worth!

Georgetown: Quintessential DC

The name Georgetown is synonymous with Washington, DC. It conjures up images of narrow, tree-lined streets with nicely detailed, brick row houses that comprise a high-end neighborhood, and of course the prestigious university bearing its name. Georgetown was once considered the west end of Washington's now-extinct trolley line, and today is considered a centrally located hub of shopping and fine dining, not to mention a great place to live, playing home to past presidents and current senators.

The Washington Times offers a wonderful snapshot of homes in verious neighborhoods throughout the washington, DC Metro Area. Here's what reporter, Michele Lerner, had to say about one home...

That's My 2 Cents' Worth!

Open House: Cameron Station

There are two words that always delight buyers: price reduction!

Tomorrow - Sunday, March 1, 2009 - I will be hosting an open house in Cameron Station, a great little enclave in Alexandria, Virginia. This home was reduced in price this past week. For $524,000, this townhouse offers convenience, along with 3 bedrooms and 2.5 bathrooms, plus a garage.

Located in west Alexandria City, this community is inside the Capital Beltway and comes with lots of ammenities, including a cafe, clubhouse and fitness club.

Have a closer look...

Convenient living with luxury finishes at a great price.

That's My 2 Cents' Worth!

Buying a Home? Think Long Term

My clients are finding a change in their philosophy in our campaign to find the right home in the right neighborhood. Where years back, people bought homes thinking they could be happy living there a few years, we are all finding that short-term purchase is not necessarily the wisest route to take, nor is it always all that necessary.

With home prices dropping to where they were in Fall of 2003, buyers are finding that many homes today are priced to sell. Combine that with historically low mortgage interest rates - 4.875% for a 30-year fixed and 5.125% for FHA/VA 30-year fixed - and $8,000 tax credits for first-time purchasers in addition to the sellers paying settlement costs for buyers - which has become almost commonplace, and the DC Metro Area housing market is becoming an improved atmosphere.

Due to this combination of buyer benefits, purchasers who had previously been considering condos or townhouses for the short term - 3-to-5 years - may now have an opportunity to circumvent the so-called starter home and shoot directly for a single family home in which to stay for many years. It is an amazing landscape.

That's My 2 Cents' Worth!

Stimulus Package - Ongoing Data

There are still some lingering questions regarding the recent legislation signed by President Obama.

In general the "American Recovery Act" affects us from a real estate perspective in a couple of ways.

1. The Fannie/Freddie and FHA loan limits will be back to 729,750. It will take several weeks for the industry to implement the changes, but we can count on the changes. VA is currently at 812,500 with no money down. FHA will be up to 729,350 with 3.5% down. There are and will be very good financing opportunities for most buyers.

2. The much talked about tax credit for home buyers will be available to those eligible when they file their 2009 or 2010 tax returns. If a taxpayer owes $8000 in Federal taxes and they are eligible for the full tax credit, their Federal tax liability would drop to zero. It is available irrespective of whether you are a first-time buyer or have previously owned a home and will not have to be repaid unless you sell the property you purchase within a certain time frame. The income limit for the full credit is $75,000 for an individual and $150,000 for a married couple filing together. Above those income levels the credit is phased out and disappears entirely at $95,000 for the individual and $170,000 for the couple.

3. The Act extends the Military Homeowner Assistance Program (HAP) beyond BRAC locations. HAP is a DOD program, and DOD will establish policy guidance on applicant processing and benefits. Until that time, potential applicants may submit applications to appropriate HAP districts; however, no action will be taken on the applications until any change to the HAP authority has been enacted and DOD guidance is received. Those words were from a DoD website. The bottom line is that personnel who are transferred out of our area and who had purchased a home locally after a certain date in 2006 and sell that home before a certain date in 2012 may be eligible for some relief from DoD for a loss in value which they may have experienced. Stay tuned for the details.

Outside of the legislative front, there are a couple of other reminders.

Risk-based pricing is becoming more pronounced and we expect new announcements out of Fannie and Freddie in the next 30 days. A current example involves condo purchases with conventional financing. LTV's over 75% require a mortgage price adjustment of .75 discount points. In other words someone putting down 20% on a condo might receive a 4.875% interest rate with .75 points whereas someone purchasing a non-condo property with 20% down might receive a 4.875% rate with no points. Other examples of risk-based pricing involve credit scores. If a borrower's credit scores dip below 740 they may be hit with price adjustments even if they are putting down 20%. As credit scores go down, the adjustments become larger - as much as 3.5 points even with 20% down.

Remember investors are again allowed to obtain Fannie and Freddie loans for as many as 10 properties. All investment property loans now require 25% down for single properties and 30% down for 2-4 unit properties. The liquid asset reserve requirements have increased, but there are great opportunities for investors.

If you plan to cnvert your existing home into a rental and purchase a new home, don't assume you will be able to use rental income for qualifying for the new home. At least 30% equity (25% for FHA) in the home which is to become a rental will be included in appraisal. You will also need 6 months PITI on both the new rental and the new residence after settlement.

Residential real estate finance continues to be dynamic. I will try to keep you informed of changes as they come about.

That's My 2 Cents' Worth!