FHA Loan- Parent Co-Signer

Under the FHA rules, a parent can co-sign a loan for their child.  The property is owned in the child’s name, not co-owned with the parent.  FHA puts all of the income and debt into one calculation, so it is possible to have a child who does not earn any income purchase a property using FHA financing with a parent co-signer.

Regarding the number of properties that can be purchased, it appears that we’re in a grey area.  An FHA buyer cannot buy another property using FHA unless the previous home has been sold.  That specific rule doesn’t apply to a non-occupant co-borrower, so a parent who has an FHA loan can co-sign for an FHA loan for their child.

The discussion of multiple properties financed this way is addressed, the specific comments are:

“Transactions in which parents help their children buy their first home are permitted as long as the non-occupant co-borrower is not developing a portfolio of rental properties”

and

“The amount of the financial contribution by the non-occupant co-borrower and the number of other properties similarly owned must be looked at closely.”

So, if you’re co-signing parent has a bunch of other properties, then we may be in trouble.  If the kids involved are close to qualifying in their own, especially if they all live in different areas, then we should be ok.  Obviously, if the kids all buy houses right next to each other, then we’re in serious trouble.

To search for Cincinnatti homes on MLS click:

www.kevinduffy.com

What Buyers and Sellers want!

Realtor magazine did a end of the year survey with buyers and sellers to find out what they want and expect. The top answer to each question is as follows:

1. What is the primary reason buyers give for purchasing home?

Answer: Desire to own a home

2. What do home buyers cite most commonly as a benefit that real estate agents offer them during the purchase of a home?

Answer: Helped understand the process

3.What do buyers look for the most in finding the right neighborhood?

Answer: Quaility of the neighborhood

4. What age range represents the largest segment of home buyers?

Answer: 25-34

5. What’s the first step that buyersmost often take in the home buying process?

Answer: Searching for properties online

6. What do buyers most value when visting a real estate web site?

Answer: Photos

7. What was the primary reason given for selling a previous home?

Answer: Job relocation

Why do I need a home inspection?

Considering that buying a home might be the biggest investments you’ll ever make, wouldn’t you like to be assured that this home is THE RIGHT ONE! Having a home inspection can set your mind at ease by knowing the “ins and outs” of a house, construction methods, operation and maintenance with longevity in mind. There are many home inspectors to chose from.

During a home inspection it is important to let the inspector do their job. While it sounds important and cool to follow the inspector around asking questions and learning, it can be better to save that until the end. You can request for additional time at the end of the inspection for questions/explanations if you would like to have more thorough information. The inspection will begin with the exterior and continue to the inside. The crawl space or basement will be towards the end. An inspector will check electrical, structural, insulation levels, plumbing, mechanics (furnace, a/c, hot water heater, etc), and many more items. They will give you a complete report which will show the age and condition of everything checked. The end of the report will show the minor repairs which normally consist of smaller items that are more informational to watch or fix if you desire. The major repairs are in need of a closer look as these could be expensive to repair. You will need to negotiate with the seller to either repair or give a concession to repair after closing. It is advisable to request that a licensed contractor repair the major items.

While purchasing a home can be over-whelming, finding a trustworthy inspector is one step to take that lessens the stress of this important event! Let us help you out!

Why Buy?

9 Reasons to Buy Versus Rent your Home!

1. Pride in Owning: Most people buy homes to have control over where they live. Although investment features are important, the psychological reasons for buying–the satisfaction of owning and freedom from paying rent–are at least as important.

In a survey done by the National Association of Realtors of 6,000 homeowners and 2,000 renters–perhaps the largest survey ever of attitudes toward home ownership–it was shown that 76% of owners and 66% of renters considered pride of ownership an important reason for buying.

2. Dislike paying Rent: Close to 7 in 10 of almost equal portions of owners and renters expressed a dislike of paying rent as an important reason to buy. Renting offers a lifestyle that’s nearly maintenance-free. That may appeal to you, but consider that renting offers you no equity, no tax benefit, and no protection against regular rent increases. Writing a rent check is just like watching your hard-earned money sail away!

3. Settling Down: More than 6 in 10 renters said “settling down” was an important reason to by.

4. Good Investment: 76% of owners and 69% of renters said that the investment aspect of ownership was important.

5. Tax Advantage: Property taxes and qualified home interests are deductible on Schedule A, for itemized deductions.

6.Long-Term Appreciation: People consider homeownership a good investment because they view it as a long-term venture. Historically, home prices have risen at relatively steady rates. Existing home prices rose an average of 4% per year between 1980 and 1992.

7. Leverage Investments: People borrow a great deal to buy homes, yet they receive the full benifits of price appreciation. In the long run, investments in homes far out pace inflation rates.

8. Source of Savings: Homeownership always has been and continues to comprise the singel largest source of savings for American households. Howeowners build equity and can borrow against it.

9. Sacrifices Are Worth It: Almost 7 in 10 renters in the National Association of Realtors homeownership survey said that they planned to buy a home in the future. More than three-quarters of these people said they were willing to sacrifice to do that.

The Fire Drill—And Other Tips For Showing Your Home Successfully!

So, you might be a bit overwhelmed by the plethora of information available out there about selling a house; tips, tricks, and every piece of advice under the sun. To make it simpler, here is a list of “Seller Reminder Points” that are extremely simple, to the point, and helpful. They aren’t intended to be every bit of information you’ll need during the selling process, rather, they are meant to be an aid in the “showing” process.

Seller Reminder Points

1. Don’t “sell” your home. Let the agent do his/her job. The agent will show the benefits based on the Buyer’s needs, wants and perceptions.

2. “Fire Drill” time is: Opening blinds, turning on lights, turning the television off, put soft music on.

3. Agent drive bys/drop ins. Say “I’ll be happy to allow you to show the home. Can you give me 3 minutes?” Then it’s Fire Drill time!

4. Greet your Buyer and agents at the door (if you are at home) and direct them to listing information book about your home. Then please leave the home to allow the buyers to look in leisure.

5. Say “If you have any questions, I’ll be in the back/front yard” and leave the house at this time.

6. Keep track of how long the buyers are in the house. If any buyers are in the home more than 25 minutes, they may be very interested.

7. If asked an uncomfortable question, i.e. lower price, modifications the buyers may want, types of people that live in the neighborhood, etc., simply say “I think it is something my agent would be happy to talk with you about.”

8. Remember “real” buyers want to touch, smell and explore. Have your kitchen drawers, closets and garage organized.

9. Never apologize for the present condition of the home. If it is unclean, or toys are out, don’t mention why.

10. Most agents may not arrive on time when showing property. Many will be ahead of or behind schedule, or may not even show up at all.

“The Fire Drill”, along with these other reminders, is a great plan to have in place in order to be ready to open your door to prospective buyers with only a few minute’s notice and still Wow them from their first step inside!

Getting Pre-Approved!

It is extremely important that you connect with a qualified lender. We can recommend lenders who have earned our trust and with whom we’ve had good experiences in the past. The lender will review your financial position to determine the price most suited to your ability to pay and your comfort level.

The Pre-Approval Process will help you in the following ways:

>You will know in advance what your payments will be.

>You won’t waste time considering homes you cannot afford.

>You can select the best loan package without being under pressure. There are many options and programs to choose from in today’s market. Your lender will explain the alternatives to help you select the one best suited to you.

>Sellers will find your offer to purchase more favorable if they know in advance of your ability to secure financing. This will make your offer more competitive if you are in competition with other offers. Nowadays, most listing agents require a pre-approval letter to accompany all purchase agreements.

>You’ll have an estimate of your closing costs and we will explain them to you in detail.

>You’ll have peace of mind.

Best piece of advice!

Take the pre-qualification one step further and get a full loan approval. This is the best approach!

Buyer Notification System!

The Buyer Notification System is a great tool we use to help you find the RIGHT Home for you!

What It Does…

~Searches for Properties that match your criteria.

~Gives Notification by mail or e-mail.

~Offers a Systematized buyer process to save you time.

~A Team of Trained Professionals who Work For and With You!

Once we have Your Criteria, we search the Multiple Listing Service daily to find properties that match that criteria. Once a match is found, we send the data sheets for that property to you, either by e-mail or postal mail. This allows you to look at properties on Your time and to review all of the details of each property. We are available via our Web Site, so you can easily send us an e-mail if you have any questions or would like to make an appointment to see a specific property with your Buyer Representative.

This is just one more step towards finding the Right Home for You!

Getting your house ready for Sale!

So, you’ve begun the process of listing your home for sale. There are a few things you need to know in order to make this as smooth a process as possible. Let’s take a look at these important steps one at a time.

The most important step in preparing your home for sale is “Presentation”. Prospective buyers want to be greeted by cleanliness and spaciousness, inside and out.

What is the first thing a prospective buyer sees as they drive by/stop in to look at your home?

“Curb Appeal”

Be sure to keep your yard well manicured and clean. Rake away leaves and trim hedges. Even if you can’t afford a professional these minor maintenance steps can make a world of difference. Check the front entryway and make sure it is free of clutter and inviting. Clear away cobwebs and sweep the walkway. If the front door has sun damage or scuffs, throw a coat of paint on it for a fresh new look.

With these simple steps, prospective buyers will be dying to get a look at the inside of your home!

Remember, first impressions can make the difference between a “Sold” sign in the front yard and a long haul.