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Archive for the ‘RENTAL HOMES’ Category

More Americans are showing a preference for living closer into the city than the outer suburbs, according to newly released U.S. Census data. The annual rate of growth in American cities and surrounding urban areas recently surpassed exurbs for the first time in two decades. (more…)

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Senate Passed Loan Limit Extension Amendment – FHA loan limits back at $729,750 – click the link for more information: https://viviannerutkowski.wordpress.com/2011/11/16/conforming-loan-limits-for-conventional-mortgages-and-fha-loan-limits-at-729750-for-high-cost-of-living-areas-in-northern-virginia-and-arlington-county-va-fairfax-county-va-fauquier-county-va-lou/

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On October 1, 2011, mortgage loan limits for the government-sponsored enterprises Fannie Mae and Freddie Mac (GSEs) and the Federal Housing Administration (FHA) dropped from temporary levels to reduced limits based on permanent criteria established by Congress in 2008.

The base limit for most of US remains at $417,000, but the formula for establishing limits for high cost areas, like Northern Virginia, changed from 125% to 115% of the area MEDIAN HOME PRICE which means a drop in loan limit from $729,750 to $625,500.

It means that $625,500 is the maximum loan amount for one unit residential properties in high cost areas that can be purchased and securitized by Fannie Mae and Freddie Mac (GSEs).

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As with the conventional loans insured by GSEs (Fannie Mae and Freddie Mac), on October 1, 2011, the loan limits for the FHA loans also declined due to changes set in law. FHA loan limits are set slightly differently than those for Fannie Mae and Freddie Mac. By law, the lowest limit for any county in US for one-unit homes is $271,050. The ceiling for FHA loans in high cost areas declined on October 1, 2011 from $729,750 to $625,500 for one unit residential properties.

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The new 2011-2012 GSE Conforming Loan Limits in Washington, D.C. area, Northern Virginia and Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA are as follows:

  • 1 – UNIT         $625,500
  • 2 – UNIT         $800,775
  • 3 – UNIT         $967,950
  • 4 – UNIT      $1,202,925 

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The loan limits for VA Loans, mortgages guaranteed by the Department of Veterans Affairs, will change on January 1, 2012.  The current VA loan limit in Northern Virginia area is $818,750 thru December 31, 2011http://www.googlerealestate.com/va-loan-limits-2011/

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The new GSE Conforming Loan Limits for all counties in USA and Northern Virginia, Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA: http://www.nahb.org/fileUpload_details.aspx?contentTypeID=3&contentID=159279&subContentID=353571&channelID=311

The new FHA Loan Limits for all counties in USA and Northern Virginia, Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA:
http://www.nahb.org/fileUpload_details.aspx?contentTypeID=3&contentID=159279&subContentID=353572&channelID=311

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Click here for Mortgage Calculators and Interest Rates TODAY

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NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

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The days of flipping houses for big profits have all but vanished in many markets as more investors see bigger profits in rentals, according to an article by CNNMoney.

Investors flipped only 50% of their purchases in July 2011, down from 75% a year earlier, according to Tom Popik, research director for Campbell Surveys, which tracks housing trends for major banks and government agencies. Investors held onto the other 50% to rent out.

A recent survey by the company HomeVestors found that their investor clients were 57% more likely than two years ago to buy a property for renting than to flip.

Demand for rentals has been on the rise because many homeowners lost their homes to short sales and foreclosures, and rents are up about 25% from a few years ago. Housing analysts say that investors are buying properties cheaply and then earning good returns immediately from renting them out.

Most real estate investors are individuals and small partnerships who tap their own assets. They use savings, retirement accounts and home equity lines of credit for the cash they need.

Flippers can turn that capital over several times a year, but if they buy and hold, they deplete their cash and can make no new purchases.

Cash buyers are driving the (foreclosure) market these days,” said Anthony Sanders, a professor of real estate at George Mason University. “Eventually, they’ll run out of cash.”

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NOTE: FHA loans and VA loans require the property to be in a safe, livable condition. Therefore, many FHA and VA buyers do NOT qualify to purchase some of the foreclosed homes that were ransacked and destroyed by foreclosed homeowners. Those homes can only be purchased by cash buyers, investors, conventional loan buyers, or FHA loan buyers who use (203)k Renovation loan.

Read CNN Money article here.

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SOURCE: CNN Money,  REALTOR Magazine

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NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

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Many home owners who are unable to sell their home or cannot afford to drop the price any more  – and who do not want to hurt their credit by short selling or do not qualify for a short sale  –  are opting to rent out their homes until the market improves.

The number of formerly owned-occupied homes turned into rentals has soared in recent years, according to Harvard’s Joint Center for Housing Studies. In 2009, nearly 25 percent of single-family detached rentals had been owner-occupied two years earlier.

While there are many succesful homeowners-turned-landlords, there are some “accidental landlords” who are having regrets.

As many home owners are turning their homes into rentals to generate cash flow, many say the rental income is not enough. They say the cash flow being generated from the property is hardly enough to cover expenses, and in some cases, they are losing money. Accidental landlords also say that being a landlord is time-consuming and can be stressful, as they have to worry about everything from finding tenants to handling any repairs.

Anne Healy in Minneapolis fell into the landlord role after she bought another property and was unable to sell her current home at the price she wanted. She had turned down two offers on the home because she thought both offers were too low and decided renting would be a better option. “We were in denial,” she told the Minneapolis Star Tribune. “We’ve learned the hard way.”

She says the tenants created so much wear-and-tear on the house that she had to restore the home room by room. She also said she had to hound the tenants to pay rent. A year later, she decided she had enough and put her home back on the market. She sold it for $50,000 less than an offer she had turned down the previous year.

Homeowners turned landlords need to be realistic about the costs to maintain the rental property,  repairs, vacancy costs, and adequate screening of prospective tenants. Property managers can be a tremendous help, but they also are an additional expense which many new landlords, who need to make the monthly mortgage payments, simply cannot afford.

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To search  all Washington D.C. and Northern Virginia, Arlington County VA, Fairfax County VA, Loudoun County VA, and Prince William County VA MLS real estate listings and Homes For Sale by COUNTY, TOWN, ZIP CODE, LISTING NUMBER and MAP, visit my web site:   http://www.realtorviviannerutkowski.com/search.shtml 

or to search all area MLS HOMES FOR RENT:   http://www.realtorviviannerutkowski.com/cgi-bin/aa.fcgi?+YjQwNzhjMTgwMjIzMDEyZTIzNDk3MmZkYzc2MDQxNzkSlI0iYvs8pONPOTZVKqjlbrFvQoO6iADGtXnYXe8DrA%3d%3d

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SOURCE: Minneapolis Star Tribune

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NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

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Zillow posted a good article for investors and owners of rental properties with 5 simple steps that should be taken to protect a VACANT rental property – or any vacant home.

  1. Take down the “For Rent” signs – advertise online, do not use word “vacant”
  2. Keep up the yard – make the house look occupied, not abandoned
  3. Put the lights on a timer
  4. Use the blinds – downstairs closed and upstairs open
  5. Screen interested callers – protect address of the property and the vacant status

NOTE: It is also always wise to TURN OFF THE WATER in vacant homes to prevent flooding from burst water pipes.

Direct link to Zillow: 5-steps to protect your vacant rental property

SOURCE: Zillow.com

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NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

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 At the urging of NAR, Fannie Mae announced a new policy to allow investors and second home buyers to obtain up to 10 loans which in practice allows to purchase up to 10 financed properties. The new policy took effect on March 1, 2009, and replaced the 4-loan limit. The restriction applies to the total number of loans, not just to the loans  sold to Fannie Mae.

The new regulation means that investors and second home borrowers can finance up to 10 purchased properties, if each property is financed with only one mortgage.  For example, an investor can purchase five (5) properties if each property requires first and second mortgage, or nine (9) properties if only one (1) of the properties is financed with first and second mortgage and the other eight (8) with one mortgage.  The number of loans cannot exceed 10 per investor, as per the current 10-loan limit.

Investor and second home borrowers that seek to own between 5 and 10 financed properties must meet additional eligibility requirements. Borrowers must have a credit score of at least 720. The maximum loan-to-value ratio is 70% or 75%, depending on specified criteria. Borrowers may not have any history of bankruptcy or foreclosure in the past 7 years, or any mortgage delinquencies of 30 days or greater within the past 12 months. Reserve and other requirements also apply.
For Guidelines visit Fannie Mae.
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SOURCE: Fannie Mae, National Association of REALTORS

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NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

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