Obama signed into law today the new homebuyer tax credit of $8000, which will basically extend the present tax credit, which was due to expire on Nov. 30th to April 30th, 2010. You have to have a contract in place by that time, although there is a grace period to close by June 30th, 2010. Income limits were also raised to $125,000 for single tax payers and $225,000 for a couple. The maximum house price is $800,000. If a buyer has not owned a home for the past 3 years they also qualify for the tax credit.
The credit has also been expanded to give a credit of $6500 to home sellers who are buying another home. They have to have lived in their home for 5 of the last 8 years to qualify. Income limits are the same as is the maximum house price.
There is no need to repay the amount unless you sell before 3 years.
If you have any questions, please fell free to give me a call. Some advice would be, if you are considering doing this don't wait until the last minute. In the past 1 1/2 to 2 months homes have been flying off the market for 1st time homebuyers. Also interest rates right now are still great! I read somewhere this week that they may be headed up at the beginning of next year. Also there are more laws coming up in January as far as FHA, which may make buying more difficult.
Updated Raised Ranch
• 2,648 sq. ft., 2 bath, 3 bdrm bi-level - 
MLS® $260,000 - Priced to Sell!
Portland, Middlesex County - Located in a great neighborhood setting on 1.14 acres of flat land, this oversized raised ranch with a 2 car attached garage is a great buy! The house has lots of updates including a new roof, new furnace, new gutters, all refinished hardwood floors on the first floor, plus much of it has been repainted with neutral colors.
The updated kitchen has brand new granite countertops and newer appliances. Offering lots of cabinets and space for a small table this kitchen will be sure to please. There is also a slider to the deck. Beyond the kitchen is a dining room with parquet floors.
The living room offers gleaming hardwood floors and a stone fireplace. Also on the first floor there are 3 bedrooms, all with hardwood floors. The main main bath is unbelievable! Totally gutted and renovated this bath offers a jacuzzi tub that has 42 jets and underwater lighting that changes colors as well as a heated thermal backrest. The shower stall is state of the art with side jets and more. The whole bath has gorgeous tilework and the mirrors have a defogger. You have to see it!
The lower level of this home is totally finished and offers a family room with a fireplace, that opens to another room with a bar and laminate flooring. Truly a great place for a party! There is also a full bath with laundry area and 2 other rooms to use as a pool room, office, exercise room or whatever you need. The lower level could be made into an in-law if you needed that. There are lots of options.
In the back is a deck overlooking a beautiful flat yard for any outdoor activities. Truly a lot of house for the money.
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Middle Haddam, East Hampton - We invite everyone to visit our open house at 10-12 Keighley Pond Rd on May 17 from 1:00 PM to 3:00 PM.
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Historic Barn & Guest House
• 1,560 sq. ft., 3 bath, 2 bdrm 2 story "Plus Ranch" - MLS® $300,000 - 2 Homes for 1 Price
Middle Haddam, East Hampton - A Truly Unique and Charming Property
2 Homes for 1 Price
Located on a quiet country road with a circular driveway on 1.6 acres of land in historic Middle Haddam, these 2 homes must be seen. The main house is a historic barn offering 1560 sq.ft. and 3 fireplaces. As you enter the front door there is a large living room with a fireplace, built-ins and beautiful wood floors. Just beyond the living room is a formal dining room, large enough for all of those family gatherings. The eat-in kitchen has loads of beams and barn board walls for that great country look and feel. The countertops are corian and there is also a snack bar. Again there are also wood floors and cathedral ceilings. Beyond the kitchen is a new full bath with tile floors.
As you go up the stairs to the 2nd floor you will be amazed, the hayloft has been converted to the huge master suite with 2 levels taking up the whole 2nd floor. Wide board floors, wood cathedral ceilings, beams and large windows as well as a fireplace are only a few of the unique features. The first thing you will notice is an oversized claw footed tub on a raised platform for those relaxing baths as you look out the picture window. There are loads of built-in cabinets, minimizing the need for other furniture. There is also room for a seating area around the fireplace.
Down the spiral staircase to the lower level walk-out, there is a summer kitchen with stone walls leading out to a glass enclosed 3 season room featuring a huge hot tub to enjoy year-round. The room is 261 sq.ft. so there is plenty of room for seating, to enjoy the views of the stone walls and the backyard.
The rest of the downstairs is finished to use as a family room, another bedroom, an office or whatever you may need. There is a large closet, another fireplace and a woodstove and it is walkout.
Now we will move on to the 2nd house, which is a small ranch offering a living room, kitchen, bedroom and huge bath. There is a woodstove and c
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First Time Home Buyer Seminar
Thursday April 2nd, 5:30 - 6:30
2790 Main St, Glastonbury, Ct. 06033
WHAT YOU NEED TO KNOW ABOUT BUYING A HOME IN 2009
What you will learn:
About the $8000 tax credit for first time buyers.
What your credit score means and how a mortgage company will look at it.
How much house you will qualify for.
What is the market like now?
How can I qualify for a mortgage?
How do I go about finding a home?
Given by Sean Smith, Mortgage Planner for CTHM and Marabeth Gildersleeve, Agent for Prudential Ct. Realty
Seating is limited so please call 860-652-4584 to make your reservation.
I was sent this article and I thought it was worth publicizing, because of so many people being in trouble or struggling to keep up with their mortgage payments. This article will give you the general guidlelines to find out if you are eligible for refinancing your loan.
U.S. DEPARTMENT OF THE TREASURY
Washington
March 4, 2009
Making Home Affordable
Summary of Guidelines
Making Home Affordable will offer assistance to as many as 7 to 9 million homeowners, making their
mortgages more affordable and helping to prevent the destructive impact of foreclosures on families,
communities and the national economy.
The Home Affordable Refinance program will be available to 4 to 5 million homeowners who have a
solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these
borrowers would be unable to refinance because their homes have lost value, pushing their current loanto-
value ratios above 80%. Under the Home Affordable Refinance program, many of them will now be
eligible to refinance their loan to take advantage of today’s lower mortgage rates or to refinance an
adjustable-rate mortgage into a more stable mortgage, such as a 30-year fixed rate loan.
GSE lenders and servicers already have much of the borrower’s information on file, so documentation
requirements are not likely to be burdensome. In addition, in some cases an appraisal will not be
necessary. This flexibility will make the refinance quicker and less costly for both borrowers and lenders.
The Home Affordable Refinance program ends in June 2010.
The Home Affordable Modification program will help up to 3 to 4 million at-risk homeowners avoid
foreclosure by reducing monthly mortgage payments. Working with the banking and credit union
regulators, the FHA, the VA, the USDA and the Federal Housing Finance Agency, the Treasury
Department today announced program guidelines that are expected to become standard industry practice
in pursuing affordable and sustainable mortgage modifications. This program will work in tandem with
an expanded and improved Hope for Homeowners program.
With the information now available, servicers can begin immediately to modify eligible mortgages
under the Modification program so that at-risk borrowers can better afford their payments. The
detailed guidelines (separate document) provide information on the following:
Eligibility and Verification
• Loans originated on or before January 1, 2009.
• First-lien loans on owner-occupied properties with unpaid principal balance up to $729,750.
Higher limits allowed for owner-occupied properties with 2-4 units.
• All borrowers must fully document income, including signed IRS 4506-T, two most recent pay
stubs, and most recent tax return, and must sign an affidavit of financial hardship.
• Property owner occupancy status will be verified through borrower credit report and other
documentation; no investor-owned, vacant, or condemned properties.
• Incentives to lenders and servicers to modify at risk borrowers who have not yet missed payments
when the servicer determines that the borrower is at imminent risk of default.
• Modifications can start from now until December 31, 2012; loans can be modified only once
under the program.
Loan Modification Terms and Procedures
• Participating servicers are required to service all eligible loans under the rules of the program
unless explicitly prohibited by contract; servicers are required to use reasonable efforts to obtain
waivers of limits on participation.
• Participating loan servicers will be required to use a net present value (NPV) test on each loan
that is at risk of imminent default or at least 60 days delinquent. The NPV test will compare the
net present value of cash flows with modification and without modification. If the test is positive
meaning that the net present value of expected cash flow is greater in the modification scenario the servicer must modify absent fraud or a contract prohibition.
• Parameters of the NPV test are spelled out in the guidelines, including acceptable discount rates,
property valuation methodologies, home price appreciation assumptions, foreclosure costs and
timelines, and borrower cure and redefault rate assumptions.
• Servicers will follow a specified sequence of steps in order to reduce the monthly payment to no
more than 31% of gross monthly income (DTI).
• The modification sequence requires first reducing the interest rate (subject to a rate floor of 2%),
then if necessary extending the term or amortization of the loan up to a maximum of 40 years,
and then if necessary forbearing principal. Principal forgiveness or a Hope for Homeowners
refinancing are acceptable alternatives.
• The monthly payment includes principal, interest, taxes, insurance, flood insurance, homeowner’s
association and/or condominium fees. Monthly income includes wages, salary, overtime, fees,
commissions, tips, social security, pensions, and all other income.
• Servicers must enter into the program agreements with Treasury's financial agent on or
before December 31, 2009.
Payments to Servicers, Lenders, and Responsible Borrowers
• The program will share with the lender/investor the cost of reductions in monthly payments from
38% DTI to 31% DTI.
• Servicers that modify loans according to the guidelines will receive an up-front fee of $1,000 for
each modification, plus “pay for success” fees on still-performing loans of $1,000 per year.
• Homeowners who make their payments on time are eligible for up to $1,000 of principal
reduction payments each year for up to five years.
• The program will provide one-time bonus incentive payments of $1,500 to lender/investors and
$500 to servicers for modifications made while a borrower is still current on mortgage payments.
• The program will include incentives for extinguishing second liens on loans modified under this
program.
• No payments will be made under the program to the lender/investor, servicer, or borrower unless
and until the servicer has first entered into the program agreements with Treasury’s financial
agent.
• Similar incentives will be paid for Hope for Homeowner refinances.
Transparency and Accountability
• Measures to prevent and detect fraud, such as documentation and audit requirements, will be
central to the program.
• Servicers will be required to collect, maintain and transmit records for verification and
compliance review, including borrower eligibility, underwriting, incentive payments, property
verification, and other documentation.
• Freddie Mac will audit compliance
This article was written by our mortgage officer and I thought it was worth sharing , since mortgage requirements keep changing.
Changes to Mortgage Downpayment Options for Different Programs
Here is a summary of down payment options available:
0% (100% financing) VA (Veteran's) or USDA Rural Housing, use this website to see if an address is eligible: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do (then click on Single Family Housing and enter the address)
3.5% CHFA or FHA. ($8000 tax credit can be used for CHFA loans now, the previous $7500 tax credit could not)
CHFA is at 5.0% while FHA is at 5.5% ( These rates change daily) If your buyer is struggling to come up with 3.5% down, then FHA is better because no required 1% origination upfront.
Just about every lender is requiring a FICO of 620 or higher now for FHA
10% or more. Conventional Financing with PMI (private mortgage insurance up to 20% down)
There is only one Mortgage Insurance company that will allow 5% down in CT and they are very strict on FICO score (700+) and debt ratio (41%). Also keep in mind with conventional financing that when putting down less than 20%, 5% of the funds must be the borrowers own funds (meaning no large deposits on 2 months of bank statements). If borrowers do not have 5% of their own money, they need to go FHA where the entire down payment can be a gift.
Sean R. Smith, CMPS
Mortgage Planner
Connecticut Home Mortgage
Middletown Market Report for Last Quarter of 2008 and 2007 Comparison to 2008
Residential
9/1/2007 – 12/31/2007 compared to 9/1/2008 – 12/31/2008
The residential market in Middletown showed a drop in sales of 7.7% with 91 sales in the last quarter of 2007 and 84 in the last quarter of 2008. The median sale price dropped 13.4% from $268,453 in 2007 to $232,450 in 2008. There are 160 active listings on the market as of today.
1/1/2007-12/31/2007 compared to 1/1/2008 – 12/31/2008
Looking back at 2007 compared to 2008 there was a drop in sales of 31% with 378 in 2007 compared to 261 in 2008. Overall the median sale price dropped 6%, from $250,000 in 2007 to $235,000 in 2008. Days on the market remained relatively unchanged and homes are selling for about 96% of their final asking price.
Condominiums
9/1/2007-12/31/2007 compared to 9/31/2008 -12/31/2008
The condominium market has fared a little better than the residential market, although sales are still down. Sales in the last quarter of 2008 are down 33.4% with 57 in the last quarter of 2007 compared to 38 in the last quarter of 2008. Sale prices actually rose 4.3% from a median sale price of $149,900 in 2007 compared to $157,000 in 2008.
1/1/2007 -12/31/2007 compared to 1/1/2008 compared to 12/31/2008
Comparing all of 2007 to 2008 number of sales dropped 27% from 223 in 2007 to 163 in 2008. Median sale price rose .7% with the median sale price in 2007 being $153,500 and in 2008 the median price was $154,500. Certainly not a major gain, but at least it is up and not down.
Again don’t be fooled by this report. Pricing is still crucial to a sale. Inventory right now is down a little, but if it starts climbing, everything changes. So far Ct seems to be faring better than some parts of the country, mainly because our inventory has not gone up. Since I have been involved in real estate for 27 years, the main difference I see between this market and the last major downturn in the late 80’s and early 90’s is inventory. Back then we had 3 or 4 years worth of inventory on the market and now it is more like 7 months worth of inventory.
Glastonbury Market Report for Last Quarter and 2008 Comparison to 2007
Residential
9/1/2007 -12/31/2007 compared to 9/1/2008 – 12/31/2008
Comparing the last quarter of 2007 to 2008 there was not too much change as far as number of sales. There were 94 in 2007 compared to 91 in 2008. Median sale price was down 7.7%, from $370,000 in 2007 compared to $345,000 in 2008. Days on the market went from 39 in 2007 to 34 in 2008. This figure can be deceiving though , since it does not take into account homes that were on the market and expired and then relisted.
1/1/2007 – 12/31/2007 compared to 1/1/2008 – 12/31/2008
Looking at comparisons for the year, sales were down 15.6% from 2007. In 2007 there were 374 closed sales and in 2008 there were only 316 closed sales. Overall prices were only down about 1% from a median price of $391.450 in 2007 to a median price of $388,000 in 2008.
Compared to the rest of the country the residential market does not look too bad for Glastonbury. Right now inventory is way down, probably because of just getting past the holidays. There are 142 homes on the market as of this day.
Condominiums
9/1/2007 – 12/31/2007 compared to 9/1/2008 – 12/31/2008
Comparing the last quarter of 2007 to the last quarter of 2008 there was not a major change as far as number of sales. The last quarter of 2007 had 34 closed sales and in 2008 there were 28 closed sales. The median sale price actually went up about 1% from $199,500 in 2007 to $202,450 in 2008.
1/1/2007 – 12/31/2007 compared to 1/1/2008 – 12/31/2008
Looking at comparisons for the year, in 2007 there were 155 closed sales compared to 96 in 2008, a drop of 31.9% which is pretty major. Median sale price actually went up about 1%, from $197,000 in 2007 compared to $199,950 in 2008. Days on the market were up slightly and overall condos are selling for about 97% of their final asking price.
Do not be fooled reading this report though, since in order to sell your home the correct pricing is still crucial. What this report does not show you is the number of homes that have been on the market for more than 6 months and the number of price adjustments they have gone through. For the homes under deposit right now the median days on the market have risen to 74.
Glastonbury Market Report for Sept. and 1st 3 Quarters
Residential
September
Active Listings – 180
New in Sept. – 58
Deposits – 24
Closed – 24
Avg.Sale Price - $421,737
SP/Sq.Ft. - $173.13
Avg.DOM – 43
Closed 1/1/2008 – 9/30/2008
249
Avg. Sale Price - $451,985
SP/Sq.Ft - $176.55
DOM- 60
Closed 1/1/2007 – 9/30/2008
300
Avg.Sale Price - $448,856
ASP/Sq.Ft - $181.53
DOM -53
Comparing last year to this year sales are down by 17%, but the average sale price is up very minimally. Looking at September compared to the 1st 3 quarters the average sale price is down 6.7%. Hopefully this is not a trend.
Condominiums
September
Active Listings – 35
New in September – 11
Deposits – 6
Closed – 7
Avg. Sale Price - $230,771
SP/Sq.Ft. - $158.98
DOM – 66
Closed 1/1/2008 – 9/30/2008
Closed – 75
Avg. Sale Price - $205,743
SP/Sq.Ft. - $161.44
DOM – 62
Closed 1/1/2007 – 9/30/2007
Closed – 129
Avg.Sale Price - $205,415
SP/Sq.Ft - $165.01
DOM – 46
Comparing last year to this year sales are down 42%, but prices remain realtively unchanged.
Market Report for Middletown for September and 1st 3 Quarters
Residential
September
Active – 152
New Listings – 52
Deposits – 20
Closed – 24
Average Sale Price - $211,372
SP/Sq.Ft - $145.12
DOM – 55
1/1/2008 – 9/30/2008
Closed – 199
Average Sale Price - $253,137 Median Sale Price - $228,000
SP/Sq.Ft. - $155.08
DOM – 65
1/1/2007 – 9/30/2007
Closed – 309
Average Sale Price - $268,082 Median Sale Price - $250,500
SP/Sq.Ft. - $156.91
DOM -60
Number of sales are down 36% compared to last year. Average sale prices are down 5.6% and median sale prices are down 9%. September saw a drop of 16.5%
compared to the first 9 months of the year. Hopefully this is not a trend.
Condominiums
September
Active – 76
New Listings – 27
Deposits – 10
Closed – 15
Average Sale Price - $161,533
SP/Sq.Ft - $142.54
DOM – 72
1/1/2008 – 9/30/2008
Closed – 136
Average Sale Price - $169,319 Median Sale Price - $154,000
SP/Sq.Ft. - $149.94
DOM – 82
1/1/2007 – 9/30/2007
Closed 182
Average Sale Price - $161,523 Median Sale Price - $156,100
SP/SqFt - $146.08
DOM – 48
Sales are down 25.3% compared to last year. Average sale price is up 4.8% and median is down by 1.4%. Overall condo sales are faring better than residential.
Portland Market Report for September and 1st 3 Quarters
Residential
September
Active Listings – 60
New Listings – 10
Deposits – 5
Closed – 4
Average Sale Price - $285,500
SP/SqFt - $131.17
DOM -60
1/1/2008 – 9/30/2008
Closed – 63
Average Sale Price - $274,058 Median Sale Price - $255,000
SP/SqFt - $157.91
DOM – 62
1/1/2007 – 9/30/2007
Closed – 72
Average Sale Price - $270-652 Median Sale Price - $258,000
SP/Sq.Ft - $150.84
DOM – 61
Overall sales are down by 12.5%. Average sale prices are up by 1.3%, but median sale prices are down by 1.2 %. Again Portland seems to be holding its own with no major changes in prices.
Portland - Announcing a price reduction on 24 Commerce St, a 1,764 sq. ft., 2 bath, 4 bdrm colonial. Now MLS® $184,990 - MAJOR PRICE REDUCTION!.
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Totally Remodeled Hip Roof Raised Ranch
• 1,879 sq. ft., 3 bath, 3 bdrm single story - MLS® $315,000
South Glastonbury - Located on a quiet dead end street in South Glastonbury, this hip roofed raised ranch sits on a gorgeous 1 acre lot with beautiful gardens and a patio plus a deck to sit and enjoy the view.
As you enter the door of this totally remodeled home you will be impressed with the open floor plan, hardwood floors and designer colors. The living room with fireplace and the dining room are bright and sun filled because of the large window and 2 sliders leading to a new deck and a patio. The kitchen has been updated with new cabinets and tile foors and has room for a table. The master bedroom is a good size and has a full bath with a beautifully tiled shower. The other 2 bedrooms are also a good size and the second full bath has been remodeled.
The lower level has a family room with a fireplace and tiled floors, a laundry room and also a remodeled full bath. There is still room left over for your workshop and storage or you may want to finish it off so that you can have an in-law apartment.
All of the work has been done for you, so all you have to do is move in. There is a new septic tank, ceiling fans, windows, all interior doors have been replaced, new furnace, new roof,new deck, new water heater, garage door, attic fan, remodeled bathrooms and kitchen, new lighting fixtures, new tiled floors and the exterior was just repainted. Most rooms in the house have crown molding.
What are you waiting for? Make your appontment to see this home today!
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Updated Ranch
• 1,066 sq. ft., 2 bdrm single story - MLS® $219,900
8 Thomas St, Portland - Don't miss out on seeing this updated ranch on a quiet street in walking distance to the river. Most of the work has been done for you. This home has a new roof, new windows, refinished wood floors, new carpet in bedrooms, updated full bath. The eat-in kitchen is very large and has a good sized eating area with wood floors and a built-in closet for dishes etc. One bedroom has a half bath. There is a beautiful screened porch for you to enjoy in the summer as well as a nice deck to enjoy the backyard. The lower level has 2 partially finished rooms as well as lots of storage space and it is walkout. Plenty of room here to add on or add a garage.
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