Because the days of putting little to nothing down for a mortgage are behind us, more buyers are rediscovering FHA loans. These government insured loans were designed to increase home ownership. Now, more than ever, FHA is becoming the answer for many looking to buy in a tight credit market.
The main benefit of FHA is that you only have to put 3.5% of the sales price down – and that can even be a gift from a family member. No cash reserves are required and the seller can credit up to 6% of the sales price toward buyer’s costs. That means on a $200,000 house, you would only need to put down around $7,000 if you qualify for an FHA loan.
“I recently worked with a couple that used FHA to buy their first home,” said Brentwood TN Realtor Jeff Fulmer. “During the process, I discovered that the FHA process has become much easier and can be a good fit for many buyers in today’s market.”
A common misconception is that FHA loans are only for first time home buyers, but most people can qualify. There is no minimum FICO score or credit score requirements and FHA will allow a home purchase 2 years after bankruptcy and 3 years after a foreclosure. In addition, you can have less than two years on a job and self-employment is allowed.
“A couple of years ago, it was rare to see a client utilize the FHA loan,” Jeff Fulmer said. “My area is Brentwood TN homes and Franklin TN homes and buyers here typically did not need a program like FHA. But, I think that is changing. Whether you are talking about a client looking at a Franklin TN condo or a 4,000 square foot Brentwood home, people are looking for alternative financing.”
Limits on FHA mortgage loans have increased to almost $400,000 in Davidson and Williams Counties in Tennessee. In addition, previously stringent appraisal guidelines have loosened so that sellers no longer to fear the FHA buyer. While the rate on an FHA may be one-eighth of a point higher than other loans, the added cash at closings may be well worth it.
“We are all looking for the best way to help people get into homes or condos,” Fulmer said. “FHA is just another tool to help that dream come true.”
Friday, March 27, 2009
Monday, March 23, 2009
Ready or Not - The New Nashville Condos Are Coming…
Brand new developments such as Rhythm, Velocity, and Terrazzo will be opening their doors in 2009, bringing 500 luxury condominium units to an already crowded downtown Nashville condominium marketplace. Icon, Encore, Adelicia, Fifth and Main, and the Viridian have been selling their Nashville condos for the last year or two, leaving less room for the newcomers.
In total, there will be about 1,350 luxury Nashville condos in the downtown area with about half of them already sold. The 305 unit Viridian has sold out; however, it has been open since late 2006. Opened in late 2007, the Adelicia in the Vanderbilt/Music Row area is 90% sold out.
Velocity and Terrazzo will be joining the Icon in the “Gulch.” Ranging from $239,000 to $1.9 million, the Icon opened in the spring of 2008 and has currently closed about 30% of their 417 units. The Terrazzo has been delayed for about a year, but will be selling its 117 units in April of 2009. Nashville’s first pre-certified green building, the Terrazzo, boasts downtown views and over-sized terraces. The Velocity will bring another 265 more cool condos to the rejuvenated Gulch area. Rhythm at Music Row will have 99 condos for sale ranging from $239,000 to $712,000.
“The newer developments are opening into strong head winds,” said Jeff Fulmer, a Nashville Realtor who specializes in the Nashville condominium market. “It will probably take some time for Nashville to absorb this influx of inventory, but we are fortunate to have so many choices.”
Some are predicting that it will take up to two years for these new units to work through the system. There are no other plans for any more major luxury condo developments and others have had to curtail their plans. The most ambitious downtown project, the Signature Tower, was once designed to be the tallest building outside of New York or Chicago. The mixed use complex has downsized its plans from a 600 unit condo development to 90 to 100 luxury condos with the average size of the condos more than doubling.
The suburbs are also attempting to sell new condos which are still coming on the market. According to the Williamson County Association of Realtors, condo sales in Williamson County dropped a whopping 52% from a year ago. The median price of a condos dropped 16 percent from $215,000 in February 2008 to $180,000 in February 2009. On the positive side, days on the market for condos in Williamson County have gone from 60 days last year to 44 days in 2009.
Franklin TN condos, such as Gateway Village Creekstone, The View, Avalon, Grant Park, Ashton Park, 11th Off Main, Westhaven, and Jamison Station are still selling new units. Berkley Walk and Windstone are two new luxury developments opening in Brentwood TN.
“Whether you are looking for an investment or an exciting new place to call home, this is great time to consider Brentwood TN condos, Franklin TN condos or condominiums in Nashville,” Fulmer said. “Prices are competitive, interest rates are low, and there is something for everyone.”
In total, there will be about 1,350 luxury Nashville condos in the downtown area with about half of them already sold. The 305 unit Viridian has sold out; however, it has been open since late 2006. Opened in late 2007, the Adelicia in the Vanderbilt/Music Row area is 90% sold out.
Velocity and Terrazzo will be joining the Icon in the “Gulch.” Ranging from $239,000 to $1.9 million, the Icon opened in the spring of 2008 and has currently closed about 30% of their 417 units. The Terrazzo has been delayed for about a year, but will be selling its 117 units in April of 2009. Nashville’s first pre-certified green building, the Terrazzo, boasts downtown views and over-sized terraces. The Velocity will bring another 265 more cool condos to the rejuvenated Gulch area. Rhythm at Music Row will have 99 condos for sale ranging from $239,000 to $712,000.
“The newer developments are opening into strong head winds,” said Jeff Fulmer, a Nashville Realtor who specializes in the Nashville condominium market. “It will probably take some time for Nashville to absorb this influx of inventory, but we are fortunate to have so many choices.”
Some are predicting that it will take up to two years for these new units to work through the system. There are no other plans for any more major luxury condo developments and others have had to curtail their plans. The most ambitious downtown project, the Signature Tower, was once designed to be the tallest building outside of New York or Chicago. The mixed use complex has downsized its plans from a 600 unit condo development to 90 to 100 luxury condos with the average size of the condos more than doubling.
The suburbs are also attempting to sell new condos which are still coming on the market. According to the Williamson County Association of Realtors, condo sales in Williamson County dropped a whopping 52% from a year ago. The median price of a condos dropped 16 percent from $215,000 in February 2008 to $180,000 in February 2009. On the positive side, days on the market for condos in Williamson County have gone from 60 days last year to 44 days in 2009.
Franklin TN condos, such as Gateway Village Creekstone, The View, Avalon, Grant Park, Ashton Park, 11th Off Main, Westhaven, and Jamison Station are still selling new units. Berkley Walk and Windstone are two new luxury developments opening in Brentwood TN.
“Whether you are looking for an investment or an exciting new place to call home, this is great time to consider Brentwood TN condos, Franklin TN condos or condominiums in Nashville,” Fulmer said. “Prices are competitive, interest rates are low, and there is something for everyone.”
Thursday, March 12, 2009
Positive Signs from the Greater Nashville Real Estate Market
Despite gloomy real estate news, home prices in and around Nashville, Tennessee have held their value better than most. In addition, the condominium Nashville market, as well as Brentwood TN condos and Franklin TN condos, have actually seen some recent upticks. There are also reasons for optimism for the Nashville real estate market and beyond.
Values of homes in Brentwood TN (Williamson County) and Nashville TN (Davidson County) have been fairly steady compared with many other parts of the country. Zillow.com reports that Brentwood homes decreased 3.7% in the fourth quarter of 2008 compared to the fourth quarter of 2007. Nationally, home values decreased 11.6% during this same time.
According to the Williamson Country Association of Realtors, sales for January, 2009 saw a decline of about 26% in Williamson County compared to January, 2008. While that’s not good news for real estate agents, the numbers aren’t quite so bad for home-owners. The median price for residential homes in Williamson County (which includes homes in Brentwood TN and homes in Franklin TN) was $395,000 in 2007. For 2008, the residential median price was down to $365,000, representing an 8% decline.
The condo market, on the other hand, seems to be looking up slightly. The median price of condos in Williamson County (which includes Brentwood TN condos and Franklin TN Condos), was $220,000 in January 2009, while the median price was $174,308 a year ago. “Of course, one month is only a snapshot so you can’t read too much into those numbers,” said Jeff Fulmer, a Realtor who specializes in Brentwood and Franklin homes and condos. “However, it is an encouraging sign.”
The condominium market seems to be holding up well in Nashville as well. According to the Greater Nashville Association of Realtors, the 2008 median price for condominium Nashville TN was $165,000. This compares favorably to the median price of $158,890 for last year. During January of 2008, the median price for residential homes in Nashville (Davidson County) was $179,900 compared to $165,000 in January, 2008.
“Everyone wants to know what the real estate market is going to do in 2009,” Fulmer said. “While no one has the answer to that, there are some hopeful trends. New construction starts and inventories are coming down and pending sales are up. That means that the market is starting to absorb the existing homes that are out there. Plus, the stimulus plan and low interest rates should also help to thaw the real estate markets this spring.”
Under the recently passed economic stimulus plan, first-time homebuyers who purchase a home between January 1st and December 1st 2009 will be eligible for a tax credit of 10% of the value of the home, up to $8,000. ‘First time home-buyers’ are considered anyone who hasn’t bought a home in three years. Homeowners don't have to pay back this credit over the next 15 years, the way they had to with the $7,500 tax credit enacted last summer. However, homebuyers would have to repay the credit if they sold their home within three years.
At the same time, interest rates have recently dropped to nearly 5% for a thirty year fixed mortgage. This time last year the 30 year fixed rate mortgage averaged 6.04%. On a two hundred thousand dollar loan, that can add up to almost a couple of hundred dollars a month. For people that might be on the fence, that added savings might make the difference in whether they can afford to purchase or not.
“Whether you’re a first time home-buyer, an investor, or anyone looking for a deal on that dream home, this is a great time to take advantage of what the market is giving you,” Fulmer said. “I can’t speak for the rest of the country, but I believe things are looking up in Nashville, Franklin and Brentwood.”
Contact information
Jeff Fulmer
Main Street Real Estate
615-545-8611
http://www.jefffulmer.com
Values of homes in Brentwood TN (Williamson County) and Nashville TN (Davidson County) have been fairly steady compared with many other parts of the country. Zillow.com reports that Brentwood homes decreased 3.7% in the fourth quarter of 2008 compared to the fourth quarter of 2007. Nationally, home values decreased 11.6% during this same time.
According to the Williamson Country Association of Realtors, sales for January, 2009 saw a decline of about 26% in Williamson County compared to January, 2008. While that’s not good news for real estate agents, the numbers aren’t quite so bad for home-owners. The median price for residential homes in Williamson County (which includes homes in Brentwood TN and homes in Franklin TN) was $395,000 in 2007. For 2008, the residential median price was down to $365,000, representing an 8% decline.
The condo market, on the other hand, seems to be looking up slightly. The median price of condos in Williamson County (which includes Brentwood TN condos and Franklin TN Condos), was $220,000 in January 2009, while the median price was $174,308 a year ago. “Of course, one month is only a snapshot so you can’t read too much into those numbers,” said Jeff Fulmer, a Realtor who specializes in Brentwood and Franklin homes and condos. “However, it is an encouraging sign.”
The condominium market seems to be holding up well in Nashville as well. According to the Greater Nashville Association of Realtors, the 2008 median price for condominium Nashville TN was $165,000. This compares favorably to the median price of $158,890 for last year. During January of 2008, the median price for residential homes in Nashville (Davidson County) was $179,900 compared to $165,000 in January, 2008.
“Everyone wants to know what the real estate market is going to do in 2009,” Fulmer said. “While no one has the answer to that, there are some hopeful trends. New construction starts and inventories are coming down and pending sales are up. That means that the market is starting to absorb the existing homes that are out there. Plus, the stimulus plan and low interest rates should also help to thaw the real estate markets this spring.”
Under the recently passed economic stimulus plan, first-time homebuyers who purchase a home between January 1st and December 1st 2009 will be eligible for a tax credit of 10% of the value of the home, up to $8,000. ‘First time home-buyers’ are considered anyone who hasn’t bought a home in three years. Homeowners don't have to pay back this credit over the next 15 years, the way they had to with the $7,500 tax credit enacted last summer. However, homebuyers would have to repay the credit if they sold their home within three years.
At the same time, interest rates have recently dropped to nearly 5% for a thirty year fixed mortgage. This time last year the 30 year fixed rate mortgage averaged 6.04%. On a two hundred thousand dollar loan, that can add up to almost a couple of hundred dollars a month. For people that might be on the fence, that added savings might make the difference in whether they can afford to purchase or not.
“Whether you’re a first time home-buyer, an investor, or anyone looking for a deal on that dream home, this is a great time to take advantage of what the market is giving you,” Fulmer said. “I can’t speak for the rest of the country, but I believe things are looking up in Nashville, Franklin and Brentwood.”
Contact information
Jeff Fulmer
Main Street Real Estate
615-545-8611
http://www.jefffulmer.com
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