VOL. 38 | NO. 8 | Friday, February 21, 2014
Good news, bad news in hunt for mortgages
Good news for those with minimum cash and earning less than $48,840, as well as those with tons of cash and gigantic income levels, from Cory Owen at Regions Bank. Owen announced the Regions Affordable 100 percent program recently when speaking to a group of Realtors.
“The program is a portfolio product that allows 100 percent financing without mortgage insurance for low- to moderate-income homebuyers purchasing in low- to moderate-income census tract, as long as they do not currently own a home,” Owen said.
While the “product is designed to meet the needs of low-to-moderate (LMI) borrowers that have been able to successfully manage credit obligations,” Owen says, there is a stipulation that states that in the cases of properties in LMI census tracts, the income limitation does not apply.
The good news is these census tracts have not been updated recently, and there are some areas of 12South and Germantown that fall into these parameters.
Other guidelines and features of the Regions Affordable 100 percent program are that the buyer must have a credit score of 680 or better, the seller can pay up to 4 percent of the closing costs and prepaid items, and that is more than enough to cover those.
Additionally, the interest rate is fixed for 30 years, gift funds are permitted – Mom and Dad can help – and the loans apply to condos, as well. Finding the census tract is the key to these loans.
In separate mortgage news, the implantation of the QRM, or qualified residential mortgage, has not hampered the processing of loans, even though the standards and layers of bureaucracy are more laborious.
Borrowers who could have gotten loans last year are getting loans this year. Borrowers who would have been denied loans last year are being denied loans this year.
Congress finally passes a bill, and this is it. Oh well. Big thick files look really cool.
As for the market here, the lack of inventory is about to insert itself into a Yogi Berraism. The city’s housing market is so crowded that no one moves here anymore.
For those unfamiliar with Berra, the actual quote was in response to a friend’s inquiry about a particular restaurant. Berra’s response: “The place is so crowded that no one goes there anymore.” Many considering the move to Nashville are delaying their moves until there are better housing options available.
Anecdotally, the buzz is that people are waiting for the weather to break and for spring – remember spring – to arrive.
Those listing under current market conditions with a diminished inventory might fare better than those who await change of seasons and spring into the market with all of the competition.
Sale of the Week
This week’s sale is located in Brookview Forest near the intersection of Edmondson Pike and Old Hickory Boulevard, just a little bit south of Holt road.
Maria Holland who hails from RE/MAX Elite and is a seasoned veteran of years of real estate sale represented the seller in the transaction, while the buyer had no agent of his own and allowed Holland to assist in the purchase.
In her remarks describing the home, Holland wrote “Gently lived in ... like new!”
This home sold for $304,000 after being listed for $309,000. It has 2,922 square feet of quality space, having been built in 2009.
Many Nashvillians are obsessed with price per square foot, and those in the buying mode might want to head southeast since this house sold for a mere $104 per square foot.
The house, Holland says, has four bedrooms, two full baths and one half bath.
The kitchen has all of the sizzling features, with granite counters, plus an upgraded cabinet package and under-counter lighting. The master bedroom suite, or main suite as some refer to it now, is on the first floor, and the lot is considered premium.
In addition to all of the inexpensive space, the house has a two-story foyer and nine-foot ceilings on the first floor.
There are double vanities in the main suite, and enormous closets throughout. The Brookview community offers a playground and a pool to its residents for $48 per month.
The owner had purchased the house in 2009 for $288,475, and was the original owner.
Richard Courtney is a partner with Christianson, Patterson, Courtney and Associates and can be reached at email@example.com.