Lehigh Valley Real Estate - Tips 4 Homeowners, Buyers & Agents

Lehigh  Valley Home Buyer Loans for TODAY not YESTERDAY. A NEW Loan to Buy  Foreclosures!  MAY 1ST 2010 Deadline - Use in addition to The Home Buyer Federal Tax Credit! NOW, THAT'S SO MAJOR INCENTIVE to purchase!

THIS LOAN IS OPEN TO OCCUPIED Home Buyers and Investors!  Holly COW - Investors normally needs to put down 20%, right!!!! come on people...this is GREAT!

WOW! There is a new Mortgage Loan in town.  He is only staying local for Home Purchases that close on or before May 1, 2010.  BUT, That's okay because to use the Tax Credit you need to be under agreement by April 30, 2010.  So, all agreements should be locked in with your Mortgage Lender by April 30th....Let's take a look at how much money YOU WILL BE SAVING!!!!!

I am soooooo excited!

If you get an FHA Loan - 3.5% Down - This is the most common loan because it has the least restrictions, you can purchase a home anywhere in the Lehigh Valley OR EVEN PA FOR THAT MATTER.

Now with FHA - These loans have special FHA Appraisals that cost you about $400 to 475.00 to get them and they will NOT allow you to buy a home that has chipping or pealing paint in a home that was built prior to 1978...It is the best program out there RIGHT NOW!  But, for a short Time...WE NOW HAVE A NEW GAME IN TOWN LADIES AND GENTALMAN! if you are at a price range of 200,000.00 and under there is a really good chance you will be purchasing a home built prior to 1978....if you live in the Lehigh Valley Area.

WITH the NEW Temporary Fannie Mae HomePath Mortgage Program - You can purchase a Fannie Mae owned FORECLOSURE, with 3% down which can save you bucks on the downpayment (100,000.00 loan for FHA $3500.00 down - Same loan with 3% down is only $3000.00) So, you say what the heck? MORIAH...$500.00 is NOT that much money? Yes, IT IS! With this $500.00 instead of using it for down payment it can be used for De-winterizing the property, Turning the Utilities on for the Home Inspecton and ordering the CO inspection. These are the major reasons why Home Buyer's can not afford to purchase a Foreclosed Home due to these extra out of pocket expenses.  PLUS...THAT'S NOT IT! Fannie Mae will also give YOU 3.5% toward your down payment and closing costs!  Holly COW! on a $100,000.00 purchase the bank will give you $3,500.00 toward your down payment and closing costs or this money can but used to purchase appliances for your new home...one of the items that are usually missing from a Foreclosed Property! yeah, the previous seller usually takes the appliances with them, wouldn't you?. Well, this can cost a New Home owner $3500.00 or more and HERE it is being paid for YOU! Awesome deal!!!!

So, now on a $100,000.00 property that is $4000.00 in cash that a Home Buyer can get on a Foreclosed Home....Let's Review, FHA Loan gives you NOTHING and MAKES you put down an extra 5% and you can not even purchase many foreclosures due to the chipping and pealing paint!

NOW, Let's see what local lenders are going to get on board with helping offer this program to home buyers.

So, Far I noticed on the following Mortgage Lender List of our Lehigh Valley Popular Direct Lenders so far...showing on the Fannie Mae Website is Met Life Home Loans - who are the other players?

Okay, so HERE are some links to help
Fannie Mae News Release Article 1-29-10
HomePath Financing Program Info

Don't Forgot...Learn BEFORE you Buy your next home!
www.LehighValleyRealEstate.TV

Lehigh Valley CASH Investors, PreApproved Short Sale - Bethlehem North Twin - Written Plan for 21% Return within 2 yrs - OFFER DEADLINE 2-15-10

This is FOR REAL - BUT LIMITED Time...there's a catch you must have your written offer in by 2-15-10 and go to settlement on or before 2-26-10. Other wise the bank will be taking this one through the Foreclosure process.

Okay, Yeah this is for REAL. Check it out.  I ran ALL Estimate cost, expenses and projected Net Profits for YOU.

DO YOU LIKE a 21% RETURN ON YOUR INVESTMENT within 2 yrs?  Does Cap Rate Confuse you?  It's okay..I don't even mention cap rate...just plan simple cash return on your total investment and this deal can get you a 21% return over 2 years if you follow my plan.  I wish I had the money to invest  because I would do it myself and that's the plan truth!

MY PLAN.
Okay, See at the BOTTOM of this Blog information about Current Market Value, CO Report, Roof Estimate...I have everything covered...if I don't let me know and I will cover that too.

THE DISCLOSURE: This is given in My professional Opinion  all investments should be confirmed on an individual bases and by your tax accountant or investment specialist – Moriah Martin, RE/MAX real estate. (To me the numbers are proof)

PRE-APPROVED SHORT SALE - 83,720.30 - Yeah the bank even wants the .30 cents too...LOL

Propery Location: 931 Fernwood Street Bethlehem, PA 18018 - Click Here for LV MLS Details

Basic Features: 3 Beds 1 Bath, 1400 sq feet, Covered Front Porch, Updated Kitchen, Updated Electrical and Heating system (not highend or brand new not org either) Partial Finished Basement and Attic but needs so work, fenced in back yard, off street parking.

At the Most the property can use $15,000.00 – Low End Repairs – Not Highend this is an investment property.

$7000.00 for a new Roof – We have estimate Actually – The Estimate came in at 5000 but you may need to replace Plywood
$8000.00 For painting, Carpet, and other small repairs

The more you do the more the property will be worth of course.

Investment Estimated PURCHASE NUMBERS

The Purchase
Price = $83,720.30 (preapproved by Bank)
Closing Costs as Shown on Est HUD = $4067.15
TOTAL CASH NEEDED TO CLOSE = $87,787.45

OPTIONS

1) Rent Property for minimum $850.00 – see proof below (depending on updates could get more) Worst Case 850

(950 is proven by current market value)

2) Rent to Own for first 2 years and then sell at $118,000.00 this is slam dunk sale right now – see proof below - I am already working with Interested Lease option to Buy Home Buyers...they are Flocking in...the loans are harder to get...but, with me they work with Local Credit Repair Companies...okay, yeah...the right way to depend on a future sale.

OKAY, SO, Annual Rental Income at 850.00 per month = 10,200

Estimated Costs For Rental on Annual Basis
Maintenance Calls - $1500.00 - It's a good idea to use a Home Warranty Company to help.
Property Taxes – 2473.00
Property Ins 1000.00

If you resell in 2 years at 118,000.00 (this is worst case and a slam dunk deal in this market, if you don't think so just work with me and I can make it happen for you)

118,000.00 Minus cost of Sale in Future - *$3800.00 - Org Investment = 102,800.00 = $11,400.00 Net YEEEEHAAAWWW

TOTAL NET OVER 2 YEARS = $21,854.00
or you can just continue to RENT year after year after year. Raising the rent $50.00 each year..etc.

*3800.00 Above is figured on using a Real Estate Agent (like me..lol) to assist in the sale in the future if needed a 2% plus other standard closing cost 1% Transfer and 110 deed prep and 35 notary fee. 

THE PROOF - CLICK ON THE LINK THAT INTERESTS YOU.
The FULL Property Detail from the LV MLS
The Proof with a CMA (which also includes these numbers above)
The Bethlehem CO Report (everything is revealed in this deal)
The Current Comps for this Investment within a .5 Mile radius with Photo's
The Roof Estimate

Are you IN?