Archives for April 2015

203(K) Loans – When Your Dream House Needs Some TLC

April 8, 2015 by admin

The Federal Housing Administration (FHA), which is part of the Department of Housing and Urban Development (HUD), administers various single family mortgage insurance programs. The Section 203(K) program is the Department’s primary program for the rehabilitation and repair of single family properties. As such, it is an important tool for community and neighborhood revitalization and for expanding homeownership opportunities.

Most mortgage financing plans provide only permanent financing. That is, the lender will not usually close the loan and release the mortgage proceeds unless the condition and value of the property provide adequate loan security. When rehabilitation is involved, this means that a lender typically requires the improvements to be finished before a mortgage is issued.

When a home buyer wants to purchase a house in need of repair or modernization, the home buyer usually has to obtain financing first to purchase the dwelling, additional financing to do the rehabilitation work, and a permanent mortgage when the work is completed to pay off the interim loans. Often the interim financing involves relatively high interest rates and short amortization periods. The Section 203(K) program was designed to address this situation. The borrower can get just one mortgage loan to finance both the acquisition and the rehabilitation of the property.

Cost estimates for the proposed work must include labor and materials sufficient to complete the work by a contractor. Home buyers doing their own work cannot eliminate the cost estimate for labor, because if they cannot complete the work there must be sufficient money in the escrow account to get a subcontractor to do the work. HUD also stipulates that certain basic energy coservation and saftey improvements are included in the rehab process.

At settlement, the proceeds designated for the rehabilitation or improvement are to be placed in an interest bearing escrow account. Each phase of the improvements is funded via a “draw” from this account. An inspection of the work is performed by a HUD inspector who must sign off on the scope and quality of the work before the next phase can begin.

203(K) loans do involve quite a lot of paperwork, and you need to work with both a lender and contractor who have experience with the program.

Wallingford PA Real Estate – Wallingford, PA 19086

Wallingford PA Real Estate – March 30, 2015 To April 5, 2015

April 7, 2015 by admin

A weekly review of recently sold homes in Wallingford PA and current market statistics.

There are 93 homes listed for sale in Wallingford PA and Nether Providence Township on April 7, 2015. There are 3 settlements scheduled for this week.

Inventory level this first week of April stands at 93 homes which is 11 more than this same time last year. The higher number of homes on the market could also be the reason that the average listing price this week is 2.8% lower when compared to this week last year.

Wallingford Market Snapshot – 93 Listings
AVERAGE	MEDIAN	LOW	HIGH	DOM*
$314,451	$270,000	$89,900	$839,000	117

Single/Twin Market Snapshot – 67 Listings
AVERAGE	MEDIAN	LOW	HIGH	DOM*
$372,028	$339,900	$130,000	$839,000	111

Townhouse/Condo Market Snapshot – 26 Listings
AVERAGE	MEDIAN	LOW	HIGH	DOM*
$161,250	$126,950	$89,900	$389,900	136

*DOM = Days On Market

3 Wallingford PA homes went under contract

7 new listings came onto the market

No listings expired

No listings were withdrawn from the market

41 homes are Under Contract at this time

1 Wallingford PA home sold last week

Wallingford Homes Sold March 30, 2015 To April 5, 2015
ADDRESS	BED	BATH	PRICE	SETTLED	DOM*
959 Putnam Blvd	3	2.1	$189,500	03/31/15	25

959 Putnam Blvd sold with a $5,000 Seller Assist:

Wallingford PA Real Estate – Wallingford, PA 19086

10 Commandments For A Mortgage Applicant

April 6, 2015 by admin

Congratulations! You have found your dream home, and have made an application for a mortgage. Now is the time to become very predictable and frugal.

Remember, a mortgage underwriter will not look kindly upon your sudden change in spending habits and patterns. You need to resist the temptation to furnish your entire house on your credit card during a visit to the local Raymour & Flanigan.

A new car would look great in your new driveway, but just hold off on that thought.

Now is the the time to be very conservative with your finances. An influx of new debt, or a big change in your financial picture, and you could jeopardize your chances of qualifying for a mortgage.

In a humorous vein, make sure to follow the commandments below – remember you have not actually bought a house until after settlement!

10 Commandments For A Mortgage Applicant

Thou shalt not change jobs or become self employed

Thou shall not buy a car, truck or van unless you plan to live in it

Thou shall not use your credit cards or let your payments fall behind

Thou shall not spend the money you have saved for your down payment

Thou shall not buy furniture before you buy your house

Thou shall not originate any new inquiries on your credit report

Thou shall not make any large deposits into your bank account

Thou shall not change bank accounts

Thou shall not co-sign for anyone

Thou shall not purchase ANYTHING until after the closing

Wallingford Real Estate – Wallingford, PA 19086

Wallingford PA Real Estate – March 2015

April 2, 2015 by admin

Annual Easter Egg Hunt – Wallingford Presbyterian Church

The month of March 2015 finished with 9 closed sales in Wallingford falling 6 homes short of last March. The average sales price was $284,364 which represents a 32% increase over 2014. The 9 sales consisted of 6 single family homes, 1 townhouse, 1 condo, and 1 twin home. Single family homes sold for an average price of $371,629 and averaged 102 days on the market. Last March 9 single family homes sold for an average price of $290,639 and averaged 131 days on the market.

The highest selling price for the month was $605,000 for 904 Twyckenham Road in Bowling Green.

There were 23 listings that went under contract during the month – 21 single family homes, 4 townhouses, 3 twins, and 1 condo.

There are 29 settlements scheduled with 15 on the books for April, 10 in May, and 4 in June. These future settlements consist of 21 single family homes, 4 townhouses, 2 condos, and 2 twin homes.

**WALLINGFORD HOMES SOLD MARCH 2015**
ADDRESS	BED	BATH	PRICE	SETTLED	DOM*
904 Twyckenham Road	4	3.1	$605,000	03/02/2015	133
902 Truepenny Road	3	2.1	$442,000	03/09/2015	7
344B Saybrook Lane	2	1.0	$93,500	03/11/2015	100
110 Governors Drive	3	1.1	$285,875	03/13/2015	134
510 Blakeley Road	3	2.1	$251,900	03/17/2015	46
402 Wallingford Avenue	2	1.0	$46,500	03/18/2015	12
705 Blue Hill Drive	4	3.0	$360,000	03/20/2015	126
701 Oxford Lane	4	2.1	$285,000	03/20/2015	166
959 Putnam Blvd	3	2.1	$189,500	03/31/2015	25
Average			$284,364		83

* DOM = Days On Market

5 of 9 transactions had a Seller Assist:

– 904 Twyckenham Road – $8,500

– 344B Saybrook Lane – $2,805

– 110 Governors Drive – $7,000

– 510 Blakeley Road – $7,557

– 701 Oxford Lane – $3,000

Financing Methods

– Conventional Mortgage – 6 transactions

– Cash -2 transactions

– FHA Mortgage – 1 transaction

There were no distressed sales reported.

**WALLINGFORD SINGLE HOMES – MARCH 2015 – 6 SALES**
Avg Price	Median Price	Low	High	DOM*
$371,629	$322,938	$251,900	$605,000	102

**WALLINGFORD TOWNHOUSES – MARCH 2015 – 1 SALE**
Avg Price	Median Price	Low	High	DOM*
$189,500	$189,500	$189,500	$189,500	25

**WALLINGFORD TWINS – MARCH 2015 – 1 SALE**
Avg Price	Median Price	Low	High	DOM*
$46,500	$46,500	$46,500	$46,500	12

**WALLINGFORD CONDOS – MARCH 2015 – 1 SALE**
Avg Price	Median Price	Low	High	DOM*
$93,500	$93,500	$93,500	$93,500	100

**WALLINGFORD – MARCH 2014 VS MARCH 2015**
	SALES	AVERAGE	DOM*	% ORIG LIST	% LAST LIST
2014	15	$215,117	112	87.77%	92.68%
2015	9	$284,364	83	92.52%	96.49%
	-40.0%	32.19%	-25.89%	4.75%	3.81%

Wallingford PA Real Estate – Wallingford, PA 19086

The Spring Market Has Arrived

April 2, 2015 by admin

Wallingford Real Estate - Monthly Settlements

Settlements Peak In June – Buyers Are Looking Two To Three Months Prior

One of the more common real estate terms heard at this time of year is “The Spring Market”. This refers to the period of year in which real estate activity peaks. The Spring Market precedes the actual coming of Spring on the calendar, and while it does not have a fixed start date it generally gets underway in late February. This year with the mild winter we experienced, the Spring Market has arrived earlier than usual.

There is actual data behind this phenomena. Regardless of the state of the market – up or down – sales activity follows a predictable yearly pattern.

The chart above tracks the number of monthly settlements in Nether Providence Township and Wallingford over the years 2009 through 2014. Over 35% of the settlements for any given year occur in May, June, and July – with June consistently being the most popular month for settlements, at just over 15% of the yearly total.

February represents the bottom of the yearly cycle at just over 4.5% of yearly activity, and settlements at this time of year represent buyers who were in the market and went to contract during the holiday period from Thanksgiving through Christmas.

Given that the average time from contract signing to settlement is two months, it means that now is the time buyers are out in the market looking for a home. The timing and peaking of interest and activity at this time is no accident. A majority of home buyers base time their purchases to coincide with the school year calendar. They prefer to move into a new home during the early summer, and be in place prior to the start of the new school year.

Just as advertisers will pay big bucks to advertise during peak events such as the Super Bowl to reach the largest audience, it makes sense as a seller to have your home on the market when it can be exposed to the largest possible number of potential buyers, which is right now!

Are you considering putting your home on the market? I would be glad to meet with you and provide you with a free Market Analysis of your home.

Wallingford Real Estate – Wallingford, PA 19086

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Archives for April 2015

10 Commandments For A Mortgage Applicant

S. Clark Kendus