“….The Cleveland-Elyria-Mentor, Ohio metro area followed with 20.5% quarterly and 62% yearly gains….”

I certainly saw three times the number of buyers/sellers as last year, but 62%?  Clear Capital provided the data and you can read the entire pdf report by going to NuWire and downloading it.  I’ll let you know what other stats are revealed.  Peace Out – 3C

Interest rates are still at a 70 year low…last check they were 4.7% (depending on your credit, etc) for a 30 yr fixed loan.  This means that over the course of 30 years, you can definitely make up the difference for the tax credit having expired.  Food for thought?

Four examples of homes to buy in Fairview:

1.  a 2 bedroom cottage with amazing curb appeal. Gleaming hardwood floors, a fireplace, tasteful decor and a pretty back yard deck. Priced at less than $99k, definitely could be a monthly mortgage payment that would make you smile.

2. a 3BR and 1 1/2 bath Bungalow with two downstairs bedrooms, a fireplace, eat in kitchen and a two car garage. Plus a finished lower level. Listed around $99k.

3. For $114,000 you could buy a brick cape cod with a sun room, ceiling fans, two car garage and a nice deep lot (194 feet).

4.  Or, if split level layouts are your thing, Fairview is one of the communities where you can find them and still be close enough to Downtown Cleveland.  For about $124k  you could have 1700 square feet of living space, a fireplace, a large family room, two car garage, stainless appliances in the updated kitchen.

Back to the housing health of Fairview. I found less than ten homes listed for under $90k.  There are communities with page after page of homes listed for under $90k. 

Want more information on your Fairview community home values? Check out  Home Values in Fairview  where you can do an analysis of the streets near your home.  

Peace Out – 3C

update: I forgot to add one thing!  There have been 61 home sales in Fairview since April and the average sale price was $133,000.

Why is it something to get excited about?

1. This OFHA loan gives down payment assistance in form of about 2.5% of your purchase price. 

2.  It has ZERO PERCENT interest and is totally forgivable in five years. 

3.  Your mortgage loan will be 5.5% !

What are the requirements?

1. You have to have graduated from an accredited Ohio high school, college or technical school.

2. You must be a first time home buyer

3. You have to buy a single family home, not a multi-family dwelling

We all know the state of the market, which means home prices are good for buyers anyway.  It’s always been true that staying in your home for five years helps you get a better return on your investment when you sell.  In this market it’s particularly true.  I would say, decide to find a home you love and want to live in for at least five years and then participate in this program and get 2.5% of your down payment costs for free. No interest, no payback.  Not too shabby?

There are more details (and you can call Bob Wilson at 216-373-7450 if you need a mortgage loan pre-approval (first step in the buying process) and he can go over this new Grants for Grads Program in more detail.

Peace out – 3C

It all started with the TV show Property Virgins. I actually like the show and think that  Sandra, the real estate agent host, does a good job explaining things first time home buyers (FTHB) need to know.  However, she frequently says something that irks me.  At the beginning of the show she asks them, how much have you been approved for and how much can you put down?  When they tell her, she adds the amount of the down payment onto the approval amount which always raises the amount they can ‘afford.’ 

Technically that is correct.  But it’s wrong! Why? If you can afford to put down $20,000 and that is going to keep you from PMI (mortgage) insurance, then your montly payments will be lower.  And to be logical, if your mortgage lender tells you $100,000 is what you can afford, that should be the top of your comfort level, no?  Not another $20,000 on top of that. 

Then yesterday I saw a Tweet on Twitter. Someone (presumably a realtor®) was exclaiming a buyer had paid more than $100,000 over list price for a home.  Okay, it was a sound bite.  Did it mean the home was listed at a very low auction or foreclosure price? Dunno. But red flags immediately went off.  Even after all the economic instability we have experienced as a Country, would people still let their emotions run rampant and pay more for a house than it’s market value?  Or have those Bubble city locations learned their lesson? 

Lastly, I’ve heard rumblings about how good it would be to again have a few ‘zero down’ mortgage programs available.  That my friends, scares the bejesus out of me.  We didn’t have a bubble here, but we sure had people dreaming about owning a home who said okay, I don’t have money but I want a house so I can be a part of the American Dream. Let me use a mortgage that does not require I put any money down.  So what if the interest rates are higher and if I still have to pay mortgage insurance monthly.  So you see where I am going with all this, and I  hope I am wrong.

Recovery in the housing market, in my opinion, means we get home sale prices at a good market value for sellers, have lots of buyers who have saved money to buy a home and can buy one, and stopped the high inventory of foreclosure homes on the market. It does not mean people go back to the 2005 buyer frenzy of paying more than a house is worth and over extending themselves on a monthly mortgage payment.  Just sayin’.

Peace Out – 3C

1. A mortgage lender can help you figure out a good monthly payment for you. It helps you know what price range you want to focus on for your home search as well.

2. There are lots of homes for sale, which means there are more homes in move in condition, or needing only things like a fresh coat of paint in the bedrooms.  Nice for first time buyers who don’t want to worry about having to learn everything about home maintenance in one  month!

3. Research your neighborhoods.   Start to figure out what is important to you.  Walking distance to shops or RTA?  Near parks?  Within fifteen minutes of where you work so you are not a slave to your car?  A tree lined street with big yards or a cozy low maintenance yard (meaning easy mowing lol).   These are all questions to begin sorting out, so your home search is a bit easier on you.

For example, I browsed through Greater West Park and Fairview home sales in the $100,000 price range. I did  a six month search, for single family homes that might have appealed to a first time home buyer.

People live in Fairview because of the recreation, both natural and man made (their new rec center is fabulous).  Another draw is a  suburban life style without being too far from downtown Cleveland. I picked two homes to feature here; both sold in the last six months in Fairview.

One 3 bedroom 2 bath colonial on Westwood sold for $90,000. It has a vinyl exterior (low maintenance), fully fenced, a fireplace for ambiance, and a lovely 170 foot lot.  It needed a/c and some interior room paint, but was otherwise in move in condition.

Also sold was a 2 bedroom, 2 full bath ranch on Sycamore. It is also fullyl fenced and has an even deeper lot …. 190 foot! It was sold with a home warranty (which can give a first time buyer peace of mind should a furnace or water heater need repair or replacement). It also has an aluminum exterior for low maintenance.  This home sold for $98,500.

There are six homes for sale in this price range in Fairview as of today.

The Greater Westpark area has always been a popular place to live.   You have Kamm’s Corner pubs and shops, a great library, tons of neighborhood parks, and a pretty, well kept housing stock.

There was a vinyl sided 3 bedroom colonial on Ernadale that sold for $90,000. It has a front and a back porch, separate dining room, newer windows and mechanicals and a two car garage. It also has a nice sized lot (for those who don’t want more to mow!) of 130 feet deep.

Also sold was a 3 bedroom brick home on W. 157th.  It sold for $99,500. It has been totally remodeled (plumbing, windows, furnace, a/c, kitchen, etc).  Do you usually associate deep yards with Cleveland homes? Maybe you don’t realize this, but it can happen! This home has a 242 foot deep lot!

There are currently 56 homes for sale in the Greater West Park area for around $100,000.

There may be a way to do this.  My Company, Howard Hanna, just started a new Apartment Dwellers program. Let’s invent a scenario and see how the program works.

You have six months left on your lease. But you really want the IRS tax credit for your 2008 taxes, since you don’t really have enough deductions this year.  I take you out to look at homes and we find one, make an offer and it gets accepted. You sign a sub lease agreement with Howard Hanna.  We will try to sub lease your place but if it doesn’t happen within 120 days, we will activate the portion of our agreement with you that says okay, we will take care of the lease payments. There are a few things that have to fall into place.  The most important one being that your landlord has to agree to the sub lease.  My feeling is that most will accept it because Howard Hanna is agreeing to the payments if we don’t find someone else to move in.  But it does have to meet with approval from your landlord.

Just wanted to fill you in on the basics about this.  You can call me if you have questions or want more details. 

Oh and by the way, Happy First Day of Spring!  Peace Out – 3C

I just checked with them and they say the program is stable and the terms are not expected to change in the near future.

What do you need to do to qualify as a first time homebuyer in Lakewood? You can’t have owned a home or a portion of a home (where your name appears on the title) for three years.  The only exception to this is if you are a single parent – then they waive this requirement.

There are income limits.  Here are some examples:

One (adult) person household – $34,800

Two (adult) person household – $39,750

Three person – $44,750

Four person – $49,700

The home you purchase cannot be an investment only property; you have to also live in it.

There are a few other requirements, like being able to show you can provide a certain percentage of the down payment, and you have to work with approved (by Lakewood) lenders.

And what do you get from the program?A graduated, forgivable mortgage down payment loan – and the loan is non interest bearing which is also nice.

If you are purchasing a condo, you get $7,500

If you are purchasing a single family home you get $10,000

If you are purchasing a two-family home you get $14,000

Call First Federal of Lakewood for more details at 216-221-7300.

Call The City of Lakewood Community Development Office at 216-529-7681. 

After you have lived in your home for five years, 50% of the loan is forgiven, and 20% is forgiven every year thereafter until you reach 100%. This is a great program.  And don’t forget, you may also qualify for the Housing Tax Credit just passed in the TARP bill by the Feds.  So check with your tax preparer (or your mortgage lender) to get more details about this program.

Lakewood has other programs for home owners that are fantastic, that will help you improve or renovate your home. Check out the website for both the HOME program and these home improvement loan possibilities.    Peace Out – 3C

The downpayment money available to you as a home buyer breaks down as follows:

• $15,000 towards a single family home

• $15,000 towards a two family home

• $20,000 towards a single-family new construction or Cleveland Heights approved condo conversion home.

Unlike Lakewood, this is not just for first time home buyers. You do however, have to meet some specifications. Like income eligibility. Here is a sample:

One person household gross maximum income is $34,800.

Two person household gross maximum income is $39,750

Four person household gross maximum income is $49,700.

You need to have a pre-approval from a mortgage lender stating you are eligible for a mortgage loan. You have to have 3% to put down on the purchase (it can come from a gift) and the loan can’t be messy, meaning it can’t have pre-payment penalties, excessive closing costs or points.

The house you purchase will have a HUD quality inspection so your potential home will have to meet certain HUD inspection guidelines. I sold a home through the Lakewood First Time Home Buyers program a few years back. The garage and front porch had peeling paint and that all had to be addressed before closing. So you will want your Realtor® to be showing you homes that can easily, maybe with just a bit of tweaking, meet the inspection guidelines for safety, lead paint, etc.

Unlike the Lakewood program which had two specific lenders handling their FTH Buyer Loan Program, Cleveland Heights doesn’t appear to be telling you who to use for a loan.

You will have needed to complete and get a certificate for home maintenance and pre-purchase counseling from a certified HUD agency.

There are more guidelines (other ‘size of household’ limits, for example, so my suggestion is that you go onto the Cleveland Heights website to get more information and also call Lori Sanford at the City of Cleve Hts. to flesh out the entire program. She can be reached at 216- 291-4869. It also behooves you to discuss this as a possibility with your real estate professional so you are all on the same page about what houses to preview for your purchase.

Also remember that Cleveland Heights is a Point of Sale Inspection community, meaning the City will do her own inspection, looking for violations, making sure the older housing stock we all love about that community stays in tip top shape. If you go to the link I have in this paragraph, you can read through the checklist inspectors use on each home before the sales are completed.

Coincidentally, the Plain Dealer  and Brian Albrecht focus on a new home rehab program the City of Cleveland Heights is starting. This is not for individuals, but involves the city purchasing the homes. You can read about it here.

My plan is to feature one home buyer program a week over the next month so we are all kept up to date on what is available for you when you are buying a home. Any questions please email me. Peace Out – 3C

If someone calls you to say you had a charge on your credit card and it is absolutely impossible that charge is yours, you might feel violated and feel like the person on the phone is trying to help you. Some times they are not but are really just trying to get more ID info. Teresa gives you good advice about NOT giving any information over the phone.

She also talks about how writing a check or doing an electronic payment doesn’t give you any grace periods anymore. It’s more true than ever, if the money is not there, don’t charge anything until it is!  Peace Out – 3C