About Littleton's Governor's Ranch

Taking a look at Governor's Ranch Home Sales In 2010, you might become a little optimistic!

Although our Average Price for Sold homes in Governor's Ranch is still seven percent below 2008, this past year has given us a good indication of how our neighborhood has started to improve.

Some of the good news comes from data about Distressed Properties. These are properties that have gone through foreclosure and were sold by the Bank or the Government. The number of foreclosed homes in Governor's Ranch has remained steady over the past three years, with three in 2008 and only two in 2009 and two in 2010.

The number of Governor's Ranch Home Sales in 2010 improved, as well. Although still not as high as the 46 homes sold in 2008, we saw a nice improvement during this past year.

When looking at pricing, the Average Sold price is still lower than the 2008 average of $369,244. Compared to 2009, however, we're seeing a small improvement in prices.

Since Governor's Ranch hasn't had a significant number of distressed properties, we haven't had to face the consequences of markedly lower prices that have affected neighboring communities.

There is some even better pricing news in terms of Price Per Square Foot. Governor's Ranch Home Sales in 2010 yielded a higher Price/Square Foot than 2009. When considering Price/Square Foot for Finished square footage, 2010 was even better than the $134/SF from 2008 or the $128/SF in 2009.

According to the current list of properties for sale in Governor's Ranch, there are currently no Distressed Properties on the market. This is, hopefully, another indicator that our neighborhood has stabilized.

With this week's Interest Rates still hovering around 5.0%, and prices starting to rebound, now is a perfect time to "trade up" to your dream home. For a free consultation on your home's value, contact Littleton Realtor John Basila: (303)589-9034 or get your report via email.

Merry Christmas from Sunny Denver, CO.

Just wanted to take a moment to send greetings to all the members of the Active Rain Community on this Christmas day. It is my hope that your day is filled with lots of joy and good memories. I am especially grateful that we live in a country where we enjoy so many freedoms. To that end, I would also send a special greetings to all the members of the armed forces, at home and abroad, who protect our freedoms.

Finally, I am especially mindful of the fact that there are thousands across this nation who are less fortunate; those who have lost their homes and those who are without jobs. I pray that 2011 will be a turning point for all.

Blessings!

By the way, I would like to compliment the residents of Governor's Ranch Neighborhood of Littleton, Colorado. It is very clean, quiet and has nice architecture.

There were 25 Governor's Ranch Home Sales in the past 12 months. This much sought-after neighborhood boasts great walking trails, tennis courts, a community pool and clubhouse, and excellent schools.

On average, homes in Governor's Ranch are spending 113 Days On Market before they're sold. This is up from an average of 104 just a month ago.

There are 8 properties for sale in Governor's Ranch, ranging in price from $314,950 to $495,000. This "Entry-Level" home is the Lowest Priced house for sale. It features 3 Bedrooms and 3 Bathrooms, a covered deck and an unfinished Basement.

The 25 Governor's Ranch Home Sales in the past year have sold for an average $339,370, which was 97% of their Asking Price.

For more information on Governor's Ranch Home Sales, contact your Littleton Realtor John Basila.

Loan Considerations for Buy and Hold Investors


As far as investment loans, little or no money down loans are impossible. However, lenders do permit the use of Home Equity Lines of Credit or second mortgages from other properties owned by the borrower as a source of down payment. Or, self-employed borrowers are using funds from business lines of credit to fund down payments or renovations (please note: there are asset seasoning guidelines for doing so and the debt incurred by accessing other credit lines must be accounted for against the borrower’s debt-to-income ratio). Thus, we have clients leveraging themselves with other homes they own in order to get in with little or nothing down.
There are exceptions, but practically every lender requires Full Income Documentation on any investment purchase. Full Documentation requires the proof of income through W2s, pay stubs and/or tax returns, as well as proving liquid assets with bank statements. The max LTV is 85% on a non-owner single family property (75% for a 3 - 4 unit); however, most homes are being affected with the ‘declining market’ tag. As such, the maximum loan permitted would be 80% of the purchase price. This is due to mortgage insurance companies refusing to provide MI on investment properties in declining markets. Also, if an investor does not have landlord experience in the past two years, new rules will now not allow any rental income to be included as monthly income. Hence, the buyer would need to qualify with the entire payment going against his/her debt-to-income ratio.
Another point to keep in mind is that Fannie Mae and Freddie Mac are only permitting a maximum of 4 financed properties on a borrower’s credit report. Hence, if a borrower is looking to purchase or refinance a fifth home and already have four loans on their credit, they will face a tremendous challenge in securing financing. This latter rule only affects someone purchasing or refinancing an investment property/second home and NOT an owner occupied purchase.
All this being said, if an investor can put down 20% (or borrow a good chunk of that 20% from other homes they own or lines of credit), is Full Doc, with a 680+ credit score and DTI below 50%, rates are in the upper 6% range on 30yr fixed mortgages with no prepay penalties. With home prices bottoming up in most neighborhoods, coupled with a bullish rental market with increasing rents and low vacancy, investors can easily generate hundreds of dollars of cash flow per month. In fact, many investors choose 15 year fixed mortgages to pay off the loan quickly, yet still cash flow tremendously.

Loan Considerations for Fix & Flip / Short-Term Investors


Securing conventional financing on a fix & flip or short-term loan is not recommended. Most conventional lenders sell off their mortgages to investors on the secondary market. If the loan is paid off early (before six payments are made), the investor has not recovered their initial investment. The investor will attempt to recover their loss from the lender, who will ultimately come after the loan originator. The loan originator would then be obligated to pay back any premium paid out by the lender. If such activity becomes habitual with the loan officer, the lender can cease doing business with them and their firm.

Furthermore, conventional loans require conventional appraisals. The lender will require that the home is a) habitable in its present state b) in at least ‘average’ condition and c) not in need of any repairs greater than 2% of the purchase price. All three points can be challenging to overcome for investments properties, especially bank owned homes. Consequently, many investors use private money, hard money, home equity lines of credit, cash or specialty investment lenders to avoid failing a conventional appraisal. All of the aforementioned sources of funds can be worthwhile to pursue, but they are meant for short-term loans. Hence, the borrower needs to have a clear exit strategy(ies) to avoid costly extension fees and holding costs. Such loans carry higher interest rates and up-front fees due to their considerable risk. They can be a great route to pursue; however, the investor better be prepared in case the home is not able to sell.

Fix & flip investors should also be cognizant of title seasoning issues. FHA guidelines require that a seller be on title for 90 days before a buyer can purchase the home with an FHA loan. Most flips take longer than 90 days to renovate, market and actually close. But, some deals need limited work and can be turned around quickly. Ultimately, you will want to verify that the new buyer’s lender understands the title guidelines of the lender being used. Furthermore, a flip investor is going to list the remodeled home for significantly higher than what they had paid for it. The lender providing financing to the buyer purchasing the renovated home will scrutinize the new appraisal to ensure the value is justified. Lenders got burned in the past on property flipping schemes and are wary of substantial value increases in short periods of time.