Traverse City, MI

I recently attended a training through Bank of America in Traverse City on FHA 203K Rehabilitation Loans. This program was presented by Corbin Buttleman, Holly Hack and John Klingelsmith.

Potential buyers for proeprties in need of repairs are facing significant challenges for financing these days. The solution to this challenge is the FHA 203K Rehabilitation Financing Loan.

Highlights

• One loan purchase price plus repairs
• FHA mortgage limits apply for area
• Minimum rehab $5,000
• Health and Safety first
• Customer desires
• Value based on after improvement value (loan not to exceed 96.5% of improved value)
• Convert a one unit to a two, or a two unit back to a SFR

Program Requirements

• Owner occupied only
• Down Payment 3.5% of sale price plus rehab amount
• Allows for 6% seller concession
• Self help is allowed
• Loan will be based on contractor/labor total any unused portion returned to customer via principle reduction

Rehab of over $35,000

• Customer meets with a 203K consultant to determine required repairs and additional items desired from customer
• Work write up completed by consultant and supplied to lender/appraiser
• As is value determined and after improved value
• Loan is processed and closed

Loan amounts under $35,000

• Streamline product
• Buyer provides two bids from licensed contractors for any work desired
• Contractors are registered with Bank of America
• Loan is processed and closed
• Buyer receives half of the escrow about two weeks after closing, remainder is dispersed after work is completed.

Rehab Items

• Structural alterations and reconstruction
• Modernization to homes function
• Elimination of health and safety issues
• Changes to improve appearance
• Repair plumbing, new well/septic
• New roof, gutter, downsprouts, windows
• New flooring, appliances
• Making home handicapped accessible
• Energy conserving improvements
• Renovate existing or add new bathroom
• New kitchen
• New furnace/air conditioning

Jon just sold this great home with 3 BR , fenced yard, wooded lot, 2.5 car garage within 5 miles of town for more than asking price!!!

Call Jon today for all your Grand Traverse area real estate needs!

http://www.c21jb.com/Traverse_City/Michigan/Homes/Traverse_City/Blair_Township/Agent/Listing_1241840.html

Jon just sold this great in town Traverse City home in just 5 days.

Call me for all your Traverse City Real Estate needs!!!!

http://www.c21jb.com/Traverse_City/Michigan/Homes/Traverse_City/Traverse_Heights/Agent/Listing_4552762.html

Traverse City Real Estate Market is in fact better. The numbers don't lie!!! From July 1^st 2008 to September 25th 2008 there were 270 closed residential sales reported in the Traverse Area Association of Realtors (TAAR) MLS system. During that exact period of time for this year there were 303 closed residential sales reported. That's a 12% increase over 2008! Another positive note is that of the 303 residential sales only a total of 68 were either bank owned, foreclosures or pre-foreclosure homes. Again, this is good because prior to this, foreclosures represented approximately 35% of the closed sales in Traverse City. Now that number is only 22% over the last 86 days.

"It just feels better" according to Josh Croff of Coldwell Banker Schmidt Realtors 402 E Front Street office. "Any first time home buyer I work with has had to be disappointed by the number of properties that are already "under contract" waiting to close" says Mr. Croff. He continues "Your buyer picks out 15 listings to look at and of those 15, 7 are not available to show because they have a contract signed".

The fact that the number of closed foreclosure homes is shrinking is good news for both regular folks trying to sell their home unencumbered by a shortfall and good news for real estate prices. If this trend continues then prices should level off as compared with a consistent decline we've seen in recent months.

The bottom line is this: Now is a great time to buy and now is a great time to sell. Buyers are "coming out of the woodwork" The "two minute warning" is here. Two months to close for first time home buyers to qualify for the $8000 tax credit. November 30^th 2009 it ends...unless it gets extended. Let's hope it does! Either way Traverse City Real Estate Rocks!