Larry and Madeline Whitehead

There are realtors® in Northern Virginia and South of Northern Virginia, that are noticing there are fewer foreclosures coming on the market. Reason, the banks and lenders are encouraging higher prices by putting out a few foreclosures or short sales at a time. This means that they are sitting on them. They are also renting out foreclosures, again waiting until home prices increase.

This means that the great prices that investors were buying homes, is no longer in the 2 digit thousands, such as 77,000 or 89,000 or 99,000. The home prices have increased because the inventory is being held back. Therefore, homes prices are 3 digits, such as 120,000 or 149,000 or 200,000, which are still bargains. There are too many multiple offers on one home, so that the market price increases. As an example, a house is listed for 149,000, there are multiple offers which drive the sales price to 179,000. Then the banks or lenders ask for a best and final offer, which means the buyers agent goes back to the buyers and ask, how high do you want to go. This then pushes buyers to offer more and the home could actually sell for 185,000. It is still a great sales price for a 3 bedroom, 1 & 1/2 bath, with a finished basement for this area. But, if you are only approved for 160,000 you are left out in the cold.

A contract that recently was ratified, started at $225,000. The home appraisal came in at $260,000, while the best and final offer went up to $269,000. The bank said they would accept the final price based on the appraisal. When folks who bought at the beginning of the foreclosure down turn, purchased these same homes for $325,000 and up sales prices. The homes, now are inching up to that $300,000 and above sales price which would then give those who purchased in the $260,000 range, equity. This is a fairly new subdivision with homes that are 5 bedrooms, 3 1/2 baths, 2 car garage and finished basements. Given a few years more and these homes should go for $360,000 to $389,000 or a little higher. They will never return to the sales price of $425,000, $475,000 or more until a few more years pass, if then.

There is hope out there, but it will be some years before the upward turn of the market starts to appear.

You must have a great credit score and down payments of $20,000 to as high as $50,000 to bring the loan payments $1569 or higher. Investors can purchase 4 or more homes for resale or rentals. Homeowners can purchase a second home at a lower sales price and rent out their current home. There are criteria that must be met, but it can be done. First-Time Home Buyers still have the opportunity to take advantage of this market. If their credit is middlin, there are folks out there that are willing to direct them towards getting their credit score up to acceptable credit scores. The acceptable credit score starts at 620.

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There are still 100% down opportunities for folks living in Virginia:

1. VA 100% loans for prior and active duty military

2. USDA provides an Urban Rural Development Program offers 100% down of the appraised value of property. This would be of particular notice for those that live in South of NoVa^TM Areas where a good portion of homes are located in rural areas.

We find it amazing while riding around our area, way out in what would be considered no man's land a brand new development is it out there. Riding along two lane roads for miles and there they are. This is another good reason to think about moving into the South of NoVa^TM Area. It's a good opportunity to live the country life and have a touch of the city.

Note: There is easy access to the Washington Metropolitan Area via Commuter Parking Lots to catch buses or rides. Slugging is a great way to get to work from Prince William County areas of Woodbridge, Dumfries, Triangle, and Quantico; Stafford County including Fredericksburg, King George county and Spotsy (nickname for Spotsylvania). You can drive your car into work and by picking up slugs (folks wanting to get to work without driving). There is a special area where slugs go and wait for a driver that needs 1 or more bodies in their car to be able to use HOV. For those new to this area, HOV stands for High Occupancy Vehicles. It's is a special lane on Interstate 95 to quickly get into the District (Washington, D.C.) and beyond for work and return home. There are HOV lanes on major highways throughout MD and VA.

There is also VRE (Virginia Railroad Express) train. Park in the train parking lot or be dropped off and take the train into D.C. and beyond (Virginia and Maryland).

For more information on these two programs email:

tbroderick@gidservicesinc.com

or call: 540.659.6170 the office number for GID Services, Inc a Mortgage Brokerage.

or visit: www.gidservices.com

and when you contact GID Services Inc. ask what GID stands for.

We hope you can take advantage of these Loan Programs, if not, please check with your or a local realtor to find out what is available for a 100% Loan or ask your or a local realtor what mortgage company to contact to get this information.

Another Note: When it comes to Mortgage companies or banks you want to work with reputable ones because there a lot of fly by night Mortgage companies out there that will take unfair advantage of you. If you fill out applications to a number of Mortgage companies and banks, be careful, every time one of these institutions draws a credit report your credit score will go down.

Sometimes, don't you get the feeling that you can not win for trying?

Take care

Larry and Madeline

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