by rtdosen | Jun 29, 2015 | Ryan Dosen Real Estate Articles
3 Percent Home Loans Available for a Limited Time By Ryan Dosen Federal government funds still remain available to help Pennsylvanians get 30-year loans to buy homes with rates as low as 3 percent. However, these shockingly low rates and ultra-friendly terms won’t be around forever. Once the federal funds have been used up, they’ll be gone for good. Keystone Home Loan Program Local mortgage expert Karen Jackson of Waterstone Mortgage in West Chester, PA says that one of the most attractive opportunities out there right now is the federally-funded Keystone Home Loan Program, available through the Pennsylvania Housing Finance Agency (“PHFA”). The PHFA says that it “works to provide affordable homeownership and rental apartment options for senior adults, low- and moderate-income families, and people with special housing needs.” Those that qualify for the PHFA’s Keystone Home Loan Program can enjoy rates as low as 3 percent. Since this program doesn’t accommodate conventional loans with PMI, it can be used only with government loans – such as FHA, VA and USDA – along with conventional loans that have at least 20% down. With many experts saying that rates will be going up as soon as September, this program could allow buyers the opportunity to afford housing now rather than being forced to the sidelines as rates rise. The Catch The catch for the Keystone Home Loan Program is that there are income and purchase price limits. The income limits had been $95,000 for 1-2 person households and $110,000 for 3-4 person households. Unfortunately for some buyers, the limits just dropped in Chester, Delaware, and Montgomery Counties....
by rtdosen | Jun 26, 2015 | Ryan Dosen Real Estate Articles
“Know Before You Own” Changes Delayed By Ryan Dosen The powers that be in the real estate industry have managed to kick the can and delay the significant changes that are coming for real estate settlements and settlement paperwork. Changes were slated to begin on August 1, 2015. We learned on Thursday that the effective date of the mandated changes will be bumped back at least two months to October 1, 2015. Representatives from the National Association of Realtors (NAR), Mortgage Bankers Association (MBA), and other real estate-related organizations laud the decision to delay the inevitable, generally citing the need for additional time for professionals to adjust to and prepare for the soon-to-be-mandated changes. MBA President and CEO David H. Stevens says that “the complexity of this rule, which impacts not just mortgage disclosures but also the business processes behind the entire real estate transaction, warrants the additional time to get it right and ensure that consumers are not adversely effected by the transition.” The New Rule and the Changes Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act), the Consumer Financial Protection Bureau (CFRB) was tasked with the creation of newer, more easily understandable loan and settlement forms. The CFRB states that the old forms, including the Truth-in-Lending disclosure (TIL), Good Faith Estimate (GFE), and HUD-1 settlement statement, were considered “confusing” and that “lenders and settlement agents find the forms burdensome to provide and explain.” As part of the new TILA-RESPA Integrated Disclosures (TRID), a new Loan Estimate (LE) will replace the GFE and initial TIL. The new Loan Estimate “is designed to...
by rtdosen | Jun 15, 2015 | Ryan Dosen Real Estate Articles
Less Than Two-Thirds of Real Estate Contracts Settle on Time By Ryan Dosen According to a recent survey, the National Association of Realtors (NAR) is reporting that less than two-thirds of real estate contracts actually settle on time. When selling your home, getting a signed contract is the first and most important hurdle to cross. However, many potential pitfalls await after this key first step. Selling a house can be like navigating an obstacle course, so it’s best to know what you could be facing and to be well-prepared and well-represented. Delayed or Terminated Contracts “In the past 3 months, think of your most recent sales contract that either went into settlement or terminated. Please explain how the deal concluded.” This request was recently made of over 1500 Realtors in an effort to determine what types of issues agents are facing and how often settlements are being delayed or even terminated. Answers to this question have remained fairly consistent this year. NAR is reporting that approximately 26 percent of contract settlements were delayed, while 10 percent of contracts were terminated. Contract Problems NAR’s survey revealed that about 60 percent of real estate contracts faced some sort of problem while progressing toward settlement. Many potential problems were uncovered, but the usual suspects remained the most common. Financing The most common problem faced by Realtors related to financing. 12 percent of agents reported issues settling a contract due to difficulties with buyers obtaining financing. In Pennsylvania, agents are required to have their clients complete a Buyer Financial Information (BFI) disclosure. The BFI is a form of agent...
by rtdosen | Jun 8, 2015 | Ryan Dosen Real Estate Articles
Chester County Townships Fare Well in National Ranking By Ryan Dosen The Pennsylvania suburbs, specifically those in Chester County and Montgomery County, rank among the very best places to buy a home in America. The exciting news is brought to us by Niche (http://www.niche.com), a large content start-up that specializes in providing students, families, and professionals with helpful information for choosing a neighborhood, college, or school. Factors for Ranking America’s Suburbs Niche considered 11 different factors when comparing America’s suburbs. The factors receiving the most weight (12.5 percent) were home value to income ratio (the ratio of the median home value to the median family income), median home value, monthly housing cost, monthly housing cost to income ratio, and percentage of residents aged 25-44. Other factors of note included education grade (10 percent), crime and safety grade (7.5 percent), and median effective property tax (percent of the median property taxes paid on homes over the median home value). According to Niche, “a high ranking indicates that a suburb attracts residents with a good housing market where property taxes and housing costs are in line with value.” The Top Suburbs in America Pennsylvania is home to 16 of Niche’s top 60 suburbs and Chester County actually features 5 of Niche’s top 60 suburbs. One of fifty states having over 25 percent of the top places to buy a home is pretty impressive. Even more impressive is the concentration of top spots right here in our backyard. West Conshohocken, Montgomery County, PA (Ranked 1 of 3,238) West Conshohocken, PA is ranked by Niche to be the top...
by rtdosen | Jun 1, 2015 | Ryan Dosen Real Estate Articles
Radon: The Silent But Very Manageable Killer By Ryan Dosen Radon gas poses a real, yet easily managed threat to homeowners and homebuyers in Pennsylvania. However, the threats posed by radon gas, as well as the means for dealing with elevated levels of radon gas are often misunderstood by the general public. To help clear up the mysteries surrounding this silent killer, I sat down with local home inspection expert John Kerrigan of Reliable Home Inspection Service. What is Radon? Radon is naturally-occurring, odorless, tasteless gas. The Pennsylvania Citizen’s Guide to Radon states that radon “comes from the natural decay of uranium that is found in nearly all soils. It typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. ” As radon moves up from the ground into your home, it can get trapped inside, where it can build up over time. Therefore, whether new or old, or with or without a basement, any home may have a radon problem, depending upon the soil upon which it sits. The Environmental Protection Agency (EPA) estimates that radon causes about 21,000 lung cancer deaths per year and recommends remediation if radon levels are 4.0 picocuries per liter (pCi/L) or higher. Sub-4.0 levels are still said by the EPA to pose a risk, and in many cases may be reduced using radon mitigation systems. Testing for Radon If you are buying a home in the State of Pennsylvania, there is a designated section of the standard Agreement of Sale reserved for invoking the right to do a due diligence...
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