Missoula Real Estate Blog
Top 5 reasons to consider a Fannie Mae Property for you next Home!
June 18th, 2011 4:11 PM
Missoula MT, Fannie Mae
Missoula Fannie Mae homes are corporate owned homes that have been taken back from the owners usually by foreclosure. Unlike other properties on the market, Fannie Mae offers many incentives to future buyers that you won’t find in other Missoula area homes. Here are the top reasons to consider a Fannie Mea home as your next purchase.
1. 3% Down Payment Options for HomePath homes!
That’s right; a buyer can purchase these properties with as little as 3% of the purchase price as a down payment. The down payment can by borrower’s own savings, gift, grant, or a loan by nonprofit organization, state or local government, or employer. This loan is not location specific like RD loans.
2. Up to 3.5 % in Closing Cost Assistance!
Fannie Mea is offering up to a 3.5% incentive for buyers who purchase and close on a HomePath property by October 31, 2011.
3. HomePath Mortgages for Montana Properties!
No appraisal, No mortgage insurance, Low down payment (3%), includes second homes and investment properties, flexible mortgage terms, and many condo project requirements are waved.
4. Fannie Mae is investing in the Missoula Market.
Fannie Mae cares about Missoula’s neighborhoods and will make an investment in the property before it comes on the market. These properties are fixed up, cleaned and evaluated before they are ready for sale. What this means to you is that Fannie Mea offers a better inventory of homes compared to other Bank Owned properties.
5. Price of Homes!
Fannie Mae Prices their homes to be realistic to today’s values. Many times Fannie Mea homes don’t say on the market for very long in the Missoula market. They are some of the best values available.
As one of the few local Fannie Mae sales agents in the Missoula area, I usually know about properties coming on the market up to a couple weeks before anybody else does. If you would like more information on how you can purchase a Fannie Mae home or would like to know what inventory is currently available please contact me.
Happy Home Buying Missoula.
Keller Williams Realty
Posted by Jeremy Williams on June 18th, 2011 4:11 PM
Missoula Student Homes
June 9th, 2011 10:41 AM
Missoula, MT – The University of Montana
It is often said that some of lifes most important lessons are learned outside the class room. My time at The University of Montana was some of the most eye-opening years of my life. It was a time that inspired me to embrace my surroundings, live life to its fullest and learn as much as I can.
Of all the business classes and life lessons learned, there is one that I didn’t understand until after graduation. One that I am thankful that I did learn, only I often fantasize about what life would be like if I understood it sooner. This is the story of my experience living in Missoula.
When I was a student at The University of Montana, I, like many students rented homes with friends so we would have a place to stay. Many times this turned into a last-minute rush to find suitable living situation every year and sometimes every half depending on the rental agreement. I moved over five times in four years at the university.
My senior year I lived in a home that one of my underclass friends purchased with his parents. Over the course of 5 years my friend would rent rooms to his friends to help pay the mortgage. When he graduated, they sold the home and was able to pay for his education and give him money to get started with his life.
This concept is one of the most important lessens that I learned in college. I have since owned rentals that have returned residual monthly income as well as appreciation when they sold. The current real estate market is perfect for open-minded investors looking to buy single family homes.
1. Prices are down and rents are up. Investment properties can actually cash flow.
2. Vacancy rates getting lower. Few new apartments are being built to handle the increased demand for rentals. The University of Montana is growing and less people can afford homes.
3. After the first two years, the risk of your investment is substantially reduced.
4. Your mortgage payment may be less than rent on a comparable home.
Email me for a comparison on the true cost of renting a home compared to buying. Even if you sell the home at the same price a few years from now you may be surprised how the numbers work in your favor.
Jeremy Williams – [email protected]
Keller Williams Realty
Posted by Jeremy Williams on June 9th, 2011 10:41 AM
Just Listed! 16598 Scheffer Lane Huson, MT 59846
June 3rd, 2011 5:23 PM
Posted by Jeremy Williams on June 3rd, 2011 5:23 PM
What to consider when buying Bank Owned, REO and Short Sale homes in Missoula.
April 7th, 2011 10:11 AM
Often when a bank forecloses on a property owner there is a gap in time between when the owner moves out of the home to when the bank sends a representative to check on the property. In some situations it could be a couple months. In areas with cold winters like Missoula, these laps in time can be the difference between a great home and one that leaves more questions than answers.
The most common situation that I see is when the owner leaves the home and stops paying the heating bills. The heat is turned off and the pipes freeze. By the time a representative gets to the home it is too late. The pipes have burst creating water damage. This is the case in majority of the Bank Owned properties that we see in the winter and spring.
Many times it is not the water damage or fixing the pipe that created the expensive fixes. It is what follows the water damage, mold. Mold can be expensive to fix and in many of these homes it can be difficult to determine the extent of the damage. It is hard to determine if mold is behind walls, ceiling and other areas that are hard to see.
In most situations the bank will complete some form of mitigation. In some cases they will remove drywall, insulation and fix pipes to remedy the problem, however, the home is left unfinished for the next buyer to complete. Other times they will mitigate and finish the construction bringing the home back to its previous state. In both of these situations there are questions to consider.
First, if the bank is not completing the construction, will that affect your availability to get a loan? Some loan programs will require the home to be in a pre determined condition before the will lend the money. No matter how good the deal is, it’s possible that your loan will not qualify for the home.
If you are able to get the loan, the next thing to consider is how much it will cost to fix the home. Most buyers, especially if they are planning to do the work, will underestimate the true cost and time it will take to complete the construction. I recommend getting contractor bids to give you a worst case scenario for cost even if you are doing the work yourself.
Second, if the home has been mitigated and the construction has been completed by the bank, be cautious. Get records for the work that has been done and speak with the mitigation companies to verify that they are comfortable with the extent that the bank investigated the home. Hire your own inspectors to view the home including a mitigation company that you trust. This is serious, I have seen homes that banks have mitigated and repaired only to find that the extent to the problem is much much larger than the work that was completed.
The key to buying these homes are to minimize risk as much as possible. I recommend air test for mold spores to help identify unseen mold problems as a start. Work with professionals that know what to look for, use qualified inspectors and mitigation companies. The money you spend up front to verify the condition of a home can save you thousands if not tens of thousands in future unknown problems.
In the end what looks like the deal of the day could end up costing well more than market value after the work is complete.
Be an educated buyer and happy shopping Missoula. I is a great venture when done the right way.
Keller Williams Realty
Posted by Jeremy Williams on April 7th, 2011 10:11 AM
Welcome to Lolo Creek Trails!
January 14th, 2011 4:13 PM
New building options will soon be available in Lolo Creek Trails with the addition of 7 new homes. Homes will be very competitive for the market and will feature a mix of one and two story options.
– Turn key packages
– Almost all lots adjoin the park or open space
– Upgraded finishes
– All homes will be over 1,500 sq.ft.
Please contact Jeremy Williams at 406-532-7919 about this new opportunity coming this spring.
Posted by Jeremy Williams on January 14th, 2011 4:13 PM
Home Ownership – It may be more of a reality than you know
November 30th, 2010 4:17 PM
The Real Story of today’s homebuyer.
In a few short years, we have seen frenzies of buyers narrowed down to the few bold that are proactive enough to see how this market has really changed their buying power. All of this in a time and market that should keep us awake at night dreaming about our next home. We know the interest rates are at the lowest they have ever been and housing prices are soft.
But where have all the buyers gone?
For many the fear or assumption they will not quality for a home is holding them back from even starting the process. So, what does a buyer in today’s trying times look like?
Buyers Profile- You may be more qualified than you think.
Estimates to qualify for a $200,000 FHA 30/30 loan
$55,000 Annual Income
32% Housing Ratio
5 % Interest Rate
3.5 % down payment
– Someone earning $55,000 a year or $26.50 an hour full time may be qualified to purchase a $200,000 home.
– A couple earning $13.25 an hour each will also qualify.
(Other qualifications may apply but is a good starting point)
What is the Risk?
Missoula Market Conditions: One the biggest indications for the health of the Missoula real estate market is its adsorption rate or its ability for demand to keep up with supply. In a normal market 6 months of inventory is the base line. Missoula homes priced around $200,000 are at 4.93 months of absorption and performing well above an average market.
A better than average market will minimize buyer risk in terms of price depreciation and time on the market in the event they need to sell. The upside for buyers looking to be in their homes long term will be appreciation in a market segment that always has more buyers then the upper price ranges.
I know what you are thinking. If this part of the market seems stable, why is the news telling us a different story? To put it in prospective if you are looking for a home in the $400,000 – 500,000 price range the absorption rate is 22 months. If you are looking for long-term value this is a great price range but it comes with more risk and a longer time line for correction.
Can you even buy a home around $200,000?
If you have even thought about the possibility of home ownership please contacts me so I can go over your options. At the end of the day, homeownership is not right for everybody. However, I think we can all agree that in a few years we will be kicking ourselves for not looking into it. You may even be surprised how attainable it really is.
“It’s A Great Life”
Posted by Jeremy Williams on November 30th, 2010 4:17 PM
Cost of Money – How does your interest rate affect your investment?
August 11th, 2010 5:13 PM
By now I think most people understand that home prices in Missoula have been influenced by the national recession and that mortgage rates are at an all time low. However, with all the talk about rates and home prices it can be hard to determine how these changes can affect your investment.
Relationship between rates and price: In the past when rates have come down prices tend to trend up. Buyers can now buy more for the same monthly price as they could at a higher rate. When rates go up prices come down because the buyers don’t have the same buying power.
The advantage that buyers have in today’s real estate market is that rates and prices are low at the same time maximizing their purchasing power.
6% vs 4.125% – Buying Power!
Let’s look at a home loan of $350,000 and how rates change the investment.
A loan of $350,000 at 4.125% interest rate will cost a buyer about $ 1,696 a month. Over the course of 30 years you will be paying almost $260,659 of interest by the time the loan is paid off.
A loan of $350,000 at 6% interest rate will cost a buyer about $2,098 a month. Over the course of 30 years you will be paying almost $ 405,434 of interest by the time the loan is paid off.
The difference in interest rates for the same price loan will save you $402 a month and $144,775 over the course of 30 years. Low interest rates and great prices can save you a lot of money for your new home in Missoula.
Provided by Golf Savings Bank, Missoula, MT
Happy buying Missoula!
Posted by Jeremy Williams on August 11th, 2010 5:13 PM
Missoula Homes – Short Sales,REO and Foreclosure Properties.
July 12th, 2010 12:25 PM
Missoula Homes – Short Sales , REO and Foreclosure Homes
With changing market conditions terms like Short Sales, REO and Foreclosure have become every day terms over the last few years. Although our Missoula real estate market is up 16% in absorption from this time last year, these properties are not likely to go away any time soon. In fact we will most likely see an increase even as our market stabilizes due to the long turnaround times in the foreclosure process. Homes that are being foreclosed on now are homes that started the foreclosure process at least 6 month earlier and in some cases almost up to a year ago.
Since these properties are likely to be around for awhile it is important to understand that the difference is between a Short Sale, REO and a Foreclosure property and how it could affect how an offer is presented and accepted.
When owners decide to stop making the payments on their loan the foreclosure process or the banks process of taking the property back from the owner is started. In Montana it takes 6 months to complete a foreclosure and sometimes longer depending on the bank. After 6 months the home goes to auction on the courthouse steps. Most often the highest bidder at the auction is the bank trying to protect their investment. If the bank is the highest bidder the property becomes REO property or REAL ESTATE OWNED (Bank owned).
Sellers in foreclosure are often in distress and often price the homes aggressively to get them sold.
Short Sales are properties that are being sold for less and what is owed on the property. For example if $300,000 is owed on the property and you are purchasing the property for $275,000 you are asking the lender to take $25,000 less or shorting them from what is owed.
Many times lenders are willing to take a hard look at a short sales because in the long run, taking what they can get and closing the loan will save them money compared to the risk and legal fees associated with taking the property by foreclosure and putting it back on the market. Short sale is usually in foreclosure meaning that the owner has stopped paying on the loan. The owner still owns the property and the bank has started the process to take the home back.
What to know before you make an offer!
REO – Real Estate Owned
Properties that have been taken back from the bank are called REO properties. Traditionally banks do not want to be property owners so they will resell them in an effort to recoup their investment. Out of the three types of properties REO homes are the easiest to purchase. By this point the bank has an idea of what they will settle for and have committed to selling.
With each type of property it is important that you are working with a buyer’s agent to help you through the process. When you are dealing with Short Sales, REO and Foreclosures, the sales process is anything but cut and dry.
The trade off is that you may be able to maximize your value and purchase more home that you would be able to otherwise.
Happy Purchasing Missoula.
Posted by Jeremy Williams on July 12th, 2010 12:25 PM
Just Listed! 1860 35th Street Missoula, MT 59801
April 12th, 2010 10:27 AM
Posted by Jeremy Williams on April 12th, 2010 10:27 AM
Time is running out!
March 22nd, 2010 2:02 PM
First Time Home buyers and existing home owners have until April 30 to get your homes under contract to be eligible for the tax credits. Unlike last year I don’t think the credit will be extended.
If you qualify please take this opportunity seriously because it my be the last time the credit with be available.
“It’s A Great Life”
Keller Williams Realty
Posted by Jeremy Williams on March 22nd, 2010 2:02 PM
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