Charlotte Homes for Sale
Nina Hollander
(704)779-0813

Lot of people think it’s impossible to buy a home today with low or no money down programs… but there are quite a few programs available to home buyers today in Charlotte and North Carolina, especially for first-time home buyers who have credit scores above 620.

Here’s a list of a few of the loans available  around the country;(and you don’t need to be a first-time buyer for a number of these).

• FHA Loans: require a only a 3.5% downpayment. Lots of mortgage lenders are active in making these types of loans.
• USDA Loans: these are 100% financing. There are income limitations, but if you are buying a home in a USDA-eligible area, these loans are a wonderful source of financing. But not all lenders do these, so shop around.
• VA Loans: these are 100% fiancing. You don’t need to be a first-time buyer for these, but be sure you work with a lender who has experience with VA Loans.
• HUD Homes: there are lots of HUD foreclosure homes available for sale and financing at only $100 down. Contact your realtor for a list of these homes.

Here’s a list of low or no money-down loan programs available specifically in Charlotte and/or North Carolina:

• House Charlotte Loans: 100% financing.
• North Carolina Finance Agency: part of the NC Bond program, these loans requre only $1,000 down.

It’s an awesome time to buy a home! Interest rates are at historic lows and prime borrowers can borrow at less than 5%, including FHA, Va,USDA loans. These rates are not just for conventional 20% down loans. Home prices are still low. This combination of low rates and low home prices rarely comes about. For more information contact Carolinas Realty Partners. We can put you in touch with some top Charlotte-area lenders and help you find that dream home!

FannieMae instituted new credit rules on June 1st that many home buyers are not yet aware of, but which will have some serious impact on their ability to close on a mortgage. Essentially, what Fannie Mae has done is require lenders to verify that borrowers haven’t taken on any new debt during the mortgage application and underwriting process. Even after your loan may have been approved and is ready for closing, underwriters will be looking for the following information about your credit:

• An updated credit report prior to closing to show current credit card bills and minimum monthly payments. This updated credit report will replace the original numbers used at the time you applied for your loan. If your debt levels have increased just before your mortgage loan is ready to close, your loan could be denied.
• An updated credit score. If your FICO score drops in the time between your mortgage application and closing below minimum lending standards, your loan will be denied. And if it’s not denied, you may be subject to a higher interest rate which will increase your monthly mortgage payments.
• An updated credit report inquiry history. Underwriters will be looking to see if you have been applying for credit elsewhere and verifying that you’ve not incurred new debt from the time you applied for your mortgage loan.

What does this mean to you? Basically, it means you need to be very careful with your credit from the time you make a formal application for a mortgage until you actually close on your home. Here’s a list of important “Dont’s:”

• Don’t make major purchases (cars, boats, leases, jewelry, appliances, furniture etc).
• Don’t open new credit card accounts.
• Don’t apply for new credit until after you close on your mortgage.
• Don’t transfer credit card balances from one account to another.
• Don’t close any credit card accounts.
• Don’t pay charge-offs, collections, loans, credit cards without first discussing the impact with your lender.
• Don’t max out or over-charge on your current credit card accounts.
• Don’t consolidate your debt into one or two credit card accounts.
• Don’t take out any new loans.
• Don’t finance any elective medical procedures.
• Don’t quit your job, change industries, or start a new company.
• Don’t switch from a salaried job to a commission-based job.
• Don’t change bank accounts.
• Don’t transfer large sums of money between bank accounts.
• Don’t forget to pay your bills (even if some are in dispute).
• Don’t accept cash gifts without filling the property “gift” paperwork.
• Don’t make random, undocumented deposits into your bank account(s).

If you’d like a handy list of these new rules, email us and provide us with your name and email address and we’ll get a list out to you immediately.

Move-in ready 4 bedroom home with oversized bonus room plus study/office and formal dining room situated on a large, private, fenced cul-de-sac. Not to be overlooked is the screened porch, Bose surround sound wiring, hardwood floors. Community features pool, lake, tennis, recreation center. Located in Fort Mill, SC just minutes behind south Charlotte’s trendy Ballantyne area, the home enjoys low property taxes. Minutes from shopping, recreation, golf, tennis, medical facilities, and major local roads. Quick and easy commute to Ballantyne Corporate Park. Home is eligible for NO MONEY DOWN USDA financing for qualified buyers!

1548 Kingdom Way, Fort Mill, South Carolina Price: $210,000.00 Beds: 4.00 Baths: 2 Sq Ft: 2430 Description: Welcome to this move-in ready 4 bedroom/2.5 bath home with lots of curb appeal situated in the center of a private, wooded, and fenced .308 acre cul-de-sac lot. Both front and back yards are lushly la …. View this property >>

The deadline to take advantage of the first-time and repeat/move-up home buyer tax credits is fast approaching. You must have a binding contract signed by midnight, June 30th (that’s tomorrow!) to be eligible for the $8,000 tax credit for first-time buyers or the $6,500 tax credit for repeat buyers. (The one exception are military service members who were on official extended duty outside of the United States for at least 90 days between Jan.1, 2009 and May 1, 2010, who may qualify for a one-year extension.)

I have lots of clients calling me and asking me when we will know about the terms of the extension for this credit and I keep telling them there will be no extension. There is no bill in Congress right now to extend the credit. So if you’ve got a home in mind, don’t delay. Time is really running out!

I’ve previously provided links to information about the credit, but here it is again in case you need a quick refresher: Homebuyer Tax Credit.

Meantime, if you already have a binding contract that will let you take advantage of the tax credit, you have until June 30th, 2010 to close. In this regard, a word to the wise: June 30th falls at month-end when attorney and title and mortgage lenders are typically at their busiest and with all the tax-credit contracts coming up for closing in May and June, they will be even busier this year. All the activities required to close a home take longer to complete in the last week of each month. And by June 30th we also see the start of summer vacations, which reduce staff in legal and banking offices. So try to schedule your closing as much before June 30th as possible to ensure you are closed before this deadline.

Just listed… this move-in ready home pretty as a picture on a private, wooded, fenced .3 acre cul-de-sac just minutes from Charlotte’s trendy Ballantyne area! Home has been freshly painted, hardwood floors refinished, new tile installed in all bathrooms and laundry room, and new designer light fixtures installed! Additional great features include a large screened porch with outdoor speakers, Bose surround sound system in family and bonus rooms. Low, low property taxes under $1,000 per year. Great community amenities including pool, lake, tennis, basketball. Home is eligible for NO MONEY DOWN USDA Financing for qualified buyers and don’t forget these are the last five days you can still qualify for the first-time home buyer tax credit!

1548 Kingdom Way, Fort Mill, South Carolina Price: $210,000.00 Beds: 4 Baths: 2.5 Sq Ft: 2430 Description: Welcome to this move-in ready 4 bedroom/2.5 bath home with lots of curb appeal situated in the center of a private, wooded, and fenced .308 acre cul-de-sac lot. Both front and back yards are lushly la …. View this property >>

The first-time and move-up/repeat buyer tax credits are about to run out!  If you want to take advantage of the first-time home buyer $8,000 tax credit or the $6,500 move-up buyer tax credit you’ve got 15 days left to sign a contract. There’s no indication whatsoever that the credit will be extended again by Congress, so if you want to take advantage of historically low interest rates, low home prices, AND get a generous tax credit, the time to do so is NOW! Keep in mind that you do have until June 30th to close on the home. And don’t forget that if you are a move-up/repeat home buyer you do not need to have sold your current home to take advantage of the credit when you contract for a new home.

For more information about the tax credit programs click here. You can also refer to my blog post of February 24th, 2010, which also outlined who is eligible for the tax credit.

It’s a great time to buy a home in the Charlotte metro area… don’t be kicking yourself later in the year when interest rates have gone up and you’ve missed out on the tax credit because you didn’t do something now.

If you are a first-time home buyer or a move-up/repeat home buyer the April 30th, 2010 deadline is looming for you to take advantage of the tax credits.

• $8,000 FIRST TIME HOME BUYER CREDIT DEADLINE:  You must be in contract by April 30th and close on your new home by June 30th, 2010. To be considered a first-time home buyer you can’t have owned a home in the past three years.
•  $6,500 MOVE-UP/REPEAT HOME BUYER CREDIT DEADLINE: You must be in contract by April 30th and close on your new home by June 30th, 2010. You must also have lived in your current home for 5 consecutive years out of the last 8 years.

$8,000 First-time Home Buyer Tax Credit at a Glance:

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, a first-time home buyer is someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance:

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10% of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less. Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

There’s no indication that the current home buyer tax credit programs will be extended again. April 30th is just around the corner! Don’t delay if you are looking to buy a home. Lots of great homes are for sale in the Charlotte metro area. Contact us today to help you find your dream home by April 30th!

If you’ve been planning to buy a house this spring with an FHA loan, you need to know about several FHA financing changes coming in about six weeks that will increase your cost of borrowing. These deadlines are:

ISSUE:  FHA FINANCING – SELLER CAN NO LONGER CONTRIBUTE MORE THAN 3% FOR CLOSING COSTS AND PREPAIDS.   As a  buyer, you will likely need to have more money for closing or you could end up with a higher interest rate which could impact your ability to qualify.  This will be more of an issue for homes that are $150,000 and below. 

DEADLINE:  APRIL 4^TH, 2010 to be in contract.

ISSUE:  FHA FINANCING – UPFRONT MORTGAGE INSURANCE PREMIUM INCREASING FROM 1.75% TO 2.25%   This means you will likely need to have more money for closing or could end up with a higher interest rate which could impact your ability to qualify.  On a $200,000 purchase, you would be charged $1,000 more to do the loan.   

DEADLINE:  APRIL 4^TH, 2010 to be in contract.

These changes will seriously impact how much money you need to bring to closing and how much of a purchase amount you might qualify for. With interest rates also predicted to rise in the coming months, there’s never been a better time to buy!

If you are a first-time home buyer or a move-up buyer, who has purchased your home after November 30th, here are the new IRS guidelines for what you will need to claim your tax credit.

The IRS has recently released the new form that eligible home buyers need to claim their tax credit this tax season and has announced that they will start processing these returns in mid-February. With the release of Form 5405 (“First Time Home Buyer Credit and Repayment of the Credit”) along with instructions on completing the form, you can now start filing for your tax credit. However, keep in mind that if you are claiming a home buyer credit, you MUST file a paper tax return because of the added documentation requirements. These documentation requirements include:

• A copy of the HUD-1 Settlement Statement you received at closing, which shows all the parties’ names, signatures, property address, sales price and date of purchase. If you purchased a mobile home, you will need to provide a copy of the executed retail sales contract showing all parties’ names, signatures, property address, purchase price and date of purchase.
• If you purchased a newly constructed home where a settlement statement is not available, IRS will accept a copy of the Certificate of Occupancy showing the owner’s name, property address, and date of the certificate.
• If you are claiming a “move-up buyer” credit for a new principal residence, you must be able to show thay you have lived in your old home for five consecutive years during the eight-year period ending on the purchase date of the new home. Proof of residency can include: Form 1098 (Mortgage Interest Statement) or substitute mortgage interest statements; property tax records; or homeowner insurance records.

The IRS has significantly stepped up its compliance checks for those filing for the home owner tax credit, so it makes sense to have all your documents together before filing. And, again, don’t forget, you can’t file for the tax credit electronically. You may still use IRS Free File to prepare your returns, but the returns must be printed out and sent to the IRS together with all the supporting documents providing proof of purchase and/or residence. Click here for more informaton about the Free File program.

Keep in mind it could take four to eight weeks for a refund claimed on a paper return (where all necessary documents are included on the first go-around). If you file early, IRS has indicated that the first refunds for home buyer tax credits will be issued in late March 2010.

KEEP IN MIND:  if you sell your home within 3 years/36 months, you may have to pay back the tax credit you receive in 2010.

For more information, visit www.IRS.gov. 

For more information about the First Time Home Buyer Tax Credit and to see if you qualify click here.

One question home buyers always have is when they should lock their interest rate. Unfortunately, there’s no simple answer as to when the time is perfect. The best way to think about when to lock your rate is when you are comfortable with the payment at a particular rate, as you never know where rates go day by day (in December 2009 rates changed, on average, every three hours!). Since 33% of the time rates go up and 33% of the time rates stay the same, you need to keep in mind that there’s always a 66% chance rates won’t get better in another day or two or week or two. So lock when you feel comfortable with your mortgage payment.

Keep in mind that typically when lenders post rates, they are assuming a 30 day rate lock. A rate lock commitment is a lender’s promise to honor a specific mortgage rate for a specific period of time. Fundamentally, it’s a contract in which the lender says “provided you close your loan in the next however-many days, we’ll guarantee your loan at a specific rate.” Because the lender is promising you a rate today that won’t be “signed for” until some point in the future the lender is taking a risk that rates won’t go up during this time frame. The longer your rate lock period, the higher the rate lock. In other words, a 45-day rate lock would typically be 1/8% higher than a 30 day lock (the basis for pricing locks); a 60-day rate lock would typically be 1/4% higher than a 30 day lock. So keep in mind that longer rate locks usually result in higher interest rates or higher fees, or both.