Listing Courtesy of LINDA VISTA REAL ESTATE
Rehoboth Beach home buying activity may be going great guns, but for some would-be buyers, credit score woes are still a stubborn obstacle. That’s why we have been keeping an eye on the new pilot project that was announced late last year. This was the one called the "Wealth Building Home Loan." It’s an experiment aimed at opening up home ownership options, particularly for first time home buyers. Bank of America and Citibank were first to sign up for the program, said to “take a fresh approach to affordable mortgage lending.” It sounds like a pretty good idea!
How It Works
The Wealth Building Home Loan is a mortgage that runs for 15 years at a fixed interest rate. Because the term is so short, equity builds rapidly. The payments are more manageable than any reality-grounded Rehoboth Beach mortgage watcher would think because discount points can be used to buy the interest rate down to…well, “zero”! Since no down payment is generally required, home buyers can apply their available cash to purchasing those points. Since that sounds almost too good to be true, we’ve been keeping an eye open for progress reports.
Extra Help for Buyers with Modest Income
Qualifying for the mortgages would emphasize home buyer income rather than credit score. This would be a real godsend to the many people still rebuilding their credit after the economic downturn. Furthermore, interest would be set at three-fourths of a percent lower than the 30-year FHA rate—which makes sense, since shorter terms mean lower lender risk—with additional points to be offered at special bargain prices.
A Game-Changing Approach
The loan program is piloted through The Neighborhood Assistance Corporation of America, which secured underwriting from BofA and Citibank. It’s intended to be "a game changer,” because equity ownership takes place rapidly. Already in the first three years of a WBHL, 77% of the monthly payments pay off the principal, rather than the 68% that goes to interest under a standard 30-year mortgage. The effect is to accumulate a significant ownership stake almost from the word ‘go’—and more ownership equates to better loan performance.
When last checked, the program was in “pilot project” status (still in the initial shakedown phase) while the innovators who came up with the idea figure out how to make the loans widely available. So far, so good, apparently—we’ll keep an eye on developments to see if the program is greenlighted by the two underwriters.
In the meantime, Rehoboth Beach mortgage-seekers have a wide variety of currently available options for taking advantage of the great buys viewable on this morning’s Rehoboth Beach listings. Give me a call for a no-obligation discussion of how you can take advantage of today’s opportunities! Call/Text me Russell Stucki at (302) 228-7871, email me at email@example.com, visit more listings at www.beachrealestatemarket.com.
If you’ve learned to skip past onscreen click-me’s with hyperlinks reading, “Top 10 Secrets” or “Best Kept Secrets of the Pros,” you can usually rest assured that you’ve saved yourself some time. No matter whether the long-hidden secrets deal with diet tips, shopping discounts, or travel destinations, nine times out of ten the real secret turns out to be the agenda of whoever is promising the “secrets.”
When it comes to selling a house—here in Rehoboth Beach, DE or elsewhere—let’s face it: there aren’t a lot of secrets left out there. Since selling a house is the professional focus of more than a million of us Realtors® (and since we’re a communicative bunch), it’s hard to believe that many sure-fire selling gambits have eluded discovery.
That’s why, when I stumbled upon a cable channel website’s “10 Best-Kept Secrets for Selling Your Home,” I was more than a little startled that there were ten of them left.
The countdown’s initial secret (#10: “pricing it right”) confirmed my (and probably everybody else’s) suspicion that the remaining nine would offer few surprises—but in the spirit of discovery, I clicked onward, anyway. Soon more secrets, like maximizing area lighting; hiring the right agent, and avoiding expensive remodeling projects had seen the light of day. The rest of the secrets are so well known I needn’t go into them—but there was one with phrasing I hadn’t heard before. It was Selling Secret #1: “The first impression is the only impression.”
The text explained that if the exterior of your property isn’t an immediate hit, “no matter how good the interior of your home looks,” your goose is cooked “because you never have a second chance to make a first impression.”
Sure, it's happened that buyers who have been put off at first by some facet of a home’s exterior have gone on to fall in love with an inviting interior. Experienced Rehoboth Beach, DE agents know that first impressions are sometimes countermanded by stronger second impressions.
However, in the vast majority of cases, there will be no second chance. First impressions matter, and unless the home is priced and marketed as a "fixer" or other "upside potential"-styled listing, it will be well worth the effort for the seller to focus efforts on all the sensory aspects that go toward creating that first impression.
In the meantime, if you plan on selling your own Jamestown house in the upcoming months, it’s out in the open that the right agent will be one whose “secret” is a wide-reaching marketing plan combined with organization and persistent effort. Give me a call to discuss your goals! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.