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.
Delaware real estate—like all real estate—is a supremely local activity. Area homeowners who like to keep an eye on Delaware and national trends do so because some of them may surface in future buyer preferences. For Delaware homeowners in a remodeling frame of mind, it doesn’t hurt to be aware of “what’s hot.”
When it comes to nailing down the latest home design trends, there’s no shortage of commercial firms whose publicity departments are determined to make convincing arguments that their products are in the vanguard. Since the National Association of Realtors® isn’t selling anything, that’s one good reason to give special attention when Realtor Magazine puts out its annual “Home Design Trends” roundup.
This year, though, much of what they reported had more to do with American community and social environments than with the kind of details Delaware homeowners will find very useful. Those wider trends included a continuation of consumer preferences for “walkability”—in suburbs as well as in urban areas. Homes “far from everything” lose out in the “walk scoring” calculation. In a similar vein, as more and more people spend more and more time on social media and in front of computer screens at work, there is growing awareness that typical Americans crave more actual live human interaction: hence, proximity to social gathering places (clubs and clubhouses; community centers) is being newly emphasized in real estate sales materials.
But some more traditional kinds of home design trends were mentioned, as well, such as the finding that “taupe is the new gray” and a movement toward “naturally renewable, warmer surfaces.” Taupe’s slightly rosier tone conveys a friendlier feel than plain gray, which fits in with the turn away from colder black, white, and metallic palettes. Natural cork is one low-maintenance material offered as an example: it adds aesthetic appeal to walls and flooring. (Besides, it bounces back when dented)!
Other specifics include a shift toward away from traditional log-burning hearths to natural gas and even alcohol-burning fireplaces. Delaware homeowners who have done without fireplaces entirely may take note: since they don’t require vents, alcohol burning hearths can be installed just about anywhere with minimal construction expense.
One home design trend that is definitely applicable in Delaware is a consequence of the ever-diminishing size of today’s electronic technology tools. For those whose careers make working from home at least part of their professional work week, it means that the necessity for a full-room home office is gradually waning. Now almost any corner of the home can suffice. When designers speak of “dual-purpose areas” with “dual-purpose furnishings,” they probably have this trend in mind. A further step into the future is the “movable wall concept.” That’s not here yet: it’s projected for the futuristic Home of 2050. (I, for one, am willing to wait).
One trend that’s unlikely to change is the advantage to both buyers and sellers of being able to count on the services of an experienced Delaware Realtor. I’m always just a phone call away! Call/Text me Russell Stucki at (302) 228-7871, email me at firstname.lastname@example.org, visit more listings at www.beachrealestatemarket.com.