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c o o l D C r e d c r e a l e s t a t e b l o g
Home Loans for New Grads
With June college graduations comes the influx of new hirees into the DC Metro region and, along with them, angst over rising rent prices. With low interest rates and prices that are still affordable, many would do well to purchase rather than rent. But without work history, how do new grads secure a mortgage loan?
BB&T’s Community Homeownership Incentive Program offers terms to college grads starting their jobs within thirty days of graduation.
The CHIP loan has been a great alternative for my FHA clients since FHA fees went up earlier this year. The CHIP program is very versitile, offering loans on almost every type of property, including co-ops. CHIP offers qualifying buyers up to 100% financing without private mortgage insurance. See details on the program on my Lending page.
I only recently learned that CHIP offers loans to new grads, so I asked BB&T Assistant VP and Loan Officer Kari Sansom Elwood to explain how the program works:
CoolDCre: What are the specific criteria for this June's graduates in qualifying for a CHIP grad loan?
Sansom: We will want to see that the new grads went from being in school to starting their new job with less than a 30 day gap between graduation and their new job. We will also want to see an established credit history with a minimum of 12 months clean credit history. In the DC metro area, we offer up to 100% financing if their income is less than $87,000 and 97% financing if their income is less than $107,000.
CoolDCre: Any restrictions on gifts toward downpayment?
Sansom: Borrowers can get unlimited gift funds from family members. The gifts will have to be documented to show who gave the gift funds and it must come from family members.
CoolDCre: Why is the rate a little higher than a standard conventional loan?
Sansom: Because the buyers are putting down less than 20% of the sales price and we are not putting a mortgage insurance policy on the loan, which will save them several hundred dollars per month versus the other programs with low down payment options.
CoolDCre: Who can use a CHIP grad loan?
Sansom: Anyone can use the CHIP program as long as they do not currently own another property. They do not have to be first time buyers, so it is open to anyone that meets the income and credit restrictions.
CoolDCre: How do new grads figure out if it's better to rent or purchase a home with a CHIP grad loan?
Sansom: They should compare the cost of renting with the cost buy buying. Many find that they can buy a comparable property for a lower monthly payment than they would have if they were renting. They should consider how fast home prices and rents are rising in the area as well as the length of time they plan to stay in the region. Factor in the tax breaks that homeowners receive, as well as the equity that they will gain over the years of ownership. Once all items are considered, many find that owning a home is a more practical financial move for them.
CoolDCre: Any advice to new grads with jobs waiting for them?
Sansom: Enjoy the new adventures of your new life. Talk with an established Realtor and loan officer about your ability to purchase to help make sure you are are on the right track. Create a budget and figure out how much you are comfortable spending per month on housing as well as other expenses. A good loan officer will also be able to help you figure out a good starting point for your purchase so that you can feel better prepared.
CoolDCre: Thanks Kari! For pre-approvals and mortgage lending advice, buyers can reach Kari here:
BB&T Mortgage
Branch Banking & Trust Co.
Kari Sansom Elwood
NMLS #415708
Mortgage Loan Officer
Assistant Vice President
301-493-8361 office
301-767-6354 cell
This e-mail address is being protected from spambots. You need JavaScript enabled to view it
New Details on CAS Reigler's Standard Eleven Condos
| The Standard Eleven |
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1109 M Street NW (11th & M)
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| *Unit 2 now under contract. Suntrust and Prosperity Mortgage are the designated lenders for the project. Premium Title is the preferred settlement company. Buyers using both will receive a $2,000. closing cost credit from developer. Restrictions apply. See more DC real estate development |
Bike Score: Heat Map
New DC Market Stats: 5 year Condo Price Graphs
If you've been seraching for a condo this year, you know it's tough out there. Lack of inventory, bidding wars and new consruction prices soaring higher than the cranes on 14th Street. Let's take a look at the new numbers for our hottest zip codes and answer the question agents are hearing from buyers every day: "What the WHAT?"
Market Activity
Zip 20005
Zip 20009
Median Sold Price
Zip 20005
Zip 20009
View all Market Data
Toll Brothers Buys Velocity Phase II
Toll Brothers announced this morning their purchase of property adjoining Velocity Condos. The proposed project will be 250 residential units. It is not yet know if they will be apartments or condos, but during a recent sale at Velocity I was told by a representative that an adjacent building would be rentals. Toll's townhome product is not likely to be an option since the subterranean parking has already been developed on the site. Toll is known in the DC Metro area mostly for their single family luxury home and townhome products. The $24M property was purchased from Cohen Companies, who bought the land in 2005, with the intent of expanding Velocity Condos in Phase II. Phase I completed in 2009 and is still selling. It consists of 200 residential units, along with 1500 square feet of retail space. Justin's Cafe is located on the ground floor.
The Phase II property is described on the Cohen site as follows:
Plans for Phase II include 250 residential units. Phase III potential, (still under Cohen's ownership), is 300,000 S.F. of residential or office space. Location:A full city block bounded by K, L, Half and First Streets, S.E. Located a short walk from the Washington Nationals baseball stadium.
DC Parking Can Be a Bear
Parking Panda has finally launched in the Distrct. Here's how they say it works:
If you own a parking space…
- Register and sign up
- Click the "list your space button," fill out all the information and upload a picture so people know where to go
- Use the calendar to set the days you want your space to be available and the price
- Receive an email when someone has booked your space. Parking Panda takes 20% commission (20%)
- Search for parking at your destination on the web or at www.parkingpanda.com on your mobile phone
- For mobile searches, the site automatically uses your location to find parking nearby
- Select the space that works for you and view more details and photos
- Pay for your space on the website or directly from your mobile phone
- Park in your space on the day of your reservation.
https://www.parkingpanda.com/dc-parking
Rates Dip, Market Flips
NAR reports pending home sales are nearly 13% higher this March than the same time last year. There are currently 1648 Active listings in DC and 1425 under contract (both including short sales and foreclosures). Also as of this writing, there are 639 Active condo listings (again including short sales and foreclosures) and 500 under contract. There are only 326 detached homes Active and 244 under contract. 240 rowhouses are listed as Active, and 331 under contract. It's when you filter by location that things get really interesting.
In the 20009 zip code, here are the stats:
Active condo, co-op & fee simple listings: 182
Under contract: 160
Active condo, co-op & fee simple listings: 25
Under contract: 25
In 20003:
Active condo, co-op & fee simple listings: 66
Under contract: 69
It is a seller's market in those locations. WBJ reports that the "official" bottom of the overall DC market was during the 3rd quarter of 2011.
Interest rates are currently under 3.9% 30 year best fixed rate according to Freddie Mac.
Development News! Details on CAS Riegler Lionel Lofts
Per CAS Riegler, coolDCre is the first to report that Belga Cafe signed earlier this week for the ground floor space at the eagerly anticipated Lionel Lofts on 14th. The high-end, five unit condo project is currently under construction and expected to deliver late this year. Belga will feature a waffle bar with sidewalk cafe seating. Name will be a shortened version of it's CH moniker: B2 or BC2. Opening estimated December 2012 - early 2013. Sure to be popular and fill 14th street with the irresistible scent of baking waffles. Yum!
New details on the condominiums at Lionel Lofts
Big Gains in DC's March Real Estate Prices
Low inventory + increased demand + market momentum = higher prices. That's the message in the stats released for March 2012 today by MRIS/RBI. The regional median sales price hiked 7.81% over last year.
DC Metro
- Alexandria City, VA
- Arlington County, VA
- Fairfax City, VA
- Fairfax County, VA
- Falls Church City, VA
- Montgomery County, MD
- Prince George's County, MD
- Washington, DC
| Statistic | Values | YoY | MoM |
| Total Sold Dollar Volume | $1,409,344,453 | +1.14% | +44.73% |
| Closed Sales | 3,345 | -3.82% | +33.43% |
| Median Sold Price | $345,000 | +7.81% | +8.52% |
| Avg Sold Price | $421,329 | +5.16% | +8.47% |
| Avg Days on Market | 83 days | 0% | -2.35% |
| Avg Sold to Orig List Ratio | 94.34% | +1.08% | +0.63% |
Get RBI stats on the District of Columbia
In Northern VA, the jump was even greater:
Northern Virginia
|
Statistic |
Values |
YoY |
MoM |
|
Total Sold Dollar Volume |
$998,853,846 |
+7.13% |
+37.5% |
|
Closed Sales |
2,363 |
-0.88% |
+28.84% |
|
Median Sold Price |
$365,000 |
+10.44% |
+8.96% |
|
Avg Sold Price |
$422,706 |
+8.09% |
+6.72% |
|
Avg Days on Market |
69 days |
0% |
-4.17% |
|
Avg Sold to Orig List Ratio |
96.1% |
+0.23% |
+0.62% |
For more Northern Virginia numbers, see Virginia Real Estate Update
Cool tool: Honest Buildings
Remember last year when they went up to 5%?
Update: Rates at 4.08% March 22 2012 for 30 year fixed.
Mortgages Rates rose to the highest levels of the year today. Lenders have been adjusting their rate sheets all day by varying degrees, so there's greater than normal degree of variation between them. For the most part, the 30yr Fixed Conv. Best-Execution Rate remains in the 4.0% - 4.125% range, but for most lenders, borrowing costs at those rates are higher.
Read more at Mortgage New Daily
It's A Little Crazy Out There
If you've been house hunting lately, you know there's a lot of activity in the DC market... and more than a few buyers competing for the same properties.
RBI released their February market data showing activity is even more robust than January, which saw buyers jumping in to the market wholeheartedly.
And that DC inventory shortage you've been hearing about? So true. Especially condos.
RBI reports median prices rose 6% and inventory dipped to its lowest level since 2005. Contracts are up 1.9% too, so expect inventory levels to slip again in the March report (due April 10th). There haven't been this many contracts in February since 2007.
SUMMARY
2,507 homes sold in the DC Metro Area---the highest February number since 2007---while Inventory levels continued their decline. February ended with 9,823 active listings, the lowest supply since August 2005.
368 active foreclosures represent 3.7% of the active market (again, the lowest level since July 2008) and the smallest number of new foreclosures entering the market since March 2008. The median sales price rose 6.0% over February 2011.
Pricing
Area prices are up 6.0% year-over-year to $317,900. The median sale price for townhouse properties rose 9.5% over
February 2011, condo/co-op prices were up 6.8% and detached properties were 2.8% higher than the same
period last year. Year to date, the median sales price of $312,000 represents a 4.0% increase over JanuaryFebruary 2011.
Closed Sales and New Contracts
- 2,507 homes sold in DC Metro Area during the month of February, 4.2% more than the five-year February average and a 1.9% increase over February 2011. It was a 7.0% increase over January.
- 663 townhouses sold in February, 7.1% higher than last February’s level.
- 682 condo/co-op listings sold, representing a 2.7% year-over-year increase.
- Detached SFHs declined slightly in closed sales with 1,160 units, 1.5% lower than the 1,178 sales in February 2011.
- Foreclosed sales are down 41.9% year-over-year to 339 and the share of foreclosed homes sold dropped from 23.7% in February 2011 to 13.5% in February 2012. This had a positive impact on the region's median sales price.
- Closed short sales were up 14.4% year over year, but the total short sale market share edged up only slightly from
- 14.7% in February 2011 to 16.5% in February 2012.
For specific market data by zip code, see DC Market Reports and VA Updates
Curb Appeal: USDA Updates Plant Hardiness Zone Map
Gardners, growers and homeowners use the 2012 USDA Plant Hardiness Zone Map to determine which plants are most likely to thrive at a given location. The USDA has created an updated map based on recent climate changes.
This new map is based on the average annual minimum winter temperature, divided into 10-degree F zones and is available
as an interactive GIS-based map, or static images. Type in a ZIP Code and find the hardiness zone for that area.
FHA Update
FHA will be increasing the Up Front Mortgage Insurance Premium (UFMIP) and the monthly Mortgage Insurance Premium (MIP) effective with case numbers pulled on or after April 9, 2012.
Changes Effective April 9th include: (loan amounts up to $729,750)
- The Up Front Mortgage Insurance Premium (UFMIP) will increase from 1.00% to 1.75%. this amount is financed so will not effect the out-of-pocket costs to the buyer.
- The monthly Mortgage Insurance Premium (MIP) will increase by .10bp from the current levels. Loans with less than 5% down will go from 1.15% to 1.25%, and loans with 5% or more down will go from 1.1% to 1.20%. For example: A loan amount of $300,000 putting 3.5% down would increase the borrowers monthly payment by $37.50.
Changes effective June 11th include:
- The monthly MIP will increase only on loan amounts above $625,500 by .25% to 1.50% for loans with less than 5% down and 1.45% for loan with 5% or more down.
Updated Thursday February 23 2012
National Harbor: All In?
Disney back at NH
Washington Business Journal s Michael Neibauer reports today that the deal between Peterson Cos. and Walt Disney Parks and Resorts is back on again. Disney backed out of their plan to build a 15-acre, 500 room resort hotel at National Harbor but withdrew last year citing poor timing and its planned resort expansions elsewhere. The ink's not dry yet, so more details to come.
This news is just the latest in a string of ups and downs for Peterson's beleaguered National Harbor project. Most recently, P.G. County Exec Rushern Baker proposed a casino for the site.
A $1 billion casino for National Harbor?
The idea, proposed by P.G. County Executive Rushern L. Baker III, coincides with the state assembly's consideration of legislation proposing the addition of a sixth gaming venue in Maryland.
Baker, who has gone on record in the past as opposing slots, told the Washington Post he believes a casino with blackjack, craps and roulette could generate “much-needed tax revenue.”
The proposal has enthusiastic support from The Peterson Companies, National Harbor's developer, along with the owner of National Harbor's biggest hotel, Gaylord Entertainment.
The 2-billion dollar, 300 acre development has struggled since its 2008 opening, experiencing more ups and downs than a roller coaster:
--Many of the 423 condominiums and 46 town homes fell out of contract during the housing downturn and had to be re-marketed.
--Retailers like Starbucks canceled commitments to the project and chef Timothy Dean not only shut down plans made in 2008 to open "Timothy Dean Bistro," a restaurant and jazz lounge, but sued Peterson Companies for failing to invest about $600,000 for improvements to the space as reportedly agreed. Dean's attorney, Jimmy A. Bell, claimed Dean put $1 million of his own funds into the restaurant but National Harbor failed to come through on their end. The matter was settled out of court.
--In early December 2011, Peterson called together real estate brokers to pitch a proposed 140,000-square-foot office building for the waterfront and launched an Internet campaign to promote it to possible investors, tenants and the general public.
--Shortly thereafter, National Harbor suffered a major setback in late 2011 with Disney's withdrawal of plans for a 500 room hotel.
--Maryland spent $200 million building roads to National Harbor, yet the Hot Chocolate 5K/15K run in December 2011 left 20,000 participants in badly jammed traffic, many unable to reach the starting line. The start had to be delayed and the event was deemed an "epic fail" on Facebook and race organizers apologized for the parking company hired by National Harbor, saying it “was not even close to sufficient to handle the job, adding to the traffic issues as cars backed up on the highway waiting for access” according to Post reports.
--Tanger Factory Outlet Centers signed a deal mid-2011 to bring outlet stores to National Harbor and developers are still working to fill additional retail/restaurant space.
--Currently, 80% of National Harbor's residential units are sold or under contract. The strong leasing market in DC led Peterson Companies to sign a 371-unit apartment deal with Bozzuto Group. The project will include 25,000 SF of ground-floor retail space and is expected to start this spring and complete in late 2013.
Peterson has had to come up with one save after the other for the project that is, for them, 'too big to fail.' A lucrative gambling venture could push the project into the black. And Baker is pushing hard for National Harbor.
“The economy around us has changed,” Baker said to the Washington Post. “There are far fewer revenue options for the county or the state. . . . We’re going to do everything we can to get this bill passed.”
Tuesday February 7, 2012
Trump Wins Old Post Office Bid
The Trump organization has been chosen by the General Services Administration to redevelop the Old Post Office building at 12th & Pennsylvania. The historic property will become a 250 room luxury hotel with world renowned restaurants, spa and conference facilities. A number of federal agencies, including the National Endowment for the Arts, the National Endowment for the Humanities, and the Advisory Council on Historic Preservation will relocate prior to the start date of development for the two year project, which is expected to begin sometime in 2014.
The next step in the process will be Trump's negotiation of the redevelopment agreement, factoring in historic preservation requirements, and the figure the federal government will receive.
The GSA reviewed proposals for the past year before selecting the Trump plan, which, according to GSA Public Buildings Service Commissioner Robert Peck, will "provide a consistent revenue stream for the Federal Government and better utilize a historic property on our nation’s best Main Street.”
