1. It looks like St. Ambrose will be putting in a dishwasher, a garbage disposal, and finishing off the wood fence in the backyard for me. It is increasing my price by a couple thousand, but it will be nice to have those things done and not have to worry about them once I move in. The new contract will be ratified on Monday morning. We're still all set for a March 31 closing date.
2. Burt's, formerly Rocky Run, has closed in Charles Village. I wish someone would put a good bar there. I liked Rocky Run, but there was always a putrid smell inside it, and it was a little bit pricey. I did not much care for its reincarnation as Burt's; the uniqueness of Rocky Run was swallowed by its new sports bar atmosphere. And the smell remained. I hope something good goes in there.
3. I'm making my way through The Sopranos. It goes slightly slower than I'd like, because I can usually make it through one DVD throughout the week, and mail it in on Thursday or Friday, then have the other two that I burn through in a Friday/Saturday, leaving me with no DVDs on Sunday, nor any until about Tuesday. Maybe I should up my subscription if I've thought about it this much. I only have about six episodes left in the entire series, though. It seems like this 6th season has been more inconsistent than others. Still good though.
Saturday, February 28, 2009
Wednesday, February 25, 2009
The wheels keep on turning
This morning, I took the day off and met with a kind gentleman from the Belair-Edison Neighborhood, who is approving me for my Healthy Neighborhoods Loan.
Through the course of the conversation, he mentioned that I had "excellent credit." I was about ready to file for bankruptcy just about five or six years ago, so this was pretty cool. I don't really have excellent credit - my score still floats below 700 - so he was probably just being nice, but it was still good to hear. I have worked awfully hard for it, including keeping a second job for over five years.
I have two minor problems on my credit. One is a 2-year old parking ticket for $75 from Rehobeth Beach that I didn't discover until I read my credit report. It's taken care of already. The other is a 6-year old issue with Comcast. is regarding a cable box from Comcast that should have been returned in 2003. As I recall this situation from six years ago, I remember cancelling cable and not returning the cable box until after I received a collections notice. I did return the cable after receiving it, however, and returned it to the Comcast facility in Baltimore. At this point (according to CMI), in 2004, Comcast apparently recalled the collections from CMI and moved it to their own accounts; however, it was never removed from my credit report. I am currently in contact with Comcast to have this rectified. This blotch on my credit is for just $100, but the collection agency and Comcast both have it as satisfied, but I can't get that officially until the Comcast collections sends a letter. They don't even take incoming calls, so I haven't a clue when this will happen.
Still, it should be all okay. The March 31 closing date should work out just fine.
My house is still being worked on, and I get to request some things. I am currently deciding if I want a dishwasher installed. I certainly do, but it depends on the cost. My new kitchen is kind of small and only an 18-inch dishwasher will fit. In addition, I think I might need to raise a fence in the backyard so Holden can't jump out. So my $125,000 price might be raised by a few hundred dollars while I figure out those things. I'm actually meeting with the contractor over there in about an hour to discuss.
Through the course of the conversation, he mentioned that I had "excellent credit." I was about ready to file for bankruptcy just about five or six years ago, so this was pretty cool. I don't really have excellent credit - my score still floats below 700 - so he was probably just being nice, but it was still good to hear. I have worked awfully hard for it, including keeping a second job for over five years.
I have two minor problems on my credit. One is a 2-year old parking ticket for $75 from Rehobeth Beach that I didn't discover until I read my credit report. It's taken care of already. The other is a 6-year old issue with Comcast. is regarding a cable box from Comcast that should have been returned in 2003. As I recall this situation from six years ago, I remember cancelling cable and not returning the cable box until after I received a collections notice. I did return the cable after receiving it, however, and returned it to the Comcast facility in Baltimore. At this point (according to CMI), in 2004, Comcast apparently recalled the collections from CMI and moved it to their own accounts; however, it was never removed from my credit report. I am currently in contact with Comcast to have this rectified. This blotch on my credit is for just $100, but the collection agency and Comcast both have it as satisfied, but I can't get that officially until the Comcast collections sends a letter. They don't even take incoming calls, so I haven't a clue when this will happen.
Still, it should be all okay. The March 31 closing date should work out just fine.
My house is still being worked on, and I get to request some things. I am currently deciding if I want a dishwasher installed. I certainly do, but it depends on the cost. My new kitchen is kind of small and only an 18-inch dishwasher will fit. In addition, I think I might need to raise a fence in the backyard so Holden can't jump out. So my $125,000 price might be raised by a few hundred dollars while I figure out those things. I'm actually meeting with the contractor over there in about an hour to discuss.
Sunday, February 22, 2009
The offer
XXX XXX
Charm City Realty, Inc.
321 25th St. E.
Baltimore, MD 21218
February 22, 2009
Dear XXX,
Attached is a full price offer for your listing at (00007) Kenyon Ave., Baltimore, MD. The buyer, EpiphanyinBaltimore, is a teacher with the Baltimore City School System and is an English teacher at (his school). He is a first time homebuyer and looking forward to owning his own home. We met with YYY earlier this past week and she was kind enough to show us the house on Lake and the one on Kenyon before they were entered into the MLS. Epiph felt that the house on Kenyon would fit his needs best. The St. Ambrose Housing group does an outstanding job on their rehab homes.
He has been preapproved for a loan through MECU, but after talking with WWWW at St. Ambrose, and WWWWW over at Healthy Neighborhoods, we felt that his best option for financing would be through HN. He is meeting with OOOOOO at Belair Edison on Wednesday morning to get the paperwork started. Hopefully we can move this along and be ready to settle on March 31st.
Feel free to contact me on my cell with any questions.
Regards,
(Epiph's Realtor) @ Cummins and Company
Charm City Realty, Inc.
321 25th St. E.
Baltimore, MD 21218
February 22, 2009
Dear XXX,
Attached is a full price offer for your listing at (00007) Kenyon Ave., Baltimore, MD. The buyer, EpiphanyinBaltimore, is a teacher with the Baltimore City School System and is an English teacher at (his school). He is a first time homebuyer and looking forward to owning his own home. We met with YYY earlier this past week and she was kind enough to show us the house on Lake and the one on Kenyon before they were entered into the MLS. Epiph felt that the house on Kenyon would fit his needs best. The St. Ambrose Housing group does an outstanding job on their rehab homes.
He has been preapproved for a loan through MECU, but after talking with WWWW at St. Ambrose, and WWWWW over at Healthy Neighborhoods, we felt that his best option for financing would be through HN. He is meeting with OOOOOO at Belair Edison on Wednesday morning to get the paperwork started. Hopefully we can move this along and be ready to settle on March 31st.
Feel free to contact me on my cell with any questions.
Regards,
(Epiph's Realtor) @ Cummins and Company
Friday, February 20, 2009
Mortgage dilemma fixed, all systems on go
The mortgage dilemma appears to be over.
Today, I discovered that my (still admittedly hypothetical) new house is eligible for the Healthy Neighborhoods grant and loan. This is a 3.67% rate, and doesn't require mortgage insurance. The downpayment is very reasonable 3%. It's a result of a lot of grants from the city, that they're able to offer something so low because they're trying to make neighborhoods better. My new block is not a Healthy Neighborhoods block, but the house - because it was rehabbed by this cool organization called St. Ambrose - is eligible.
Long story short? I'm meeting with the guy on Wednesday. The offer is being readied as we speak.
Today, I discovered that my (still admittedly hypothetical) new house is eligible for the Healthy Neighborhoods grant and loan. This is a 3.67% rate, and doesn't require mortgage insurance. The downpayment is very reasonable 3%. It's a result of a lot of grants from the city, that they're able to offer something so low because they're trying to make neighborhoods better. My new block is not a Healthy Neighborhoods block, but the house - because it was rehabbed by this cool organization called St. Ambrose - is eligible.
Long story short? I'm meeting with the guy on Wednesday. The offer is being readied as we speak.
Thursday, February 19, 2009
Decided on a house, now deciding on mortgages
The big news is that I found a house. I really like. It's spacious (3 bedrooms), nice (completely rehabbed, finished basement, it's not even quite done yet), inexpensive (at the lower end of my price range), and has a lot of cool little perks (slant roof, picket fence, walkout patio, private fence around backyard). It's an end house on a block in Bel-Air/Edison, and it's not on the market yet. They're kind of holding it for me; the organization wants teachers in their houses.
Now, it's deciding on a mortgage. I'm doing this all alone, which is daunting, so I'm going to kind of write it all out for the world to see. If you decide to comment, just know that there are some things I can't change. Even though I have been planning on buying for years, I wasn't expecting to have to buy in 60 days or so. As such, my savings are not what I would ideally want (10% down). And there is nothing I can do about that at this point. Still, this is the right time to buy for me. Not only has the $9,000 incentive for new home buyers been passed into law (and only until July), but I simply don't want to rent again and don't even think I could find a place for a month or two when I have a 75-pound dog. So, the time to buy is now. Plus, I've been putting it off for years.
With that all in mind, I have three options in front of me, and have been pre-approved for all these options. I just can't decide what's best for me right now:
1) Go through MECU with a conventional mortgage, which is what most of my teacher colleagues have done. The huge benefit from this, for us teachers, is it is the only one that allows for direct payment from paychecks over 10 months (since we don't, and can't, get paid in the summers). This would be especially important this year, because I'm going to be blowing all of my summer savings on a house. The interest rate is 5.0% right now, and requires 5% down. For me, this would be about $6250. The closing costs are on top of this. There is help available for some of them, and I think (and am going to try) to get the organization selling selling the house to me to weave their deal so they're helping me with them, but that would increase the amount I need to put down as well. The problem is, I only have around $4000 saved right now, and my $2300 tax refund (which was set to be direct-deposited by Tuesday) has been held up; I just found out today that I did not complete my 2004 taxes. I have no idea how it happened, but I did them on EasyTaxCut that year and they must not have sent. I just did them again tonight (the gov't owes me $28) and mailed them in, so hopefully the hold is lifted ASAP, and that gives me enough money, or close to it. This mortgage is the ideal mortgage for me if I can swing the downpayment, mostly for the 10-month thing, and I've considered borrowing off my 403-B (against the advice of Suze Orman) to make that downpayment. However, because it's a conventional mortgage, I don't think you're allowed to borrow off of retirement for that, but I'm not positive; the kind woman listed all these things that conventional loans do not allow (gifts from others was one), and I can't remember if that's one of them or not. The monthly cost for me for this mortgage is not different than the next one at all ($20 or something like that) between 5.0% and 5.5% rates, because my mediocre credit makes the PMI a much higher percentage with a conventional loan than with an FHA loan, where it is fixed.
2) Go through MECU and get an FHA loan for 5.5%. It would require 3.5% down and I 'd still be responsible for all closing costs, which, as you know, can be more than $10K. I need to figure out how much St. Ambrose is willing to pay. As aforementioned, the monthly cost difference is negiglible, but they can't take directly from my paycheck and there doesn't seem to be much help with closing costs available.
3) Go through First Mariner and get a CDA loan for 5.75% and 1 point. There are two state programs through CDA that match Baltimore City grant, plus another grant worth $2500 through the state and CDA, so that the overall grants and forgiveable loans are $11500 for closing costs. The interest rates are usually below market but the market rates are so good right now so they're not. This would require hardly any cost out of my pocket at all.
So, I need to figure that out over the weekend and then make an offer. I also need to figure out how much help with closing costs I'm going to get.
Now, it's deciding on a mortgage. I'm doing this all alone, which is daunting, so I'm going to kind of write it all out for the world to see. If you decide to comment, just know that there are some things I can't change. Even though I have been planning on buying for years, I wasn't expecting to have to buy in 60 days or so. As such, my savings are not what I would ideally want (10% down). And there is nothing I can do about that at this point. Still, this is the right time to buy for me. Not only has the $9,000 incentive for new home buyers been passed into law (and only until July), but I simply don't want to rent again and don't even think I could find a place for a month or two when I have a 75-pound dog. So, the time to buy is now. Plus, I've been putting it off for years.
With that all in mind, I have three options in front of me, and have been pre-approved for all these options. I just can't decide what's best for me right now:
1) Go through MECU with a conventional mortgage, which is what most of my teacher colleagues have done. The huge benefit from this, for us teachers, is it is the only one that allows for direct payment from paychecks over 10 months (since we don't, and can't, get paid in the summers). This would be especially important this year, because I'm going to be blowing all of my summer savings on a house. The interest rate is 5.0% right now, and requires 5% down. For me, this would be about $6250. The closing costs are on top of this. There is help available for some of them, and I think (and am going to try) to get the organization selling selling the house to me to weave their deal so they're helping me with them, but that would increase the amount I need to put down as well. The problem is, I only have around $4000 saved right now, and my $2300 tax refund (which was set to be direct-deposited by Tuesday) has been held up; I just found out today that I did not complete my 2004 taxes. I have no idea how it happened, but I did them on EasyTaxCut that year and they must not have sent. I just did them again tonight (the gov't owes me $28) and mailed them in, so hopefully the hold is lifted ASAP, and that gives me enough money, or close to it. This mortgage is the ideal mortgage for me if I can swing the downpayment, mostly for the 10-month thing, and I've considered borrowing off my 403-B (against the advice of Suze Orman) to make that downpayment. However, because it's a conventional mortgage, I don't think you're allowed to borrow off of retirement for that, but I'm not positive; the kind woman listed all these things that conventional loans do not allow (gifts from others was one), and I can't remember if that's one of them or not. The monthly cost for me for this mortgage is not different than the next one at all ($20 or something like that) between 5.0% and 5.5% rates, because my mediocre credit makes the PMI a much higher percentage with a conventional loan than with an FHA loan, where it is fixed.
2) Go through MECU and get an FHA loan for 5.5%. It would require 3.5% down and I 'd still be responsible for all closing costs, which, as you know, can be more than $10K. I need to figure out how much St. Ambrose is willing to pay. As aforementioned, the monthly cost difference is negiglible, but they can't take directly from my paycheck and there doesn't seem to be much help with closing costs available.
3) Go through First Mariner and get a CDA loan for 5.75% and 1 point. There are two state programs through CDA that match Baltimore City grant, plus another grant worth $2500 through the state and CDA, so that the overall grants and forgiveable loans are $11500 for closing costs. The interest rates are usually below market but the market rates are so good right now so they're not. This would require hardly any cost out of my pocket at all.
So, I need to figure that out over the weekend and then make an offer. I also need to figure out how much help with closing costs I'm going to get.
Sunday, February 15, 2009
St. Ambrose and the $10,000 Grant
St. Ambrose seems like one of Baltimore's best organizations for housing people. I spoke with a housing counselor from there last week, and not only was she very kind, but she also was very knowledgeable and helped me out a lot. One of their functions is rehabbing homes and selling them, and one of their goals is getting teachers, police officers, firefighters, and EMTs in these homes. They give us first dibs, at least.
So, it's pretty strange to me that the organization advertises a $10,000 off principle deal (to cite one of the houses on my "top 5" list right now)on the houses it's selling, but that I don't qualify because - with my teacher salary, as a single guy - I make too much to qualify. It's only by a little over a thousand bucks, meaning if I cut out coaching or a summer program I would have qualified. It's a bummer, and it kind of sucks and seems to run counter to some of the goals of the program. Probably not the fault of the organization, as it's a grant that might have specific, above-the-organization rules it might have to follow.
I sent them an email over the weekend that sort of outlined some of my concerns and excitements about their properties regarding this issue, and I look forward to seeing how they reply next week.
So, it's pretty strange to me that the organization advertises a $10,000 off principle deal (to cite one of the houses on my "top 5" list right now)on the houses it's selling, but that I don't qualify because - with my teacher salary, as a single guy - I make too much to qualify. It's only by a little over a thousand bucks, meaning if I cut out coaching or a summer program I would have qualified. It's a bummer, and it kind of sucks and seems to run counter to some of the goals of the program. Probably not the fault of the organization, as it's a grant that might have specific, above-the-organization rules it might have to follow.
I sent them an email over the weekend that sort of outlined some of my concerns and excitements about their properties regarding this issue, and I look forward to seeing how they reply next week.
Saturday, February 14, 2009
Dilemmas
I'm at dilemma stage, and have narrowed down the type of home I want to buy to three types.
Type 1: A rehab in Bel-Air/Edison: I've found several nice rehabs in the Bel-Air/Edison area that I really like. Many have all new appliances and look really, really nice. They are generally two bedrooms, which is a little small (it would prevent a roommate, as I like to have an office), but, let's face it, it's big enough for a single guy. They all have a yard and they all are in quiet neighborhoods; in fact, it's the same neighborhood I live in now. I have found about five that I would love to live in, and they range in price from $124-$139. My favorite is the cheapest, on Raymonn Ave, and it's my favorite because of this great sun porch in the back that overlooks a field. I can definitely see living there
Type 2: An old fixer-upper in Lauraville: I've also seen several big, distinctive, and old houses in the Lauraville area. Most of them seem decorated by people who thought wood paneling was really cool, even on the main level, and who loved the tackiest kind of wallpaper imaginable. But they have potential to be really cool houses, and probably equal potential to be money pits. They're too big for me, for the most part, but I like them. All the ones in my price range need a lot of work.
Both Lauraville and Bel-Air/Edison are the same to me. I guess that Lauraville is probably a better place for resale value - maybe - but they're both places for families. I'm fine with that, but there's not much of a city living feel to it. Still, both are about ten minutes from everything I'd want to get to.
Type 3: A house in Ednor Gardens: I've also been looking in Ednor Gardens. I like this area a lot, but everyone who is selling a house there is pretty flaky. I looked at a nice place on Yolonda today, but it was $139,900, and, while that's in my price range, it had quite a bit of work to do. It's hard to justify buying that place, which would probably take $20,000 of work to make liveable, when there are places for $120,000 that are much nicer in Bel-Air/Edison. I know... location, location, location. But it's not like Ednor Gardens is a hip place where you can walk to places. Not really, at least.
All of the other houses in Ednor Gardens are similar, so far. They seem overpriced or have too many issues. I saw a really great rehab on 35th Street, but the neighbors were sloppy and the house had some design issues; plus, it was the most expensive house I've looked at yet ($149,900). I saw a great rehab on Melville that I could definitely see myself living in, but its price ($140K) seemed high for the block (which wasn't as nice as the blocks in Bel-Air/Edison). I think I'd have the most expensive house on the block, which is an issue, too, of course. There are a bunch of houses for sale on Melville right now, but every other one seems to have flaky owners or real estate agents.
The Wild Card: Today, sort of on a whim, I visited a house at 26th and Guilford. It was a rehab where the owner ran out of money in the middle of it. It was beautiful. But it also had no furnace, no kitchen, and no toilets. It seems like all the plumbing was complete, and all the electricity, and the floors and walls looked great. Spacious, with a little yard. A lot of the houses on the block are valued at over $200K, and this was $129K. I could probably offer $110K or so, and put $30K in and have a beautiful place. That's a different type of mortgage, though, and I'm thinking I have to re-think my first type of mortgage anyway (my housing counselor says to get a CDA mortgage, and MECU does not offer one). Anyhow, this house is definitely "city living," in a way that I would imagine it.
So, in other words, I have no idea, and my epic indecisiveness is rearing its ugly head. It's alright, though; I'm thinking hard and I think and hope I'll be ready to start making offers by the end of next week.
Throwing additional wrenches into the whole deal is the stimulus package, which seems to give first-time homebuyers a huge tax credit for this year, but I can't quite confirm whether I should wait until April 8th or not, which is another rumor I've heard (that the program starts on 4/8).
Type 1: A rehab in Bel-Air/Edison: I've found several nice rehabs in the Bel-Air/Edison area that I really like. Many have all new appliances and look really, really nice. They are generally two bedrooms, which is a little small (it would prevent a roommate, as I like to have an office), but, let's face it, it's big enough for a single guy. They all have a yard and they all are in quiet neighborhoods; in fact, it's the same neighborhood I live in now. I have found about five that I would love to live in, and they range in price from $124-$139. My favorite is the cheapest, on Raymonn Ave, and it's my favorite because of this great sun porch in the back that overlooks a field. I can definitely see living there
Type 2: An old fixer-upper in Lauraville: I've also seen several big, distinctive, and old houses in the Lauraville area. Most of them seem decorated by people who thought wood paneling was really cool, even on the main level, and who loved the tackiest kind of wallpaper imaginable. But they have potential to be really cool houses, and probably equal potential to be money pits. They're too big for me, for the most part, but I like them. All the ones in my price range need a lot of work.
Both Lauraville and Bel-Air/Edison are the same to me. I guess that Lauraville is probably a better place for resale value - maybe - but they're both places for families. I'm fine with that, but there's not much of a city living feel to it. Still, both are about ten minutes from everything I'd want to get to.
Type 3: A house in Ednor Gardens: I've also been looking in Ednor Gardens. I like this area a lot, but everyone who is selling a house there is pretty flaky. I looked at a nice place on Yolonda today, but it was $139,900, and, while that's in my price range, it had quite a bit of work to do. It's hard to justify buying that place, which would probably take $20,000 of work to make liveable, when there are places for $120,000 that are much nicer in Bel-Air/Edison. I know... location, location, location. But it's not like Ednor Gardens is a hip place where you can walk to places. Not really, at least.
All of the other houses in Ednor Gardens are similar, so far. They seem overpriced or have too many issues. I saw a really great rehab on 35th Street, but the neighbors were sloppy and the house had some design issues; plus, it was the most expensive house I've looked at yet ($149,900). I saw a great rehab on Melville that I could definitely see myself living in, but its price ($140K) seemed high for the block (which wasn't as nice as the blocks in Bel-Air/Edison). I think I'd have the most expensive house on the block, which is an issue, too, of course. There are a bunch of houses for sale on Melville right now, but every other one seems to have flaky owners or real estate agents.
The Wild Card: Today, sort of on a whim, I visited a house at 26th and Guilford. It was a rehab where the owner ran out of money in the middle of it. It was beautiful. But it also had no furnace, no kitchen, and no toilets. It seems like all the plumbing was complete, and all the electricity, and the floors and walls looked great. Spacious, with a little yard. A lot of the houses on the block are valued at over $200K, and this was $129K. I could probably offer $110K or so, and put $30K in and have a beautiful place. That's a different type of mortgage, though, and I'm thinking I have to re-think my first type of mortgage anyway (my housing counselor says to get a CDA mortgage, and MECU does not offer one). Anyhow, this house is definitely "city living," in a way that I would imagine it.
So, in other words, I have no idea, and my epic indecisiveness is rearing its ugly head. It's alright, though; I'm thinking hard and I think and hope I'll be ready to start making offers by the end of next week.
Throwing additional wrenches into the whole deal is the stimulus package, which seems to give first-time homebuyers a huge tax credit for this year, but I can't quite confirm whether I should wait until April 8th or not, which is another rumor I've heard (that the program starts on 4/8).
Sunday, February 08, 2009
The dying of the Teacher Next Door program in Baltimore?
For years, I have thought about buying a HUD home through the Teacher-Next-Door Program. I've had the site with the homes on it bookmarked for years, and, over the last several months, I have been checking it out more and more. See, a lot of my friends bought homes in the program, in areas as eclectic as Federal Hill, Bel-Air/Edison, and Lauraville. The thing is, the pickings these days are worse than sparse. I mean, check it out. There are two houses there, located in the worst parts of the city; one house is $26K, and one house is $19K. Regular price. Getting them for half would be barely anything. But what teacher is going to fix up a house in a horrible part of the city, and a house that is in such poor shape that it's the price of a car?
We can look at the full HUD website for MD, too, and I found a house I liked, at 5100 Walther Ave.. (The house was listed on the HUD website as being on Walther Boulevard, which is a different street altogether, all the way up by White Marsh, and doesn't appear on Google Maps. A friend left a comment for me the other day about the house, though, and I figured out that it was actually Walther Avenue, so I decided to look closer then.) The house was originally listed on the HUD website for $109K, and was recently decreased to $99K. So obviously they are having a hard time selling it. After reading the HUD report (it needs quite a bit of work, as all HUD homes do, but it looked do-able and liveable immediately), I checked it out today; I walked around the yard, looked in the windows. I got excited. If I could get this house for 50% off through the Teacher-Next-Door program, and spend a few years putting my sweat into fixing the house up, I might be able to make a nice profit off of it in a few years time. The kind of profit that might help me pay off student loans and put me in very nice financial shape. Bonus points that the house looked nice, had a nice yard, and is a decent part of the city (though the road, which I used to live on as well, is a little too busy for my liking... I would have dealt with it). I got excited about how I would do this, and emailed a friend who knows the TND program well.
Unfortunately, he informed me that because the house is currently set up as a double unit (that's what the HUD website says; other websites for it call it a single unit), that it is not eligible for the Teacher-Next-Door program. Well, isn't that nice? I would have totally bought it, and fixed it up real nice, and been the "good neighbor" that the program touts that it wants.
My realtor tells me that the program has been pretty bad for a year or two, and he thinks that, overall, the program might be struggling financially. He says a lot fewer are taking advantage of it than before. I guess the HUD Teacher-Next-Door program is kind of dying, at least here in Baltimore - and that's pretty strange, considering the increase of foreclosed homes and the flooded market. Anybody have any answers?
So it's back to the basics. I'll probably be getting a house that is already pretty well rehabbed, because, well, it just doesn't make as much financial sense unless I can get a house for a really good deal, which I doubt will happen. There are a lot of possibilities (I really like a St. Ambrose house I looked at), and, since I'm not picky, the choosing of the house will not be a problem. It's just the mortgage I'm still uncertain about, but I have appointments with housing counselors and that should clear some of that up.
We can look at the full HUD website for MD, too, and I found a house I liked, at 5100 Walther Ave.. (The house was listed on the HUD website as being on Walther Boulevard, which is a different street altogether, all the way up by White Marsh, and doesn't appear on Google Maps. A friend left a comment for me the other day about the house, though, and I figured out that it was actually Walther Avenue, so I decided to look closer then.) The house was originally listed on the HUD website for $109K, and was recently decreased to $99K. So obviously they are having a hard time selling it. After reading the HUD report (it needs quite a bit of work, as all HUD homes do, but it looked do-able and liveable immediately), I checked it out today; I walked around the yard, looked in the windows. I got excited. If I could get this house for 50% off through the Teacher-Next-Door program, and spend a few years putting my sweat into fixing the house up, I might be able to make a nice profit off of it in a few years time. The kind of profit that might help me pay off student loans and put me in very nice financial shape. Bonus points that the house looked nice, had a nice yard, and is a decent part of the city (though the road, which I used to live on as well, is a little too busy for my liking... I would have dealt with it). I got excited about how I would do this, and emailed a friend who knows the TND program well.
Unfortunately, he informed me that because the house is currently set up as a double unit (that's what the HUD website says; other websites for it call it a single unit), that it is not eligible for the Teacher-Next-Door program. Well, isn't that nice? I would have totally bought it, and fixed it up real nice, and been the "good neighbor" that the program touts that it wants.
My realtor tells me that the program has been pretty bad for a year or two, and he thinks that, overall, the program might be struggling financially. He says a lot fewer are taking advantage of it than before. I guess the HUD Teacher-Next-Door program is kind of dying, at least here in Baltimore - and that's pretty strange, considering the increase of foreclosed homes and the flooded market. Anybody have any answers?
So it's back to the basics. I'll probably be getting a house that is already pretty well rehabbed, because, well, it just doesn't make as much financial sense unless I can get a house for a really good deal, which I doubt will happen. There are a lot of possibilities (I really like a St. Ambrose house I looked at), and, since I'm not picky, the choosing of the house will not be a problem. It's just the mortgage I'm still uncertain about, but I have appointments with housing counselors and that should clear some of that up.
Thursday, February 05, 2009
Shopping around
I spent Wednesday afternoon going out around Ednor Gardens, Bel-Air/Edison, and Better Waverly, looking at houses. I looked at ten, and got some good ideas about what I want. I saw some that were beautifully rehabbed, at around $139,000 in both cases. I saw one that was beautifully rehabbed and on possibly a bad block, because it was only $104K. And it was sort of an old woman house. I saw some that will need way too much work than I can afford or do, but that had great character.
I sort of fell in love with the last house we saw. It was rehabbed by a local organization that tries to sell homes to teachers, fire fighters, and police officers. You're supposed to live there for 1-3 years, and the buyer is eligible for a $10,000 deducation on the principle if they do. It's also $139K, which is just a little bit more than I want to pay. I've heard that you should offer 20% below list price in this market, and that would definitely be in my price range, but I'm uncertain if this non-profit community organization takes deals (the home is already offered below market value).
The holdup now is the downpayment. I've had a hard time securing my W2 from my second job. It was apparently sent to my old address, and it was not forwarded to me. I went in there last night to get a copy of it, but the boss had left it out for me, but had accidentally ripped it up into a million pieces. We dug through the trash and tried to piece it together, but were unsuccessful; he's waiting for another copy to be faxed to him from the company that handles payroll. Pretty annoying. I'm expecting a big tax refund this year, big enough to handle the difference between my current savings and 3.5% downpayment.
I'm also looking into FHA mortgages, and am looking forward to speaking with a Housing Counselor in the next couple of days. I just found out that you could talk to one before the actual class (the Live Baltimore website suggests that it's the other way around, so I was waiting for the class, which I couldn't get into until Feb. 21), so I'm going to start calling around tomorrow.
It's a whirlwind. I also haven't slept more than 4 hours in any night this week, as stress and a respiratory infection with legs and a lack of excercise over the last two days all seem to be whirling around and keeping me awake. I'll try tonight.
I sort of fell in love with the last house we saw. It was rehabbed by a local organization that tries to sell homes to teachers, fire fighters, and police officers. You're supposed to live there for 1-3 years, and the buyer is eligible for a $10,000 deducation on the principle if they do. It's also $139K, which is just a little bit more than I want to pay. I've heard that you should offer 20% below list price in this market, and that would definitely be in my price range, but I'm uncertain if this non-profit community organization takes deals (the home is already offered below market value).
The holdup now is the downpayment. I've had a hard time securing my W2 from my second job. It was apparently sent to my old address, and it was not forwarded to me. I went in there last night to get a copy of it, but the boss had left it out for me, but had accidentally ripped it up into a million pieces. We dug through the trash and tried to piece it together, but were unsuccessful; he's waiting for another copy to be faxed to him from the company that handles payroll. Pretty annoying. I'm expecting a big tax refund this year, big enough to handle the difference between my current savings and 3.5% downpayment.
I'm also looking into FHA mortgages, and am looking forward to speaking with a Housing Counselor in the next couple of days. I just found out that you could talk to one before the actual class (the Live Baltimore website suggests that it's the other way around, so I was waiting for the class, which I couldn't get into until Feb. 21), so I'm going to start calling around tomorrow.
It's a whirlwind. I also haven't slept more than 4 hours in any night this week, as stress and a respiratory infection with legs and a lack of excercise over the last two days all seem to be whirling around and keeping me awake. I'll try tonight.
Monday, February 02, 2009
Stress increasing
So now I'm getting stressed and confused:
1. I really want the Baltimore City $3000 forgiveable loan for city employees, but you have to go to a class first. The classes are only offered sporadically, and I have no real idea what to do once I take the class. I did register for a class that specializes in SW Baltimore. I don't want to live in SW Baltimore, but at least I'm getting the class taken care of. I have heard that getting this grant is difficult and often it comes at the very, very last minute.
2. What is an FHA loan? Why don't I just get that? I looked around online and applied for one, but it seemed random and I'm expecting it just to result in junk mail in my email box. So far, I'm going through MECU because (a) I want the mortgage to come directly from my paycheck, knowing that my paycheck only comes for ten months (this is big); (b) they pre-approved me for $150,000 and she said nice things about my credit; and (c) most of my teacher friends have gotten it from MECU. However, I'm worried that all my friends are in better shape financially than me and had more for a downpayment. The 3.5% down payment will eliminate all of my savings for the summer. I should be able to save enough before the end of May to replenish, but it will be a struggle. The unpaid months of July and August will be very stressful, unless I can find great 6-week work somewhere.
3. I haven't got my W2 from the restaurant yet, so I can't do my taxes yet. I'm counting on a big return on my taxes this year in order to have 3.5% for a down payment.
4. I met a realtor on Saturday. He emailed me back. I called the number on a sign of a house I really want, and this other agent responded. I've also gotten two really good recommendations. I'm not really sure what "having" a realtor means. When do you know if you have a realtor? I don't want to tease these people. I want someone who is an expert at the Healthy Neighborhoods Program, as well as for the areas in which I want to buy. I want someone who will tell me about any Teacher Next Door homes that have snuck under my radar. I also want someone who will really help me navigate all these incentives. People are telling me things and I'm following up as best I can, but it's all too much for my don't-sweat-the-small-stuff brain. Does a realtor even help with this stuff? I might just need a life coach.
I'm also feeling terribly. I haven't been this sick in a while. Today, I almost took a sick day, and probably would have if it were such a huge week for our school.
1. I really want the Baltimore City $3000 forgiveable loan for city employees, but you have to go to a class first. The classes are only offered sporadically, and I have no real idea what to do once I take the class. I did register for a class that specializes in SW Baltimore. I don't want to live in SW Baltimore, but at least I'm getting the class taken care of. I have heard that getting this grant is difficult and often it comes at the very, very last minute.
2. What is an FHA loan? Why don't I just get that? I looked around online and applied for one, but it seemed random and I'm expecting it just to result in junk mail in my email box. So far, I'm going through MECU because (a) I want the mortgage to come directly from my paycheck, knowing that my paycheck only comes for ten months (this is big); (b) they pre-approved me for $150,000 and she said nice things about my credit; and (c) most of my teacher friends have gotten it from MECU. However, I'm worried that all my friends are in better shape financially than me and had more for a downpayment. The 3.5% down payment will eliminate all of my savings for the summer. I should be able to save enough before the end of May to replenish, but it will be a struggle. The unpaid months of July and August will be very stressful, unless I can find great 6-week work somewhere.
3. I haven't got my W2 from the restaurant yet, so I can't do my taxes yet. I'm counting on a big return on my taxes this year in order to have 3.5% for a down payment.
4. I met a realtor on Saturday. He emailed me back. I called the number on a sign of a house I really want, and this other agent responded. I've also gotten two really good recommendations. I'm not really sure what "having" a realtor means. When do you know if you have a realtor? I don't want to tease these people. I want someone who is an expert at the Healthy Neighborhoods Program, as well as for the areas in which I want to buy. I want someone who will tell me about any Teacher Next Door homes that have snuck under my radar. I also want someone who will really help me navigate all these incentives. People are telling me things and I'm following up as best I can, but it's all too much for my don't-sweat-the-small-stuff brain. Does a realtor even help with this stuff? I might just need a life coach.
I'm also feeling terribly. I haven't been this sick in a while. Today, I almost took a sick day, and probably would have if it were such a huge week for our school.
Sunday, February 01, 2009
Day 2 of home shopping
Day two of the Housing Hunt involved meeting with a representative from Live Baltimore and learning more about all the incentives offered by the city. They have an excellent website and I went in knowing all the questions I would ask. The helpful associate there answered all my questions and helped me understand a few of the nuances about incentive programs, like the one for city employees and the one for Healthy Neighborhoods. This is good, because I'm going to have to scrape to make 3.5% down (which will include my tax refund), and closing costs will be nearly impossible; however, she stated that hardly any buyers are paying closing costs these days because sellers are so motivated and usually pay the costs for them. It will be a necessity for me, if this is to happen (either that, or I have to find a different mortgage program, which is also a possibility, especially if I decide to do a Healthy Neighborhoods home).
I also met with a realtor, this guy, and he seems nice and has already followed up a couple times this evening on a Saturday night. I've spent a lot of time looking at properties online, plus did some driving around today, and have already really got my online eye on one place in particular, a $110,000 place with 4 bedrooms and a sunroom behind the Stadium Place YMCA. I've actually "favorited" about ten houses, and hopefully will start to tour them in the next few days.
I'm still fighting off this nasty respiratory virus, so I haven't done much else. Still, I'm feeling decent about things. People have been giving me advice like crazy, and I really, really wish I had six months instead of two, but, hey, you can't always get what you want.
I do worry - my car could die in one month instead of one year, putting another huge purchase on my plate - but I've spent five years worrying too much and hemming and hawing too much. It's time.
I also met with a realtor, this guy, and he seems nice and has already followed up a couple times this evening on a Saturday night. I've spent a lot of time looking at properties online, plus did some driving around today, and have already really got my online eye on one place in particular, a $110,000 place with 4 bedrooms and a sunroom behind the Stadium Place YMCA. I've actually "favorited" about ten houses, and hopefully will start to tour them in the next few days.
I'm still fighting off this nasty respiratory virus, so I haven't done much else. Still, I'm feeling decent about things. People have been giving me advice like crazy, and I really, really wish I had six months instead of two, but, hey, you can't always get what you want.
I do worry - my car could die in one month instead of one year, putting another huge purchase on my plate - but I've spent five years worrying too much and hemming and hawing too much. It's time.
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