As inventory continues to mount in Ocean County, Crossroads agents are working in cooperation with our in-house mortgage company to propose options for seller assisted financing to make homes available to more buyers.
Several mortgage products accept seller concessions of up to 5% to assist buyers with closing costs. This enables a buyer to purchase with less , or in some cases no, cash outlay. Our in-house mortgage company, Home Capital Network also offers a buy down program which lets the buyer pay reduced interest rates for the first few years. Paid by the seller, these by-down options are especially useful for buyers who anticipate increased earnings in the near future, such as contractual wage increases for teachers, policemen and others. One problem that recurs is when sellers need to move and have only owned their home for 12-18 months.
The market began to flatten out in August 2005, so very little appreciation has accrued, in most cases not enough to cover sales expenses of realty commission, transfer tax (NJ mandatory seller expense), attorney fees, etc. Any seller in such a situation who has an FHA loan should know that this mortgage is assumable by the buyer. FHA rates have been very low (6%-/+ 2004, 5%-/+ 2005). With interest rates at 7%-/+ now, an assumable FHA loan can save interest costs each month, giving the buyer more spending power.
Our commitment to our clients drives us to rediscover new ways to bring buyers and sellers together.
Several mortgage products accept seller concessions of up to 5% to assist buyers with closing costs. This enables a buyer to purchase with less , or in some cases no, cash outlay. Our in-house mortgage company, Home Capital Network also offers a buy down program which lets the buyer pay reduced interest rates for the first few years. Paid by the seller, these by-down options are especially useful for buyers who anticipate increased earnings in the near future, such as contractual wage increases for teachers, policemen and others. One problem that recurs is when sellers need to move and have only owned their home for 12-18 months.
The market began to flatten out in August 2005, so very little appreciation has accrued, in most cases not enough to cover sales expenses of realty commission, transfer tax (NJ mandatory seller expense), attorney fees, etc. Any seller in such a situation who has an FHA loan should know that this mortgage is assumable by the buyer. FHA rates have been very low (6%-/+ 2004, 5%-/+ 2005). With interest rates at 7%-/+ now, an assumable FHA loan can save interest costs each month, giving the buyer more spending power.
Our commitment to our clients drives us to rediscover new ways to bring buyers and sellers together.
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