Kevin Kleifges
June 2021
Helping people find their Dream Homes

FHA, VA or USDA: Which One Is Better?
There are two basic types of mortgage loan programs, conventional and government-backed. A conventional loan is one where the issuing lender assumes the risk of making the mortgage. Should the loan ever go into default and the lender is forced to foreclose, the lender is on the hook for the entire loss. There is in fact private mortgage insurance used for low down payment conventional loans, but the insurance policy only covers the difference between 80% of the value of the property and the actual down payment. With a 5% down payment, 15% of the loan amount will be covered.
      Not so with government-backed loans. These loans are FHA, VA and USDA. So, given these three choices which one
Mortgage Rates
U.S. averages as of June 2021:

30 yr. fixed: 2.95%
15 yr. fixed: 2.27%
5/1 yr. adj: 2.59%

one is best? The answer is each one is best given the proper scenario. Let’s look at the first choice, the FHA loan. This is a program from the Federal Housing Administration. It’s highly
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How to Get Ready for an Open House as a Seller
     For the past year, open houses weren’t really happening throughout most of the country because of the pandemic. Now that vaccines are available and slowly, the country is starting to return to a sense of normalcy, there may be an uptick in open houses.
      These events might look a little different. For example, there might be fewer people and more social distancing, but regardless, the concept is the same.
      As a seller, you want your home to look beautiful and appealing to possible buyers. So what can you do to make your home stand out?
      Talk to Your Real Estate Agent Your best source of information as far as what you need to do to make your home picture-perfect will come from your

What to Know About Selling a Home to a Family Member
     It’s not uncommon to want to sell a home to a family member, but it can become a tricky situation. You have to be mindful of not only the personal elements that can come with doing this type of transaction with a relative, but the IRS may also scrutinize the transaction if you don’t avoid certain red flags.
      It’s perfectly legal to sell a home to a family member as long as you’re not just doing it to avoid taxes. If you’re selling the home at a very discounted rate, you might have to pay an estate and gift tax, but beyond that, it’s just like any other real estate transaction.
      Owner-Financed One option if you’re selling your home to your child, for example, is to do an owner-financed sale. Then, your family member would make payments to you instead of a bank. However, you need to legally arrange it so that if your relative defaults, the home goes back to you automatically and you can then sell

Buying a Home Right Now: Easy? No. Smart? Yes.

Through all the volatility in the economy right now, some have put their search for a home on hold, yet others have not. According to ShowingTime, the real estate industry’s leading showing management technology provider, buyers have started to reappear over the last several weeks. In the latest report, they revealed:

“The March ShowingTime Showing Index® recorded the first nationwide drop in showing traffic in eight months as communities responded to COVID-19. Early April data show signs of an upswing, however.”

Why would people be setting appointments to look at prospective homes when the process of purchasing a home has become more difficult with shelter-in-place orders throughout the country?

Here are three reasons for this uptick in activity:

1. Some people need to move. Whether because of a death in the family, a new birth, divorce, financial hardship, or a job transfer, some families need to make a move as quickly as possible.

2. Real estate agents across the country have become very innovative, utilizing technology that allows purchasers to virtually:

  • View homes
  • Meet with mortgage professionals
  • Consult with their agent throughout the process

All of this can happen within the required safety protocols, so real estate professionals are continuing to help families make important moves.

3. Buyers understand that mortgage rates are a key component when determining their monthly mortgage payments.

Mortgage interest rates are very close to all-time lows and afford today’s purchaser the opportunity to save tens of thousands of dollars over the lifetime of the loan.

Looking closely at the third reason, we can see that there’s a big difference between purchasing a house last year and purchasing one now   

Rates today on average are 3.33% versus 3.94% one year ago.  On a 200K loan, you will save $25,000 over the life of the loan! 50K on a 400K loan not to mention the lower monthly payments!

Bottom Line

Many families have decided not to postpone their plans to purchase a home, even in these difficult times.

If you need to make a move, reach out to me today at 703-346-3783. I am a trusted and experienced real estate advisor that will safely and professionally guide you through the process


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Read about the events shaping the Real Estate market today, find current interest rates, or browse the extensive library of advice and how-to articles written by some of the top experts in Real Estate. Updated each weekday.
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Kevin Kleifges, REALTOR
Coldwell Banker
1900 Baton Drive
Vienna VA 22182

Equal Housing Opportunity

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