By: Mike Kennedy mkennedy@railey.com 301-616-6106 February 12th, 2010 Category: Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News

Due to last weekend’s winter storm, the Garrett County Planning Commission has rescheduled their public hearing concerning revisions to three principal land development ordinances. The new date and time of the hearing is Saturday, March 6, 2010, at 10 am to be held in the auditorium of Garrett College. If inclement weather forces the cancellation of this hearing the make-up date will be March 11, 2010.

The proposed revisions would affect the following ordinances;

• Deep Creek Watershed Zoning Ordinance
• Garrett County Subdivision Ordinance
• Garrett County Sensitive Areas Ordinance

An in-depth look at these revisions and how they may affect Deep Creek Lake and Garrett County real estate can be found in this previous post. As always, we strongly urge you to become familiar with these changes, ask questions, and register your comments.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 February 9th, 2010 Category: Deep Creek Lake Buyer Info, Garrett County Real Estate, Obtaining a Mortgage

Jerry Merrick, of BB&T Mortgage, has provided these guidelines about the current requirements of mortgage loans in the Deep Creek Lake and Garrett County Maryland areas.

Second & Vacation Home Loans

A second home by definition is located in a resort area and farther than 60 miles from the borrower’s primary residence. There are some exceptions but this is done on a case by case basis.

Conforming mortgage loan limits for second homes at Deep Creek Lake and in Garrett County are $417,000 and below - which is the same as primary residences. Typically borrowers will pay 0 points on a conforming loan with acceptable credit scores. Any loan over $417,000 is considered to be a jumbo loan.

Interest Rates for second homes under $417,000 are the same as those for a primary residence, there are no differences. These rates are currently in the high 4% to low 5% range which are historical lows! Rates for second home loans over $417,000 are typically 1% higher.

The down payment requirement for second homes with loan amounts under $650,000 are currently at 20%. The down payment and credit score requirements change as the loan amount increases over $650,000. For any loan amount between $650,000 - $1,000,000 the down payment increases to 25% and the minimum credit score required is 740. Any loan amounts between $1,000,000 - $2,000,000 the down payment requirement increases to 35% and the minimum credit score required remains at 740. There are no private mortgage insurance companies approving second homes at this time. This is why the down payment requirement for a second home is currently at 20% and more. This is expected to change as time progresses and guidelines loosen up a bit. At some point in the future lenders will return to a 10% down payment option for second homes.

Investment Properties

Most of the full time vacation rental homes at Deep Creek Lake are considered to be investment properties. Depending on how many days you personally use the property and how you treat it on your tax return will also determine whether the property is to be treated as a second home or investment property.

The same loan limits apply to investment properties as the primary and second homes - $417,000 and below are conforming and loan amounts above $417,000 are considered to be a jumbo loan.

Interest rates for investment property loans at Deep Creek Lake less than $417,000 are the same as primary residences and second homes and typically 1% higher for loans greater than $417,000. The crucial difference is that the point structure is exponentially higher. The minimum point structure for both conforming and jumbo investment property loans is 1.75 points regardless of credit score and down payment.

The down payment requirement for a conforming investment property loan is 25% and the minimum credit score is 720. If the borrower’s down payment is more than 25% then the minimum credit score requirement is reduced to 620. The down payment requirement increases to 35% with a 740 minimum credit score for investment property loan greater than $417,000. The maximum financing for a jumbo investment property is $1,000,000.

Rental income for a new purchase can not be used in qualifying for an investment loan! You must be able to qualify based on your current income and wages - not the existing income of the vacation rental. On a slightly related note - a rental property that has a two year history of rental income can be used on a refinance transaction.

Primary Residences

As with second homes and investment properties, the conforming loan limits for a primary residence in Garrett County is $417,000. Any loan for a primary residence greater than $417,000 is a jumbo loan.

Conforming fixed interest rates are usually priced 1 % less than jumbo fixed rates. These rates have recently been bouncing between the high 4% to low 5% range. This may end up being a once in a lifetime opportunity to lock in an interest rate this low! Also, borrowers  typically pay 0 points based on credit scores.

Down payments for a primary residence vary based on the borrower’s qualifications such as credit score and debt to income ratio. A borrower with a 680 credit score and a debt to income ratio of less than 41% can borrower 95% of the purchase price with private mortgage insurance. For loans greater than $417,000 the minimum down payment on a primary residence purchase is 20% because there are no private mortgage insurance companies available to insure these loans. The minimum credit score required increases to 700 on these jumbo loan but the borrowers still typically pay 0 points depending upon credit score.

Right now the CHIPS loan is by far the best available program for principal residence home buyers in Garrett County or people looking to relocate to this area. The CHIPS loan will allow 100% financing with a maximum borrower investment of $500 plus 2 months reserves of principal, interest, taxes and insurance. The borrower can not own any other real estate at the time of application. The minimum credit score for 100% financing is 660 with a maximum debt to income ratio of 41%. CHIPS will work for any property not located in census tract 5 (Deep Creek Residential). There are no income limits, so if a high net worth person is purchasing a primary residence and is looking for 100% financing this program could work. Sellers can pay all closing costs and all funds with the exception of $500.00 which can be a gift from a family member.

As you can see there are many products and options available to consumers today. Now more than ever it is important to choose a lender who is experienced and knowledgeable to help you with an advice. For more information about these loan guidelines or to get pre-qualified call Jerry at (301)387-3219 or email him at JMerrick@BBandT.com.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 January 8th, 2010 Category: Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News

The county has released its latest revisions to the Deep Creek Watershed Zoning Ordinance, the Garrett County Subdivision Ordinance, and the Sensitive Areas Ordinance. There has been a lot of language deleted and changes made from the original proposals that were previously released in the fall of 2009. A summary of the major issues are listed below;

Scenic Protection Overlay Districts

• There is a significant reduction in the size of the Overlay Districts according to the county’s most recent map.
• The current revision applies only on ridges and crests - deleting language referring to slopes and hilltops.
• Applies only in areas where houses create a silhouette on the skyline when viewed from Deep Creek Lake or the shoreline.
• Trees must now be retained or planted on the sides and rear of the house or improvement.
• No trees are required to be planted or retained between the house and the lake.
• If mature trees can be retained on the sides and rear of the structure then no planting is required.

Basically, this new ordinance will now require lot owners in these areas to either plant or retain trees on the sides and rear of the house when built - but not in front of the house - essentially creating a “framing” effect around the entire structure when looking at the house from the lake. The belief is this “framing” effect will help protect some of the scenic quality and character around Deep Creek. However, please note there will probably be no grandfathering in regards to this issue. So if you already own a lot in one of these districts and have yet to build a house - you will be required to plant or retain trees as specified above. The county will enforce these standards as part of the building permit process. So in order to get your final Use and Occupancy permit you will need to demonstrate that you have adhered to these standards.

Agricultural & Rural Resource Parcels

The revised map of the Deep Creek Watershed Zoning District reveals that the county has re-classified some of the parcels near the Dam from AR (Agricultural Resource) and RR (Rural Resource) to LR2 (Lake Residential 2). The current revisions also relax the AR/RR standards for subdividing property and basically provide for either a clustering or non-clustering option. Mandatory clustering and the creation of a resource parcel is NOT required. The 3 options to subdivide AR/RR parcels are as follows;

1. Subdivide with 3 acre minimum lot a size (which is the current standard).
2. For parcels 20 acres or less - or if transferring to children or grandchildren - 1 acre minimum lot sizes are now permitted.
3. There will be an incentive for property owners who choose to do a cluster subdivision. The incentive will be a bonus density of 1 dwelling unit per 2 acres with no minimum lot size, 50% open space required.

The county has also revised the zoning ordinance language dealing with commercial architectural standards, removing the “commercial uses” language making the standards applicable to all non-residential structures - meaning public, institutional, and educational facilities will also have to adhere to these architectural standards which will call for a mandatory Planning Commission review. Other revisions address subdivision along scenic highways, setbacks for the drilling of natural gas, and development on steep slopes.

The Planning Commission has scheduled a public hearing on these proposed changes for Saturday morning, February 6^th, 2010 at 10:00 am in the auditorium of Garrett College. The comment period for the public will probably be open for 30 days thereafter. So even if you can’t attend this hearing you will have the ability to register your comments.

Overall, these changes are a significant departure from the last set of proposals released by the county. However, these changes will have an impact on real estate at Deep Creek Lake and in Garrett County - so as always we urge you to register your comments, ask questions, and familiarize yourself with these proposals.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 December 2nd, 2009 Category: Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News

The Garrett County Planning Commission is still deliberating the proposed changes to the Deep Creek Lake Zoning Ordinance, the Subdivision Ordinance, and the Sensitive Areas Ordinance.

After the last Planning Commission meeting on November 12^th, it appears the language for the standards in the proposed Scenic Protection Overlay Districts will be significantly relaxed. This should be extremely good news for current and future lot owners in those districts who have yet to build a house. This expected change in standards should allow lot owners in these districts the right to keep their entire view of Deep Creek Lake. The original language in this recent proposal had called for a certain amount of tree screening - up to 80% in some instances - in front of houses built in one of the 12 Scenic Protection Districts that overlook Deep Creek Lake. While the exact language has yet to be officially released, a majority of the Planning Commission members at their last meeting recommended that the only tree screening required should be on the sides and rear of these houses - no screening will be required in front of these houses, which would have essentially blocked the lake views from these properties if enacted.

Public hearings on the proposals are expected to occur sometime in early 2010. This proposal and the others could have a lasting impact on real estate in the Garrett County and Deep Creek Lake areas. We highly urge that all property owners get familiar with these proposals, ask questions, and register your comments with the Garrett County Maryland Department of Planning and Land Development.

Please subscribe to this blog (on the right hand side as you scroll down) as we will keep updating the progression of these zoning changes.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 November 9th, 2009 Category: Garrett County Real Estate

Last week both houses of Congress overwhelmingly passed and the President signed legislation that extends the $8,000 Homebuyer Tax Credit. The credit, which was set to expire on November 30, 2009,  has now been extended until April 30, 2010.  A quick summary of the credit is as follows;

• First-time Buyer amount of credit is still $8,000.
• A First-time Buyer is defined as someone who has not had an interest in a primary residence for 3 years prior to purchase. (Note - you still qualify if you have previously owned a house more than 3 years ago.)
• Current Homeowner amount of credit is still $6,500.
• For the purposes of this credit a Current Homeowner must have used the home sold (or being sold) as a principal residence consecutively for 5 of the previous 8 years.
• The limitation on the cost of a home purchased is $800,000.

This is an incredible opportunity for an individual or a couple looking to purchase a primary residence anywhere in Garrett County. For a married couple it is essentially an $8,000 gift from Uncle Sam. For example, if you and a spouse buy a home in Oakland Maryland between now and April 30th and it’s your primary residence, and your income qualifies, you’ll either get an extra $8,000 as part of your refund when you file your taxes or owe $8,000 less in taxes. It’s like getting a loan you don’t have to pay back! If you would like to take advantage of this credit, give us a call or shoot us an e-mail - there are many good real estate deals all over Garrett County right now - this credit in conjunction with currently low interest rates increases affordability and makes this a great time to buy a house.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 22nd, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County Real Estate

Buying a vacation or second home in the Deep Creek Lake or Garrett County area can be the attainment of a life’s goal and it’s often a rather sizable investment as well. A strategy to protect this investment should be incorporated into your real estate buying process. One strategy often overlooked and misunderstood is title insurance which can help protect your real estate purchase.

What is Title?

Title is the legal evidence, of right, that a person has to the ownership and possession of land. Since it is possible that someone other than the seller could have legal right to the property you are buying - undisclosed problems could remain even after a careful title search in the public records. These hidden defects can sometimes be found months or even years later in some cases.

A Lender’s Title Insurance Policy Does Not Protect You

If you are borrowing money from a bank to complete your real estate purchase the lender will only require that you purchase a lender’s policy - which only protects the lender and their lien. A lender’s policy does not protect the property owner! Make sure you ask your  settlement attorney or title company for a quote on an Owner’s Policy as well.

Title Insurance Costs

The one time premium for an Owner’s Title Policy is related to the value of the property so it can vary widely in the Deep Creek area. It’s typically on a scale of $1,000 for a $300,000 purchase - and around $3,000 for a real estate purchase of $1,000,000. It is a one time expense that you pay at settlement but it provides coverage for as long as you or your heirs own the property.

Basic Title Insurance Coverage Protects Against

• someone claiming an ownership interest in your title.
• leases, contracts, or options affecting your title.
• someone claiming to have rights affecting your title due to forgery, impersonation, or fraud.
• someone having a right to limit your use of the land.
• unmarketability of your title.
• a defective title.

In addition, a newer enhanced Owner’s Policy provides coverages against  losses caused by zoning violations, subdivision violations, and building permit violations to name a few.

It’s important to ask your settlement attorney or title company what you are covered against and whether or not they are quoting a basic Owner’s Policy or an expanded “enhanced” Owner’s Policy. If you need help, give us a call or send us an e-mail - we’ll get you in contact with one of the local title companies.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 October 5th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News, Wisp Real Estate

Garrett County Officials recently unveiled a number of zoning and subdivision ordinance proposals representing some of the most significant changes in county history. A Public Information Meeting is planned for the evening of October 14 - 7:00 pm at Garrett College - where county officials will roll out the draft ordinances for public review. Further details on the proposed zoning and land use changes can be found on the county’s web site by clicking here.

Scenic Protection Overlay District

The county is proposing sweeping new restrictions in the Deep Creek lake watershed zoning area designed to minimize the visibility of hillside homes from the lake. A “Scenic Protection District” will be applied to twelve areas that exhibit certain slope and view characteristics. People who build homes in these areas may need to plant trees to obscure the visibility of the home from the lake and restricting the view from the new home by up to 80%. The Deep Creek Lake Scenic Protection Overlay District map can be found here.

Expansion of Rural Agricultural and Resource Areas

The county will reclassify a large part of the land in Garrett County into these two categories and provide additional subdivision standards that foster agricultural and natural resource preservation. Some of the more controversial provisions are a mandatory 66% to 80% open space set aside and mandatory clustering of new housing development. According to county officials, provisions will also be made to facilitate estate planning and to assist landowners to do some minor subdivision for economic reasons.

New Commercial Building Design Standards

New standards regarding materials, roof styles and other aspects of building design will be codified and applied to new commercial construction in the lake watershed. Questions have been posed as to the applicability of these standards to other non-residential buildings and there may be action to extend the standards to all non- residential buildings. New home construction will not be affected by this change.

Reclassification of the LR-Lake Residential District

The existing LR district will be split into LR-1 and LR-2. The LR-1 will retain the existing Lake Residential standards and includes all areas bordering the lake or which will be served by county sewer service. The LR-2 will have the minimum lot size increased to two acres with septic systems. A map of the affected areas is available through the county’s web site.

The proposed changes will have a lasting impact on real estate in the Deep Creek Lake area and throughout Garrett County including unzoned areas. Some of these changes will restrict property owner’s rights and potentially impact values. We highly recommend that property owners familiarize themselves with the changes, ask questions, and register your comments!

By: Mike Kennedy mkennedy@railey.com 301-616-6106 September 30th, 2009 Category: Deep Creek Lake Buyer Info, Deep Creek Lake Real Estate, Garrett County Real Estate, Interest Rates and Loans, Obtaining a Mortgage

Two of the leading mortgage lenders in our area recently announced new loan programs that require less money down for real estate purchases financed in the Deep Creek Lake area and throughout Garrett County, Maryland.

John Simson, of MLend, announced a new second home loan program available for properties in the Deep Creek Lake area. This particular program will lend up to $417,000 with only 10% down for a single family vacation home. Borrowers must have a minimum 720 credit score and with only 10% down there is still PMI. This is quite a change from the past year or so when most banks were requiring at least 25%-35% down on a second home loan.  The recent tightening of credit standards requiring much more money down on a second home purchase have greatly contributed to the slowdown in the number of sales in the Deep Creek area over the past two years - especially in our $300,000 to $750,000 market segment. For more info contact John Simson at (866) 501-5625 or e-mail him at jsimson@pennswoods.net.

Another great new loan program is being offered by Jerry Merrick of BB&T Bank. This program is for anyone looking to purchase a primary residence in Garrett County that is NOT located in the Deep Creek Lake area.  So anyone seeking to buy a home in the areas of Oakland, Mt. Lake Park, Loch Lynn, Grantsville, Accident, or Friendsville should take note of this great new program. The program is called the Community Homeownership Incentive Program (CHIP) and is maintained and serviced by BB&T Bank. The program is for principal residences only and you can not own any other real estate at the time of closing.

This loan program offers tremendous benefits to buyers who don’t have the typical down payment needed for most conventional loan programs. Some of the benefits include 100% financing (no money down!) with a credit score of 660, no PMI, and all the closing costs can be in the form of a gift of paid by the seller. If your credit score is below 660 you may still qualify for the CHIP loan but your down payment requirement will be increased to 3%. The maximum loan amount is $417,000 and there are no income limit restrictions. Geographically most of Garrett County qualifies with the exception of the Deep Creek Lake area. For more info call Jerry Merrick at (301) 387-3219 or e-mail him at jmerrick@BBandT.com.

Hopefully these new programs are a sign of things to come. Loan programs like these that require less money down will certainly help spur on new real estate sales in the area.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 August 21st, 2009 Category: Deep Creek Lake Real Estate, Garrett County News, Garrett County Real Estate, News, Wisp Real Estate

The recent update to the Garrett County Comprehensive Plan calls for proposed changes and revisions to various land use, zoning, and the Deep Creek Watershed Zoning Ordinances. The biggest changes that could affect real estate, property owners, and ultimately property values in the Deep Creek Lake and Wisp Ski Resort areas are as follows:

Scenic Vistas - the proposals include establishing several scenic protection areas around Deep Creek Lake. This may include future setback requirements that would push construction of new houses farther back from the edge of the slope atop certain mountains surrounding the lake that would essentially decrease views of the lake from that new house.

Architectural Standards - will try to establish building design standards for commercial developers in the lake area to ensure character compatibility for new commercial buildings.

New Land Classification Map - it includes the new Lake Residential 1 (LR1) and Lake Residential 2 (LR2) categories and also the new Agricultural Resource (AR) and Rural Resource (RR) zones. The preliminary draft of the new Deep Creek Lake Watershed Zoning Map can be found here.

Amendments the Garrett County Subdivision Ordinance that would require clustering in AR and RR zones with a minimum of 1.5 acre lot sizes and open space requirements.

The county will conduct public hearings on these proposed changes in the near future. Many current landowners in Garrett County and Deep Creek Lake watershed will be affected by these changes!! - please give us a call or shoot us an e-mail if you would like more information about how your property may be affected by these changes.

By: Mike Kennedy mkennedy@railey.com 301-616-6106 August 19th, 2009 Category: Garrett County Real Estate, News

Here is the latest update on the new golf course from Bill Franklin, owner and developer of Thousand Acres at Deep Creek Lake.

Play has started on the front nine!

We are allowing limited play on the completed front nine of the Thousand Acres golf course for friends of the project, members of the club, and for marketing purposes. We have had a staggering amount of grass growth this spring and summer.  The tees and greens are in very good condition while the fairways are in good condition…some areas still need growth and fill in.  The course is very playable and we have been getting some very good feedback.

Flags and greens cups are in as are yardage markers.  Our superintendent, Bob Raley, is very pleased with the greens conditions and anticipates lowering the height of cut from .125” to .100” by the end of the season.  The current stimp rating is in the 7 to 8 range.  Bob is targeting a stimp rating of 10 for the course.  We have all the equipment on site for golf course maintenance and there is a regular mowing schedule in place…the greens show excellent striping. We have been paying particular attention to the course tie in along Poland Run on the lower side and the upper woods line on the upper side.  Bob will use different heights of cut in those tie in areas in order to blend in the transition of the course to the surrounding woods. Some of the attached pics show the tie ins.

Four EZGO gas carts are on site at the sales office which is where play begins. Taylor Made has provided us several sets of demo clubs, R9 series…..men’s right and left, women’s, and the flex and regular shaft clubs.

A very popular biannual magazine, Mountain Discoveries, has run a feature story on the Thousand Acres Golf Course.  I have advertised the Thousand Acres lakefront development in Mountain Discoveries since its inception many, many years ago.

Mountain Discoveries has also created a panoramic movie of golf hole #3.  Other golf holes should be posted soon.

The Thousand Acres at Deep Creek Golf website has been revamped with new pictures posted and you can hear our new ad on WTOP radio.  A new rendering of the project, lakefront area, and HOA grounds is posted showing 18 finishing on the pond closer to Deep Creek Lake.

Most of you know that I live on Thousand Acres, as do my mom and dad.  Our family has a very long history with Thousand Acres, and we are not going anywhere; we are staying right here.  I am working everyday, as are many of our longtime employees, to assure that everything that takes place here is done to make this a successful project.

We have opened some new lots along golf hole 7 (Mountain View) and lakefront lots with one slip (South Shore).

Railey Realty - Deep Creek Lake’s leading real estate brokerage,  is one of the exclusive listing partners in the Thousand Acres development. We do have a select few golf course lots for sale at Thousand Acres. Please contact us if you are interested in these exclusive real estate opportunities located in Thousand Acres at Deep Creek Lake.