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 February 5th, 2009 Category: Garrett County Real Estate

$15,000 Tax Credit

Last evening, the United States Senate passed the Isakson-Lieberman amendment to the pending economic stimulus bill that would create a $15,000 tax credit to any homebuyer that purchases a home in the next year. Purchases must be made within 1 year of enactment and unlike the $7,500 tax credit passed last year this credit will not have to be repaid.

Primary Residences Only

However, this credit is only for individuals purchasing a primary residence - it does not apply to someone buying a vacation home or rental property at Deep Creek Lake. And if the house is sold within the first two years the tax credit will be recaptured. Final details are still being worked out.

This is really good news for those individuals or couples looking to buy a principal residence or house for sale in Garrett County within the next year. This credit essentially puts an extra $15,000 in your pocket - money that could help with home repairs or renovations that may be needed or help out with closing costs.

Please give us a call or contact us if you thinking about buying a house or real estate for sale in the areas of Oakland Maryland, McHenry, Mountain Lake Park, Grantsville, Accident, or Friendsville. This pending legislation could make this a very advantageous time to buy a house. It may be a good time to start the home buying process. As the area’s market leader in real estate, we not only help clients looking to buy vacation and second homes, we also work with individuals buying their primary residences throughout Garrett County as well.

Follow Up - As of February 12, 2009 it appears that when the stimulus bill is finally signed into law that their will be an $8,000 credit for homebuyers purchasing a home between January 1, 2009 and December 31, 2009 - not $15,000. This $8,000 will not have to be repaid - it will be a true tax credit. Eventhough it’s not $15,000 - an $8,000 credit will certainly help anyone looking to purchase a primary residence this year.