23 Burholme Dr, Hamilton Nj,
$290,000
Located in Locust Hill, Active Adult community

A large Spruce model single family home with a full basement! This home has been immaculately kept and is in a great location towards the rear of the development. Freshly cleaned carpets, beautiful 42″ kitchen cabinets, partially finished basement, 2 car garage — this home has everything you are looking for. Priced competitively with attached homes and homes without a basement, this one is a great buy and in move-in condition. Amenities include: Tennis, Bocce Courts, Putting Green, Shuffleboard, Pool, Horseshoes, Fitness Trail, and Clubhouse. The Clubhouse has TV, Fitness Room, Kitchen, Library, Computer Room, and Shuffleboard, offering Card Games including Bridge, Pinochle, Poker, and others; Bingo is offered twice a month, and Crafts for everyone, Book Club, Movie Nights, and Community Events, Holiday events

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First time home buyers in New Jersey have access to several options to help them buy a home with little or no money down. New Jersey’s HMFA First Time Home Buyer loan allows for as little as a 3% down payment and up to 3% of the purchase price can be credited back to the buyer for closing costs. Additionally, you can also receive a 4% grant through New Jersey’s Smart Start program — so, on a $250,000 home, a qualifying first-time homebuyer can get $7,500 from the seller AND another $10,000 from Smart Start.

Of course there are restrictions, income limits and qualification standards as with all loan/mortgage products. Please feel free to call me to discuss your particular situation and to determine if this program is right for you.

Jim Simmons
RE/MAX Greater Princeton
609-529-0822

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• Buying a home in New Jersey for no money down – and you thought it was impossible! (realcentralnj.com)

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I know this isn’t exactly in the Princeton/Mercer County area where I post most of the things to do in New Jersey, but it’s only 45 minutes away or so in Colt’s Neck, NJ in Monmouth County. Who would have thought you can find 65 million year old fossils so easily in Central New Jersey?! We made sifters out of 1/4″ fencing or chicken wire and 1×3 pine wood and headed out to Big Brook in Colt’s Neck — nearby is also Poricy Park, another fossil dig site. We spent a couple of hours on a recent warm spring day sifting through the rocks and sand in the brook and came home with a bucket full of brachipods (pre-historic oyster type shells) almost 2 dozen shark teeth and a few broken squid guards. A squid guard is like a hard bone that gave small squid their shape millions of years ago. Just plug in “Hillsdale Rd” in Colts Neck into your GPS, once you get to the small bridge crossing the brook, pull over in the parking area and head towards the brook and start looking for your treasures!

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Why you may need to be concerned about the impending decrease in conforming loan limits:

If you are considering purchasing a home around the 700,000+ price range this year, you may need to do so before October 1, 2011 or your mortgage may be harder  to get and more expensive.   Some of the conforming loan limits in New Jersey and across the country will be reduced on October 1, 2011, and it may be more difficult or impossible for some people to purchase the home they want after the new, lower, limits go into effect. The areas most affected in Central New Jersey are Middlesex, Somerset, Union and Monmouth Counties.

Mortgages that are higher than the conforming loan limits are considered “jumbo loans.”  Jumbo loans carry higher interest rates, more stringent qualifying standards and require at least 20% down payment. The reason for this is that Fannie Mae and Freddie Mac are only allowed to purchase or guarantee “conforming loans.” The result is that non-conforming, or jumbo loans, are riskier to investors and banks since they are not guaranteed and can’t be sold to Freddie or Fannie. Banks will often be able to sell these loans to investment companies and need to hold on to them — making money the old fashioned way: loaning money at a higher rate than it costs the bank.

Now, on to the limit changes: In Middlesex County, NJ for example the current conforming loan limit is $729,750. This amount is scheduled to revert back to $625,500 on October 1, 2011. The same amount will apply to Monmouth County, Union County, Somerset County as well as most of the more expensive central and northern NJ counties. What this means is, if you are buying an $800,000 home in Plainsboro or South Brunswick, for example, you’ll need at least $175,000 for a down payment after October 1, instead of $75,000 before October 1 if you want the lower rates and less stringent qualifying standards of a government backed loan.

Other counties in Central New Jersey, like Mercer County, will not see a change in the conforming loan amounts. But it’s still not good news: Mercer County, NJ has some fairly expensive areas such as West Windsor, Princeton, Hopewell and Pennington yet the jumbo loans kick in at just $440,000 in Mercer County and that is not set to go up or down this October. Unfortunately, the conforming loan limit is determined by the average price range in a County and the lower overall prices in Mercer County means not getting a conforming loan above $440,000.

I met with a couple recently who were saving for a down payment to purchase a home in Plainsboro and thought they’d have enough to purchase a home by this time next year. Unfortunately, they will need even more than they planned on saving if they are going to buy a home next year. We were able work out a plan for a smaller down payment and a second loan in order to have the first loan be under the conforming limit this year and their savings will go towards paying off the second loan by this time next year. They were fortunate to have discussed this with me before finding out all their saving would not have added up to enough for a home purchase a year from now. In addition, mortgage interest rates have been on an upward trend and if that continues, as predicted, some people will be forced to scale back on their home purchase significantly by this time next year. If you are planning to purchase a home in 6 months to a year or more from now, let’s take a look at your situation and find out if it might make save you a lot of money by investing in a home before October 1, 2011.

Related articles

• Reduction in Fannie, Freddie Loan Limits Favored (blogs.wsj.com)
• Rules for ‘jumbo’ mortgages to change this year (msnbc.msn.com)

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Homeowners who sell their home through a short sale may owe income taxes on the amount that is forgiven them by their lender. It really does depend on some specific situations. I am not an accountant and I suggest you talk to an accountant about your specific situation but this is a brief overview of the issue. I’ve helped many home owners in Central New Jersey sell their home through a short sale when their mortgages were more than the value of their homes. If you need help, don’t know where to start or are considering a short sale, give me a call and we’ll meet and discuss your unique situation.

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• TurboTax – Tax Relief for Cancelled Mortgage Debt (turbotax.intuit.com)
• Owe More on Your Home Than It’s Worth? (dahmsrealestate.wordpress.com)

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Quick tip for home sellers: show off your home in it’s best light, quickly and easily.

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• Home Staging tip #2 (realestageblog.wordpress.com)
• Home Sellers: Five Tips to Make Your Bathroom Stand Out (heardontheblock.wordpress.com)

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In New Jersey, homes are assessed every 10 years in each municipality by the tax assessor. During that 10 year period the home’s value obviously increases or decreases, as well as the annual property taxes, but the assessed value remains the same. Many home buyers mistakenly believe the assessed value is what the home is currently worth. If this were true, then home values would only change once every 10 years! This assessed value bears little relation to market value.

The assessed value of a home is like a snapshot in time of the value of a home. Unfortunately, until a buyer learns this, they are under the misconception that if a home’s asking price is significantly higher than the assessed value the home is overpriced. Some buyers see plenty of homes that are priced higher than the assessed value and don’t make offers on homes they like because they misunderstand the tax assessed value. Be informed before you buy a home in New Jersey and make a choice based on current market value, not the assessed value. The assessed value you see for a home today, may be the value determined by the tax assessor 7 or 8 or 9 years ago, not necessarily this year.

For example, West Windsor had assessed their homes in 2005. Hamilton, NJ assessed their homes about 9 years ago and are due for a new assessment very soon.

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As an agent experienced in “short sales” in New Jersey, I find that there are a lot of misconceptions about what a short sale is and the short sale process. In this video I discuss:

• How does a potential short sale affect you as a buyer?
• What does a seller need to know if they owe more on their home than they can sell it for?
• What are the pitfalls of short sales for buyer and sellers?
• Do all sellers qualify for a short sale?
• Do all real estate agents know how to successfully navigate a short sale?
• How quickly can you close on a short sale?

A short sale is a transaction in which a seller’s lender accepts less than the balance due on a mortgage, enabling a seller to sell a property that they can no longer afford to keep and cannot pay off the balance of their mortgage due to a decline in value.

And here’s a funny video about 2 agents discussing short sales, just for fun!

Click here to view the embedded video.

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In this video, I give you an example of how you can invest in real estate and turn a profit every month with  positive cash flow rental properties in New Jersey. In the example given, of a home on the market right now, the asking price is about $150,000 with a rental income of about $1950/month.  If you consider a 25% down payment ($35,000), your mortgage and taxes could be just under $1,000/month. You can see that in this scenario, you will have a very attractive positive cash flow every month. Of course there are risks involved, there will be maintenance expenses as well as vacancies from time to time, but if you average a 20%+ return on investment it is still a very good investment.

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Buy a home for no down payment

A first-time home buyer asked me last week how much she’d need to save up for a down payment before she can buy a home. I told her that she might not need to save any money for a downpayment; she can buy a home for no money down in many parts of New Jersey. I’ve also spoken to many, many Realtors that have no idea you can still finance 100% of your home purchase in many cases. In fact, you may even be able to buy a home with less money upfront than you’d need to move into a rental property.

The USDA can help you buy a home in NJ with zero down payment

The USDA (United States Department of Agriculture) has a no-money down home loan program (starting to sound a little crazy already, huh?) to encourage or facilitate buying a home in ‘rural’ areas. Yeah, I know what you are thinking, “Jim, this is New Jersey, I’m not a farmer and I’m not looking to buy a home in a rural area.” I know. But ‘rural’ is defined fairly loosely in this instance. For example, many parts of New Jersey, including much of Mercer County, some of Middlesex County, and almost all of South Jersey, Hunterdon County and Warren County, to name a few areas, are eligible for this zero  down payment home mortgage. Unfortunately, this program is not available in our cities and more densely populated areas (Trenton, Princeton, North Brunswick, New Brunswick, Edison are all excluded).  But if you are looking for a home in East Windsor, most of South Brunswick, Hopewell, Plainsboro, West Windsor,  parts of Lawrenceville, Cranbury or Monroe you are in luck and might be able to move in with no down payment at all!

It even gets better, unlike conventional loans (which now require 10 to 20% down payments) and FHA loans (3.5% down payment minimum) the USDA Rural Home Loan doesn’t even require expensive private mortgage insurance (PMI) or a mortgage insurance premium.

• Offers better terms than an FHA or conventional loans
• Lower Rates and $0 Down Financing
• No Private Mortgage Insurance
• Lower income families and those with blemished credit can qualify

There are some restrictions however. As I stated before there are geographic limitations. There is also an income limit. In NJ you can earn up to $122,000/year (depending on the area and the size of your family). This also has to be your primary residence, not an investment or vacation property. Other than that, there aren’t too many other restrictions.

If you thought you couldn’t buy yet or if you thought you’d need to find a home to rent until you can save up a down payment, give me a call and we’ll see if this option is right for you. And if you are considering selling your home, wouldn’t you rather talk to an agent that has a few extra ways of financing a home and getting more buyers interested in your home? Call me at 609-529-0822 or fill in the contact form below and let’s get to work!

[contact-form]

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SOLD

14 Glengarry Way, West Windsor. This 4 bedroom colonial home for sale in Princeton Junction is in move in condition. Featuring a full brick front, a 3/4 acre lot and a three car garage, this West Windsor home is just 23 years old. The bathrooms have been remodeled with granite countertops and new vanities. The family room has brand new hardwood flooring and a brick fireplace. The impressive entry foyer has an elegant curved staircase. On either side of the foyer are the formal dining room and the living room, both with hardwood floors. Take a look at the video and if you would like to see the home in, give me a call or email me and we’ll take a look together!

Colonial home on a 3/4 acre lot in Princeton Junction for sale

Related articles

• 14 Glengarry Way, West Windsor, NJ. Four Bedroom Colonial Home for Sale. (realcentralnj.com)

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A great fall weekend coming up, the weather should be great here in this part of New Jersey and there’s plenty to do (and trick or treating as well!)

Jersey Cow and her calf

On Saturday, October 30, head on over to  Terhune Orchards, 330 Cold Soil Road — Bring the family from 10-5 for wagon rides, a corn maze, and adventure barn. Rain or shine. Live music by Andean Spirit. While you are there, you can also buy pies, cider, honey etc in the shop or pick

apples in the orchard. It usually gets crowded but that’s half the fun!  www.terhuneorchards.com

Okay, maybe wagon rides aren’t really what you are looking for this weekend, come on out to Terhune Orchards anyway for a wine tasting from 12:00 to 6:00. The winery offers seven varieties of red and white wine. Taste five wines for $5, $8 with the glass.

Also on Saturday you can have some fun and help out some terrific  local organizations. Visit the  Lawrenceville Pre

sbyterian Church, 2688 Main Street, Lawrenceville. 10 a.m. to 3 p.m., Costume parade, crafts, games, bake sale,

bounce house, and games. Benefit for church missions including Contact, Crisis Ministry, Rescue Mission of Trenton, and Trenton Area Soup Kitchen., www.pclawrenceville.org

If you’ve never been to  the Off Broadstreet Theatre in Hopewell Boro, you are missing out on a real experience! This weekend catch Guys and

Dolls,  at Off-Broadstreet Theater, 5 South Greenwood Avenue, Hopewell, 7 p.m., Tickets are $27.50 to $29.50., www.off-broadstreet.com

And I have to mention another corn maze because I really love this place: Howell Living History Farm, Valley Road, off Route 29,Titusville,www.howellfarm.org This Saturday evening is the Maze in the Dark. The annual four-acre corn maze features Daisy, a

three year old Jersey cow kicking over a bucket of milk. $8. 5 p.m. to 8 p.m

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