At Home in LaGrange County Indiana

I attended a seminar on the benefits of FHA financing and how it has evolved over the years to reflect today's market.  If you want to buy a home and have heard it's impossible to get financing unless your credit is perfect and you have a down payment,  you should consider an FHA loan. 

Advantages of FHA Financing

• No Minimum Credit Score Requirement- you can document alternative credit
• Self Employed buyers can document earnings
• Not just for low priced homes-the LaGrange County loan limit is $200,160.
• Pest, Well, Water and Septic aren't required unless the appraiser or lender sees a problem
• The FHA appraisal process no longer requires minor repair work be completed- only safety or structural issues must be addressed
• You can have  a family member as a cosigner.
• Chapter 7 Bankruptcy must be 2 years old.
• Can be currently in Chapter 13.
• Prior Foreclosure must be 3 years old.
• You can get a loan for a double wide manufactured home.
• Rates/terms are comparable and sometimes better than a conventional loan.
• If you don't have any credit, there are some nontraditional methods to document with rent payments, utilities, auto insurance, etc.
• If you don't have cash on hand for your down payment, it can be gifted to you or provided by a a program such as Genesis or Nehemiah.
• You can write an offer requesting the seller to pay most closing costs.
• If you find a fixer upper or a home that needs repairs, FHA has a 203k program that will allow you to have the cost of these repairs in your home loan.
• FHA has programs in place to help you keep your home if you encounter problems with your mortgage.

For more information on FHA loans, visit the FHA website.

If you have questions about any of the above mentioned guidelines, contact me and I would be happy to help you.  With the selection of homes on the market and interest rates at historical lows, it's a great time to buy. Don't miss out because you think you can't get a loan.  I can help you find a lender.  I work with reputable lenders who would be happy to take your information and let you know if you qualify.  This can even be done over the phone.  If you don't qualify now, they will work with you and help you work toward your goal.  Then we can start searching for your new home!

This Saturday we had one of our annual customer/client appreciation events.  We pulled everyone out of "winter hibernation" for a trip to the movies that included games for candy bars and a grand prize drawing for a jar of cash!  It was nice to see some people that  I hadn't seen since winter set in.

As a licensed real estate agent, I can show you any home listed by any agent or any company in the northeastern four counties.  Most companies belong to our local multiple listing service.  We all provide listing information to each other and allow other agents to show our homes to give them maximum exposure to buyers.  Most of the time, when a house sells, one agent represents the seller (listing broker)  and another agent represents the buyer (selling broker).  In this case, when a home is sold, the commission is paid by the seller and split between the listing and selling brokers. 

The agent listed on the sign has a contract with the seller.  They represent the seller.  Their loyalty is to the seller.  To them a buyer is a customer and they only have to tell you about known property conditions and other disclosures affecting the value of the home as required by law.  They must treat you honestly and not give you false information.  Everything else must be held in confidence for the seller, especially if it would give you an advantage over the seller.  And this is in direct conflict with some questions you may want answered.  Would the seller take less than the list price?  What price should I offer?  Why are they selling?  How soon do they need to close? 

As an agent for buyers, I can get some of these questions answered.  I can let you know if the list price is supported by a market analysis of similar properties, and help you determine an offer price.  I can check for past sales of the home.  I can help you find a lender and home inspector.  I can help you construct an offer that is to your advantage without considering the impact on the seller.  I represent you.  My loyalty is to you.  My goal is to get you the house you want on your terms and at your price.

Most buyers don't know this.  Because of that, Indiana State law requires listing agents to explain this to you prior to you revealing  any confidential information about your finances, reason for buying, what you want to spend, etc.   If you meet an agent at an open house or while looking at one of their listings, you should never reveal this type of information because it can be used later to the seller's advantage. 

The only exception to this is if you have a written agreement with an agent for limited agency.  In this case, the agent is required to represent the buyer and seller exactly the same and can tell neither party anything that could give the other an advantage unless they give permission to do so in writing.   Neither can be told if the other would pay more or accept less.  Neither can be told why the other wants to buy or sell.   Some people are comfortable sharing an agent with the seller.  If you're not, you need an agent who only represents you.  This is a buyer's agent.  And I would be happy to help you as a buyer's agent in finding your new home.  Call me to schedule a tour of a home you would like to see.

It's only mid February, and many of us have already given up on or forgotten about those promises we made to ourselves.  Exercise more, lose those pounds, be more organized, find time for family and friends... the list is endless.  If your resolutions included helping others by volunteering or making donations, you still have a chance for success.   There is a worthy local cause that is gearing up for another successful year!

Why Help Habitat for Humanity?

Can you imagine the feeling of knowing that your donation helped a family realize the American Dream  of home ownership?  You can help provide simple, affordable housing to members of your community.  You can help eliminate substandard housing in your hometown.  This is the mission of Habitat for Humanity.  It's not a give away program.  The recipient families are partners in the building process.  They spend hours working on their home and the homes of others.  They are given no interest mortgages and their repayment goes to building more homes. 

Proven Record of Success

Habitat for Humanity International was founded in 1976 and has built 225,000 homes worldwide providing housing for over a million people.  They have affiliates in all 50 states and over 100 foreign countries.   Indiana has 71 Habitat affiliates.  In Lagrange County this year,  1,302 volunteer building hours completed  the 16th and built the 17th home in our area.  They are currently collecting on 14 mortgages and have never had a foreclosure. 

How Can You Help?

You can donate your time and skills by serving on committees for family selection and support, construction, publicity, fundraising, and site selection.  You can make monetary, building supply or land donations.  They even accept vehicle donations.  You can provide items for the  Annual Benefit Auction.   For a complete list of committees and items that are needed, visit the LaGrange County Habitat for Humanity Website.  You will also find photos of homes that have been completed and contact information.  They are having a "Committee Call-Out" meeting on February 20th, at 7:00 p.m. at their office downtown.  Come for the meeting or call 463-8519 and put your spare time to good use in supporting this worthy cause.

You can keep your New Year's Resolution.  Don't give up; get involved!

I ran some numbers to compile statistics on what happened in the LaGrange County market during the month of January and what is currently available for sale.

(Numbers in parentheses are same month last year)   In January 2008, there were 15 (12) homes sold with an average sold price of 131,000 (105,135).  They spent an average of 172 (178) days on the market, and were originally listed at an average price of 140,886 (113,100).  There were 19 (36) new homes listed for sale this month at an average list price of 168,950 (160,277). 

(Numbers in parentheses are average list prices).  As of January 31, 2008, there are 229 homes currently for sale (177,245).  They have been on the market an average of 192 days.  63 are lakefront (290,042).  23 are channelfront (152,860),  74 are on ski lakes (273,695) or lakes with access to ski lakes (189,569). 31 are on non-ski lakes (161,935) 16 have association or deeded access (130,962). 131 homes have no lake access (133,402).

I also had a chance to chart some historical data on home sales of lakefront properties in our county.  This has been added to my Local Market Stats page along with the historical data for all home sales.

Lakefront LaGrange County Homes

Year	Total Homes Sold	Avg Sold Price	Avg DOM
2007	45	203,317	175
2006	47	184,712	108
2005	69	201,433	143
2004	45	165,125	122

*These figures are based on data supplied by the Northeastern Indiana Association of REALTORS® Multiple Listing Service for the period starting 01/01/1999 to present.  This data may not reflect all real estate activity in the Market and is compiled from information that is input by many members and may contain errors that affect results  so the accuracy of these figures can not be guaranteed. 

Please note: when compiling averages with the small number of homes in a monthly period a single home that was on the market for a very long or short period of time can change average days on market quite a bit.  This effect is especially true for average sales price when a single home sold very low or extremely high that month.

I offer these statistics to give you a general idea of what is going on locally so you can make informed decisions about the sale or purchase of a home.  For market analysis of a specific home you would like to buy or sell, contact me and  I would be happy to run the numbers for you.