Vermont Real Estate Market

Loans for the "Almost Perfect" home

Have you heard the term, "Rehab loan" referenced to a property and not fully understand what it means? Well here's a little information. Some of the homes out there need a little more than TLC. These homes may be foreclosures, short sales, or just homes that have had continuousdeferred maintenance over the years . These properties are perfect candidates for Rehab loans. The process can be a little more time consuming, but for the patient buyer, you are able to purchase a home that you like and make the updates it needs all with one closing. In general thesteps are:

  1. Meet with a Rehab Loan lender and get pre-approved. There are a few different programs out there, but a common one is the FHA 203K loan.,
  2. Selectyour home, write an offer and obtain quotes from a general contractor for the updates that you are interested in making. Of course different rehab loans have different guidelines on what can or must be updated and if there are any limits, so reviewing those details with your lender prior will be anecessity!
  3. The quotes will be submitted to your lender, and those estimates, along with the purchase price of the existing home, will be what the finished project needs to appraise for to obtain loan approval.
  4. Close on the home and then the work begins with an initial disbursement of the funds to cover the updates. Usually in just 1-2 monthstime, the work will be completed and the final disbursement is made to the contractor.
before and after bathroom before and after

NVBR October Statistics

News from the Northwestern Vermont Board of REALTORS! October 2012 Market Statistics The Northwestern Vermont Board of REALTORS has released its real estate market statistics for October 2012. The information is derived from data contained in the Northern New England Real Estate Network and covers Chittenden, Franklin and Grand Isle Counties. New listings in the northwestern Vermont region increased 18 percent to 166. Pending sales were up 37.1 percent to 144. Inventory levels continue to shrink, in October moving down 24.9 percent to 1,026 units. Prices were fairly stable. The median sales price decreased 0.6 percent to $247,500. Showing momentum in the marketplace, days-on-market was down 16.2 percent to 87 days. In addition, absorption rates improved as months supply of inventory was down 36.7 percent to 7.4 months. The economy is growing but at a slow pace. Economic growth in 2013 is expected to outpace 2012, said Kathy Sweeten, executive vice president of the Northwestern Vermont Board of REALTORS. Mortgage rates are expected to remain near historic lows through 2015, rents are expected to rise due to low vacancy.