Blog - Federated Homes Realty, Inc.

SECRETARY FUDGE, GOVERNOR LAMONT, MAYOR BOWSER DISCUSS AMERICAN RESCUE PLAN HOMELESSNESS ASSISTANCE ALLOCATIONS

May 28, 2021 by Robert Tucker

Secretary Fudge: “The COVID-19 pandemic has underscored just how important it is for every person to have access to safe and stable housing.”

WASHINGTON – Today, U.S. Department of Housing and Urban Development (HUD) Secretary Marcia L. Fudge, along with Connecticut Governor Ned Lamont and Washington, DC Mayor Muriel Bowser, held a Zoom call to discuss the nearly $5 billion in American Rescue Plan funds allocated by HUD to help communities across the country create affordable housing and services for people experiencing or at risk of experiencing homelessness.

The supplemental funding, known as HOME-ARP, was provided by the American Rescue Plan, which was enacted into law on March 11, 2021, and is allocated through the HOME Investment Partnerships Program to 651 grantees, including states, insular areas, and local governments. Click here for a full list.

“The COVID-19 pandemic has underscored just how important it is for every person to have access to safe and stable housing,” said HUD Secretary Marcia L. Fudge. “This $5 billion in homelessness assistance provided by the American Rescue Plan will deliver much-needed resources for communities to give homes to the people who have had to endure the pandemic without one. In the days ahead, we need to build on this relief with President Biden’s American Jobs Plan – a once-in-a-generation opportunity needed to bring our country closer to ending homelessness and housing instability.”

“I thank Secretary Fudge and the Biden-Harris Administration for this new funding to Connecticut,” said Connecticut Governor Ned Lamont. “The federal HOME Investment Partnership program is a vital tool we are using to move our homeless population off the streets and out of shelters and into permanent housing. We’ve made progress in Connecticut despite the pandemic. But we must do more as a state and a nation. Together with new state investments in affordable housing, this new funding to Connecticut from the US Department of Housing and Urban Development will support our ongoing work to end homelessness and to Build Back Better from this pandemic.”

“This investment signals that the Biden Administration is serious about helping Americans recover and heal from the extraordinary circumstances this pandemic has caused,” said DC Mayor Muriel Bowser. “Here in DC, we have been very focused on making homelessness rare, brief, and nonrecurring. With the local investments we’ve made, we are proud of our progress – we’ve been able to reduce overall homelessness by 11% and family homelessness by 85%. But we also know that the pandemic, and the economic crisis it caused, puts those gains at risk. And we know that to really tackle this issue and to overcome the housing crisis, we need serious federal investments. And that’s what this is, and we thank Secretary Fudge for leading the effort to get these funds out the door and into communities that need them.”

The $4.925 billion in HOME-ARP funding gives states the flexibility to best meet the needs of people experiencing or at risk of experiencing homelessness, including through development of affordable and supportive housing, tenant-based rental assistance, supportive services, and acquisition and development of non-congregate shelter units. Funds must be spent by 2030.

The nearly $5 billion in HOME-ARP funding is the first of two homelessness-related funding opportunities from the American Rescue Plan that HUD will release. In the coming weeks, HUD will announce the allocation of funding for emergency vouchers for people experiencing and at-risk of homelessness.

The American Jobs Plan, introduced on March 31, 2021, calls for a more than $200 billion investment to increase housing supply and address the affordable housing crisis.

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HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes for all.
More information about HUD and its programs is available at www.hud.gov and https://espanol.hud.gov.

You can also connect with HUD on social media or sign up for news alerts on HUD’s Email List.

HUD COVID-19 Resources and Fact Sheets

The Step by Step Process on How to Rent to Own a Property In NJ

May 17, 2021 by Robert Tucker

It isn’t always easy to purchase a home in New Jersey. Your financial situation might make it hard for you to buy a home through traditional means. But there’s another option available, as you can choose to rent to own a property in the state.

You can rent to own a property in New Jersey by using a few steps. The process is easy to follow, plus it allows you to purchase the home you are renting in a few years. You can even cover the cost of a down payment through the process.

Are Real Estate Agents Involved?

Before entering the process, you should know that you likely won’t come across any real estate agents when handling a transaction. Agents usually don’t get paid until they sell the homes they represent.

You will likely deal with a landlord who owns the property. The landlord will let you rent the property at the start and then sell it to you when you are ready.

Find a Property

The first step towards renting to own a property in New Jersey entails finding a home you wish to purchase. Not all homes in the Garden State are available as rent-to-own properties. A landlord might try to sell a property, or that person might only allow one’s house to be open for rentals.

Here are a few signs a property might be available through a rent-to-own process:

A house has been on the market for a while.
A seller might list a property as a rental. While the realtor might not specifically say it is a rent-to-own property, that person might be open to the idea.
The home tends to go from one tenant to another, with long lulls in between each renter or owner.

You’d have to contact the realtor or landlord about the potential for a home to be a rent-to-own property. Check to see if whatever interests you the most is available and if there are no other conflicts in the way of the deal.

Prepare One of Two Agreements

You can work with one of two agreements when renting to own a home in New Jersey:

You can establish an agreement with the option to purchase the home in a few years. You will pay rent on the property each month, and you won’t be obligated to purchase the home. But you will lose any money you paid beyond the rent if you choose not to buy the home.
You could also enter an agreement with a purchase agreement. The effort requires a home inspection before you become the official owner. You would also need to be pre-approved for a mortgage before you start renting the home.

Establish a Purchase Price

The next step involves establishing a purchase price. You will agree to a price with the landlord or seller. The price should be comparable with the values of other similar homes in your area. Current pricing trends and shifts are also essential, as you don’t want your home to be more expensive than what it really is when you do purchase the property.

Order An Inspection

You must request a home inspection after planning the purchase price. The inspection will help identify possible concerns in your property, including what repairs are necessary. The review ensures you can address problems with your home before you start renting the space.

Pay the Option Fee

You will pay the option fee in the next step. The option fee is a charge that gives you the right to buy the home. You can adjust the value of the option fee based on an agreement with the landlord. The bill gives you the exclusive option to buy the home in a few years. The landlord will not be capable of selling it to someone else, as you have the first right to buy the home.

Establish a Rental Term

The rental term entails how much time you’ll have before getting the option to purchase the home. The rental term will last from three to five years on average. Whatever you choose, it should be long enough to ensure you can gather the funds necessary to complete an outright purchase.

Plan Maintenance Roles

Your landlord will still own the house after you start renting. Your contract requires agreement surrounding who is responsible for maintaining the property. These include details on who pays for repairs and other functions.

How Do the Rent Payments Work?

You’ll pay monthly rent payments when you rent the property. But before you start, you must plan how you’re going to facilitate those rent payments to make them work.

You can agree to a deal with the landlord where your payments in the next few years will be worth a percentage of the home’s value. But the payments will likely be a small bit over the regular rent value. It could be about 20 to 30 percent more expensive than a traditional payment. But the extra 20 to 30 percent you spend each month will go towards your eventual purchase of the property. In other words, you are essentially saving up for a down payment on the property.

Exercise the Purchase Option

You can purchase the home at the end of the rental term if you wish to stay there. The extra money you spent above regular rent values will cover the down payment. You can then complete regular mortgage loan payments on your home after it officially becomes your property. You will also have full control over how you maintain it, as you no longer have to pay a landlord for the property. But be advised that if you turn down the option to buy the home, you will lose whatever funds you would have used in paying for the down payment on the property.

These steps for how to rent to own a property in New Jersey are easy to follow. Be sure to plan your purchase well to ensure you can find a property you will appreciate and enjoy.

Looking to Rent * Buy * Sell Click Here

Rent-to-Own UP 37% in 2021 and Foreclosured Homes

May 16, 2021 by Robert Tucker

If you are considering rent to own for a property which could be a house, apartment, or condo, why not consider the possibilities of owning it in the future? There are options to own your own home without all of your rent money going directly to your landlord. Landlords can sometimes make you an offer to put your money towards the actual mortgage or the actual home (depending on if they own it). When you think about what you are getting when you rent, you think about the space and the location. But if you owned the home wouldn’t you think about all the freedoms of having it as your own? When you own your own place you are in charge of everything, and everything in it is your own.

For example, if you think about driving a new car that is super awesome with all of the gadgets and technology that you love, you get into it and you just love the way it drives, except it’s not your car. It’s someone else’s and you are just paying them a fee so you can drive it. Why not have that fee go toward the total cost of the car? And every time you make a payment the cost goes down, month by month, the total decreases! And sometimes you could make a big payment, and the time to pay it off is shorter. This is the idea of renting to own. Your payments go towards ownership. Wouldn’t it be nice to have all your funds for rent go towards owning the actual house instead of towards someone else owning the house?

As an older man or woman, young woman or man, senior, young adult, picture yourself walking into your rental taking a deep breath in, and sitting down to relax thinking “I own this place”, instead of thinking “I owe rent next month and my lease is up in two months.” With ownership, you don’t have to think twice about where your money is going because as you continue to make my payments you are becoming an owner, with a rent-to-own agreement. You work hard for your money, why not see it go towards something permanent that you can call your own.

As a renter, you move around a lot, you have a lot of freedoms to discover communities, you chose a place and you live there temporarily, and you make payments. But with a rent-to-own apartment, condo, or house you are at a permanent location, your new base, this is where your money is going to go so you can become an owner. Think about all your income that goes towards moving fees, all the time you spend packing, all the energy spent feeling out a new area to live in. With renting-to-own your own home, you would never have to think about moving again, and you wouldn’t have to think about packing another box, you would also have all the freedoms to make renovations, additions, or changes to the place you are in.

As a new renter you might think it is kind of funny that your money goes to someone else, but as a rent to own that money would be going towards keeping the place for yourself. Which, if the place is for yourself you could also consider renting it out in the future, another benefit of owning your own home.

In the foreclosure market, people have lost their homes due to not paying the bills, and not paying their mortgage on time, or not paying their mortgages at all. This can sometimes happen for unfortunate reasons, however, sometimes it can happen due to poor life choices by the mortgage holder. The bank and the mortgage owner agree to terms that payments are to be made on a consistent basis (usually) and for a specific amount. In some cases, the mortgage holder can be late or miss one payment and can be foreclosed on and lose their house. In this instance, the bank takes the mortgage back and the mortgage holder loses their house,

In the case that a home is foreclosed on the bank puts the house up for sale along with the possessions from the previous owner, the bank takes everything. Anything that is in the home that has value is taken and put up for sale. The process is long and can be quite awful for a property owner to go through. Once the process of foreclosure is completed the house will go up for sale by the bank that the mortgage was held with. The price that the house is sold for is much lower, and there is no real estate agent involved. The bank does not want to hold on to the property for very long; it is losing money the longer it sits. So the house is listed at a lower price. This is an excellent opportunity for new buyers to get a deal on their first home. Foreclosure properties are found differently than a regular new home being built with a developer. Foreclosure homes can be found at banks, or at auctions, real estate agents will also know of these properties.

Buying a new home is an exciting and major life event, but can also be daunting. As you have read foreclosure is possible in the event that you fail in making a mortgage payment. So, some of the options such as renting to own can ease some of the pressure of dealing with the bank. However, if you have funds saved up and are ready to buy a home, you could save yourself money by buying a discounted home from someone that has defaulted on their mortgage. Which, depending on the size of your down payment can lessen the amount of time you are in your mortgage. Depending on your choice these are some great options for being a new homeowner, It is a big responsibility to own a home, so starting with some of the options discussed previously could be a safer bet for you.

The Pros and Cons of a Rent to Own Property

May 15, 2021 by Robert Tucker

Written by: michael83nc

Rent to own properties are among the best choices to consider when finding homes for sale in New Jersey. A rent to own contract can be a useful alternative to a home loan, plus it works well if you’re not committed to purchasing a home outright. But you must also be aware of the risks associated with finding such a home for sale. The pros and cons of entering such a deal are plentiful and deserve your attention. You should also note these points if you’re planning on selling a home as a rent to own entity.

How Does This Work?

A rent to own property works in that you can live in a home as a renter now and then close on that home later. You will pay an amount each month to rent the property, but you also have the first option to purchase that property. You can specify when you wish to complete the purchase process in your agreement.

You could also consider the rent to own process if you’re trying to sell your property. You can establish an agreement with someone who wishes to rent your home.

Why Buy a Rent To Own Property?

There are many benefits to rent to own properties to explore, especially if you’re planning to buy the property. The most prominent use is that you can enjoy a quality home now even if your financial situation isn’t as strong now as what it will be like a few years later. If you expect that you’ll be in a better financial position in a few years, you can benefit from what a rent to own home has to offer.

Not all rent to own agreements will be reported to the credit bureaus. You can still ask your landlord about potentially reporting your agreement to those bureaus if that person doesn’t already do so. The plan should work for both sides, as you’ll afford the purchase, and the landlord will be more likely to get one’s money at the end of the deal.

There are many other advantages associated with such a home:

You can see if the area you’re considering living in is right for you. You’ll have time to see if the location is convenient and if the local environment is suitable for your needs.
The rent to own effort is more flexible, as you can enter a home even if you have bad credit. You can start building your credit by completing regular payments on your property. Your credit score will eventually improve to where you can get a more favorable home loan when you’re ready to purchase the property altogether.
The rent to own process lets you secure a purchase price for later. You can set the price you wish to pay a few years beforehand. You will protect yourself from cases where the home’s value increases.
You may also back out of the option or renegotiate your deal if the home’s value falls. You can set an agreement with the seller at this point.
You won’t have to worry about the risks associated with a nonconforming or jumbo loan. Jumbo loans may offer better credit deals for many buyers. But they aren’t backed by any federal programs. The credit requirements for these may be too strict, making a rent to own effort easier to follow.
The savings you’ll get from not having to move after you agree to buy the home can be significant. Moving costs can be worth thousands of dollars on average. By purchasing the exact home you’re renting, you will simplify the process.

What About Selling Your Home As a Rent To Own Property?

You can also consider selling your home to others as a rent to own establishment if you wish. You can get many things out of your home if you sell it this way:

It may be easier for you to find buyers, as you’re now targeting people who might not be committed to a full-scale purchase at the moment.
You can earn more income on your home through monthly rent payments. The income can be ideal when you’re trying to cover a down payment on a future property you wish to purchase.
You could request a higher price on your property, what with the rent to own option being easier to manage at times.
You can be flexible over how you’re going to manage repairs and maintenance costs. You can have the renter pay for most of these, but you could also share or take on the responsibility yourself if you’re capable of this point. Your relationship with your client could be very positive.

Reasons Not To Rent To Own

While there are many benefits to rent to own properties, there are a few concerns to note surrounding the deal:

You can never tell how long it will take for your credit rating to improve while renting a property.
You won’t have complete control over your property if you rent it first. Your landlord could lose the property due to a foreclosure. That landlord may also stop paying property taxes if one is unable to manage them well.
You could lose your right to purchase the property if you are late in trying to make a payment.
The market might change to where the property’s value will drop. You might be open to getting an adjustment on your purchase agreement, but it might take extra time to adjust your plans as necessary.
Sellers will also have some issues. They won’t get lump-sum payments on their homes when they rent them out, plus there’s no guarantee a renter is going to buy the property in a few years.

You could have a good reason to rent to own, but there are still some issues to watch. Be sure when buying or selling a home that you understand what you’re getting out of the work at hand. You’ll find that a rent to home effort will be easy to manage if you know what works here.

HUD $100 Down Program

May 8, 2021 by Robert Tucker

First-time home buyers are looking for as little down payment as possible. Well, $100 is pretty low! The HUD $100 down program is an FHA loan with a twist. Instead of the minimum required 3.5% of the price down payment, FHA allows a $100 minimum required investment. Regretfully, this program is limited to eligible properties. In order to use the HUD $100 down program, the property must be a HUD foreclosure or in other words, a HUD REO. There’s another set of initials! Real Estate Owned is what it stands for by the way. In addition to being a HUD-owned foreclosure, HUD must state that the listing is eligible for the $100 down incentive. So, that’s where it gets limited.

HUD $100 Down Program Requirements

Primary residence only
Single-family homes, not manufactured homes
Full price offers only – HUD REO properties do not negotiate
Could not have purchased a HUD home within 24 months
$100 down program must be in the signed contract
Standard FHA credit score requirements

To search HUD homes for sale, you can search the HUD.gov site. You may find your new home and get it for $100 down!

Sellers Market A Few Tips To Know

May 1, 2021 by Robert Tucker

When it comes time to sell your home you find it is not as easy as once thought. One of the first issues to think about is your market and the way it’ll impact the sale of the property.

Table of Contents

Selling Tips Determining Your Market

People sell their homes for a number of reasons. In some cases, the sale is involuntary thanks to issues that arise in life like a job related transfer, divorce, and financial problems. For a good majority of individuals, however, the choice to sell is formed under less trying circumstances. If you fall under this category, determining the character of the important great real estate market in your area may be a critical step to require.

When determining a marketplace for selling in a particular area, the central issue is what type of market is present? There are two types the seller’s market and the buyer’s market. Each market has particular characteristics and can impact what proportion of time and money are going to be involved in your selling effort. You need to find a realtor near you.

A seller’s market is one where there are more buyers than properties being listed. This doesn’t mean, however, that the national trend reflects things in your particular area. If your area remains hotdog, you’re within the catbirds seat. You can list your home with a high price for your area and still reasonably expect to entertain offers.

A buyers market is one where there are more listings than buyers. In such a situation, homes tend to take a seat on the market for substantial amounts of time. Many parts of the country, like Texas and Colorado generally, have historically been buyers markets. For some reason, these two states never really benefit from the huge seller’s market push the previous couple of years.

Two Thing You Need Determine in a Buyers Market

First, does one have sufficient equity in your home to sell it at a competitive price worthwhile selling? Second, wouldn’t it perhaps be better to attend a couple of years until the market falls in your favor? Buying a home in a buyer’s market can bring a lot of joy and huge discounts on deals that could be found. Unless there’s a compelling reason to sell, many householders will wait out buyers’ markets. If there’s a compelling reason, you would like to sell your home at near rock bottom of the marketplace for comparable homes in your ar ea to urge a fast sale. If it’s any comfort, you ought to be ready to rotate and find an honest deal in your area as a buyer.

At times, the important real estate process is often a confusing one for buyers and sellers. If you’re taking the steps to work out your market before making a selected decision, you’ll be happier. Looking For agents in your area. Click here for more info