Buying

CARES Act Gives Today’s Buyer Options

I wanted to share this that I received from one of our trusted partners, Mike Wickham at Caliber Home Loans, just in case it could be applicable to you. The CARES Act gives a couple of 401k options that borrowers may be able to use.

Borrowers can now take out of their 401k and have three years to put it back in; or, you can take it out early without the 10% penalty, and then you can spread the “income” over multiple years.

We see this as being helpful in a couple of ways:

  1. If someone with a 401k has a house to sell and they don’t want to sell before buying. Instead of coming up with the 3-5% (or in addition to), they can take it out of their 401k and then reimburse themselves once their home sells. This was true before, but most of the programs only allowed 60 days or so to do it. This gives the borrower more flexibility
  2. Or, if they’re planning to take out of their 401k for their down-payment, they can do it without the 10% penalty

If this is something that you would like to explore, give me a call at (317) 625-0655 and I can help sort through your options.

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Another Reason to Call Indiana Home

Indiana doesn’t fit with what has taken place on either coast.  Prices there are in “bubble” territory and subject to a significant correction.  Here in Indy, not so true.

  • In ALL my years in the industry, we just don’t see the BIG swings in prices in Indiana.  While we don’t gain massive amounts of price appreciation, we also don’t get hurt much when prices nationwide turn south
  • Our fundamentals are still solid.  The median home price in Central Indiana is $209,000.  With a 5% down mortgage, the payment on that priced home runs right around $1,275/month.  Median household income is $60,000/year or $5,000/month.  1,275/5,000 = 25.5%.  That’s less than the 28% qualifying guideline established by Fannie Mae and Freddie Mac, and much less than the 31% max over at FHA.

 JUST ONE MORE REASON TO CALL INDIANA HOME

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Some Good News

Showings are ½ of last year… but those who want to buy or sell are moving at lightning⚡ speed.  According to the National Association of REALTORS (NAR) survey, [CLICK HERE] the median number of homes being toured has gone down during the pandemic. Previously, buyers looked at nine homes before purchasing. Now that number is down to three—they’re moving faster amid crisis concerns.

This holds true in the Indy area. Our New Listing last week had 15 showings in the 1st three days, two good offers and I am happy to announce it “SOLD”!  We also helped two buyers to secure accepted purchase agreements over the weekend.  We may be working a little differently these days, but we are still making good things happen!