October :: SoundBiteBlog.com 2007 :: SoundBiteBlog.com

Just a few weeks ago SoundBiteBlog posted an article about VA Loan Limits and Ginnie Mae. In short the article stated that, beginning September 1st 2007,  Ginnie Mae has lifted the maximum loan limit cap on VA Mortgages. This seemed like big news to me at the time, yet there still has not been much media coverage on the subject.

Yesterday, the first lender in Washington (that I know of) sent out a memo to Mortgage Brokers announcing they have raised the VA Loan limit to $1,000,000! It was bound to happen. Someone had to be the first to jump on this opportunity. The previous VA Loan Limit was $417,000. This is a huge jump. In case you are wondering, the lender is Network Mortgage Services, Inc. of Lynwood, WA.

This increase applies to 2, 3 and 4 unit properties as well as Single Family dwellings.

Other VA guidelines remain the same. VA only makes loans on Owner Occupied Properties. So, a VA Borrower wishing to purchase a 4-plex, must live in one of the units. Regardless of that fact, what a terrific way for a local buyer to get into the real estate investment game!

In speaking with a number of Real Estate Professionals I have noticed there is quite a bit of misunderstanding about VA Loans and how the VA Funding Fee works. Here’s a brief explanation.

The maximum guarantee that VA will make on a property has not changed. What this means is if a buyer wants to exceed the $417,000 conforming limitation, VA will guarantee the larger loan, but the borrower must have some down payment. Now before you shake your head and say “there had to be a catch”, consider how it works.

VA will guarantee up to $417,000. The buyer must come up with 25% of the amount above $417,000. As an example, on a $517,000 purchase, the buyer will need to raise $25,000 for down payment. That is 4.8% down! It sounds like a great deal to me! Especially if the buyer is purchasing a 2, 3 or 4 unit property. Very few multi-family loan programs are in the same ballpark. 4.8% down, no mortgage insurance, attractive fixed rates and reasonable credit guidelines. Just try to find a better loan package than that.

I would imagine now that Network has raised the bar, other VA lenders will soon announce they have raised their limit too. The one question I still have is whether or not this increase applies to Refinance Transactions. At this time, refinances have not been addressed at all.

All in all, this is great news for Washington Real Estate buyers, Realtors® and Loan Originators.

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Posted in Bites of Washington, Miscellaneous, Mortgage Bites | 5 Comments »

Tags: va loan limit increase, va mortgage, veterans administration

As many of our readers may know, there is a project currently underway to build a new marina out in Seabeck WA. As an avid recreational boater, this news is music to my ears! While there are numerous marinas on the eastern side of the Kitsap Peninsula, there aren’t any places to moor your boat or gas up on the Hood Canal side.

The new marina (renamed “Olympic View Marina”) is the venture of a Seattle-based marina development group comprised of 4 partners, including local Poulsbo resident, Erik Bentzen, a professional yacht surveyor and marine consultant.

Supposedly, all plans for the project have met with approval from all local, County, State and Federal agencies. The development calls for a new breakwater and 200-slip marina, restrooms, fuel dock, and a sewage pump-out station. Space accomodation is also being made available to current store owners, like Seabeck Pizza, Turie’s Seabeck Espresso, Seabeck Landing General Store, and Barbie’s Cafe.

Exceptional care and concern has been consistently demonstrated by the developers of Olympic View Marina with regards to the positive environmental impact of the reconstruction, including addressing issues concerning adequate parking and local traffic safety; view restrictions; and any potential impacts on aquatic/tidal habitats and fishery resources. It has been the intention of the developers from the very beginning to go ‘above and beyond’ the permitting requirements.

The new marina offers a significant improvement to the previous one which was condemned as ‘unsafe’ and closed down for over two years. The design of the new marina will have a ‘low impact’ environmentally, and will actually make stated improvements to water quality and fish habitat. Additional repairs will greatly improve the visual aesthetics along the Seabeck shoreline.

While only some initial clean-up work has taken place, look for the reconstruction efforts to go into full-swing in the Spring of 2008.

Real Estate in Seabeck WA has experienced a tremendous amount of growth over the past several years, making the area very popular, especially for Kitsap waterfront properties. Valuations for both vacant land and residential properties should continue to increase, especially with the marina reconstruction.

For many local boat owners like myself, the new Olympic View Marina it will definitely be “Worth the Wait!”

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Posted in Bites of Washington, Business Bites, Kitsap County Bites, Seabeck WA Real Estate | 3 Comments »

The Washington Department of Fish and Wildlife (WDFW) has announced the first razor-clam dig of the 2007 Fall season to get under way on October 25th. To find out all the relevant details, go HERE.

There are a lot of similarities between Razor-Clamming and Real Estate.

Both have their respective ‘seasons.” Right now in real estate, we’re experiencing a cooling trend throughout the country. While our market here in the Seattle area is better than most, sales of residential properties has slowed down considerably. We have approx. 50% more homes on the market right now than this same time last year. Though this gives Buyers more choices and greater negotiation room, it makes things much more competitive and difficult for Sellers.

Digging for Razor-Clams is hard work. Whether you use the traditional ‘shovel’ method or a tubular clam gun, you spend serveral hours using muscles you never thought existed! In a slowing market, being a professional real estate agent takes determination and hard work. You don’t have the luxury of simply putting a home up onto the local Multiple Listing Service and waiting for the Buyers to line up. You have to educate your Sellers on how to effectively prepare a home for market. With all the other competing homes available, you really need to pull out all the stops and make your property stand out. You need to price the home agressively, according to market value (what people are willing to pay TODAY), and not based on what the Seller’s perceived value is. You need to market and promote the home agressively as well. Maximum Internet exposure is critical to achieving success in today’s real estate market.

Both result in tremendous reward. A licensed professional real estate agent who intimately understands the nuances of the current market, and works diligently on your behalf, will help you to successfully achieve your home buying or selling goals. And, there are few things more enjoyable in life than sitting down to a feast of freshly fried Razor-Clams!

So, if you want to enjoy a slice of life here in the scenic Pacific Northwest, run out to the coast and have a go at digging Razor-Clams. And, if you’re looking to buy or sell a home in the West Puget Sound area, give me a call.

Can you “DIG” it?   360.440.4758

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Posted in Bites of Washington, Kitsap County Bites, Laugh Tracks, Real Estate Bites | 4 Comments »

I got a phone call the other day from my buddy, Josh. He’s best friends with my oldest son, Ben. Josh just recently got married (his new bride, Mallory, lived in the house right behind us) and he’s starting his own construction business here on the Kitsap Peninsula WA. Ben helps him out on weekends with various projects, mostly pouring concrete and drywalling.

As a budding builder, Josh is always curious about issues relating to real estate. This time, he wanted to know about the whole “Agent-to-Client” relationship thing, and specifically, what does a Buyer do when they realize that the Agent they’re working with is an idiot (those were his words, not mine!) Evidently, Mal’s parents have some friends who are in the market to buy their first home. From what Josh told me, it sounds like their agent probably sells snake oil in his spare time. He employs super high pressure tactics. He keeps trying to force them into buying one of his listings, even though it’s an overpriced train wreck. They’re at a point where they no longer feel comfortable with this guy, and wonder if he really is concerned with their best interests.

Money, or the allure of money, sometimes does the strangest things to people. It causes them to lose sight of their priorities and purpose. It clouds their judgment. It changes their focus from serving others to serving themselves.

In real estate, it can be an easy temptation to lose sight of our statutory or fiduciary responsibilities and obligations, especially in a slowing market. Commission checks are farther and farther apart. We’re scrambling to make ends meet. Every closing counts.

So maybe we neglect to show our Buyers those listings where the Selling Agent commission isn’t as attractive as some of the others. Or perhaps we don’t disclose some known material defect, for fear that they won’t buy the house. Or it could be that we simply aren’t as critical of an advocate as we once were, and allow certain issues to go unchecked in the process? We’re more concerned about ‘closing’ than we are about ‘caring.’

I had the good fortune of having some really excellent mentors early on in my professional career. I learned the importance of providing superlative customer service. You’ve heard the saying, “Do what you Love, and the money will follow?” Well, in real estate, it’s provide the best customer service, and the money will follow. Offer your clients the most relentless representation possible, and you will reap the financial benefits as a result.

Plus, you’ll stay out of jail and sleep better at night!

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Posted in Bainbridge Island Real Estate, Bremerton WA Real Estate, Buyers, Gig Harbor Real Estate, Port Orchard Real Estate, Poulsbo Real Estate, Real Estate Bites, Sellers, Silverdale WA Real Estate | 3 Comments »

The Fall weather here in Washington State always signals the start of the Gridiron Season for local schools on the Kitsap Peninsula.

Last week was Game Two of the season for the Central Kitsap Junior High JV Football Team here in Silverdale WA. My youngest son, Luke, who has spent the last two years playing for the local Pee Wee league, decided that this year he wanted to play for his school, the CKJH Cubs.

Luke had the good fortune of being selected as the starting quarterback this year, a position and responsibility he takes very seriously. This is a kid who has his whole career planned out. He’s going to make all state for CK High, get scouted by Ohio State, earn a full-ride scholarship, take the Heismann, go #1 in the draft to the Kansas City Chiefs, win the Super Bowl, then end up calling the plays on ESPN’s Monday Night Football.

Somewhere along the way, dear ole’ Dad is supposed to get a Hummer and the waterfront luxury home on Hood Canal.

Regardless, Hummer or not, Dad is extremely proud!

Game One against Marcus Whitman was a nail biter. The Cubs jumped ahead early, scoring 2 TD’s in the first quarter. But Marcus Whitman came back with a vengence, tying things up by the end of the 3rd quarter. With less than 2 minutes left in the 4th, and 3rd down, our boys lined up on the 50 yard line. Luke dropped back and unleashed a good 30-yard bomb to Josh Sontag. Josh ran down to the MW 10 yard line. The next play, we punched it in for the winning score!

Our 2nd game this past week against Fairview Junior High was highlighted by Luke’s first touchdown pass of the season! Once again, his favored target, Josh Sontag, pulled the pigskin to the numbers, and ran it in.

Click HERE to view Luke’s First Touchdown Pass of the 2007 Season

Life here on the Kitsap Peninsula WA doesn’t get any better than this! It may even beat going crabbin!!!

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Posted in Bites of Washington, Kitsap County Bites | 7 Comments »