Real Estate Information Archive


Displaying blog entries 1-5 of 5

Financing a Montgomery Fixer-Upper

by The Hat Team

We have many wonderful old neighborhoods in Montgomery AL, but like many cities some of our older homes have seen better days.

You have found THE house in THE neighborhood, but you can hardly call it your dream home because of the work it needs.  How will you ever pay for all the repairs? The good news is there are financing options for properties in need of repair.

Section 203(k)
FHA's Section 203(k) mortgage combines the cost of renovation and the purchase of the house within one loan.

These mortgages can be used on homes in urban areas, as long as they're at least a year old and the planned renovation work totals at least $5,000.

First, you hire a HUD-approved consultant, who identifies the rehabilitation projects that are most urgent and the projects that enhance the value of the house. Next, the lender hires an appraiser to determine the post-renovation value of the house, which is used to determine the amount of money you can borrow. The portion of the loan earmarked for improvements is disbursed in installments as the work is completed.

HomeStyle Renovation
Fannie Mae also offers a mortgage product that allows borrowers to finance the cost of a house and renovation work within one loan. While Fannie Mae's HomeStyle Re-modeler is similar to the Section 203(k) program, it differs in a couple of key ways.

For starters, the mortgage limits are somewhat higher. For most of the United States, loans for single-family houses can go up to $323,000. With a HomeStyle Re-modeler loan, that amount would include both the cost of the house itself and the work that's done.

Fannie Mae doesn't require the use of a consultant. However, the borrower has to find a licensed contractor, who submits detailed work plans and specifications to the lender. Fannie Mae doesn't specify the types of repairs allowed, but the work has to be on structures that are permanently attached to the property.

Private Lenders
Many local banks will offer financing programs that allow the purchase of a home along with renovation costs.

Are you looking to buy an older Montgomery home? We can help you find that home and help you find the financing to go along with it.  Call The Hat Team at 834-1500 or 800-428-5239. We'll make your dream a reality!

Midtown Montgomery Home Sales Increase

by The Hat Team
"As home sales moderate, overall home prices will be essentially flat this year," says David Lereah, chief economist for the National Association of Realtors. Tighter lending standards are expected to slow sales, but the good news is, inventory remains well below the levels seen in the real estate downturn of the early 1990's.

Our local market is not following this trend towards moderation, however. The number of single family homes in Midtown Montgomery (Midtown consists of neighborhoods south of I-85 between Exits 1 and 6) that sold in March increased by 3 homes or 6 percent.  At the same time, the number of pending listings decreased by only 1 home or less than 1 percent. 

Market times in March 2007 increased slightly with market times of 102 days vs. 99 days in March 2006.  The average sales price decreased $20,520 or 12 percent compared to March 2006. This decrease offsets the 17 percent increase in prices we saw in February. 




Market Times

Sales Price

March 2007





March 2006





The fluctuation in prices may be the influence of an extremely high end property selling, therefore, skewing the numbers and not necessarily a trend downward. The 3 percent increase in sales should keep prices up

Are you thinking of selling your Montgomery home? You can have a current no-obligation price valuation emailed to you by visiting

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed. 

Living Green In Montgomery

by The Hat Team

I learned about a wonderful website, Earth Trends, offering many suggestions, several of which are pretty simple, about things we can each do to help make our increasingly crowded, biologically challenging world a more sustainable place for ourselves and future generations.

Many of these suggestions you have heard before, like turn off the water when your wash your car and use a bucket instead. But the list here is so comprehensive, I wanted to share it with you.

Hopefully , we will all think a little harder about what we do, and don't do, to contribute to the problems of the world's environment. 

Did you know that recycling one aluminum can saves enough electricity to run a TV for 3 hours or that compact fluorescent bulbs use only one-quarter of the energy of an ordinary light bulb and last 8-12 times longer. (Each bulb saves 500 lbs. of CO2 per year)

I hope you will visit Earth Trends to learn about saving our planet and Hat Team to learn about Montgomery AL real estate.

Alabama Home Sales Rise

by The Hat Team

Alabama's existing home sales increased in February by 14.7 percent with 4,069 homes sold, according to The University of Alabama's Real Estate Research and Education Center.

The average prices also rose in February to $155,632, an increase of 3.3 percent from the previous month. There were 36,702 homes listed on the market in February, representing a nine-month supply of homes in Alabama.

There are many more homes for sale  this year than last year, but the market appears to be able to handle the growth. This year is starting out to be another solid year for home sales in Alabama. 

Midtown Montgomery market statistics can be found on our website.

Midtown Montgomery Development Experiences Renaissance

by The Hat Team

There is much development going on downtown, but Midtown Montgomery is also benefiting from commercial development with its new Midtown Plaza.

The new 300,000 square foot shopping area has exceeded the expectations of the developer and local residents alike. The developer is pleased that all, but one small retail space is rented and residents are pleased the construction congestion has given way to new and convenient shopping and restaurants.

Stores include Super Wal-mart, Ross Dress for Less, Office Depot, Dollar Tree and Shoe Carnival.  Ala Thai, a favorite local restaurant, opens later this month. CiCi's Pizza will open soon after.

Living in Midtown gets better every day!

Interested in what Midtown real estate is doing? Visit our website for all your Midtown Montgomery real estate listings.

Displaying blog entries 1-5 of 5




   cdpe    crsHat Lady on Zillow