Real Estate Information Archive

Have you been hesitant to purchase your first home because you are worried about having enough cash for a down payment or that you will not qualify for a loan? Don’t despair! There is help out there for you. Owning a home is a sound financial investment and there is no reason to keep paying a landlord’s mortgage when you could be paying your own and building equity for your future. There are programs available in Alabama that make home ownership more affordable. From looser lending requirements to down payment assistance, to lower mortgage rates, these programs, overseen by the Alabama Housing Finance Authority, make it possible for you to be a homeowner.

Here is a list of programs available to first-time homebuyers in Alabama:

AHFA STEP UP PROGRAM

The Alabama Housing Finance Authority’s (AHFA) program will assist new homebuyers in obtaining a fixed-rate mortgage. Eligible homebuyers (both first-time or repeat buyers) can get a 30-year conventional loan, FHA loan or VA loan at a competitive rate along with down payment assistance. Here are the requirements that need to be met to participate in this program:

• Property must be in Alabama
• Credit score must be 640 or higher (depending on loan type)
• Income can’t exceed the lesser of $130,600 or 80% of the area median income (depending on loan type)
• Debt to income ratio (DTI) has to be 45% or lower
• A homeowner education course must be completed

AHFA STEP UP DOWN PAYMENT ASSISTANCE

The Step-Up program includes an option for down payment assistance of up to 4% or $10,000 (whichever is less). These assistance funds come via a 10-year second mortgage, but both loans can be paid for in a single payment each month. You must be participating in the Step Up first mortgage program to qualify for down payment assistance.

AHFA AFFORDABLE INCOME SUBSIDY GRANT

This grant will provide up to 1% of your mortgage to assist you in paying for closing costs. It is only available if you are obtaining an HFA Advantage conventional loan, not an FHA loan. It can be combined with the Step Up down payment assistance, as well as a mortgage credit certificate. The requirements are the same as the Step-Up program requirements. But there are different income limits that are based on the county where the home is located.

MORTGAGE CREDIT CERTIFICATE (MCC)

Along with a competitive mortgage rate and down payment assistance, AHFA also offers a mortgage credit certificate to first-time homebuyers. An MCC is a tax credit, and in Alabama, depending on the size of your loan, it can equal as much as 30% to 50% of your mortgage interest. As stated above, your MCC can be combined with AHFA’s Step Up program or any other 30-year, fixed-rate mortgage obtained via a participating lender. Here is how to qualify for an MCC:

• You must be a first-time homebuyer or not have owned a home within the last three years.
• There are income limits and purchase price limits that must be met
• The property being purchased must be in Alabama

So, if you’re ready to stop paying rent and to become a homeowner, one of these approved Alabama Housing Finance Authority programs could provide a starting point for you. AHFA does not offer mortgages directly, but they do work with over 50 lenders all over the great state of Alabama. Be sure to shop around and compare loan offers so that you can find the best possible loan.

A seasoned, professional Realtor like Sandra Nickel can help you navigate the process of figuring out what you can afford and how to start your homebuying journey.

If you are in the market to buy or sell a home (or both), let me Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: hometrek.org, mlsmortgage.com, FinanceBuzz.com

Is it your dream to purchase a historic home and restore it to its full glory?  If so, you need to be aware that it is a big endeavor; one you need to be prepared for. Dealing with old structures and building materials can be challenging. In addition, old houses can be full of surprises, meaning extra costs that you do not anticipate. But if a historic home has your heart, it IS possible to not only restore it, but to make it your dream home.

Here are some tips for restoring a historic home:

• Understand the commitment you are making.

Living in an old home has unique challenges that you wouldn’t face in a modern home. Be sure you are willing to live in the conditions a historic home before taking it on as a project. Things like evenly cooled/heated rooms, pristine floors, and energy efficient windows might not be in the cards for you with this “new” abode. You may be able to update parts of the house, but if you truly want to maintain its historic beauty, you might have to make some sacrifices as well.

• Beware of water damage.

Water damage can cause serious problems in a historic home. Be sure to check everywhere, especially around ceilings, floors, and windows, for signs of water damage. Long-term effects like dry rot can cause huge problems. And extreme water damage can mean structural issues.Not to mention, bugs love wet environments, so you may be dealing with an infestation. Pay special attention to the sill plate. The sill plate is the bottommost horizontal component of a structure that runs the perimeter of the entire foundation. The vertical structural supports of the house are all attached to the sill plate. So, it is vital that it is not damaged. Lopsided floors, for example, might be due to a warped sill plate.

• Hire a team of professionals to help.

Do your homework and research people who are experts in historic preservation. At the very least, a contractor and inspector can assist in determining an estimate for work needed and the cost involved. But a local historian who has experience with historic homes in the area is someone who can truly assist you with keeping the essence of the home. It is crucial that anyone and everyone working on the home understands your ultimate goal of restoring the property.

• If you are on a budget, start small.

Most older homes will need updates and renovations, so if you are on a limited budget, seek out a smaller house so that it is more manageable. A tiny historic home lovingly restored with quality materials is definitely better than a giant mansion pieced together with cheap materials.

• Think about resale value.

This may be your forever home that you never plan to sell, but it is still wise to consider resale value when budgeting. You will not want to spend so much that if you have to sell for some reason, you won’t make your money back. Research what fully restored historic homes sell for in the area and use that information to help determine your budget.

• Begin with roof, windows, and masonry.

Don’t jump right into the cosmetic stuff, no matter how tempting it is. The beginning stage of renovation should focus on practical things that will prevent any future damage to the home. One major thing to do is to make sure the house is watertight. That means repairs/renovations of the roof, windows, and masonry.

• Utilize technology.

Updating the heating/cooling and electrical systems of a historic home will likely be the most expensive part of the renovation. Just remember that having modern systems doesn’t mean destroying the period details of the home that made you fall in love with it to begin with. You can maintain historical integrity while also living in comfort.

• Embrace non-threatening historical quirks.

Why spend a ton of time and money on leveling out uneven floors when you can accommodate them in your new design scheme? The goal is to maintain as much of the historical beauty and charm as possible while also making the house comfortable for living in the 21^st century. Be creative when deciding what to keep and what to change!

If you are in the market to buy or sell a home (or both), let me  Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: oldhouseweb.com, billingsgazette.com, hermitageroofing.com

3 Brantwood Drive, Montgomery, AL  36109

MLS# 510965

2 Units with 2 Bedrooms and 1 Full Bath Each

Great investment property! Recently renovated kitchens (granite) and baths, refinished hardwood floors, fresh paint and NEW HVAC! This duplex will allow you to live in one side and rent out the other side. Call for an appointment today!

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

3462 Bankhead Avenue, Montgomery, AL  36111

MLS# 510921

3 Beds / 3 Baths / 2,378 SqFt / Edgewood

Welcome to this wonderful family home in desirable Edgewood! From the beautiful slate floor in the foyer, you are immediately drawn to the grand Empire marble mantel in the living room across from a large picture window. The formal dining room leads to a huge open kitchen, updated with granite countertops and bar height island on one side and a tiled breakfast area/keeping room on the other, making it the perfect space to entertain family and friends. Master suite has split vanities, walk-in shower, and jetted tub. The laundry room is located right off the kitchen in the middle room of the house which could be used as a den or a 4th bedroom with its own bath. Situated on a 250' lot in Midtown Montgomery, there is plenty of room for play and pets. The covered slate patio offers a nice spot to relax in the lovely back yard. Military tenant in place until the end of June.

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

You’ve found your dream home! The neighborhood is lovely, with well-kept lawns and freshly painted exteriors. There is a resort-like pool and a playground for the kids. Awesome! Oh, and there is a Homeowners Association (HOA) that will cost you $500 a month. Didn’t see that coming, did you?  It is important to be informed about the pros and cons of living in a neighborhood with a homeowner’s association.

PROS

• The neighborhood will be aesthetically pleasing. Most HOAs establish rules for residents that ensure keeping up the appearance of the neighborhood. The guidelines might include keeping lawns manicured, whether you can have a fence (and the type and color of the fence), and what exterior paint colors you can use. You may even have to get permission to remove or add trees and shrubs.
  
• Awesome amenities. You will enjoy the amenities that come with your HOA fees. Most HOAs offer luxuries such as a pool, a fitness center, play areas, parks and security gates.  That is in addition to covering the expenses of landscaping and maintenance of the common areas.
   
• Maintenance costs are shared.  You will not have to worry about the upkeep of the pool, fitness center or common areas.
   
• An HOA will handle disputes between neighbors. If someone has a dog barking at all hours or loud parties, you can contact the HOA and they will contact the neighbor; especially if HOA rules are being broken.

CONS

• HOA dues.  They can be expensive, sometimes as much as $1,000 per month depending on what amenities are offered. These fees need to be taken into consideration when deciding if you can afford a house in the neighborhood. They will be included in your mortgage lender’s assessment of your monthly mortgage payment, so you will have to qualify for a loan amount that includes them.
  
• Needing permission to make changes to your property. If you want to add a room to your home or modify it in some way, you will have to make a request that will go before the HOA board for approval. If they don’t approve it, you will not be able to make the changes you want.
   
• HOA financial problems could become your problem. If your HOA is struggling financially, it could damage your ability to obtain a loan for a home and it could be detrimental to home sale prices in the community.
   
• Keeping up with the dues. If you fall behind on your HOA dues, it can do great harm to you financially. You may even end up facing foreclosure. That is why it is crucial that you include the fees when determining if you can afford a house. You may also be subject to late fees if you do not pay on time. In addition, HOAs can fine you for not following guidelines and rules, so it is imperative that you can afford the upkeep required for living in the neighborhood.

It is vital that you consider all these pros and cons before deciding to purchase a home in a neighborhood with an HOA.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: homelight.com, blog.realmanage.com, excelam.com

3018 Pelzer Avenue, Montgomery, AL  36109

MLS# 510968

3 Beds / 1 Bath / 1,216 SqFt / Rosemont Heights 

Move right in this adorable Rosemont Heights beauty! Perfect for a first-time home buyer, this home should be first on your list. Recently updated kitchen with open cabinets, new counter tops and new appliances. Fresh paint inside and out, beautiful hardwood floors, nice sized bedrooms, darling bath and laundry room! Check this one out today!

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

538 Morningview Drive, Montgomery, AL  36109

MLS# 510958

2 Beds / 1 Bath / 1,022 SqFt / Morningview 

This adorable Morningview two bedroom home is waiting for you! Quaint with separate dining and living rooms with beautiful wood floors, and a spacious kitchen. Just out the sliding glass doors in the dining room or off the kitchen is a deck overlooking the fenced back yard. The detached garage has power and can be used for storage or a workshop. Low maintenance brick and aluminum siding make for easy upkeep. Perfect for a first-time homebuyer or to start your own investment portfolio.

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

7 Calhoun Drive, Montgomery, AL  36109

MLS# 510966

2 Units with 2 Bedrooms and 1 Bath Each

Let your tenant help you make the mortgage payment while you live on one side of this great brick duplex or rent both sides! Each unit has 2 beds/1bath, a living room, dining room, and kitchen. Both units have updated kitchens with white quartz countertops, all white tile in the baths, refrigerators, and beautiful hard wood floors. Plenty of off-street parking with a two car garage and RV sized carport. Two separate laundry rooms, each with their own washer/dryer are in the garage. Come check out this Midtown Montgomery property today!

Marketed by Montgomery AL Realtor, Lauren Keen, Sandra Nickel Hat Team!

Whether you are selling a home or buying one, you are going to want to know the value of the home so that you can determine selling price or if the sale price is appropriate. But what you may not be aware of is that there are 3 different types of home values. It may be confusing to you when trying to determine what the true value of the home is. Let us break it down for you so that you will understand the 3 types of home values and what they mean.

1. ASSESSED VALUE

The assessed value is the assigned dollar value of your home used by local tax assessors to determine property taxes. Tax assessors calculate assessed value based on various factors, which may include the appraised value and the fair market value, as well as any home improvements, whether you generate income from the property, and any tax exemptions. The assessor will give you a figure that is commonly a percentage of what they perceive the value to be. Because property taxes are based upon assessed value, ideally, this figure will be lower. It should be close to your actual market value, but frequently it is not.

2. APPRAISED VALUE

When you are refinancing or purchasing a house, an appraiser will be hired to determine the value of the house in question. They will use the same process that real estate professionals use to determine the fair market value. A licensed appraiser will consider the location, size, and condition of the home along with any renovations that have been completed. They will walk through the home and compare it to others with similar amenities and improvements in the area that have sold. Most appraisals will include a construction or replacement cost that is used for insurance purposes.

3. FAIR MARKET VALUE

Fair market value is what a home is worth based on the current market climate. It encompasses how a home looks to prospective buyers compared to other homes in the area. It takes into consideration the sale prices of homes that are similar (same number of bedrooms, square footage etc.) A real estate agent will start by looking at “comps” to figure out what buyers have been willing to pay for properties comparable to yours. Other things that help determine fair market value are whether it is a seller’s or buyer’s market and how much inventory is available.

Because these different types of values can be subjective, it is vital to make sure you are looking at a comprehensive overview when trying to determine the value of the home you are selling or buying. An experienced Realtor like Sandra Nickel can assist you with this process by providing a comparative market analysis.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: mashvisor.com, corporatefinanceinstitute.com, mashvisor.com, realestatelawblog.com

While there are many perks to home ownership (and tax breaks are a big one!), people who are beginning the journey of purchasing a home may be easily misled by common homeowner tax myths.

First, it is important to note that owning your own home does come with tax benefits. For example, a conventional loan’s PMI (private mortgage insurance), the VA loan funding fee, the USDA loan guaranteed fee, and FHA loan upfront mortgage insurance premiums are each tax deductible per the IRS. But as a first-time homeowner, it’s important that you educate yourself on extended tax benefits so that you will know what you can and cannot deduct. Because, unfortunately, some things you might have heard about homeowner tax perks may not be true.

MYTH: DEDUCTIONS ALWAYS CUT YOUR TAX BILL IN HALF

TRUTH: While it is possible for your home ownership deductions to reduce your tax bill, it is not a guarantee. In order to claim deductions, they must add up to more than the combination of the standard deduction and non-home related write-offs, such as sales taxes or charitable donations.  You also will have to itemize your deductions.  Timing, in this case, is everything. For example, if you close on your home in April, you will make several mortgage payments throughout the tax year and chances are that you will exceed the standard deduction and write-offs, in which case your tax bill will be reduced. But if you close in November, you might only make one mortgage payment in the taxable year and you likely won’t exceed the standard deduction, meaning this is one homeowner tax perk that you won’t be able to enjoy until the following tax year.

MYTH: EVERY PAYMENT MADE AT CLOSING IS DEDUCTIBLE

TRUTH: Some closing costs are deductible. Not every fee you pay at your home closing can be written off.  The following closing costs ARE deductible: real estate taxes, mortgage interest, and PMI (private mortgage insurance).  You will not receive a tax break for your homeowner’s or flood insurance premiums. The same applies to appraisal fees, escrow accounts for property insurance and taxes, and title insurance.

MYTH: HAVING A HOME OFFICE IS A GUARANTEED DEDUCTION

TRUTH: Having a home office can indeed provide a deductible…for those who qualify.  You must keep in mind that the IRS’s definition of a “home office” is very specific. The following will qualify you for a home office deduction: you are self-employed, own a small business, work from home and have turned one of your home’s rooms into your office space. If you just work from your couch with your laptop, it doesn’t qualify as a “home office” in the eyes of the IRS.

If you fill out a W-2, your home office is NOT deductible.

Purchasing your first home can be an overwhelming and sometimes intimidating process. Education yourself about homeowner tax breaks is one step you can take toward becoming a knowledgeable, prepared homeowner.

If you are in the market to buy or sell a home (or both), let me, Sandra Nickel, and my Hat Team of Professionals assist you with all your real estate needs! Call us today at 334-834-1500 and check out https://www.homesforsaleinmontgomeryalabama.com for more information.

Photo Credits: Canva, fool.com, pod.com