Lisa Carey Real Estate Blog at Carey Cottage, Tallahassee

If you are dealing with limited funds, a great way to buy a home in the Tallahassee Area is to consider looking in our more rural areas. Special loan types, including the USDA Loan, are available if you are willing to purchase in qualifying rural areas.

While rural sounds like big farm country, you would be surprised to see the neighborhoods that qualify. A great portion of Killearn Lakes, an established neighborhood in one of Tallahassee's best school zones, qualifies. Parts of Autumn Woods, Russell's Pond and other northwest neighborhoods qualify, as do some neighborhoods down popular Buck Lake Road. All great places to live in Tallahassee!

The greatest advantages to the USDA or Rural Development loans when purchasing a Tallahassee home are: very, very little money down and no PMI or mortgage insurance. There is a funding fee, which can be financed into the loan.

There are new USDA Rural Development Income Limits which are specific to different counties and areas. The new income limites for Leon, Jefferson and Gadsden County Florida are $71,450 for a 1-4 person household size. Or, $94,300 for a 5-8 person household size. In Wakulla and Bay Counties, the income limit is $70,750 for a 1-4 person household size. Or, $93,400 for a 5-8 person household size. These numbers are based on the adjusted gross income of the qualifying family and includes all household incomes for applicants and non-applicants. Your qualification is best determined by a trusted lender and these new income limits should be verified with a lender. Again, this program is only if you purchase in qualifying areas.

For more information on buying a home in Tallahassee with a Rural Development or USDA loan, please email me at Lisa@CareyCottage.com. I have successfully assisted many buyers with this program. Or, talk to a trusted local lender in the Tallahassee area.

Lisa Carey is a top-producing Realtor in Tallahassee, Florida, with Armor Realty.  She ranked in the top 5% of all selling Realtors in Tallahassee for 2008.

We've just reduced the price on a great home in the Killearn Area!  Built in 2004, this 3-bedroom, 2-bath house features wood floors, an open floor plan, great schools, a sunroom, and the best master walk-in closet you've seen at this price range!  Originally priced at $270,000, we just dropped to $248,000!

Located at 3360 Cameron Chase, Tallahassee, FL.  Be sure to check my home page to see this house as a featured listing, complete with virtual tour.  Or, call me at (850) 212-3083 to make an appointment to see this home today.

I've been running into this home buying problem a lot lately:  I have a buyer who wants to get an FHA loan so he can put down only 3.5%.  We start seeing all the homes in his price range (under the local area $271,000 max), only to find that a great many of the homes are short sales or bank-owned homes.  The Tallahassee homes are being sold in an "as is" state with no repairs being made.  

Purchasing a house in Tallahassee that needs repair is a real catch-22 situation.  The bank won't lend the money to buy the house until the repairs are complete (especially the roof - that darn, old roof - be sure you have at least 5 years of life expectancy to get good insurance).  But with most "as is" short sales & foreclosures, repairs can't be done until the house has been purchased.

The solution may be HUD's 203(k) program.  This type of loan may allow you to purchase or refinance a home and include the costs of making repairs and improvements.  Note:  this is only for buyers who are going to occupy the home as their primary residence.

Other restrictions apply:  there is a $5000 minimum on repairs, and a $15,000 maximum.    And, there are other ratios and criteria that must be met.  These are best determined and explained by your trusted lender. 

Be sure to make any offer you write contingent upon home inspections and wood rot/termite inspections.  Also make sure you note in the offer that you are getting an FHA 203(k) loan and that the contract is contingent upon this specific loan approval.

There is a possible solution out there to help those Tallahassee first-time homebuyers AND address the vast supply of fixer-upper foreclosure and short sale homes on the market!  For more information on FHA fixer-upper loans and a complete list of criteria, please email me at Lisa@CareyCottage.com or call your local Tallahassee lender.

You've seen it in the news - Florida real estate sales are down.  Nothing new there.  But, each market is very different and local in nature.  My goal is to start putting some stats up on my blog to help visitors stay on top of specific market trends in Tallahassee.

Here are total sales for each month for the last 3 years for Leon County:

Jan 2009 = 93, Jan 2008 = 148, Jan 2007 = 208

Feb 2009 = 100, Feb 2008 = 179, Feb 2007 = 266

March 2009 = 142, March 2008 = 230, March 2007 = 334

Source is the Tallahassee Board of Realtors MLS.  Please feel free to email me if you have questions about the sales in your specific price range or area.