Baltimore Ground Rent Houses

There are many ground rent houses in Baltimore.

What does this mean?

Guest blogger, T Jeremy Loomis, Sales Manager for Wells Fargo Home Mortgage, explains more about Baltimore ground rent homes:

What is ground rent (also known as a leasehold estate) and why would I have it?

Ground rent is when a fee is paid to the holder for leasing the land that the property sits upon.  This dates back to the 18th century and was meant to keep homeownership costs low because the buyer only paid for the building and simply rented the land at a fixed cost (this is your ground rent or leasehold estate).  You will not find ground rent on all Baltimore houses, and generally it is not a high cost; anywhere from $50 to $150 per year.  Your REALTOR can tell you if the property you are looking to buy has ground rent, if not then the property would be called “fee simple”.

Thank you, Jeremy!

In Baltimore County, you can find Rodgers Forge ground rent homes, as well as Loch Raven Village ground rent homes. They take a little extra in the appraisal process, but one thing to understand and be aware of is that as long as you pay your “ground rent”, you may do what you want with the property. The ground rent holder (or leasehold owner) cannot do anything or take anything of your property as long as you pay your ground rent!

Please contact Jeremy and myself for further information on Baltimore Ground Rent homes and the new FHA Appraisal Guidelines for leasehold properties.

New FHA Appraisal Guidelines for Leasehold Properties in Baltimore

Beginning June 13, 2010, the FHA appraisal guidelines for leasehold properties (also known as houses with ground rent) will be changing.

Guest blogger, T Jeremy Loomis, Sales Manager for Wells Fargo Home Mortgage, explains what this means for Baltimore ground rent homeowners:

Confused on the recent news about new FHA ground rent appraisal requirements?

Simply put, the appraiser (this is who will provide an estimate of the homes value by using similar properties that have recently sold around the home you would like to buy) will now need to tell the bank if the ground rent has any adverse effects on the mortgage they are providing to you.  The information they will provide will include details on the ground rent agreement; including, conditions, restrictions, and terms.  And when the appraiser looks at those similar properties they must make every attempt to use properties that have a ground rent agreement on them as well, and if not then they will be allowed to use similar properties that are “fee simple”.

So what does this really mean to you if you have a Baltimore ground rent home?  Just keep in mind that it may take a little longer to hear back from the appraiser and bank when it comes to your appraisal report.  And know that all involved are trying to make sound decisions and provide you with a sound and solid mortgage for your new home.

Thank you, Jeremy!

As a side note, many Baltimore neighborhoods have ground rent homes. Even in Baltimore County, the Rodgers Forge neighborhood and the Loch Raven Village neighborhood have many homes with ground rent.

Please contact Jeremy and myself for further information on Baltimore Ground Rent homes and the new FHA Appraisal Guidelines for leasehold properties.

Loch Raven Village and Knettishall in Towson Gems in Baltimore Sun Article

A few month back, I received a phone call from Jamie Smith Hopkins of the Baltimore Sun because she knew I know Towson real estate very well, and had sold homes in Loch Raven Village and Knettishall.

Jamie was putting together a series of articles called “Hidden Gems” about areas in Baltimore County and City that were in high demand areas — but not high demand prices.

Part of the criteria was that the median sales price had to be under the “affordable housing” line of $250,000. The buyer’s market of today has put Loch Raven Village and Knettishall in that range.

I was quoted a few times in the article, (thank you Jamie!), and I think she got a great feel for the neighborhood from a few different perspectives. Please read Jamie Smith Hopkins’ Baltimore Sun article about this Hidden Gem of an area!

There are many things that I love about Loch Raven Village and Knettishall. The homes are brick, well built, and generally beautiful. The streets are lined with trees and are so inviting. Its location in Towson and Parkville is convenient for both driving and public transportation. Shops are close by — the newly refurbished Towson Place, the nearby redone Towson Town Center, the Loch Raven Boulevard shops…it is all right there.

I recently sold one in the neighborhood on Aberdeen Road on the eastern side of Loch Raven Boulevard in Parkville. I know the neighborhood well. If you have any questions or would like to sell your Loch Raven Village home or buy one and take advantage of the $8,000 tax credit or $6,500 tax credit, please contact me today. I would love to help!

Back to School Brings Buyers Back to Towson Real Estate Market

Last week, Baltimore County went back to school. A long Labor Day weekend allowed for a feeling of lengthened summer, but today is the official day that we are back in full swing and the long days of summer are over.

Since kids are back in school, that usually brings a boost to the Towson Real Estate market, and this year appears to be no different. I have appointments every evening this week as the cool crisp air brings a new sense of urgency to get into the home of your dreams as you get ready to hunker down indoors for the cold weather months!

The $8,000 First Time Homebuyer Tax Credit is also a catalyst, because buyers really should get a home under contract by September 25 in order to ensure closing happens before November 30, 2009. This affects home sellers too, because if their home is in a Towson neighborhood like Loch Raven Village, where first time homebuyers are flocking, they need to get their homes on the market now so they can move soon and their buyers can take advantage of this credit.

Contact me today to take advantage of this first time homebuyer market, whether you are a buyer or a seller. Everyone wins!