Listings,New Construction,Buyers,Foreclosure,short sale and all the active homes in the Northern Virginia area including Fairfax, Loudoun, Prince William, Arlington & Alexandria.
Welcome to Ritu Desai- Fairfax/Loudoun County Realtor in Northern Virginia Sign in | Help

Fairfax, Loudoun County Virginia -Residential Real Estate Market Blog

Keep yourself up to date with the Northern Virginia Real Estate market and other local Northern Virginia information. Have a question or thinking about buying or selling home call Ritu Desai at Samson Properties at 703-625-4949 or email me at



  • Northern Virginia -Fairfax, Loudoun, Alexandria, Arlington & Prince William Blog, real estate Market condition written by Ritu Desai at Samson Properties.


2 NEW sophisticated Real Estate Scams At Closing- Buyers & Seller Beware!!!

Recently I learned from 2 different Northern Virginia Realtor®s how their clients almost got scam...and not just an ordinary scam like an email from Africa. Pretty well planned. So here are the details.


1. Northern Virginia Seller's Closing Scam  - Realtors email was hacked. The scammer knew all the parties name, where the closing was going to happen and at what time! After the buyers and sellers signed; the smart scammer called Closing agent /Title company, pretending to be the home sellers and requested their funds to be wired to a different bank account rather than the account they provided at the time of the closing. He verified property address, buyer's name and other generic information to the title company. Some good Samaritar were watching these poor sellers who were going to use their proceeds to retire....The title company had a good gut feeling and called the listing agent who in turn spoke with sellers and confirmed they did not authorize any change of wiring instruction. So if you are going to be at closing please alert the closing office and your clients not to change wiring instruction.


2. Northern Virginia Buyer's Closing Scam: On the flip side again selling agent's email account was hacked. The scammer was monitoring every email communication. He/She knew what day the closing was, purchaser's email address and so on. So 2 days prior to the closing scammer emailed the purchasers from agent's email account requesting they need to wire their DOWN PAYMENT money to the bank rather than bring as a cashier's check to the closing table. Which purchaser were ready to do BUT they had a question called their selling Realtor and guess what she has was clues less about the wiring !!!  

God forbid if in case 1 title company had wired or in case 2 buyers would have wired their down payment proceeds?????? Scary!!!



Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

Northern Virginia Home Sellers Shouldn't be SPOOKED with Year END Real Estate Market

With real estate sales in Virginia on the rise, many homeowners fail to have their house properly prepared to list their home on the market. In an effort to compete with other homes on the housing market, it’s best to invest time preparing your home for the end of the sale. By instilling just a few key tips from our expert guide, you can have your home on the market and sold in record time. 

1. Decorate accordingly: Don’t over personalize your home for holiday or halloween decorations. While your home can be festive to bring in that “holiday spirit,” be sure to keep things simple and tasteful. Less is always more. 1.Be realistic about home pricing: The Buyers pool shrinks with the end of the year and holidays approaching. Plus, it's always important to remember, the longer your home sits on the market the less likely someone is going to want to buy at its original asking price. It’s best to “price to sell” to ensure a fast sale on your home! 

2. Keep things bright and new: With shorter days it’s easy for a home to appear dreary, so it’s important when preparing your home to ensure lots of light warm light bulbs in all of your lamps and to have curtains drawn to allow for natural light to shine in. Other things to consider are simple, but effective changes to color, whether it be fresh bedding or even a fresh coat of paint.

3. Declutter: It’s easy to feel “comfortable” in your own home, with busy fall schedule and holiday parties, but it’s important to appeal to potential home buyers. A potential home buyer's biggest interest is always space. Go room-by-room, removing personal knick-knacks and bulky items (like an extra chair or an old desk) to provide a fresh and open look to your home. Don’t forget important places like linen and storage closets as well - remove any excess/old towels and toiletries, and organizing things in a way that displays each storage space adequate and in an attractive way. 


It may be difficult to combat falling leaves and home repairs on chilly days, but with the Fall season comes the benefit of wonderful fall foliage to make your home look picture perfect in addition to the key tips!

Home Seller How to Handle an Offer during Winter/Holiday or Any Slow Real Estate Market in Virginia

With the slow down in the Northern Virginia real estate market place during holidays many home sellers become desperate to sell their home. If they receive an offer, they want to accept offer and  move on with their home sale.


However as a Northern Virginia home seller you need to do your due diligence before signing off on the offer and ratifying the contract. Remember, sellers have least out from the contract compared to the buyers once ratified. 




Here is a check list of 3 things that will help you get to your goal of selling home:


1. Understand the contingencies: Have your Realtor help you understand under want circumstances the buyers can void the contract. If there are red flags or unique condition you need to be aware about and the time line that contingency will be valid for.  Example if your purchasers have a home to sell before they can purchase your home. You need to understand the time line on how long they have to sell their home, if they do receive an offer on their home how the contract is going to be modified, if you receive another offer what happens to the original offer and so on.  Apart from the complicated one like home of sale simple one like financing contingency and appraisal contingency can play a major role. 


2. Buyers Qualification - With so many changes in financing industry getting loan is getting tougher. It will be wise to understand how well your buyers are qualified before you accept the offer. Remember your goal is not to be back on the market in middle of winter. Have your Realtor speak with their lender. If it is an unknown lender or online lender may be have the buyers speak to a local lender and get a pre-approval.


3. Material Defect: Did you disclose any material defect that can affect the sale of you home? IF not Virginia has a disclosure form where you can disclose any defects that purchaser needs to be aware about.  Example you have poly pipes in the home or you know the basement floods when it rains. These are some of the examples of the material defects that needs to be disclosed to your home buyer rather than buying walking out on your home after discovering during home inspection.



Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

Strong Housing Trend in Loudoun County Fall Real Estate Market.

Fall is New Spring Real Estate Market in Loudoun County Virginia 

Trend evolves over the years. We all know Northern Virginia spring real estate is HOT, BEST & BIGGEST market to buy and sell your home!

It may be still true to a certain extend. However we have emerged into a new phase where we are seeing a stronger fall market.

Loudoun where we had sluggish summer real estate market. Fall has come around as a strong real estate market.

Compared to sluggish Fairfax County housing market Loudoun has shown a great improvement  

All the numbers are positive. We saw an increase in Sold Volume dollar along with the ratio of list price to sold price at 96.8%.  
The anxiety of Fed increasing the rates may have trigger some home buyers to make a decision to buy NOW rather than wait out on the outcome. Over all the inventory of homes went down compared to last year by 6.15%

From new construction to resale homes in the Aldie, Ashburn, Chantilly, South Riding, Sterling, Potomac Falls, Lansdowne, Leesburg and other eastern Loudoun county cities have been strong real estate in September 2015.





Ritu Desai at Samson Properties is a local Real Estate Agent serving Fairfax and Loudoun county home buyers and sellers over 12 years.  

Fairfax County Virginia-September was Sluggish Month in Real Estate Market.

Unlike Loudoun County September/Fall Real estate market in the Northern Virginia area Fairfax real estate market was mix bag. We have certain areas where Fairfax Real Estate showed a strong growth while other numbers reflect a weaker outlook.


On positive note: we did see a  rise in SOLD price over the past year even though it was in single digit of 3% . Over all volume of the sales was still higher than the 2014 September real estate market. The list to sold ratio remains very close at 96.6%. 


On a not so positive side: The prices of the attached homes slide a small percentage. While inventory remains high for the Fairfax area.


Remember, Fairfax County did have a major economic changes this year. Exxon Mobile decided to close their office that resulted in a significant inventory of the homes from the employees moving out of the area. Along with that we had an anxiety of once again Government shut down & Fed raising interest rate. Housing overall is far more expensive in Fairfax compared to neighboring counties of Loudoun & Prince William County.


Here is a snapshot of the housing market in the Fairfax County for September 2015






Ritu Desai at Samson Properties is a local Real Estate Agent serving Fairfax and Loudoun county home buyers and sellers over 12 years. 


Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

2015- Best Pumpkin Patch Farms in Northern Virginia Fairfax & Loudoun County

Fall is in full swing. With football season well into their 4 week, pumpkins are selling everywhere, fall cool air, fire pits cracking wood while sipping hot apple cider by the campfire!! Hmm feels good. While the weather is still beautiful take time off and visit one of these farms with your family before gloomy winter kicks in.

Here are Northern Virginia local farm that will sure with entertain everyone in the family.

Cox Farm- One of the most popular farm in the Northern Virginia area. Located in Centreville Fairfax County area. The festival includes  giant slides, famous hayrides, rope swings, farm animals & their babies, CORNundrum(R) cornfield adventure, straw tunnels, Farm Chores, Kiddie Zone, goat village, apples & cider, food, entertainment, over 90 acres of fun! Everyone gets a small patch pumpkin to take home free with paid admission! It does get very crowded over the weekend so if possible try week days with the young kids.

Ticonderoga Farms- Located in Chantilly Loudoun County. This pumpkin patch would keep the little munchkins amazed by the slides, hay ride, Panda Puzzle Bamboo Maze, Upside Down Swinging Bridge,Tether Ball, Tire Play Area and so much more. This farm is great for young kids, my kids are now older and they thought it was bit kiddish.

 Leesburg Animal Park/Pumpkinville- If you hate long lines at Cox farm but your kids are older to enjoy Ticonderoga Farm than Leesburg Animal Park/Pumpkinville can be a happy balance.  The farm is located in Leesburg Loudoun County. In past year they have added zip line (200 feet), camel ride, mini tractor rides, petting zoo, kiddie cart, free apple cider and open field for all ages to enjoy a farm day!

Great County Farm-Located an hour away from Northern Virginia region in Bluemont but well worth the trip! Farm offers hayrides, u-pick fruits and vegetables, a 2,800 sq. foot Pumpkin Jumpin’ Pillow, 4 challenging mazes, giant slides, friendly farm animals, catch and release fishing, swings, and even a giant chess set! Plus if you go in late October you can enjoy scenic view of the Bluemont fall colors.

Temple Hall Maize and Fall Festival-  Located in Leesburg has great number of activities for all age group that includes Farm animals, cow train, corn box, pig races, pedal cars, hay tunnel, wagon ride, country store, giant spider web, jumping pillow and tons of other activities. Many schools use to take the tickets as part of their field trip. It does get crowded over the weekend.


Northern Virginia Home Buyer- Buying a Home in Fall real estate Market is it Good or Bad Idea?
Ritu Desai one of the TOP Real Estate Agent with local broker Samson Properties of Chantilly VA. 

Real estate is 365 day business !!! Many home buyers have perceived the best time to purchase a home is during spring market.

As a Northern Virginia Realtor, personally I would buy my own home in Fall season.

Here are things that as a home buyer in Virginia you should know while considering purchasing a home in Fall real estate market:

1. Sellers true Motivated Sellers - Home sellers in winter may be testing the market with an attitude if they don't sell in winter they will wait out till spring market. However our fall home sellers are truly motivated home sellers who wants to sell their home NOW and not carry through the winter time. While the prices have cooled off from the crazy spring market to summer market fall home buyers may be able to negotiate bit more for their home.

2. Inventory
: In Northern Virginia real estate market may not have a huge volume of homes to choose for a home buyer compared to spring market. However the inventory is still at its best compared to winter market mid summer market. And adding to the above having motivated sellers in the market does help financially especially to first time home buyers.

3. Year-End Tax Breaks -
 If you purchase your home before the year end, you can start working with an accountant for the tax benefits and saving you can earn from owning a house.


Down size of buying a home during fall market are:

1. School year - If you are planning to coincide to move kids with the school year or a particular school than you would be better off buying in spring or summer market to coordinate the school move.

2. Inventory is low-
 Even though you have motivated sellers on the market some buyers struggle to find a perfect home in the fall real estate market due to lack of inventory. 

3. Selling your current home-
If you have a home to sell you may want to accept the hard fact..BUY LOW SELL LOW in the fall real estate market. To orchestrate both the side of the transaction I recommend my clients to list their home first on the market. While their home is on the market do their research/homework where they want to move if they do get an offer on their current home. With coinciding settlement this can be easily achieved.


Northern Virginia real estate market has surprised many of us. Past year some parts of spring season was also slower than the winter months. So don't just rely on a particular season to purchase your home. Discuss with your home search needs and wants with a local Virginia Real Estate agent to help you and guide you through the purchasing of your home.


Photo courtesy of

Posted: Monday, October 12, 2015 7:54 AM by Ritu Desai | 0 Comments
Filed under: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Toll Brother's Avonlea Reserve- New Construction 2 Car Garage Town Homes Chantilly VA 20152- Samson Properties Blog
Receive 1% Rebate on your NEW HOME PURCHASE with Ritu Desai at Samson Properties 703-625-4949

While everything is being constructed west wards in Loudoun county Virginia we wonder how a new construction community pops in the middle of established neighborhoods in South Riding / Chantilly VA 20152.


I am so thrilled Toll Brother has finally released much sought after Avonlea Reaserve. 


Avonlea Reserve: Luxury home builder Toll Brother's have released a quaint section of luxury town homes off Tall Cedar road and very close to Route 50 & 28 in Chantilly VA 20152. Offering 2 car garage with 3+ bedrooms, 2.5+ baths town homes. 


HOA Information:

The community HOA is $128 a month and includes amenities like Swimming pool, tennis courts, basketball court, children's play areas, and miles of walking snow removal, trash service and biking trails.


Community Location:

From Route 28: Take Route 50 West for 5-3/10 miles to left onto Pinebrook Rd. Proceed 1/2 mile to right onto Glasgow Heights Ter.


Floor plan:

Unfortunately they only offer 1 floor plan. Bradbury model which is one of Toll Brother's clasic floor plan. Various structural options are available to accomodate price & buyers needs.



Currently they are in pre-construction phase. Prices start from high $400 to low $500 depending on the home site & extension on the home.



Currently the Toll Brother's earliest delivery for in Avonlea is summer 2016.

Toll Brother's Avonlea Reserve 2 Car Garage town homes Community Information



Related Reads:

Why hire Real Estate Agent to Represent you in new construction home purchase?


5 Things Worth Upgrading with Builders when Buying a home in Fairfax/Loudoun Virginia


5 Things Not Worth Upgrading with Builders When Buying a Home in Virginia

Things You Should Know When Buying Builder's Model Home in Virginia


What is Lot Premium that New Home Builders Charge in Northern Virginia?


5 Must Read Pro Tips While Your New Home is Under Construction


5 FACTS-You Should Know Before Buying a Home in Ashburn Virginia-Loudoun County



Photo courtesy of


Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

Posted: Monday, October 12, 2015 7:51 AM by Ritu Desai | 0 Comments
Filed under: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,
Additional Tax benefits of owning a home in Virginia! BY RITU DESAI Samson Properties

Being a first time home buyers have great deal of benefits. IF you are a Virginia first time home buyer you can add another benefits to your list.

Here is information from the VHDA website


If you’re buying your first home, a Mortgage Credit Certificate (MCC) from VHDA could save you thousands of dollars by reducing the amount of federal income tax you owe. 

Unlike an income tax deduction, an MCC is a dollar-for-dollar credit against your federal income tax liability:

  • The credit is equal to 20 percent of the annual mortgage interest you pay.
  • The remaining 80 percent may still be taken as a tax deduction.
  • The MCC is effective for the life of your mortgage, as long as you live in the home.

To be eligible for an MCC, homebuyers must:

  • Be a first-time homebuyer, or not owned a home as a primary residence within the past three years. (This requirement may be waived if purchasing a home in a federal targeted area.)
  • Have income at or below the maximum household income limits.
  • Purchase a home below the maximum sales price.
  • Use the home as their principal residence.

If you obtain and use a MCC and then sell your home in the first nine years of homeownership, you may be subject to the federal recapture tax.

VHDA determines whether homebuyers qualify for MCCs under the Internal Revenue Code, but homebuyers must determine for themselves whether an MCC will save them money and how valuable an MCC will be for them over the life of their loan. VHDA cannot and does not give any tax advice to anyone.

You can apply for a Mortgage Credit Certificate through any approved participating lender. The list of participating Mortgage Credit Certificate lenders will be updated as new lenders are approved. 

"" Educational Resources

"" Watch Video: How MCCs Work

"" Information for Lenders Only

Questions About the MCC Program?
 To speak with a VHDA MCC expert, please contact Loan Programs Manager Janice Burgess at 804-343-5926 or Assistant Director, Homeownership Programs Toni Ostrowski at 804-343-5982.


Northern Virginia Home Seller -How to Make Your Home's Entrance Enticing!

Curb appeal is vital if you want your home to sell quickly for a good price. To create that enticing look, you don't necessarily have to undertake extensive landscaping or major fixes to the exterior of the building. Instead, you could just concentrate on the entrance to your house.

Lead them in

You want to do everything you can to lead your guests (and potential buyers) into your home. Make it clear where the entrance is by emphasizing it, using some of the techniques in this article.


Make sure all your door hardware (the door knocker, handle and hinges) are new or look new. You can buy matching hardware cheaply. Alternatively, give what you already have a good polish. Invest in a new house number and mailbox that complement the rest of your hardware.

The door

Make sure the door looks bright and fresh. Clean of dirty rain splashe and if needed paint the front door. 

Steps and railings

Power wash your walk way & steps. If there are steps up to your home, make sure they are well kept and safe. Check metal railings for rust and make sure they stay firm when visitors hold them.


Use containers or hanging baskets to mark the way to your home. They are easy to maintain and provide a splash of color. Try placing one container or basket on either side of the door to frame the entrance.


Consider adding attractive lights to emphasize the entrance and make it more attractive at night. Clean the light fixtures.

Add a chair

If you have space, place an attractive chair near the entrance. It gives the impression your home provides a relaxing place to sit and rest.

Don't forget a welcome mat

As a finishing touch, put a new mat outside the door.

2 Car Garage Town Home for Sale in Sterling VA 20166- Cascades Park/Peace Plantation

Ritu Desai & Samson Properties Presents New Listing...

 Location, Location, Location!!! 


Subdivision: Peace Plantation 1Cascades Park

: Sterling
Middle:  River Bend
High:  Potomac Falls

HOA Dues: $98 per month- includes:  , Outdoor pool,Tot-Lot, Jog/Walking trails, snow removal, trash and recycling services.


 Listing Price $389900                                                                       MLS#LO8735643


 Special Features about the home:

** Beautiful End unit “The Rothschild” town home in much sought after Peace Plantation 1 neighborhood.

** Home offers :Three large bedrooms, two full, two half baths and prodigious two car garage space.

** New Roof & water heater.

** Large open common area views of side.

 ** Bright & sun-filled kitchen with ample of cabinets space, stainless steel appliances, brand new flooring and recesses lights.

** Open; spacious breakfast and family room off kitchen.

** Sliding door leading to large deck.

** Large Living room & Dining room combo with wall of windows. and gleaming hardwood flooring.

** Stupendous Master bedroom with valuated ceilings, spacious walk in closet & a private bath.

** Luxurious Master bath offers soaking tub with jets, separate shower & dual vanity.

** Oversized secondary bedrooms with large closet space and a convenient full bath off hallway.

** Washer & dryer on bedroom level.

 ** Lower level recreation room with gas fireplace, built in bookshelves and a half bath.

** Walk out from lower lever to a beautiful patio & fully fenced backyard.











Perfect home for a first time home buyer, investor or downsizing home buyer in Fairfax county of Northern Virginia.



Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

Virginia Real Estate Market - August 2015-Fairfax County Real Estate Market-Sluggish Market/Rising Inventory

Compared to over all DC Metro area market and the local Loudoun County real estate market; Fairfax County real estate market was sluggish in August 2015.

We saw a slim percentage (1.29%) of rise in the sales volume compared to double digit in both DC Metro & Loudoun county housing report (13.97%).

Inventory is on the rise at 7.09% compared to August 2014.

Positive news/numbers is the attached homes did stay strong with increase in average sold price. Median sold price only drop by by 0.31% compared to 2014 August real estate market in Fairfax.


What would be the fall real estate market in the Fairfax County area looks like? 

The biggest news/sale we had was many of the employers of Exxon Mobil had to put their homes on the market. With the surge in the relocation we did see a larger number of single family homes in the Fairfax, Chantilly, Oakton and Herndon area. 

My thoughts are Fairfax county real estate market will continue with slow and steady pace growth. Areas like Herndon where Ryan, NV Homes are selling town homes & condos started to offer incentives with buying their interest rate. This was not seen/heard a year ago when they started selling at Discovery Square.


Low gas prices in 2015 has also opened the options for Northern Virginia buyers to consider Loudoun and Prince William county. Loudoun has been a biggest competitor for Fairfax county real estate market. As we know in Loudoun home buyer can purchaser a newer home for the same/lower purchase price. Basically purchasing power goes up for the home buyer in the area. Also with silver metro line coming to Ashburn has also helped surge Loudoun housing market.


Will the trend continue if the Fed raises interest rate or the oil prices goes up during harsh winter weather?


Here are the charts for the August housing/real estate market in Fairfax county of the Northern Virginia area:




Blog -thoughts/opinions are Ritu Desai at Samson Properties personal. Please seek advice from appropriate consultant about your real estate decision



Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

Are Home Inspection Necessary when Buying New Construction in Virginia?

Buying a new home in Fairfax or Loudoun county of Northern Virginia area many of the buyers don't see the advantages of getting the home inspection. 


Northern Virginia home buyers don't see the reason why they should go out and spend additional $$$ when they can trust the builder is building the home upto the code and county inspectors are there to check on their work.

Cosmetically at the end of the day the home will be delivered what they had envisioned or seen at model home.

However many of the home buyers of the new construction in the area are surprised when home inspection is completed and they get a list of to dos that needs to be corrected during the course of new construction.

As a local Northern Virginia Realtor I highly recommend to you hire qualified home inspector for various phases of your new construction. This includes:

Foundation, pre-dry wall and final walk thru. Apart from the 3 stated earlier, I also encourage my clients to hire home inspector prior to their first year walk through. This is your final chance to get the issues corrected while you are under one year warranty with the builder.




SOLD - Condo Style Town home in Belmont Country Club Ashburn VA 20147

Ritu Desai & Samson Properties Presents New Listing...

 Address:43865 HICKORY CORNER TER #103, ASHBURN, VA 20147


Listing Price $249000       SOLD Price: $249000


Subdivision: Ridges at Belmont Country Club


Elementary: Newton-Lee
Middle:   Belmont Ridge
High:  Riverside

About the condo in Ridges of Belmont Country Club 

It amuses me how real estate has evolved with the growth in social media. As a Loudoun county Realtor ® I belong to various facebook and social media group where we exchange our coming soon or potential buyers looking for a home. This home was pre-market as per sellers approval on various social media. A local agent spotted the listing and had an investor was looking to expand their portfolio shared this listing information. Before we know the home was under contract. 

While the average days on the market for the condos at Ridges in Belmont Country club and overall in Ashburn area is 60-90+ days; my home seller of this condo in Ashburn was happy to sell before they had to go through showing process. 

Features of the condo:

  • 2 large bedrooms, 2.5 baths and 1 car garage with a long driveway.
  • Brand new HVAC system, gleaming hardwood on main level, contemporary updated light fixtures, custom paint and neutral carpet flooring.
  • Kitchen offered beautiful granite counter tops, pantry , ample of cabinets and space for breakfast table.
  • Family room with cozy fireplace & a sliding door leading to a balcony.
  • Separate formal dining with elegant light fixture.
  • Upper level offered; Master bedroom & large secondary bedroom along with convenient washer & dryer at bedroom level.





Thinking about selling home your in Ashburn Virginia? Team up with Ritu Desai at Samson Properties at 703-625-4949


Associate Broker 
NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties 
Cell - 703-625-4949 
Email - 

Northern Virginia Home Buyer - New FHA Changes To Borrower Income

Northern Virginia home buyers are once again reconsidering the FHA loan since conventional loan has also added their new financing guidelines and it is getting tougher to get home loans. Here is a great depth of information that will affect the FHA loan.


This past Monday I wrote a blog titled New FHA Changes In Calculating Borrower Debtwhich covered the recent FHA guideline changes implemented on September 14, 2015 on calculating borrower debt.   I followed that blog up on Friday with a second blog which covered the New FHA Changes To Borrower Assets.  Today I will finish up the FHA changes implemented on September 14, 2015 with the New FHA Changes To Borrower Income which I feel will impact usable Borrower income the most.

The new FHA Changes implemented on September 14, 2015 which will have the most impact on usable Borrower Income are extensive, so I will try to keep each one simple and short.  I plan on writing future blogs on some of the changes below with a more detailed explanation, but for now I feel it is best to keep each one short and simple in order to make everyone aware of the changes quickly.   The New FHA Changes To Borrower Income which will impact usable Borrower income the most are:

Hourly Wage Earners:

  • If the Borrower's hours do not vary from week to week, the Borrower’s current hourly rate will be used to calculate the Borrower's monthly average Income. 
  • If Hours vary from week to week, the Borrower's income will be averaged  over the previous two years. 
  • If an increase in pay rate can be documented, the most recent 12-month average of hours at the current pay rate may be used.

Non Taxable Income: 

  • Income which is not Taxable such as Social Security Income can be grossed up.  The percentage Non Taxable Income use to be able to be grossed up to was 25%.  With the new FHA changes Non-Taxable Income cannot EXCEED THE GREATER of 15% or the appropriate tax rate for the income amount, based on the Borrower’s tax rate for the previous year.

Employment Gaps: 

  • Regardless of how long a Borrower had been out of work, Lenders use to be able to use the Borrower's income once they could produce a 30 paystub for their new job, and show 2 year job history prior to the gap in employment.
  • With the new changes Borrowers with gaps in employment of six months or more, will now have to be on their current job for at least six months at the time the FHA case number is assigned, and a two year work history prior to the gap in employment must be verified.

Job Changes: 

  • If a Borrower has changed jobs more than three times in the previous 12-month period, OR has changed lines of work, additional steps to verify and document the stability of the Borrower’s Employment Income is
    required.  Prior to the new FHA change it did not matter how many jobs a Borrower had in the last 12-months or how many times they had changed lines of work.

Temporary Leave: 

For short-term disability or similar, temporary leave income may be used to qualify the Borrower if: 

  • The Borrower intends to return to work;
  • The Borrower has the right to return to work; and
  • The Borrower qualifies for the Mortgage taking into account any reduction of income due to the circumstance.
  • For Borrowers returning to work before or at the time of the first Mortgage Payment due date, the Lender may use the Borrower’s pre-leave income.
  • For Borrowers returning to work after the first Mortgage Payment due date:
    • The Lender can use the current documented disability income; or
    • May supplement with reserves in excess of required cash to close and loan reserve requirements.
    • The amount of the monthly income reserve supplement is the total amount of surplus Reserves divided by the number of months between the first payment due date and the Borrower’s intended date of return to work.
  • Required Documentation For Use Of Temporary Leave Income:
    • A Written statement from the Borrower confirming the Borrower’s intent to return to work, and the intended date of return;
    • Documentation provided by current employer confirming the Borrower’s eligibility to return to current employer after temporary leave; and
    • Documentation the Borrower has sufficient liquid assets, in accordance with Sources of Funds, used to supplement the Borrower’s
      income through the Borrower's intended date of return to work with the current employer.

This concludes the New FHA Changes To Borrower Income which I feel will have the most impact on the income FHA will allow Borrowers to use.  This blog also concludes all of the new FHA changes which were implemented on Monday, September 14, 2015.  Some of these new changes may require a more in debt explanation.  So as I stated before I plan on writing future blogs on some of the changes above with a more detailed explanation.




 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or

More Posts Next page »