Published By Dallas Business Journal
Written By Kerri Panchuk
Grapevine Mills is getting a Sea Life Aquarium in the summer of 2011 to further expand on the shopping center and the city’s plan to turn Grapevine into a destination for families.
Merlin Entertainments has reached an agreement with The Mills, a Simon Co., and the City of Grapevine to create plans for the $15 million Sea Life Aquarium at Grapevine Mills.
The new attraction will sit across from Legoland Discovery Centre, another hot spot for family-friendly entertainment.
The aquarium will be Merlin’s fourth Sea Life attraction in the United States. Plans call for a two-story, 45,000-square-foot aquarium that will house 30 different marine life displays featuring starfish, seahorses, sharks and rays.
“The Sea Life Aquarium will be the perfect complement to Grapevine Mills' already celebrated shopping and entertainment experience. We look forward to our partnership with Merlin Entertainments and are confident that families will revel in the deep sea wonders that the aquarium will bring," said Gregg Goodman, president of The Mills.
Tuesday, June 29, 2010
Monday, June 28, 2010
10 Most Recession-Proof U.S. Cities
The most recession-proof cities didn’t see home prices surge in the first place, says the MetroMonitor, a quarterly report released by Brookings Institute's Metropolitan Policy Program.
MetroMonitor identified 21 large metro areas that have enjoyed robust economies and stable labor and housing markets in the last few years.
"Most of these cities have some general characteristics in common," says Howard Weil, author of the report and a fellow at the Metropolitan Policy Program. "They didn't experience huge housing bubbles followed by a crash, and their economies weren't rooted in the auto industry."
The top 10 stable cities identified by MetroMonitor are:
1. Albany, N.Y.
2. Augusta, Ga.
3. Austin, Texas
4. Baton Rouge, La.
5. Buffalo, N.Y.
6. Columbia, S.C.
7. Dallas
8. Des Moines, Iowa
9. El Paso, Texas
10. Honolulu
Source: CNNMoney.com, Hibah Yousuf (06/24/2010)
MetroMonitor identified 21 large metro areas that have enjoyed robust economies and stable labor and housing markets in the last few years.
"Most of these cities have some general characteristics in common," says Howard Weil, author of the report and a fellow at the Metropolitan Policy Program. "They didn't experience huge housing bubbles followed by a crash, and their economies weren't rooted in the auto industry."
The top 10 stable cities identified by MetroMonitor are:
1. Albany, N.Y.
2. Augusta, Ga.
3. Austin, Texas
4. Baton Rouge, La.
5. Buffalo, N.Y.
6. Columbia, S.C.
7. Dallas
8. Des Moines, Iowa
9. El Paso, Texas
10. Honolulu
Source: CNNMoney.com, Hibah Yousuf (06/24/2010)
Friday, June 25, 2010
FED: Interest Rates to Stay at Record Low Levels!
In the wake of a slowing real estate market, the Federal Reserve said Wednesday that the economy is “proceeding” and pledged to hold interest rates at record low, near zero rates.
One piece of good news, released simultaneously with the Fed’s report, was a survey of CEOs of large U.S. companies, 39 percent of whom said they expect to increase the number of people on their payrolls in the second half of 2010.
Source: Associated Press, Alan Zibel (06/23/2010)
One piece of good news, released simultaneously with the Fed’s report, was a survey of CEOs of large U.S. companies, 39 percent of whom said they expect to increase the number of people on their payrolls in the second half of 2010.
Source: Associated Press, Alan Zibel (06/23/2010)
Thursday, June 24, 2010
Disney Luxury-Home Plans Indicate Confidence!
Walt Disney Co. announced plans Wednesday to develop and sell vacation homes near Orlando’s Walt Disney World. The homes will be priced between $1.5 million and $8 million. In announcing the development, Disney said the luxury home market is recovering.
The proposed 980-acre Golden Oak development will include two golf courses, 450 homes and a 445-room Four Seasons hotel, as well as a clubhouse, pedestrian walkways, and a nature preserve. The first homes are expected to be completed in 2011.
Lots will range from a quarter to three-quarters of an acre. Buyers may choose their own architects, but Disney will supply the builders and require buyers to choose from a limited number of exterior building materials and architectural styles.
Buyers interested in the first lots must deposit $25,000 to be placed on a reservation list.
Source: The Wall Street Journal, Juliet Chung (06/23/2010)
The proposed 980-acre Golden Oak development will include two golf courses, 450 homes and a 445-room Four Seasons hotel, as well as a clubhouse, pedestrian walkways, and a nature preserve. The first homes are expected to be completed in 2011.
Lots will range from a quarter to three-quarters of an acre. Buyers may choose their own architects, but Disney will supply the builders and require buyers to choose from a limited number of exterior building materials and architectural styles.
Buyers interested in the first lots must deposit $25,000 to be placed on a reservation list.
Source: The Wall Street Journal, Juliet Chung (06/23/2010)
Wednesday, June 23, 2010
Dallas-Fort Worth home foreclosure filings drop 7 percent
By STEVE BROWN / The Dallas Morning News
stevebrown@dallasnews.com
North Texas home foreclosure filings are down again.
The number of homes facing foreclosure in the Dallas-Fort Worth area next month is 7 percent below where it was a year ago, according to statistics released Friday from Foreclosure Listing Service.
July’s foreclosure filings include 5,654 D-FW residential properties, the Addison-based foreclosure tracking firm said.
Foreclosure filings in April and May were also lower than a year ago, giving hope that record home loan defaults in the D-FW area are easing.
“While this is certainly not an indication that the residential foreclosure crunch is over, it is welcomed news that we have seen a decline for three months in a row in same-month to same-month postings,” Foreclosure Listing Service president George Roddy said in a statement.
stevebrown@dallasnews.com
North Texas home foreclosure filings are down again.
The number of homes facing foreclosure in the Dallas-Fort Worth area next month is 7 percent below where it was a year ago, according to statistics released Friday from Foreclosure Listing Service.
July’s foreclosure filings include 5,654 D-FW residential properties, the Addison-based foreclosure tracking firm said.
Foreclosure filings in April and May were also lower than a year ago, giving hope that record home loan defaults in the D-FW area are easing.
“While this is certainly not an indication that the residential foreclosure crunch is over, it is welcomed news that we have seen a decline for three months in a row in same-month to same-month postings,” Foreclosure Listing Service president George Roddy said in a statement.
Tuesday, June 22, 2010
Continued Strong Pace for Existing-Home Sales
Existing-home sales remained at elevated levels in May on buyer response to the tax credit, characterized by stabilizing home prices and historically low mortgage interest rates, according to the National Association of REALTORS®. Gains in the West and South were offset by a decline in the Northeast; the Midwest was steady.
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.
Buyers Face Purchasing Delays
Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. “We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings,” he said. “However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.
“In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance.”
As the leading advocate for homeownership issues, NAR is supporting Senate amendments to extend the home buyer tax credit closing deadline through September 30 for contracts written by April 30, and to renew the flood insurance program. “Sales and related local economic activity would have been higher without delays in the closing process or flood insurance issues,” Yun noted.
Housing Still Affordable
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.89 percent in May from 5.10 percent in April; the rate was 4.86 percent in May 2009.
The national median existing-home price for all housing types was $179,600 in May, up 2.7 percent from May 2009. Distressed homes slipped to 31 percent of sales last month, compared with 33 percent in April; it was also 33 percent in May 2009.
NAR President Vicki Cox Golder said home prices have been stabilizing all year. “With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus,” she said. “Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle.”
Pending home sales are expected to decline notably in May and June from the spring surge, but Yun added that job growth and a manageable level of foreclosures are keys to sales and price performance during the second half of the year.
Inventory Falling
A parallel NAR practitioner survey shows first-time buyers purchased 46 percent of homes in May, down from 49 percent in April. Investors accounted for 14 percent of transactions in May compared with 15 percent in April; the remaining sales were to repeat buyers. All-cash sales were at 25 percent in May, edging down from a 26 percent share in April.
Total housing inventory at the end of May fell 3.4 percent to 3.89 million existing homes available for sale, which represents an 8.3-month supply at the current sales pace, compared with an 8.4-month supply in April. Raw unsold inventory is 1.1 percent above a year ago, but is still 14.9 percent below the record of 4.58 million in July 2008.
Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million level in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.
Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.
Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price was $181,300 in May, up 3.4 percent from a year ago.
By Region
Existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.
In the Midwest, existing-home sales were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.
In the South, sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.
Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.
Source: NAR
Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, were at a seasonally adjusted annual rate of 5.66 million units in May, down 2.2 percent from an upwardly revised surge of 5.79 million units in April. May closings are 19.2 percent above the 4.75 million-unit level in May 2009; April sales were revised to show an 8.0 percent monthly gain.
Buyers Face Purchasing Delays
Lawrence Yun, NAR chief economist, said he expects one more month of elevated home sales. “We are witnessing the ongoing effects of the home buyer tax credit, which we’ll also see in June real estate closings,” he said. “However, approximately 180,000 home buyers who signed a contract in good faith to receive the tax credit may not be able to finalize by the end of June due to delays in the mortgage process, particularly for short sales.
“In addition, many potential sales are being delayed by an interruption in the National Flood Insurance Program. Florida and Louisiana, also impacted by the oil spill, have the highest percentage of homes that require flood insurance.”
As the leading advocate for homeownership issues, NAR is supporting Senate amendments to extend the home buyer tax credit closing deadline through September 30 for contracts written by April 30, and to renew the flood insurance program. “Sales and related local economic activity would have been higher without delays in the closing process or flood insurance issues,” Yun noted.
Housing Still Affordable
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 4.89 percent in May from 5.10 percent in April; the rate was 4.86 percent in May 2009.
The national median existing-home price for all housing types was $179,600 in May, up 2.7 percent from May 2009. Distressed homes slipped to 31 percent of sales last month, compared with 33 percent in April; it was also 33 percent in May 2009.
NAR President Vicki Cox Golder said home prices have been stabilizing all year. “With distressed sales at roughly the same level as a year ago, the gain in home prices is a hopeful sign that the market is in a good position to stand on its own without further government stimulus,” she said. “Very affordable mortgage interest rates and stabilizing home prices are encouraging home buyers who were on the sidelines during most of the boom and bust cycle.”
Pending home sales are expected to decline notably in May and June from the spring surge, but Yun added that job growth and a manageable level of foreclosures are keys to sales and price performance during the second half of the year.
Inventory Falling
A parallel NAR practitioner survey shows first-time buyers purchased 46 percent of homes in May, down from 49 percent in April. Investors accounted for 14 percent of transactions in May compared with 15 percent in April; the remaining sales were to repeat buyers. All-cash sales were at 25 percent in May, edging down from a 26 percent share in April.
Total housing inventory at the end of May fell 3.4 percent to 3.89 million existing homes available for sale, which represents an 8.3-month supply at the current sales pace, compared with an 8.4-month supply in April. Raw unsold inventory is 1.1 percent above a year ago, but is still 14.9 percent below the record of 4.58 million in July 2008.
Single-family home sales declined 1.6 percent to a seasonally adjusted annual rate of 4.98 million in May from a pace of 5.06 million in April, but are 17.5 percent above the 4.24 million level in May 2009. The median existing single-family home price was $179,400 in May, which is 2.7 percent above a year ago.
Single-family median existing-home prices were higher in 16 out of 20 metropolitan statistical areas reported in May from a year ago. In addition, existing single-family home sales rose in 18 of the 20 areas from May 2009.
Existing condominium and co-op sales fell 6.8 percent to a seasonally adjusted annual rate of 680,000 in May from 730,000 in April, but are 32.6 percent above the 513,000-unit pace in May 2009. The median existing condo price was $181,300 in May, up 3.4 percent from a year ago.
By Region
Existing-home sales in the Northeast fell 18.3 percent to an annual level of 890,000 in May from a surge in April, but are 12.7 percent higher than a year ago. The median price in the Northeast was $240,200, down 2.2 percent from May 2009.
In the Midwest, existing-home sales were unchanged in May at a pace of 1.33 million and are 22.0 percent above May 2009. The median price in the Midwest was $150,700, up 2.2 percent from a year ago.
In the South, sales increased 0.5 percent to an annual level of 2.15 million in May and are 22.9 percent above a year ago. The median price in the South was $159,000, up 1.0 percent from May 2009.
Existing-home sales in the West rose 4.9 percent to an annual rate of 1.29 million in May and are 15.2 percent higher than May 2009. The median price in the West was $221,300, up 7.4 percent from a year ago.
Source: NAR
Friday, June 18, 2010
Dealing With IRS Tax Credit Rejections
The IRS has been rejecting first-time home buyer claims from anyone who shows a Form 1098 Mortgage Interest Expense in their prior year files.
In many cases, the applicants are entitled to the credit because their previous mortgage interest deduction is for a timeshare, mobile home, boat, or other recreational property.
If you have a client who is in this unfortunate position, here is some advice from Enrolled Agent Eva Rosenberg, who authors the Web site TaxMama.com.
• Respond to the IRS immediately and tell them why their rejection is wrong. Be prepared to prove that the mortgage the IRS is seeing isn’t on a personal residence. First-time home buyers are entitled to own other types of real estate and still get the home buyers credit, so provide proof that the previous mortgage was on something else.
• Send a letter explaining the situation and providing proof of a previous rental or other non-ownership living situation, including copies of rental contracts for the last three years, an old driver's license showing that address, utility bills, etc.
• Home buyers who believe the IRS may view their situation in this way should be proactive, providing proof that they are a first-time buyer when they initially file for the credit.
• Anyone who is rejected after two attempts to explain the problem to the IRS should call the Taxpayers Advocate Service toll-free, (877) 777-4778, their Congressman, and their Senator, Rosenberg advises.
Source: TaxMama.com, Eva Rosenberg, EA
In many cases, the applicants are entitled to the credit because their previous mortgage interest deduction is for a timeshare, mobile home, boat, or other recreational property.
If you have a client who is in this unfortunate position, here is some advice from Enrolled Agent Eva Rosenberg, who authors the Web site TaxMama.com.
• Respond to the IRS immediately and tell them why their rejection is wrong. Be prepared to prove that the mortgage the IRS is seeing isn’t on a personal residence. First-time home buyers are entitled to own other types of real estate and still get the home buyers credit, so provide proof that the previous mortgage was on something else.
• Send a letter explaining the situation and providing proof of a previous rental or other non-ownership living situation, including copies of rental contracts for the last three years, an old driver's license showing that address, utility bills, etc.
• Home buyers who believe the IRS may view their situation in this way should be proactive, providing proof that they are a first-time buyer when they initially file for the credit.
• Anyone who is rejected after two attempts to explain the problem to the IRS should call the Taxpayers Advocate Service toll-free, (877) 777-4778, their Congressman, and their Senator, Rosenberg advises.
Source: TaxMama.com, Eva Rosenberg, EA
Thursday, June 17, 2010
Census: Home Size Continues to Decline
Census data shows that the average square footage of a new single-family home dropped to 2,438 in 2009 after peaking at 2,521 in 2007.
"The decline of the early 1980s turned out to be temporary, but this time the decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home," says National Association of Home Builders chief economist David Crowe. "Many of these tendencies are likely to persist and continue affecting the new home market for an extended period."
The data indicates that 34 percent of new single-family homes had four or more bedrooms in 2009, down from 39 percent in 2005, but the number with three bedrooms rose to 53 percent from 49 percent over the same time span. Additionally, 37 percent of new single-family homes had two bathrooms in 2009, up from 35 percent in 2008; and the number with just one story rose to 47 percent last year from 43 percent in 2007.
Regionally, the data shows that 99 percent of homes in the South had air conditioning, versus 88 percent nationwide; 30 percent of homes had three-car garages in the Midwest, versus 17 percent nationally; and 74 percent of homes in the Northeast had vinyl siding, versus 34 percent nationwide.
Source: RISMedia (06/16/10)
"The decline of the early 1980s turned out to be temporary, but this time the decline is related to phenomena such as an increased share of first-time home buyers, a desire to keep energy costs down, smaller amounts of equity in existing homes to roll into the next home, tighter credit standards and less focus on the investment component of buying a home," says National Association of Home Builders chief economist David Crowe. "Many of these tendencies are likely to persist and continue affecting the new home market for an extended period."
The data indicates that 34 percent of new single-family homes had four or more bedrooms in 2009, down from 39 percent in 2005, but the number with three bedrooms rose to 53 percent from 49 percent over the same time span. Additionally, 37 percent of new single-family homes had two bathrooms in 2009, up from 35 percent in 2008; and the number with just one story rose to 47 percent last year from 43 percent in 2007.
Regionally, the data shows that 99 percent of homes in the South had air conditioning, versus 88 percent nationwide; 30 percent of homes had three-car garages in the Midwest, versus 17 percent nationally; and 74 percent of homes in the Northeast had vinyl siding, versus 34 percent nationwide.
Source: RISMedia (06/16/10)
Wednesday, June 16, 2010
Men and Women Agree in Home Must-Haves
It’s true. Men aren’t looking for exactly the same things women are when they go home shopping.
1,000 home shoppers were surveyed and it was concluded that while about an equal number of men and women sought green features – about 27 percent – and 35 percent of both sexes put a high priority on a home office, there is disparity in the desire for other features.
Both sexes did agree on the biggest turn-offs: structural damage, bad odors, a busy street, and an awkward floor plan.
Here are the top 10 features most desired by men:
1. Garage or designated parking space, 85.5 percent
2. Master suite, 79.8 percent
3. Ample storage space, 71.2 percent
4. Guest bedroom, 70.2 percent
5. Large closets, 64.2 percent
6. Outdoor entertainment area, 63.4 percent
7. Gourmet or updated kitchen, 59.1 percent
8. Breakfast room or eat-in kitchen, 55.2 percent
9. View, 44.5 percent10. Large yard, 43 percent
Here are the top 10 features most desired by women:
1. Garage or designated parking, 87.7 percent
2. Master suite, 77.8 percent
3. Ample storage space, 72.7 percent
4. Large closets, 68.7 percent
5. Outdoor entertainment area, 64.2 percent
6. Guest bedroom, 63.9 percent
7. Gourmet or updated kitchen, 61.8 percent
8. Breakfast room or eat-in kitchen, 56.1 percent
9. Large yard, 43 percent
10. Wood floors, 40.9 percent
Source: www.realtormag.com
1,000 home shoppers were surveyed and it was concluded that while about an equal number of men and women sought green features – about 27 percent – and 35 percent of both sexes put a high priority on a home office, there is disparity in the desire for other features.
Both sexes did agree on the biggest turn-offs: structural damage, bad odors, a busy street, and an awkward floor plan.
Here are the top 10 features most desired by men:
1. Garage or designated parking space, 85.5 percent
2. Master suite, 79.8 percent
3. Ample storage space, 71.2 percent
4. Guest bedroom, 70.2 percent
5. Large closets, 64.2 percent
6. Outdoor entertainment area, 63.4 percent
7. Gourmet or updated kitchen, 59.1 percent
8. Breakfast room or eat-in kitchen, 55.2 percent
9. View, 44.5 percent10. Large yard, 43 percent
Here are the top 10 features most desired by women:
1. Garage or designated parking, 87.7 percent
2. Master suite, 77.8 percent
3. Ample storage space, 72.7 percent
4. Large closets, 68.7 percent
5. Outdoor entertainment area, 64.2 percent
6. Guest bedroom, 63.9 percent
7. Gourmet or updated kitchen, 61.8 percent
8. Breakfast room or eat-in kitchen, 56.1 percent
9. Large yard, 43 percent
10. Wood floors, 40.9 percent
Source: www.realtormag.com
Tuesday, June 15, 2010
Section 502 Program Loans: Filling a Niche in Residential Real Estate
Jay Atterstrom, CCAR REALTOR®/Lender Committee
The confusion relative to Single Family Housing Loan Guaranty Loan Program from USDA continues. Earlier this year, funds for the program were depleted and no new funds for the program had been appropriated, leaving the program in limbo.
By this time, we were hoping to have good (at least definitive) news about the program. Although funds have been appropriated by Congress and approved by the Senate, the bill sits on the President's desk for ratification. While a few lenders have agreed to receive applications and issue commitments for these loans, others have withdrawn their programs altogether. Check with your lenders for their current status.
It's been a great mortgage program that fills an important niche in residential real estate markets--especially subsequent to the demise of alternative mortgage products. Generally speaking, Section 502 Program Loans (USDA or Rural Development Loans, as they are sometimes commonly termed) are primarily used to help low-income homebuyers in rural areas. There is no down payment required, making USDA one of the few resources for "zero-down" mortgages. Credit criteria are usually softer and the borrower's credit profile must be reasonably healthy, but lenders may impose additional minimum credit standards and other underwriting criteria overlays. Applicants may earn up to 115 percent of the median income for the area, although income caps in most areas are lower.
Here are more specifics on the income limits, property eligibility, and loan limits of this program:
Loan amount limits: The Section 502 Program sets specific loan amount limits by region. However, from a practically perspective, in most instances the loan limit is more a function of underwriting criteria relative to income (more specifically debt ratio) and assets.
Income limits: Income limits vary by area. Generally speaking, they are a function of the median income for the area. Applicants may earn up to 115 percent of the median income for the area, although income caps in most areas are lower.
Property types: Housing must be modest in size, design and cost. The home must meet the voluntary national building model code adopted by the state or area and HCFP thermal and site standards. Pools render a property ineligible. Detached living areas are not factored into the calculation of the value. Barns and out-buildings can be included in the value if typical for the area.
Although manufactured and modular housing has been negatively impacted by other changes in conventional and underwriting guidelines and appetite in the secondary markets, Section 502 program does allow for this property type. Restrictions regarding manufactured homes are essentially the same as FHA property eligibility requirements with regard to safety and thermal standards, and must be permanently installed. Most lender underwriter overlays severely limit the eligibility for manufactured homes.
Eligible areas: Even Collin County, one of the most affluent counties in the country, does contain eligible areas, as does most of North Texas. Eligibility is limited to areas with a population of less than 20,000 inhabitants, based on the most recent census surveys. The eligible areas will change once the most recent census data is compiled and recognized. When these changes will occur is still not clear, but it's safe to assume that the current eligible areas will remain such through the end of the year.
Cost: The insurance premium cost for this program is 3.35 percent of the base loan amount for purchases, and .50 percent for refinance transactions, and (can/cannot?) be rolled into the loan amount.
Local offices and other information are available on the USDA Rural Development Web site, which is very user friendly.
The confusion relative to Single Family Housing Loan Guaranty Loan Program from USDA continues. Earlier this year, funds for the program were depleted and no new funds for the program had been appropriated, leaving the program in limbo.
By this time, we were hoping to have good (at least definitive) news about the program. Although funds have been appropriated by Congress and approved by the Senate, the bill sits on the President's desk for ratification. While a few lenders have agreed to receive applications and issue commitments for these loans, others have withdrawn their programs altogether. Check with your lenders for their current status.
It's been a great mortgage program that fills an important niche in residential real estate markets--especially subsequent to the demise of alternative mortgage products. Generally speaking, Section 502 Program Loans (USDA or Rural Development Loans, as they are sometimes commonly termed) are primarily used to help low-income homebuyers in rural areas. There is no down payment required, making USDA one of the few resources for "zero-down" mortgages. Credit criteria are usually softer and the borrower's credit profile must be reasonably healthy, but lenders may impose additional minimum credit standards and other underwriting criteria overlays. Applicants may earn up to 115 percent of the median income for the area, although income caps in most areas are lower.
Here are more specifics on the income limits, property eligibility, and loan limits of this program:
Loan amount limits: The Section 502 Program sets specific loan amount limits by region. However, from a practically perspective, in most instances the loan limit is more a function of underwriting criteria relative to income (more specifically debt ratio) and assets.
Income limits: Income limits vary by area. Generally speaking, they are a function of the median income for the area. Applicants may earn up to 115 percent of the median income for the area, although income caps in most areas are lower.
Property types: Housing must be modest in size, design and cost. The home must meet the voluntary national building model code adopted by the state or area and HCFP thermal and site standards. Pools render a property ineligible. Detached living areas are not factored into the calculation of the value. Barns and out-buildings can be included in the value if typical for the area.
Although manufactured and modular housing has been negatively impacted by other changes in conventional and underwriting guidelines and appetite in the secondary markets, Section 502 program does allow for this property type. Restrictions regarding manufactured homes are essentially the same as FHA property eligibility requirements with regard to safety and thermal standards, and must be permanently installed. Most lender underwriter overlays severely limit the eligibility for manufactured homes.
Eligible areas: Even Collin County, one of the most affluent counties in the country, does contain eligible areas, as does most of North Texas. Eligibility is limited to areas with a population of less than 20,000 inhabitants, based on the most recent census surveys. The eligible areas will change once the most recent census data is compiled and recognized. When these changes will occur is still not clear, but it's safe to assume that the current eligible areas will remain such through the end of the year.
Cost: The insurance premium cost for this program is 3.35 percent of the base loan amount for purchases, and .50 percent for refinance transactions, and (can/cannot?) be rolled into the loan amount.
Local offices and other information are available on the USDA Rural Development Web site, which is very user friendly.
Monday, June 14, 2010
NAR Praises House Passage of FHA Reform Bill
Daily Real Estate News June 11, 2010
The National Association of REALTORS® applauded the House for overwhelming passage of FHA reform legislation that would allow the Federal Housing Administration to adjust monthly premiums on mortgage insurance.
This bill, H.R. 5072, FHA Reform Act of 2010, would strengthen the FHA loan insurance program while keeping it available and affordable to responsible home buyers. Allowing FHA to raise the monthly insurance premium would let FHA lower the up-front premium that places a burden on cash-strapped borrowers at closing.
“As the leading advocate for homeownership and housing issues, NAR is very pleased that FHA will be allowed to play its intended countercyclical role to provide qualified borrowers with access to prime credit. FHA is a critical part of our nation’s economic recovery,” said NAR President Vicki Cox Golder.
En route to passage, the House defeated an amendment that would have increased the FHA down payment from 3.5 percent to 5 percent, which would have disenfranchised more than 300,000 potential homeowners and would not have contributed significantly to FHA cash reserves.
“The current 3.5 percent down payment represents a significant financial commitment and sufficient investment to insure a borrower’s seriousness about homeownership,” said Golder.
The proposed change could have an especially harsh impact on African American and Hispanic borrowers, who traditionally have much lower accumulated wealth and have benefited from the opportunities offered by fully documented, standard FHA loans with low down payments.
She also praised FHA’s aggressive efforts to protect taxpayers and manage credit risk.
— NAR
The National Association of REALTORS® applauded the House for overwhelming passage of FHA reform legislation that would allow the Federal Housing Administration to adjust monthly premiums on mortgage insurance.
This bill, H.R. 5072, FHA Reform Act of 2010, would strengthen the FHA loan insurance program while keeping it available and affordable to responsible home buyers. Allowing FHA to raise the monthly insurance premium would let FHA lower the up-front premium that places a burden on cash-strapped borrowers at closing.
“As the leading advocate for homeownership and housing issues, NAR is very pleased that FHA will be allowed to play its intended countercyclical role to provide qualified borrowers with access to prime credit. FHA is a critical part of our nation’s economic recovery,” said NAR President Vicki Cox Golder.
En route to passage, the House defeated an amendment that would have increased the FHA down payment from 3.5 percent to 5 percent, which would have disenfranchised more than 300,000 potential homeowners and would not have contributed significantly to FHA cash reserves.
“The current 3.5 percent down payment represents a significant financial commitment and sufficient investment to insure a borrower’s seriousness about homeownership,” said Golder.
The proposed change could have an especially harsh impact on African American and Hispanic borrowers, who traditionally have much lower accumulated wealth and have benefited from the opportunities offered by fully documented, standard FHA loans with low down payments.
She also praised FHA’s aggressive efforts to protect taxpayers and manage credit risk.
— NAR
Friday, June 11, 2010
Lawmakers Consider Home Tax Credit Extension
By ALAN ZIBEL AP Real Estate Writer
WASHINGTON (AP) -- Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The proposal would only allow people who already have signed contracts to finish at the later date. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the deadline.
Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn.
The Senate is expected to take up the amendment next week. Senate Democratic leaders hope to finish work on the jobless benefits bill next week, but they have yet to secure enough votes.
Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation's highest foreclosure rate.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.
"Time is of the essence," said Lucien Salvant, a spokesman for the group. "It's important for Congress to get this done, because there's whole bunch of loans that aren't' going to close on time."
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
WASHINGTON (AP) -- Homebuyers may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
Senate Majority Leader Harry Reid, D-Nev., said Thursday he wants to give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The proposal would only allow people who already have signed contracts to finish at the later date. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the deadline.
Reid introduced the proposal as an amendment to a bill that would extend jobless benefits through the end of November. Joining him were Sen. Johnny Isakson, R-Ga., and Christopher Dodd, D-Conn.
The Senate is expected to take up the amendment next week. Senate Democratic leaders hope to finish work on the jobless benefits bill next week, but they have yet to secure enough votes.
Reid, who faces perhaps the toughest re-election campaign of his political career, represents a state that has the nation's highest foreclosure rate.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.
"Time is of the essence," said Lucien Salvant, a spokesman for the group. "It's important for Congress to get this done, because there's whole bunch of loans that aren't' going to close on time."
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
Thursday, June 10, 2010
Recession Increasing Builder's NImbleness
Daily Real Estate News June 10, 2010
A challenging environment has helped home builders become better businesspeople, a survey suggests.
Building industry professionals say as a result of the recession, they have become:
• More adaptable, 65 percent
• More innovative, 53 percent
• More realistic, 52 percent
• Wiser, 47 percent
• Have improved industry-related skills, 43 percent
• More in touch with the operations of their businesses, 40 percent
• Have a better work-personal life balance, 36 percent
• More pessimistic, 27 percent
Home builders tend to be resourceful by nature, says Linda Bavsari, senior vice president of PCBC, a building industry trade organization that commissioned the survey. “It’s heartening to see that in the midst of this recession, they are becoming even more adaptable and innovative.”
Source: PCBC (06/09/2010)
A challenging environment has helped home builders become better businesspeople, a survey suggests.
Building industry professionals say as a result of the recession, they have become:
• More adaptable, 65 percent
• More innovative, 53 percent
• More realistic, 52 percent
• Wiser, 47 percent
• Have improved industry-related skills, 43 percent
• More in touch with the operations of their businesses, 40 percent
• Have a better work-personal life balance, 36 percent
• More pessimistic, 27 percent
Home builders tend to be resourceful by nature, says Linda Bavsari, senior vice president of PCBC, a building industry trade organization that commissioned the survey. “It’s heartening to see that in the midst of this recession, they are becoming even more adaptable and innovative.”
Source: PCBC (06/09/2010)
Wednesday, June 9, 2010
Preparing For Home Showings
Provided By Carla L. Davis
Source Realty Times
It is a very exciting time. Your agent has just lined up a prospective buyer. A deal can be made or broken, however, during the showing. How can you prepare your home to its best advantage?
The National Association of Realtors suggests that your first course of action should be removing clutter. The reasoning behind this is simple. Clutter distracts the mind and it distracts the imagination. A potential buyer needs to be able to see themselves and their own style in your home.
1. By banishing disorder and welcoming in neatness you can give your house an advantage over any competition that is lesser prepared.
2. After de-cluttering, the next step is to clean. In the same sense that de-cluttering is removing "you" from the potential home of another, cleaning is removing your grimy mark. Have carpets cleaned, wax the floors, and remove any odors of pets or smoking.
3. Luxurious bathrooms are a must. A bathroom that is clean and full of comfort is appealing to most every buyer. Arrange new towels and rugs, as well as burn fresh smelling candles. Consider adding rich decor, such as paintings.
4. Windows that shine. We can become desensitized to the finer details of our home, but buyers will hone in on each and every imperfection. Be sure that during your cleaning and decluttering, you don't forget to wash your windows. This way buyers will be able to focus their attentions on the beautiful grounds of your property, as opposed to the spots on the glass.
5. Let there by light. Burned out bulbs can make rooms look dark and dingy. Consider buying eco-friendly fluorescent or LED lights for use in your home.
6. Minor repairs are important. There are buyers who are turned off by even minor repairs. They see that loose cabinet door or that warped deck board as a two-fold evil. Either the house has been poorly cared for with bigger repairs waiting for discovery under the surface, or that the home may be too much work for them.
7. Don't neglect your yard. For many buyers, a yard is an extension of the home. Be sure that for each showing, your yard is freshly mowed and any debris, trash, or clutter (toys, tools, etc) are put away. A great way to make flower beds appear neat and well tended is to add mulch. Clean off sidewalks with a quick power-wash.
8. Add punches of seasonal color. Even if you aren't a garden guru, you can still plant low maintenance flowers in beds and pots. Some examples of low maintenance flowering plants are: petunias, pansies, and vinca.
9. A “petless” home. We all love our pets, sometimes like they're our own children. But they should be safely at a friend's house or kennel during showings. While you're at it, take your children and yourself out of the home during the showing as well!
10. Lock up your valuables. It would be nice to think that no potential buyer would steal from your home, but it could happen. Be sure that anything easily removed is locked away for safe keeping. And be sure that your real estate agent gets anyone's contact information before they are allowed into your home.
Do you need help selling your home? Give us a call at 972-562-8883 or email us at kwmckinney.com.
Source Realty Times
It is a very exciting time. Your agent has just lined up a prospective buyer. A deal can be made or broken, however, during the showing. How can you prepare your home to its best advantage?
The National Association of Realtors suggests that your first course of action should be removing clutter. The reasoning behind this is simple. Clutter distracts the mind and it distracts the imagination. A potential buyer needs to be able to see themselves and their own style in your home.
1. By banishing disorder and welcoming in neatness you can give your house an advantage over any competition that is lesser prepared.
2. After de-cluttering, the next step is to clean. In the same sense that de-cluttering is removing "you" from the potential home of another, cleaning is removing your grimy mark. Have carpets cleaned, wax the floors, and remove any odors of pets or smoking.
3. Luxurious bathrooms are a must. A bathroom that is clean and full of comfort is appealing to most every buyer. Arrange new towels and rugs, as well as burn fresh smelling candles. Consider adding rich decor, such as paintings.
4. Windows that shine. We can become desensitized to the finer details of our home, but buyers will hone in on each and every imperfection. Be sure that during your cleaning and decluttering, you don't forget to wash your windows. This way buyers will be able to focus their attentions on the beautiful grounds of your property, as opposed to the spots on the glass.
5. Let there by light. Burned out bulbs can make rooms look dark and dingy. Consider buying eco-friendly fluorescent or LED lights for use in your home.
6. Minor repairs are important. There are buyers who are turned off by even minor repairs. They see that loose cabinet door or that warped deck board as a two-fold evil. Either the house has been poorly cared for with bigger repairs waiting for discovery under the surface, or that the home may be too much work for them.
7. Don't neglect your yard. For many buyers, a yard is an extension of the home. Be sure that for each showing, your yard is freshly mowed and any debris, trash, or clutter (toys, tools, etc) are put away. A great way to make flower beds appear neat and well tended is to add mulch. Clean off sidewalks with a quick power-wash.
8. Add punches of seasonal color. Even if you aren't a garden guru, you can still plant low maintenance flowers in beds and pots. Some examples of low maintenance flowering plants are: petunias, pansies, and vinca.
9. A “petless” home. We all love our pets, sometimes like they're our own children. But they should be safely at a friend's house or kennel during showings. While you're at it, take your children and yourself out of the home during the showing as well!
10. Lock up your valuables. It would be nice to think that no potential buyer would steal from your home, but it could happen. Be sure that anything easily removed is locked away for safe keeping. And be sure that your real estate agent gets anyone's contact information before they are allowed into your home.
Do you need help selling your home? Give us a call at 972-562-8883 or email us at kwmckinney.com.
Tuesday, June 8, 2010
Texans Pay Less of Our Income on Shelter
By David S. Jones
A new study from the Real Estate Center at Texas A&M University explains why Texas’ housing market fared far better than other states during the current downturn. It also suggests why the state’s economy is expected to continue to do better than the rest of the nation in the coming months. “Texas’ lower-than-national-average housing cost is one reason for the state’s higher-than-national-average growth rate,” says Ali Anari, Ph.D., a Center research economist and one of the study’s authors. “When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted.”
“These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year,” says Center Chief Economist Mark Dotzour, Ph.D. “The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life. Texas offers a lower cost of living than many places in the United States. “This allows Texas employers to be able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy,” says Dotzour.
Since 1987, the average annual expenditure for shelter per consumer increased in every major American metropolitan market. Texas data for the study came from the Dallas-Fort Worth and Houston-Galveston-Brazoria metro areas because they are among the major metropolitan areas for which consumer expenditure data are available. These two metros accounted for 60.3% of Texas’ labor force last year and 64% of Texas’ gross domestic product (GDP) the previous year.
“Houston and Dallas consumers spent the smallest shares of their incomes on shelter in 2008 (18.6%),” says Anari.
The two Texas metros in the study had negligible increases in their shelter expenditure shares from 1987 to 2008. Houston’s share rose 1% while Dallas’ share increased 2.2%. According to the National Association of REALTORS®, Houston was the only metro in the study to post a home price appreciation, albeit a small one. Dallas had the nation’s smallest home price decline (-3.8%).
It is not surprising that the two Texas regions are experiencing normal home price fluctuations, Anari says, because the risk of a home price decline in Texas is low. “The study found that the larger the share of housing expenditures in the consumer’s budget, the more home prices in their region have fallen since 2007,” says Anari, who conducted the study along with Dotzour.
“Consumers allocate their income among various goods and services,” Anari says. “By doing so, they determine the quantities produced and prices of consumer goods and services. “Regardless of income level, the most important items in a consumer's budget are food, shelter, and clothing. However, no matter how important an item, its share of a consumer’s total expenditures cannot continually increase for a long time.”
When expenditures in a particular category in the consumer’s budget take larger and larger shares of total expenses, consumers look for less expensive substitutes, which can lower demand for more expensive goods and services, leading to lower prices for those goods and services. “For
example,” says Anari, “if the price of beef gets too high, people eat more chicken.”
Consumers have two basic shelter choices: buy or rent. Shelter expenses run the gamut from rent to mortgage interest, to property taxes, to insurance, to repairs, to security and other expenses. “Even when on vacation, consumers have shelter expenses,” points out Anari, “from costs on vacation homes to hotels and motels. Family members in college must be housed, and that’s another shelter expense.”
Anari points out that home price changes affect expenditures and wealth. Lower housing costs allow consumers to spend more on other goods and services, leading to higher regional economic growth, increased growth rates, a larger labor force, and more demand for goods and services. “At the same time,” he says, “lower costs and prices of real estate properties can significantly increase economic productivity, lead to more investments, and increase economic growth rates.”
Where were shelter shares of income the highest in 2008? You guessed it. California. San Diego led the nation with 30.8% of residents’ income going to shelter. Compare that to Houston and Dallas-Fort Worth, where residents spent just 18.6% of their income toward shelter. No wonder Texas is still where folks want to be.
A new study from the Real Estate Center at Texas A&M University explains why Texas’ housing market fared far better than other states during the current downturn. It also suggests why the state’s economy is expected to continue to do better than the rest of the nation in the coming months. “Texas’ lower-than-national-average housing cost is one reason for the state’s higher-than-national-average growth rate,” says Ali Anari, Ph.D., a Center research economist and one of the study’s authors. “When Texans are able to spend more on non-housing goods and services, the state’s economy is strengthened and more people attracted.”
“These results illustrate one of the key reasons the Texas economy outperforms the United States in terms of job growth almost every year,” says Center Chief Economist Mark Dotzour, Ph.D. “The fact that Texans pay less of their income for housing means they have more to spend on other things that add to the overall quality of life. Texas offers a lower cost of living than many places in the United States. “This allows Texas employers to be able to attract workers at a reasonable wage rate that allows them to compete successfully in the global economy,” says Dotzour.
Since 1987, the average annual expenditure for shelter per consumer increased in every major American metropolitan market. Texas data for the study came from the Dallas-Fort Worth and Houston-Galveston-Brazoria metro areas because they are among the major metropolitan areas for which consumer expenditure data are available. These two metros accounted for 60.3% of Texas’ labor force last year and 64% of Texas’ gross domestic product (GDP) the previous year.
“Houston and Dallas consumers spent the smallest shares of their incomes on shelter in 2008 (18.6%),” says Anari.
The two Texas metros in the study had negligible increases in their shelter expenditure shares from 1987 to 2008. Houston’s share rose 1% while Dallas’ share increased 2.2%. According to the National Association of REALTORS®, Houston was the only metro in the study to post a home price appreciation, albeit a small one. Dallas had the nation’s smallest home price decline (-3.8%).
It is not surprising that the two Texas regions are experiencing normal home price fluctuations, Anari says, because the risk of a home price decline in Texas is low. “The study found that the larger the share of housing expenditures in the consumer’s budget, the more home prices in their region have fallen since 2007,” says Anari, who conducted the study along with Dotzour.
“Consumers allocate their income among various goods and services,” Anari says. “By doing so, they determine the quantities produced and prices of consumer goods and services. “Regardless of income level, the most important items in a consumer's budget are food, shelter, and clothing. However, no matter how important an item, its share of a consumer’s total expenditures cannot continually increase for a long time.”
When expenditures in a particular category in the consumer’s budget take larger and larger shares of total expenses, consumers look for less expensive substitutes, which can lower demand for more expensive goods and services, leading to lower prices for those goods and services. “For
example,” says Anari, “if the price of beef gets too high, people eat more chicken.”
Consumers have two basic shelter choices: buy or rent. Shelter expenses run the gamut from rent to mortgage interest, to property taxes, to insurance, to repairs, to security and other expenses. “Even when on vacation, consumers have shelter expenses,” points out Anari, “from costs on vacation homes to hotels and motels. Family members in college must be housed, and that’s another shelter expense.”
Anari points out that home price changes affect expenditures and wealth. Lower housing costs allow consumers to spend more on other goods and services, leading to higher regional economic growth, increased growth rates, a larger labor force, and more demand for goods and services. “At the same time,” he says, “lower costs and prices of real estate properties can significantly increase economic productivity, lead to more investments, and increase economic growth rates.”
Where were shelter shares of income the highest in 2008? You guessed it. California. San Diego led the nation with 30.8% of residents’ income going to shelter. Compare that to Houston and Dallas-Fort Worth, where residents spent just 18.6% of their income toward shelter. No wonder Texas is still where folks want to be.
Monday, June 7, 2010
Dallas-Fort Worth Home Sales Jump 18%!
03:05 PM CDT on Monday, June 7, 2010
By STEVE BROWN / The Dallas Morning News
North Texas home sales jumped by 18 percent in May – the third month in a row of double-digit annual gains.
Local real estate agents sold 7,119 pre-owned, single-family homes last month, the highest monthly total so far this year.
Through the first five months of 2010, sales of homes through Realtors’ multiple listing services are up 12 percent from the same period of last year, the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems said Monday.
May home sales received a boost from the recently expired federal tax credit which provided up to $8,000 to homebuyers who had a house under contract by the end of April. Now that the tax credit has expired, most analysts anticipate a slowdown in residential sales. Indeed, pending home sales are down 23 percent in North Texas, indicating a slower sales pace ahead.
Median pre-owned home sales prices last month were up 2 percent from a year earlier at $151,980. The number of homes on the market last month was down 2 percent from a year earlier, according to the latest MLS reports.
In May there was a 6.6-month supply of pre-owned, single-family homes listed for sale in North Texas. A six-month inventory is considered a balanced market.
By STEVE BROWN / The Dallas Morning News
North Texas home sales jumped by 18 percent in May – the third month in a row of double-digit annual gains.
Local real estate agents sold 7,119 pre-owned, single-family homes last month, the highest monthly total so far this year.
Through the first five months of 2010, sales of homes through Realtors’ multiple listing services are up 12 percent from the same period of last year, the Real Estate Center at Texas A&M University and the North Texas Real Estate Information Systems said Monday.
May home sales received a boost from the recently expired federal tax credit which provided up to $8,000 to homebuyers who had a house under contract by the end of April. Now that the tax credit has expired, most analysts anticipate a slowdown in residential sales. Indeed, pending home sales are down 23 percent in North Texas, indicating a slower sales pace ahead.
Median pre-owned home sales prices last month were up 2 percent from a year earlier at $151,980. The number of homes on the market last month was down 2 percent from a year earlier, according to the latest MLS reports.
In May there was a 6.6-month supply of pre-owned, single-family homes listed for sale in North Texas. A six-month inventory is considered a balanced market.
Friday, June 4, 2010
How to Help a Family Member Buy a Home
Daily Real Estate News June 4, 2010
Helping someone close to you buy a low-cost property – $50,000 or less – is a fairly straight-forward transaction, although it may require specific legal advice, says Charles Carter, an attorney and a consultant at Haint Blue Realty in Mount Pleasant, S.C.
Carter suggests that buying a property outright, using the gift exclusion ($13,000 for singles; $26,000 for married couples) to pay for a down payment and closing costs and then giving the recipient a 30-year mortgage on the remaining amount at 5 percent interest is a good way to go.
There won’t be any gift taxes. And the mortgage holder may later cancel the mortgage and gift what remains on the loan as another annual gift-tax exclusion.Source: McClatchy-Tribune News Service, Charles Carter (06/03/2010)
Helping someone close to you buy a low-cost property – $50,000 or less – is a fairly straight-forward transaction, although it may require specific legal advice, says Charles Carter, an attorney and a consultant at Haint Blue Realty in Mount Pleasant, S.C.
Carter suggests that buying a property outright, using the gift exclusion ($13,000 for singles; $26,000 for married couples) to pay for a down payment and closing costs and then giving the recipient a 30-year mortgage on the remaining amount at 5 percent interest is a good way to go.
There won’t be any gift taxes. And the mortgage holder may later cancel the mortgage and gift what remains on the loan as another annual gift-tax exclusion.Source: McClatchy-Tribune News Service, Charles Carter (06/03/2010)
Thursday, June 3, 2010
Bank of America Plan to Forgive Principal
Daily Real Estate News June 3, 2010
Bank of America announced Wednesday that it was rolling out a relief program for roughly 45,000 of its most troubled borrowers that would reduce mortgage principal by as much as 30 percent.
To be eligible, homeowners must have missed at least two monthly payments and owe 20 percent or more than their home is worth. Homes must have been originally financed by Countrywide Financial Corp. under specific lending programs.
The offer is a result of an agreement with state attorneys general that settles charges over high-risk loans made by Countrywide. The federal government will pay 18 percent of the forgiven principal.
Source: The Associated Press (06/02/2010)
Bank of America announced Wednesday that it was rolling out a relief program for roughly 45,000 of its most troubled borrowers that would reduce mortgage principal by as much as 30 percent.
To be eligible, homeowners must have missed at least two monthly payments and owe 20 percent or more than their home is worth. Homes must have been originally financed by Countrywide Financial Corp. under specific lending programs.
The offer is a result of an agreement with state attorneys general that settles charges over high-risk loans made by Countrywide. The federal government will pay 18 percent of the forgiven principal.
Source: The Associated Press (06/02/2010)
Wednesday, June 2, 2010
5 Affordable Ways to Make a Home Look Expensive
By Stephanie Decker, Staged Marin Homes
Here are my top five ways to make a home’s interior look expensive and in fashion, but not at the cost of your bottom line.
1. Use one expensive piece in each room. In order to make a room look high fashion, you have to believe that it is, even when it isn’t. The way to do this is to incorporate one expensive, well-positioned piece in each room.
It can be a piece of art, a table or piece of china. I will position it where the focal point is so that when the buyer first walks into the room this is what they see first. Then, they just assume that everything else is expensive too.
2. Use white. White will always be a staple that home stagers use. It gives the look of light, cleanliness, and an open space. I love white moldings, cabinets, and doors. I also love white lamps, accessories, and linens.
White is easy to clean and can also be bought very cheaply but made to look expensive. One of my favorite stores to find inexpensive white accessories is Z Gallery.
Using inexpensive white pieces on an expensive table is my favorite trick. It highlights the table while filling the space.
3. Look at what can be recycled. To bring fashion back into your home, you might see if you can re-cover your old upholstered furniture.
Recently, I had a club chair that had just lost its will to live. The fabric was worn and the cushions no longer were able to hold their shape. To replace it would cost more than $4,000 for a comparable chair. But this old chair still had great lines, and I didn’t want to part with it so I decided to recover it instead.
The cheapest way is to have it slip-covered. You can buy one at stores like Bed Bath & Beyond or have one made.
I decided to have it re-upholstered. I needed 10 yards of fabric, and I found a local shop to do the work (driving the piece myself to and from the shop) for less than $1,500 total. The key is to buy a good chair. Then, it will only need a little maintenance over the years. Plus, remember: It’s better for the environment to recycle rather than throw away an old chair.
4. Rotate color. Each season the design world changes the “it” color. This spring is turquoise and champagne; last year it was lavender and fuchsia. A good way to make a home look in-style is to have that in-style color. This can be in a pillow, a throw, a candle, or a vase. Whatever your budget, you always can find something with the fashion “it” color.
To stay abreast of the latest “in” colors you can look online at Web sites like Pantone.com or home sites like Williams Sonoma Home. I like to walk into a store to get the feel and touch. Pottery Barn or Crate & Barrel are good places since they rotate their floor so quickly that it is easy to catch up on the new color.
Then, I go to Cost Plus or Pier One to find accent pieces cheaply. You don’t want to pay full price for these items since this year’s “it” color will be next year’s color.
5. Buy one month after the season starts. It is important to not get lured into buying new things as soon as the new season starts. You can window-shop to get your seasons plan but if you wait 4-6 weeks, it will likely go on sale. I know this can be difficult when you get that first beautiful summer day and you are biting at the bit to set up your garden for that summer BBQ. But in reality, that summer BBQ won’t start for another month.
Here are my top five ways to make a home’s interior look expensive and in fashion, but not at the cost of your bottom line.
1. Use one expensive piece in each room. In order to make a room look high fashion, you have to believe that it is, even when it isn’t. The way to do this is to incorporate one expensive, well-positioned piece in each room.
It can be a piece of art, a table or piece of china. I will position it where the focal point is so that when the buyer first walks into the room this is what they see first. Then, they just assume that everything else is expensive too.
2. Use white. White will always be a staple that home stagers use. It gives the look of light, cleanliness, and an open space. I love white moldings, cabinets, and doors. I also love white lamps, accessories, and linens.
White is easy to clean and can also be bought very cheaply but made to look expensive. One of my favorite stores to find inexpensive white accessories is Z Gallery.
Using inexpensive white pieces on an expensive table is my favorite trick. It highlights the table while filling the space.
3. Look at what can be recycled. To bring fashion back into your home, you might see if you can re-cover your old upholstered furniture.
Recently, I had a club chair that had just lost its will to live. The fabric was worn and the cushions no longer were able to hold their shape. To replace it would cost more than $4,000 for a comparable chair. But this old chair still had great lines, and I didn’t want to part with it so I decided to recover it instead.
The cheapest way is to have it slip-covered. You can buy one at stores like Bed Bath & Beyond or have one made.
I decided to have it re-upholstered. I needed 10 yards of fabric, and I found a local shop to do the work (driving the piece myself to and from the shop) for less than $1,500 total. The key is to buy a good chair. Then, it will only need a little maintenance over the years. Plus, remember: It’s better for the environment to recycle rather than throw away an old chair.
4. Rotate color. Each season the design world changes the “it” color. This spring is turquoise and champagne; last year it was lavender and fuchsia. A good way to make a home look in-style is to have that in-style color. This can be in a pillow, a throw, a candle, or a vase. Whatever your budget, you always can find something with the fashion “it” color.
To stay abreast of the latest “in” colors you can look online at Web sites like Pantone.com or home sites like Williams Sonoma Home. I like to walk into a store to get the feel and touch. Pottery Barn or Crate & Barrel are good places since they rotate their floor so quickly that it is easy to catch up on the new color.
Then, I go to Cost Plus or Pier One to find accent pieces cheaply. You don’t want to pay full price for these items since this year’s “it” color will be next year’s color.
5. Buy one month after the season starts. It is important to not get lured into buying new things as soon as the new season starts. You can window-shop to get your seasons plan but if you wait 4-6 weeks, it will likely go on sale. I know this can be difficult when you get that first beautiful summer day and you are biting at the bit to set up your garden for that summer BBQ. But in reality, that summer BBQ won’t start for another month.
Tuesday, June 1, 2010
Is a distressed property the right deal for you?
With the first-time homebuyer tax credit deadline having come and gone, you may be asking yourself, “What now?” Fortunately, the door is now open to a new wave of savings: distressed properties.
For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices.
According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.
By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.
If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:
Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.
Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.
You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.
Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.
Your best ally when purchasing a distressed property is an expert. Always have a professional REALTOR® by your side to help you make informative decisions.
Call 972-562-8883 or email mckinney@kw.com and one of our agents can help you achieve your dream!
For many buyers, the term foreclosure brings up images of run-down homes with no heat and rotting wood. While this is still the case for some homes, it’s no longer the standard. In fact, first time buyers are snatching up distressed deals in decent condition for great prices.
According to a November 2009 Keller Williams Research Buying Distressed Properties Survey, 40 percent of all buyers for bank-owned foreclosures (REOs) were first-time buyers in 2009. 50 percent of all short sale buyers were first-time buyers.
By definition, a distressed property is one that was purchased with a loan and the homeowner is no longer able to make their mortgage payment resulting in foreclosure – or if they’re lucky a short sale – meaning they owe more on the home than it’s currently worth. With a 20 percent increase in foreclosures from 2009, distressed properties still remain a large portion of home sales and are going to continue well into 2010 as homeowners continue to feel the effects of an economy on the mend.
If you’re in the market for a home and are prepared for a unique transaction, a distressed property can be a great option. Here’s why:
Prices are low – Buying a foreclosed property is an excellent way to get a home for less. Research shows you can save 10-40 percent over the price of similar properties in a traditional sale.
Mortgage costs are low – With rates hovering near historic lows, financing costs to are favorable. Keep in mind, rates are always changing. It’s important to begin the pre-approval process so that you know how much you can realistically afford.
You have options – The number of homes in some stage of the foreclosure process still remains high. RealtyTrac, a site dedicated to tracking foreclosures across the country, estimates that there are approximately 2.1 million homes in some stage of foreclosure in the United States.
Sellers and lenders are motivated – According to data from RealtyTrac, in April, one in every 387 households in the country has received a foreclosure filing. The bottom line is that many sellers are still feeling the pain of a down economy and are anxious to out get from under a home that is putting stress on their current financial frustrations. While it is still an emotional transaction, these sellers are willing to come down on price or even consider concessions such as helping out on closing costs. Banks holding on to large portfolios of Real Estate Owned (REO) properties want to unload quickly – and price these home to sell.
Your best ally when purchasing a distressed property is an expert. Always have a professional REALTOR® by your side to help you make informative decisions.
Call 972-562-8883 or email mckinney@kw.com and one of our agents can help you achieve your dream!
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