Realty Jen's Rendition

WOW!! Habitat for Humanity: 400,000 Homes Built or Repaired Since 1976

RISMEDIA, December 14, 2010—Habitat for Humanity surpassed its 400,000 house milestone during its most recent fiscal year. Since the nonprofit organization was founded in 1976, its self-help, hand-up model has resulted in rehabbed, repaired or new housing for more than 2 million people worldwide.

"Over the last 34 years, Habitat for Humanity has steadily increased its scale and scope to help more families in need of decent, affordable housing," said Jonathan Reckford, CEO of Habitat for Humanity International. "In 2005 we celebrated our 200,000th house. Now, five years later, we have more than doubled that number thanks to the generous support of our volunteers and sponsors. It is a significant milestone and very encouraging, but we realize there is still much more work to be done."

In fiscal year 2010, Habitat for Humanity served a record 74,960 families worldwide through a combination of new construction, rehabilitation and repairs. Habitat also helped an additional 6,355 families establish legal rights to a house or land, and provided more than 46,964 individuals with technical assistance ranging from legal help to construction advice or training.

"Throughout our history we have seen time and again that an affordable, safe and decent home is the gateway to better health, greater family stability and improved educational opportunities in every country where we work," said Reckford. "We are pleased that even in this difficult economy, Habitat for Humanity has been able to help an unprecedented number of families around the world have a better place to live. We are seeing great results from focusing not only on building individual houses, but also on repairing and rehabbing homes and creating partnerships that emphasize total community development."

Habitat for Humanity celebrated its 300,000th home in 2008, its 200,000th home in 2005 and the 100,000th home in 2000.

By 2013, Habitat for Humanity hopes to assist 100,000 families annually with new or improved housing. 

GOOD NEWS FOR HOME OWNERS IN TROUBLE WITH THEIR LOANS: Treasury Department Announces New Short Sales Guidelines

 

National Association of REALTORS® Government Affairs Division 500 New Jersey Avenue, NW, Washington DC, 20001

Treasury Department Announces Home Affordable Foreclosure Alternatives Program On November 30, 2009, the Treasury Department released guidelines and forms for its new Home Affordable Foreclosure Alternatives Program (HAFA). HAFA is part of the Home Affordable Modification Program (HAMP). HAFA provides incentives in connection with a short sale or a deed-in-lieu of foreclosure (DIL) used to avoid foreclosure on a loan eligible for modification under the HAMP program. HAFA applies to loans not owned or guaranteed by Fannie Mae or Freddie Mac, which will issue their own versions of HAFA in coming weeks. HAFA is a complex program, with 43 pages of guidelines and forms, designed to simplify and streamline use of short sales and deeds-in-lieu of foreclosure.

HAFA:

Complements HAMP by providing a viable alternative for borrowers (the current homeowners) who are HAMP eligible but nevertheless unable to keep their home.

Uses borrower financial and hardship information already collected in connection with consideration of a loan modification.

Allows borrowers to receive pre-approved short sales terms before listing the property (including the minimum acceptable net proceeds).

Prohibits the servicers from requiring a reduction in the real estate commission agreed upon in the listing agreement (up to 6 percent).

Requires borrowers to be fully released from future liability for the first mortgage debt (no cash contribution, promissory note, or deficiency judgment is allowed).

Uses standard processes, documents, and timeframes/deadlines.

Provides financial incentives: $1,500 for borrower relocation assistance; $1,000 for servicers to cover administrative and processing costs; and up to $1,000 for investors for allowing a total of up to $3,000 in short sale proceeds to be distributed to subordinate lien holders (on a

one-for-three matching basis).

The program does not take effect until April 5, 2010, but servicers may implement it before then if they meet certain requirements.

The program sunsets on December 31, 2012.

Press Release, HAMP Update—New Program Offers Borrowers Foreclosure Alternatives https://www.hmpadmin.com/portal/docs/news/hampupdate113009.pdf

Tax Credit Extension & Expansion – Hot Points

This month the Senate extended the 1st Time Home Buyer Tax Credit that began January 1st of 2009.  Initially it was set to end on November 30, 2009.  However, President Obama signed the extension on November 6th.  This tax credit has also been expanded to “Move Up Buyers” who currently own a home and are interested in moving up in home price.  It’s a great incentive considering interest rates are still in the 5% range on most home loans. 

$8,000 First-time Home Buyer Tax Credit at a Glance

• The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The tax credit applies only to homes priced at $800,000 or less.
• The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
• For homes purchased on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
• For homes purchased after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid unless the home is sold or ceases to be used as the buyer’s principal residence within three years after the initial purchase.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

There’s a lot of information to consider when making a move, please feel free to call or email me if you have questions regarding the new changes to the tax credit. 

I’m here to help!

FHA Loans – The Lowdown – Fact vs. Myth – Forget what your friends told you!

One result of such woeful housing news is that more and more people are turning to FHA mortgages.  FHA was created when the federal banking system was restructured in 1934.  The National Housing Act was passed and the legislation created the Federal Housing Administration (FHA) with the intent to regulate interest rates and mortgage terms on the loans that it insured.   This was a result of the Great Depression in 1929 when millions of Americans began to lose their homes to foreclosure.  Sound Familiar?  Since 1934, the FHA and HUD have insured over 34 million mortgages. 

When housing prices began to spiral upward in the 1990s, lenders developed mortgage products designed to help people buy homes that had suddenly been priced beyond their reach.  FHA loans fell by the wayside when lenders sold these loans by offering 100% financing vs. the 3% required by FHA.  As home prices continued to rise, the qualifications for loans were loosened and the result is the part of the mess we are in now with foreclosures etc.  But this topic is a whole other blog….so back to FHA Loans. 

Until this point FHA loan growth has been widely assumed, but now we have real numbers from the Office of the Chief Economist at Freddie Mac.

To get some perspective of what’s going on consider these figures from Freddie Mac:

2005 — Loans worth $$3.167 trillion were originated, including VA and FHA mortgages worth $90 billion (2.84 percent of the total marketplace).

2006 — Loans worth $2.858 trillion were originated. The value of VA and FHA loan originations dropped to $80 billion (2.80 percent).

2007 — Loans worth $2.312 trillion were originated while VA and FHA mortgage originations amounted to $120 billion (5.19 percent)

2008 — Loans worth $1.490 trillion were originated — less than half the 2006 total. As to FHA and VA loans, they rose to $291 billion (19.53 percent — almost seven times the 2005 percentage).

The projection for 2009 is even more telling: Freddie Mac estimates that home loans valued at $1.560 trillion will be originated — but that FHA and VA financing will amount to $440 billion (28.21 percent).

What these numbers tell us is that both lenders and borrowers are running from so-called “non-traditional” loan products as quickly as they can and turning instead to mortgage programs which are reasonable and reliable.

If you are considering a home purchase in the near future remember knowledge is power.  Don’t fall for these myths about FHA loans. 

MYTH #1: FHA is only available to First Time Buyers.  NOT TRUE!

• FHA Loans are available to home buyers whether it is their first, second or fifth home purchase.  The truth behind this is you can only have 1 FHA loan at a time.  Also, you are able to have a co-signer on an FHA loan.  Only one borrower needs to be an occupant.

MYTH #2: FHA Loans are more difficult to obtain.  They are a painful process and require more paperwork and special inspections.  NOT TRUE!

• FHA Loans require a different set of paperwork for lenders but not necessarily more paperwork.  Also, there are no “special inspections” required.  HUD requires an appraisal to be made which is common with home loans. 

In conjunction with the appraisal, the appraiser will inspect the home for serious issues that need repair and may require the issues to be remedied.  Some of the things your FHA appraiser will look for are…

1. Missing floor covering, fixtures, outlet covers, and/or exterior siding
2. Rotten wood
3. Defective lead based paint if built prior to 1978, chipping or peeling
4. Dysfunctional windows. (not opening or closing/ broken glass)
5. No bars allowed on windows without a safety latch to open
6. Roof with less than 2 years of economic life
7. Roof with missing or damaged shingles
8. Crawl space must be at least 18 inches
9. No water or debris in the crawl space
10. Attic must have insulation and access if there is an attic
11. HVAC & plumbing & electrical must function properly
12. Electric garage door must have a reverse stop
13. Garage must have drywall on any wall adjacent to living areas
14. Any safety and security issues

MYTH #3: FHA Loans are impossible to qualify for.  NOT TRUE!

• If you are considering a home purchase ask yourself the following questions.

1. Do you have steady employment?
2. Do you have excessive debt: if so, you may not qualify if your debt is too high compared to the amount of money you are bringing in each month.
3. Do you have a down payment: Down payment amounts are much lower for FHA loans, but some money to put down is necessary.  Currently FHA requires a 3.5% down payment.  In Oklahoma you may qualify for down payment assistance with Community Action.  Also, FHA allows the down payment to be a gift from family. 
4. Do you have good credit or better: Those with very low credit scores may not qualify for a home loan right now.  If your credit score is below 580 it may be more difficult to obtain a home loan.

MYTH #4: FHA Loans are only for small loan amounts.  NOT TRUE! 

• In Oklahoma the FHA Loan limit is $271,050.  Currently the average home price is about $145,000 in OKC.  As you can see this limit is well above the average home price.

If you have questions on FHA loans please contact me and I will put you in touch with a qualified FHA loan officer.  Only a few Mortgage brokers are actually FHA approved.  Today I spoke with a lender at Canadian State Bank who said they had a new loan program offering FHA rates at 5% while other banks were still offering 5.5%. 

It just goes to show the right Lender along with the right Realtor

can make all the difference in guiding you through your biggest investment!

More Improvements Coming to Downtown Oklahoma City

City Council approves new downtown tax increment district

(December 16, 2008) - City Council approved a plan today to create a new tax increment financing (TIF) district to fund approximately $175 million in public improvements and economic development efforts in downtown Oklahoma City.  The new TIF district was spurred by Devon Energy’s planned development of a new world headquarters building in downtown Oklahoma City.

The Devon development was contingent on two conditions: the City improving the infrastructure such as utilities, streetscapes and enhancements of Myriad Gardens; and committing to economic development policies and incentives to attract other quality investments, businesses and employers in the surrounding area.

Ad valorem and construction sales tax revenues generated by the Devon development will fund approximately $115 million in public improvements, which will occur in an area that includes NW 13 to SE 27 and Western to Eastern/Martin Luther King Jr. Ave and approximately $40 million for economic development efforts to be invested in the area adjacent to the Devon building. 

In addition, the new TIF will fund $20 million in projects for other public entities such as the Oklahoma City Public Schools, Oklahoma County, Metro Tech, City-County Health and the Metropolitan Library System. 

It is estimated that Devon will pay at least $11 million per year in ad valorem tax and $20 million in city sales tax during construction.  The building will be completed in 2012 and the first TIF revenues are expected to be received in 2014.

The proposed development on a site located east of Hudson and north of Sheridan Ave. alone is estimated to stimulate $750 million in direct new investment in Oklahoma City’s downtown area and will generate an annual economic impact of over $900 million increasing to $1.9 billion.

“The City Council’s approval of this new downtown TIF district is yet another step towards ensuring a bright future for Oklahoma City.  The long term economic vitality of the downtown area with improved aesthetics and amenities will enhance the quality of life for Oklahoma City residents for decades,” City Manager Jim Couch said.

The Downtown/MAPS Tax Increment District Review Committee that includes representatives from each taxing jurisdictions in TIF districts 2 and 8 as well as representatives of the public reviewed and recommended approval of the plan.