New Listings on www.I-Am-Real-Estate.com!

$136,950 Amazing stunner in Hutto for a value price! Wood laminate throughout, no carpet! Never vacuum stairs again! Expansive patios! Upgraded Appliances! Granite sink! Zero Down USDA Loan Eligible! Click for more Info!

$99,750 Extremely well maintained Round Rock Condo that's cheaper than rent! Wood laminate! Built-in bookcases, cabinets, and desks! Vaulted Master Ceiling! 2006 Trane HVAC and 2007 Water Heater! Laundry in Unit! Click for more info!

$179,750 Unbelievable size for the price! Under $70/sqft in Springbrook! One of best values currently available OR sold! New upgraded carpet throughout! Upgraded enlarged hard tile! Expensive window treatments! Click for more info!

7 Things All Borrowers Should Know About FHA Loans

1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though. In Travis and Williamson County, the FHA Loan Limit is $288,750 for single family households, $369,650 for duplex, $446,800 for tri-plex, and $555,300 for four-plex.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

Excerpt taken from: RISMedia

Chris, This Inspection Report is Driving Me Crazy!

If you have ever bought a home or put in an offer, an inspection is what SHOULD follow an accepted offer. Inspection reports tend to cause a fair amount of worry in buyer's when they are handed the 15+ page packet. Inspectors by law must report on certain things by up-to-date property codes. Therefore, if a house is built in 1996 the property codes of then are not the same as today. However, that doesn't necessarily mean the house is unsafe. Codes have just changed over time.

Another big worry to buyer's when they receive the inspection report is the amount of words and terms flying at them that can be a bit foreign to them. Most super agents, like yours truly, will help you with the translation of these reports, but here are a few commonly seen terms on inspection reports to get you started. Always ask for clarification!

Common terms used in an inspection report
-Recommend: The inspectors’ opinion of how to guide the client to resolve noteworthy issues found during the inspection. Common recommendations would be to replace, repair, monitor or evaluate.

-Visual inspection: The general scope of the inspection is limited to a visual inspection which means that the inspector is not required to disassemble equipment.

-HVAC: Heating ventilation air condition system.

-Condensate line: The copper pipe that runs from the outside air conditioning condenser to the inside furnace (where the A/C coil is located).

-Ductwork: A system of distribution channels used to transmit heated or cooled air from a central system (HVAC) throughout a home.

-Damper: An air valve that regulates the flow of air inside the flue of a furnace or fireplace.

-Pilot light: A small, continuous flame (in a hot water heater, boiler or furnace) that ignites gas or oil burners when needed.

-Blow insulation: Fiber insulation in loose form used to insulate attics and existing walls where framing members are not exposed.

-Board and batten: A method of siding in which the joints between vertically placed boards or plywood are covered by narrow strips of wood.

-Cantilever: A projecting beam or other structure supported only at one end. Any part of a structure that projects beyond its main support and is balanced on it.

-Ceiling joist: One of a series of parallel framing members used to support ceiling loads and supported in turn by larger beams, girders or bearing walls. Also called roof joists.

-Cellulose insulation: Ground-up newspaper that is treated with a fire retardant.

-Celotex: A brand of black fibrous board that is used as exterior sheathing.

-Flashing: Material used around any angle in a roof or wall to prevent leaks.

-Earthquake strap: A metal strap used to secure gas hot water heaters to the framing or foundation of a house. It is intended to reduce the chances of having the water heater fall over in an earthquake and causing a gas leak.

-Sump: Pit or large plastic bucket/barrel inside the home designed to collect ground water from a perimeter drain system.

-Sump pump: A submersible pump in a sump pit that pumps any excess ground water to the outside of the home.

-Trap: A plumbing fitting that holds water to prevent air, gas and vermin from backing up into a fixture.

-Knob and tube wiring: A common form of electrical wiring used before World War II. When in good condition, it may still be functional for low amperage use.

-BX cable: Armored electrical cable wrapped in galvanized steel outer covering. A factory assembly of insulated conductors inside a flexible metallic covering.

-Ground-fault circuit interrupter (GFCI): A device intended for the protection of personnel that functions to de-energize a circuit

-Grounded: Connected to earth or to some conducting body that serves in place of the earth.

Jeff Goldblum Wants Buyer's To Keep Buying!

Coming this summer, the FHA will lower the maximum amount that seller’s can contribute for buyer’s closing costs. Currently, the seller can pay a maximum of 6% of the sales price towards the buyer’s closing costs. Starting soon, it will be reduced to 3% of the sales price. The change will take place in “early summer,” according to the FHA, but no specific date has been set. Buyer’s closing costs typically range from 3.5-5%, so this is no longer a sufficient amount to fully cover the closing costs.

This to me sounds backwards. The purpose of the tax credits, low interest rates, and all of this adjustment to lending practices was to get people into homes. Of course, they need to be able to afford the home and be well-qualified to maintain payments, but why regulate closing costs? If a buyer asks for closing costs to be paid it doesn't mean they aren’t well-qualified. It just means they are trying to minimize out-of-pocket spending. If the seller has sufficient equity in his home, it makes no difference if they pay the buyer’s closing costs because it will just come off the bottom line pay out. It can just come out in negotiations. For instance, house is listed for $200,000. Buyer offers $202,500 with $5,500 in closing costs and as long as it appraises, it works. See what I did there? I’m a wizard.

I just don’t see the point of lowering seller contributions right now. Especially when the government was throwing $8,000 non-repayable at people to buy. It’s an abrupt change from seemingly doing anything they can to get people in, to making it difficult with a rise in FHA mortgage insurance premiums and now reduction in seller contributions.

It’s one of those things we may never understand, like why Hollywood doesn’t put Jeff Goldblum in more movies. The guy hasn’t been in a big time role since Jurassic Park in 1997! He’s The Fly! Jeff and I once had an intimate, one-on-one conversation, no joke. Let me take you back to a time when I was enrolled at Calvin College in Grand Rapids, Michigan. I worked part-time at a market research firm as a Senior Research Specialist. One day we were doing a survey on a certain hospital branch (confidential) in California and calling Los Angeles-area residents. Well, my system auto-dialed a man named ‘Jeff’ and I swear it was Jeff Goldblum.

Jeff Goldblum has a very distinct voice, he probably lives somewhere in Los Angeles, and this guy’s name was Jeff! All of that equals that I spoke to a movie star. Jealous? The guy was super nice, very intelligent, and we spoke for about 30 minutes about my college life, living in California, the health care system, and he even gave me relationship advice that led to me breaking up with my girlfriend! Jeff said, “She’s no good. You can do better and you deserve better, Chris.” When Jeff Goldblum gives you advice, you listen. He sounded EXACTLY like Jeff. I feel after our conversation I’m comfortable enough for a first-name-basis relationship. Jeff has a nice voice. It’s different, but rhythmic.

You’re probably wanting to know, “Why didn’t you just ask if it was Jeff Goldblum if you guys are like best friends?” Well, easy answer. Jeff doesn’t need to be hounded. Talking to some market research guy in Michigan is the only place Jeff can find anonymity and be unrecognized for a brief moment. Who am I to destroy and violate that with my accusations? Hollywood hasn’t been nice to Jeff lately, so I took it upon myself to do him a favor. So long-story-short, ever since that day, I’ve been a Jeff Goldblum fan and I know for a fact that Jeff would agree that seller contributions should not be reduced.

Survey Shows End of Home Buyer Tax Credit Unlikely to Deter Buyers!

Looks like those who are looking to sell this summer have some good news! According to findings released by Prudential Real Estate and Relocation Services, Inc., 65% of surveyed consumers who are currently in the process of shopping for homes, believe that the end of the tax credit will have little or no effect on their interest in purchasing a home.

Furthermore, more than 90% of consumers believe the home buyer tax credits have helped both first-time home buyers and the U.S. housing market overall. As for people's local areas, 46% of consumers are expecting prices to increase over the next year, compared to only 12% who believe they will decline. As for consumer's outlook over the next five years, 79% expect real estate prices to increase and 20% expect a "substantial increase" in home prices.

With regard to home ownership as an investment, an interesting finding of the survey is the majority of consumer's (75%) believe home ownership is a better investment than individual stocks and bonds. 72% believe home ownership is a better investment than mutual funds, and 74% affirm that it's better than a traditional savings account.

Yet another fascinating revelation, is that despite the real estate downturn nationally and the softened economic state the U.S. is in, the perception of home ownership as a quality investment remains strong with renters. Of those who currently rent, 75% believe that in the long-term, owning their home is a more satisfactory choice over renting.

The survey by Prudential Real Estate and Relocation Services, Inc. was conducted during April 15-20th, 2010 and included 1,000 Americans between the ages of 25-64 with a household income of at least $35,000.

 

This is a bit of good news for both buyer's and seller's in the wake of a tender economic state. I've always believed that the generation of jobs should be the number one economic concern of the government and with that comes everything else. If people have money, they'll buy property. This is probably easier said than done and I am certainly no economic strategist. I'm just a pro-style agent. I try not to spread my expertise too thin. People get jealous and no one likes a know-it-all. Suddenly, I'm reliving those moments of being picked last for kickball in 6th grade. My mom said it's because it was the picker's strategy, act like you don't want the best player so you can build the rest of your team. She is so smart!

http://rismedia.com/2010-04-28/end-of-home-buyer-tax-credit-unlikely-to-deter-most-real-estate-buyers/