Jude's Real Estate Rumblings

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Lend Lease partners with NREL

An article from the Denver Business Journal, reports that on Monday, developer Lend Lease Communities LLC announced it's partnering with the National Renewal Energy Laboratory to incorporate “net-zero” energy, water, and waste goals into its communities.  Currently, the company is working on two mixed-use developments in Colorado.  Horizon Uptown is a 503-acre project in Aurora and Lowry Range is a partnership with the Colorado State Land Board to create a community on the project’s 3,870-acre development parcel.  According to Lend lease, it will pull together local experts to define what it means to be a zero-net energy community and how the concepts can be incorporated into mixed-use developments.  Megan Christensen, director of community development and sustainability for Lend Lease Communities said in a statement, “Lend Lease has set a goal to achieve zero-net energy, water and waste on all of our projects worldwide.  This is the first step in achieving this goal.”
http://denver.bizjournals.com/denver/stories/2008/09/15/daily3.html?b=1221451200^1700262&brthrs=1
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:26PM

Mortgage Tip

FHA has issued new guidance regarding the implementation of its higher down payment requirement (3.5%, up from the current 3%).  The 3.5% down payment goes into effect on January 1, 2009.  Any FHA loan that has had a case number assigned to it prior to January 1 will only require a 3% down payment. 
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:23PM

3 Steps to Shifting Your Mindset, Marketing and Time Management Gears

An article from Realty Times explored the differences between working on your business and working in your business.  The first step is to create a written plan.  It should include a realistic and comprehensive budget.  It should include the number of contacts, appointments and transactions needed to meet your goals.  The next step is to employ smart marketing.  This means being consistent - contacting your sphere at least every 4 to 6 weeks.  Smart marketing also means target marketing to the demographics and/or geographics where you have experienced success in the past.  The final step involves putting systems into place.  This allows you to manage your time effectively and maintain consistent service levels.  It helps reduce the training time when you hire new team members.  Systems should be established for lead generation/prospecting, pre-listing, price reductions, etc.
http://realtytimes.com/rtpages/20080922_mindset.htm
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:22PM

Mortgage Tip

Fannie Mae has a new rule for cash-out refinances.  This is important to know if you have buyers who plan to purchase a property for less than the appraised value and then refinance so they can take cash out based on the appraised value. 
 
Borrowers used to be able to take cash out immediately after purchase (not all lenders allowed it, but Fannie Mae did not object).  The new rule is that borrowers must have owned the property for at least 6 months to get any kind of Fannie Mae refinance, and at least 12 months to use the appraised value rather than the purchase price as the basis for the loan-to-value (LTV) calculation.
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:21PM

VA Loans Still Don't Require Down Payment

An article from Realtor Magazine Online, reports that the VA loan is one of the few remaining no-down-payment options in today's tight market.  VA loans are up 31% this year - totally 162,000 in all.  Veterans can now apply for a loan before they obtain a VA Certificate of Eligibility.  Then, lenders can quickly obtain the certificate online via the program's Web portal. 
http://www.realtor.org/rmodaily.nsf/pages/News2008092205
2 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:19PM

Colorado No. 15 among states for move-ins

An article from Denver Business Journal, reports that more people are moving to Colorado than moving out.  A study released Tuesday covering the first 8 months of the year, ranked Colorado No. 15, with 55% of moves being inbound and 44.7% being outbound.  The top reason for moving was for a new job or corporate relocation, while the second most common reason was retiring.
http://denver.bizjournals.com/denver/stories/2008/09/22/daily14.html?surround=lfn&brthrs=1

0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:17PM

FasTracks cash-boost backed

An article from The Denver Post, reports that of those attending RTD's first public meeting on the future of FasTracks, about 75% said they are either very supportive or somewhat supportive of RTD raising more money, possibly with a tax increase, to construct the entire project by 2017.  RTD will hold 16 meetings over the next month to gauge public reaction to a number of FasTracks options, including a sales-tax increase for the project or alternatives that call for RTD to build what it can with existing funds.  According to RTD officials, they would consider going back to voters for a sales tax increase of between 0.2 to 0.3 percentage points — 2 to 3 cents on each $10 purchase — to fully construct FasTracks by 2017.
http://www.denverpost.com/news/ci_10561618
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:16PM

Mortgage Tip

Now that seller-paid down payment assistance (Nehemiah, AmeriDream) is gone for FHA loans, it's good to know what the alternatives are if your buyers do not have the mandatory 3% down payment (it goes up to 3.5% on January 1).  
 
If your buyers have household income that falls below the income guidelines established by CHAC and all the other non-seller-paid downpayment assistance programs, then that is the easiest way to get the money for the down payment. 
 
If your buyers have household income above the guideline limits, then the best way for them to get the down payment is to have a relative give them the money or lend them the money.  It's OK for the relative who is giving or lending them the money to borrow it themselves.  If the relative is giving them the money, then they need to sign a gift letter stating that the money does not have to be paid back.  If they are lending them the money, then they have the option of making it a secured loan (making it a second mortgage), or making it an unsecured loan (the only lien against the property will be the FHA loan).
 
If the buyers are above the down payment assistance income limits, and have no money themselves and no one to give it to them or lend it to them, then they are out of luck.
 
There is a bill in Congress to re-establish seller-paid down payment programs, but it is anyone's guess at the moment whether that will pass and be signed into law
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:14PM

$4 Billion to Be Allocated to Stabilize Neighborhoods and Local Communities

An article from RISMedia.com, reports that the U.S. Housing and Urban Development (HUD) announced last week Secretary Steve Preston allocated a total of $3.92 billion to all states and particularly hard-hit areas trying to respond to the effects of high foreclosures.  HUD’s new Neighborhood Stabilization Program (NSP) will provide targeted emergency assistance to state and local governments to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within their communities.  Preston said, “State and local governments can use their neighborhood stabilization grants to acquire land and property; to demolish or rehabilitate abandoned properties; and/or to offer downpayment and closing cost assistance to low- to moderate-income homebuyers.  In addition, these grantees can create “land banks” to assemble, temporarily manage, and dispose of vacant land for the purpose of stabilizing neighborhoods and encouraging re-use or redevelopment of urban property.”  Under Congress’ plan, the money will be granted to areas which have the greatest needs based on foreclosures, subprime mortgages and other key factors.
http://rismedia.com/wp/2008-09-28/4-billion-to-be-allocated-to-stabilize-neighborhoods-and-local-communities/
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 05:12PM

Credit crunch means smaller chances for jumbo mortgages

An article from the Denver Business Journal, reports that according to Denver-area residential real estate experts, jumbo mortgages used to buy high-end homes aren’t going away in Colorado because of the worsened credit crunch, but they may be harder and more expensive to get.  Jumbo mortgages are home loans that are higher than conventional mortgages guaranteed by federally chartered guarantors, such as Fannie Mae and Freddie Mac.  Leeann Iacino, president of Prestige Real Estate Group LLC of Englewood said, “It’s really been in the last year, when the subprime market went in the tank and the economy went in the tank, that jumbos were really affected.  They’re not going away; they’re just more [difficult] to get.”  Ken Bayern, president of jumbo-loan specialist Principle Lending Group of Englewood thinks the proposed government bailout of troubled financial companies will ultimately help jumbo loans. He said, "Once the bailout gets past the Congress and is voted in, hopefully the market will react favorably.  They’re trying to appease Wall Street and Main Street.”  Edie Marks at Kentwood Cos.’ Denver Tech Center branch said, "It’s never been hard, and still isn’t, for good, qualified buyers to get financing. … The high-end market is doing better already than it was a few weeks ago.”
http://denver.bizjournals.com/denver/stories/2008/09/29/story6.html?b=1222660800^1706004&brthrs=1
0 comments • Jude Sandvall, ABR, CNE, SFR 720-255-1021 • September 29 2008 04:32PM