Getting Mortgages Is Getting Easier!

Fannie Mae and Freddie Mac are both government sponsored enterprises.  They do not originate loans, but they buy them from lenders like your bank or mortgage company.  They buy over half of all loans made!  The main difference between Fannie and Freddie comes down to who they buy mortgages from: Fannie Mae mostly buys mortgage loans from commercial banks, while Freddie Mac mostly buys them from smaller banks that are often called "thrift" banks.  Working with them is currently cumbersome, demanding and very time consuming.  According to a new report from the Florida Association of Realtors, they both  have announced plans to speed up and simplify their mortgage buying process.

Fanny May announced it “Day 1 Certainty” initiative that will provide its customers with freedom from misrepresentations and will warranty key aspects of the mortgage origination process.  They are offering faster income, assets, and employment validation services to lenders. 

Fannie Mae's high-profile changes for borrowers include:

-Validating loan application data upfront will give lenders faster verification of key loan data components, such as income, assets and employment information.

-Borrowers will save time using electronic data versus collecting documents, such as pay stubs, bank statements and investment account statements.

-Enhanced property inspection waiver upgrades.  When a property receives a qualifying score through Collateral Underwriter, customers will receive representation and warranty relief for the appraised value of the property.

-Refinance transaction customers are eligible for a waiver of the property inspection requirement if using Desktop Underwriter.

Freddie Mac will improve their processes by:

                                                  -reducing the cost of originating a loan

                                                  -providing a no-cost automated appraisal alternative 

                                                  -automating borrower asset verification

                                                  -automating assessment of borrowers without credit scores

By keeping mortgage interest rates artificially low and improving the speed and efficiency of getting a mortgage, our government is attempting to stimulate the economy by making the purchase of a home easier and less expensive. Palm Coast in particular relies on the home building industry as one of its prime sources of employment and growth. You can read the entire report on the Florida Association of Realtors website, https://www.floridarealtors.org/.
I first learned this information from Toby Tobin’s terrific real estate newsletter at http://gotoby.com/news/article/2856/Fannie-and-Freddie-Plan-to-Streamline-Mortgage-Underwriting

Looking to build or buy a new home in Palm Coast?  Sell one?  TALK TO TED !  (386) 503-1101

“Update – Palm Coast Commercial Building Permits”

On May 15 GoToby.com updated its May 5 Commercial Permits report listing who took out commercial building permits in Flagler County.  I found a couple of the applications especially interesting.

A 7-Eleven with 10 gas pumps applied for a permit in Beach Village, site of the new Beach Village Apartments.  Check out the apartments themselves at http://www.beachvillageapts.com/palm-coast-apts-for-rent/beach-village/

Chase applied for a permit in Island Walk.  The big banks are not planning to go away despite public and political outcrys about them.

And a car wash applied for a permit on Cypress Point Parkway near Steak & Shake. Coconuts behind McDonalds on Route 100 usually has long lines of waiting cars. I hope this one will be just as modern and well run because it will be much closer to Pine Lakes, where I live, and the Indian Trails "B" section folks than either the Palm Coast Car Wash on Old Kings Road or Coconuts.

I think GoToby.com is a great source of local real estate information.  This posting can be found at

http://gotoby.com/news/article/2773/Update--Palm-Coast-Commercial-Building-Permits

Why The Selling Price of Your House Will Increase Dramatically

Today's National Association of HomeBuilders report on government regulation costs shows regulations add a whopping $84,621 to new home prices.  (See the article:  http://nahbnow.com/2016/05/regulations-add-a-whopping-84671-to-new-home-prices/?utm_source=newsletter&utm_medium=email&utm_campaign=mmb0509).  

The cost of buildable lots in Palm Coast is rapidly increasing just because of demand. These regulations add a bunch more cost to build on a lot. And our local government just greatly increased the “impact fee” charged builders for the impact a new house will have on increasing the need for them to provide services.

Add all to that the constantly increasing cost of cement, wood, wallboard and everything else needed to build the home and I come to two simple conclusions...

Resale prices will go up higher and faster than predicted.

Remodeling an existing home will be a smart investment.

Mortgage rates are still reasonable. If you can buy, buy now!

Talk To Ted !

Let’s Add a Bedroom…Our Kid Is Moving In !

Owners-Bigger is Better

My insight for the last year has been that the trend to multi-generational living is especially strong here in Palm Coast.  And it has manifested itself in the number of four bedroom houses

.  

From April 1, 2016 until today, May 5, 2016 119 four bedroom homes have either been sold or are pending.  (My MLS search included  homes between $100,000 and $300,000 in order to eliminate higher priced houses that are normally larger and likely to have more bedrooms.) In contrast, 291 three bedroom homes were sold or pending during that period. 

That translates: 41% of the houses sold in the last six weeks were four bedroom homes!

If you want to add value to your home, remodeling kitchens and baths are always a good idea. But give some thought to adding space. Add a bedroom over the garage or to the rear of your house. Better yet, a bedroom with a bath.  Use it for a home office, media room, exercise room, or guest room...but be sure to add a closet area so it qualifies as a bedroom.  According to Remodeling Magazine, nationally you can expect to recover 69.3% of your investment.  In Palm Coast it will probably be even more.  

New Construction

I staffed a model home during the recent parade of homes...buyers of new homes were looking for larger, four bedroom houses in the lower price and middle price ranges. Some were working couples looking for home office space and some were families with two or more children; but many were looking for multi-generational housing; meaning that either a parent was moving in with them or they were the parent, and (like me)  a child was returning home to live.  I suggest you give some thought to adding another room (with a closet) to your home.  

Buyers-Talk To Ted!

Each week the  Observer Tribune lists residential building permits issued to builders. Holiday Homes led this week’s  list with four, Adams Homes was second with two and Seagate, Everlast, New Coastal Homes, Maronda and Skyway each had one permit to start building a new home.  Many are being built on speculation as “Inventory Homes”.  

Compare and Choose.  Most folks moving to Florida and looking to buy a home would like to compare building a new dream home that is exactly what they want to purchasing a similar resale that is likely to be less expensive.  My background in new construction and knowledge of local builders allows me to provide them with a good comparison and help them decide.

My High Tech Mortgage Broker

Finding the Right Mortgage is Often Harder Than Finding the Right Home!

A critical factor in purchasing a house these days is getting the best possible mortgage.  

I need to keep very current on who to work with to help me find my buyer the best mortgage and where to get it. 

Steve Verrier of Lake State Mortgage is a great resource for me.  Check out his latest e-letter and see how he follows Mortgage-Backed Securities to help him with his market projections.  He also put me on to a book I will buy:  “...New York Times best seller “Zillow Talk” to see if it is a commercial for Zillow in disguise or provides useful market information.

He is a Palm Coast resident and specializes in these markets:

• Purchase Mortgages
• Refinance Mortgages
• Harp 2.0 Loans
• Construction (to Permanent) Loans and Mortgages
• (Both Conventional and Government)
• Cash Out Home Equity Mortgages
• Jumbo Home Loans and Mortgages
• FHA Loans / USDA Mortgages / VA Mortgages
• Reverse Mortgage Loans
• Private Money Mortgages
• Condos
• Rehab and Renovation Products for Primary Residences“

Check out Steve’s e-letter Realtor Market Insider:    

https://mail.google.com/mail/u/0/?hl=en&tab=wm#inbox/153761ab37923202

And his website:  

http://www.thefloridamortgagecenter.com/home.html

Granny Pods: Caring for Aging Relatives...

I am a great fan of the TV program “Tiny Houses”. And I just read this interesting post in RIS Media’s blog.

It discusses  tiny houses designed for caring for an aging relative. This can also be done using what we call a "Duplex", "Multi-Generational Home", or a regular but tricked out two or more bedroom home. I have been working in a Model Home and visiting other model homes in this week’s Parade of Homes and I have seen several floor plans that would work well as a "Granny Caves".  Or for a grown child who returns home to care for or be cared for. ( I know the situation.  My daughter just came to live with us a month and one half ago.) 

Here are some excerpts from the RIS blog:

“Granny Pods, aka MedCottages, are 12 x 24-foot prefabricated pods that sit conveniently in one's backyard. The structures hook up to existing plumbing and electrical systems and allow both the caregiver and senior citizen to have their own space while still being available and connected. The pods are quickly growing in popularity and are a win-win for both parties: the aging family member has his or her own space, while the caregiver doesn't have far to travel to assist family members in case of an emergency.”

“The mobile homes are built with safety in mind and include many of the basic amenities any adult would need. They include a small kitchen, a bedroom and a bathroom all designed in a small scale space with easy access in mind. The bathrooms are handicap accessible with railings and safety features, while the floors are padded to help lighten the load on joints.”

“Not only are they safe, but they're tech-savvy, too! Granny Pods can incorporate webcams for family members to monitor from afar. Even more impressive, robotic features can monitor vital signs, with alert systems armed to notify caregivers should a problem arise. The air can be monitored for contaminants and reminders can be sent to the inhabitant to remind them to take pills or supplements accordingly.  The MedCottages encapsulate all the functions of a proper nursing home, while providing grandma or grandpa with the freedom and privacy they may still desire.”

The blog is loaded with photos of interesting options.  Read it at:

http://blog.rismedia.com/2016/granny-pods/?utm_source=newsletter&utm_medium=email&utm_campaign=eNews

If you want to build or buy a home well designed to accommodate two generations, 

Talk To Ted!

Photo Credit: facebook.com/MEDCottage