Lisa Barton

Good news on for home buyers! Mortgage rates fell to a record low for the fourth time in five weeks. The average rate for 30-year fixed loans this week was 4.56 percent, down from 4.57 last week. That’s the lowest interest rate new home buyers have seen since since Freddie Mac began tracking rates in 1971. The last time home loan rates were lower was during the 1950s, when most mortgages lasted just 20 or 25 years. The rate on the 15-year fixed loan dropped to 4.03 percent, down from 4.06 percent last week and the lowest on records dating back to 1991. And there’s more good news for the Jacksonville and Ponte Vedra Beach real estate markets--home sales are up!!! Prudential Network Realty has seen a big increase in sales this year.

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The Northeast Florida Association of Realtors (NEFAR) has summarized the benefits of using a Realtor. I thought you might be interested. Here’s their article:
Realtors help people buy and sell residential or commercial properties, vacation homes, and land; they conduct appraisals; they operate in the United States and in other countries; some specialize in auctions; and others are buyer’s representatives. 

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One of the great benefits of being part of Prudential Network Realty is the affiliation with Gibraltar Mortgage, our in-house mortgage company. Gibraltar Mortgage is also an affiliate of Wells Fargo Home Mortgage, so they’ve got the backing of a national mortgage company. The home buyers I work with definitely benefit from this connection and now, Gibraltar Mortgage is offering a great deal for Prudential clients who are using a government loan (FHA/VA) for financing. Gibraltar Mortgage is providing a FREE 1% buy-down for the first year on a 30 year fixed mortgage. The deadline to apply for this program is July 31, 2010, so contact me soon if you’re interested. That 1% buy-down is a big deal! As of today, interest rates for FHA/VA loans are 4.875% (depending on your credit score). That means new home buyers can potentially enjoy a 3.875% interest rate for their first year. WOW! Marilyn Campbell is the loan officer in my Prudential Ponte Vedra office and she’s available to help my clients 24/7. 

Continue Reading “FHA and VA Home Buyers Can Finance a Home with a Free 1% Interest Rate Buy-Down”

FHA insured mortgages are very attractive to buyers, especially first-time home buyers, because the down payment requirements (the cash you need to put down on the mortgage) are much lower than the down payment requirements for a conventional mortgage. For example, FHA requires a 3.5% down payment as opposed to the 20% down payment that’s usually required for a conventional mortgage. Many buyers who qualify for an FHA mortgage would like to buy a condominium, but not all condo communities are approved by the FHA--meaning that you can’t use FHA insured financing to purchase a home in that community. The FHA is stringent about its approval requirements. The condo community can’t be more than 50% rentals, the condo association must be solvent, and the buildings must meet FHA standards. Believe me, it can be very frustrating for buyers to fall in love with a condo and then find out that that community is not FHA approved. Your real estate agent should know which communities meet FHA approval in their local area, but you can always check out the FHA Approved Condo Link to verify the condo community you’re considering is eligible for FHA insured financing.

Continue Reading “Here’s How to Find a List of FHA Approved Condos”

Flood Insurance covers a physical loss caused by “flood.” The National Flood Insurance Program says:

A flood is a general and temporary condition where two or more acres of normally dry land or two or more properties are inundated by water or mudflow. Many conditions can result in a flood: hurricanes, broken levees, outdated or clogged drainage systems and rapid accumulation of rainfall.

Just because you haven’t experienced a flood in the past, doesn’t mean you won’t in the future. Flood risk isn’t just based on history, it’s also based on a number of factors: rainfall, river-flow and tidal-surge data, topography, flood-control measures, and changes due to building and development.

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Thinking of buying a home that needs repairs?  Maybe you’ve spotted a “diamond in the rough” property that could be a dream home with the right repairs and remodeling. Wells Fargo Home Mortgage offers FHA 203k renovation loans that allow the borrower to finance the purchase price and the cost of improvements into the loan amount. As with all of these 203k products, they are only allowed in conjunction owner-occupied properties, either with a purchase or refinance transaction. We use the “after improved” value of the property, and it is a “single close” fully amortized loan. In my last entry, I spoke about the FHA Remodel Express program exclusive to Wells Fargo Home Mortgage-----that product is fantastic for cosmetic repairs and remodeling up to a cost of $35,000.  The work allowed includes repairs and replacements to roofs, existing HVAC systems, existing flooring, minor remodeling, new windows and appliances, etc… It has the normal 203k loan merits of one application, one approval process, one closing, and one payment, yet it is limited to “renovations” only that are non-structural in nature. It also restricts the borrower to using one national improvement company/contractor---The Home Depot, Lowe’s, or Sears. 

While the FHA Remodel Express product is amazing, some borrowers need improvements that are “structural” in nature, which is where our Standard 203k product shines. With this product, improvements can include foundation repairs, roof replacement, new plumbing and electrical systems, and full room additions, to name a few. Here multiple licensed contractors are allowed, and there is no limit on the cost of the repairs (bearing in the mind the maximum total FHA loan amount for your area, which is currently $387,500 in northeast Florida). Also, the borrower is actually allowed to do the contractor work upon approval. In addition, Wells Fargo offers a Streamline 203k version, which caps the repairs at $35,000 and only allows non-structural repairs, but offers the benefit of allowing multiple contractors.

The 203k products are great ways to purchase bargain priced homes and/or larger homes in need of repair. The borrower gets to renovate them to reflect their tastes and needs, all while having one payment amortized over the life of the loan. 

Donald Ster, MBA, is a senior-level mortgage consultant working for Wells Fargo Home Mortgage.  He has been in the industry for 7 years, and resides in Jacksonville, Florida with his wife and daughter.

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Last week I was showing homes to a couple from California. They were interested in golf club communities, so we were looking at properties in several of Ponte Vedra Beaches’ beautiful gated communities. The wife giggled when she saw a sign posted by a large lake that said “Please Don’t Feed the Alligators”. She asked if the warning on the sign was legitimate. Well, what can I say, but “YES”!

As a Florida native I’ve grown up knowing that where there is a body of fresh water there are most probably alligators. Usually, the old adage “they’re more afraid of you than you are of them” holds true, but not always. Alligators, which are native inhabitants in the southeast, are usually afraid of people and aren’t normally a threat. However, as people encroach on their natural habitats, they are coming into contact with humans on a very regular basis. Feeding any wild animal reduces their fear of humans. This is especially true of alligators--hence the sign I mentioned above. 

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In our current economic environment, we have seen an unprecedented increase in foreclosures, deed in lieu of foreclosures and short sales of home mortgages across the United States. Many homeowners are losing their homes due to various reasons including job loss, unexpected medical expenses and life circumstances. Fast forward to improved circumstances, those homeowners are now in a position to buy a home again. 

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We have to pay for what!? This re-occurring theme seems to take place everyday, multiple times, & for 100 different reasons when you are buying a home. At least, that’s what if felt like for me, so I know that every penny counts when it comes to purchasing your new home. The one thing you can’t do without is a home inspection. But, if you hire the wrong inspector, it could cause you serious financial problems. So, who has time to research this stuff? Many of us are too busy and worried about other things. So, if you can remember just one simple rule, it’s this: the fee does not reflect the service.

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As we head in to the new year, especially with record setting low temperatures all over Florida, it is hard to image that hurricane season will be on us again before we know it. But we live in a state where catastrophic losses can and do occur so insurance will continue to be a major issue for Florida Homeowners. Here are some of the issues facing us as we move into 2010:

1. Citizens Property Insurance: This year, the first rate increase at state-subsidized Citizens takes effect since a freeze three years ago. The state is trying to end artificially low rates and bring actuarial soundness to Florida’s largest home insurer. Citizens still has 1 million customers, approximately 413,000 of whom have homes in the high risk areas on the coasts. After nearly four years without a significant storm, Citizens’ surplus is only $3.9 billion. It will take a long time for rates to get where they need to be but at least the process has been started.

2. State Farm: Florida’s largest private insurer will be staying although they will be cancelling 125,000 policyholders and increasing premiums for many of their remaining customers. This is good news for Florida. 

3. New Insurers:  New, smaller insurers have captured an increasing share of the Florida market but many customers are worried about the quality of the companies. Their worries are justified.  First Commercial, Coral, American Keystone, Edison, and most recently Magnolia have all failed in the past two years, years in which there were no major storms. 

4. Asssessment: Policy owners in Florida will continue to pay a 1% catastrophe fund tax on their premiums for the next 5 years, a hangover from the 2005 season.  Citizens is charging all Florida homeowners, not just its customers, a 1.4% assessment for seven more years.

5. CAT fund: Had a hurricane hit Florida last fall when the credit markets were in turmoil, the catastrophe fund, which provides insurance to insurers, had no hope of selling enough bonds to cover its commitments to insurers. The projected shortfall was $18.5 billion if there was a major storm. The Legislature ordered the fund to charge more to build up cash fast. The charge will add $750 million to the fund over the next five years. 

Continue Reading “Home Insurance for Hurricane Season - Things to Consider”