January « 2010 « Smith and Associates Blog

Changes to FHA Mortgage Guidelines January 29, 2010
By Susie Timmerman

The Federal Housing Administration has announced policy changes to FHA mortgage guidelines. Due to increase of FHA loans over the past couple of years, FHA’s reserves have been depleted below the 2% that is congressionally mandated. Although FHA has changed several criteria in their policies to help strengthen the capital reserves, these changes are expected to have little impact on the housing market.

FHA will increase the “up-front insurance premium” from 1.75% to 2.25% of the loan amount. Because these fees are added into the loan amount without affecting the LTV, the amount of monies that a Buyer needs for the purchase will not be affected.

Under current FHA guidelines, the Seller can contribute up to 6% of the sales price toward the Buyer’s closing costs/pre-paids, etc – this amount will decrease to 3% contribution under the new FHA policies.

To further strengthen and protect insurance reserves, FHA will require a larger down payment for Buyer’s with low credit scores. For borrowers with below a 580 credit score, they will now need a 10% down payment instead of the 3.5% for borrowers with higher credit scores. Since there are few lenders, if any, that will loan to borrowers with a credit score below 580, this is inconsequential to the present housing sales of FHA properties.

These FHA changes will be implemented over the next several months. If you should have any questions, please contact me at FBC Mortgage LLC, stimmerman@fbchomeloans.com.

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Seminole Heights Sunday Morning Market January 22, 2010
By David B Moyer

Seminole Heights is a tree-shaded gem nestled in the heart of Tampa. When platted in the early 1900s, the area was almost completely occupied with orange groves. The groves soon gave way to bungalows; and, by 1923, the area was annexed into the City of Tampa. The warm, friendly atmosphere of Seminole Heights attracts residents of all ages and diversities. Today, interest in this community is as high as it was in the 1920s its central location and convenience to downtown Tampa having a hand in its recent popularity. More about Seminole Heights & Homes

Sunday February 14th will mark the inaugural event of a new open-air Fresh Market in Seminole Heights. It will be held on 2/14, 3/14, 4/11, & 5/9. The Seminole Heights Sunday Morning Market (SHSMM) will have over a 100 vendors with the finest and most unique products available in the Bay area. The market will be open from 9am to 1pm and parking/restrooms will be available at the Hillsborough High School located at 5000 Central Avenue, Seminole Heights Tampa, FL 33603. Live music and cooking demonstration will be at the market on Feb. 14th. To keep in the spirit of “Go Green”, there will be special eco-friendly market bags available for $3. We encourage you to check out the neighborhood and support the Seminole Heights Sunday Morning Market.

Seminole Heights - Hillsborough High School

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Short Sale Relief? Government to Make a Change. January 18, 2010
By David B Moyer

An article published the other day in the FL Sun Sentinel about Short Sales and New Government Policies will play a BIG part in Florida real estate. If you are unfamiliar with a short sale, it is when a home owner who can no longer pay the current mortgage, and the bank/third party selects to take a moderate loss instead of moving forward with the foreclosure process on the owner. The problem that exists with that type of sale is that the bank/third party have no set time period to approve the offer or contract to sell the home. This causes nightmares for buyers, sellers, real estate agents, and new financing institutes. A new federal guideline is being discussed to ensure a 10-day approval on contracts, so that buyers and sellers can expedite and complete the sale of the home. The questions that exist are how the new process will be enforced and how the banks will make a proper decision on their assets this quickly. Another obstacle to consider are homes that have multiple mortgages or liens. Lenders have issues with the complicated nature of the transaction and a lack of paperwork submitted by the seller & buyer in order to determine a complete financial situation, both of which cause more delays. The headaches have continued and new guidelines will be a challenge, but the idea of assigning accountability and pressure to move the process along should ultimately be a good thing for everyone.

Here is the link to the complete article.

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Location, Location, Location … January 11, 2010
By David B Moyer

The other day, we came across a NY Times Article that showcases the importance and value of urban, walkable neighborhoods. Over the past 6 years, the Tampa Bay area has worked publicly and privately to provide a better lifestyle for its residences. The idea of improving downtown, increasing residential homes, retail, with better modes of transportation have always been in the mix. The new History Museum, Art Museum, River Walk, and Channelside District are evidence of sectors pulling together to showcase a vision of Tampa’s future. Tampa Bay is actively pushing for a high speed rail system, a project which Tampa Downtown Partnership has been greatly involved in. The area of Downtown St. Petersburg including Vinoy Park, Central Avenue, and 4th Street has walkability that is 4% higher than the top 10% walkable areas in the United States at a rating over 90% . Hyde Park Village in Tampa scores an 85% rating, which competes with the very best in the Country. The homes that are located in walkable neighborhoods are typically higher in price/value than homes in lower rankings. The distant suburbs had the largest declines in home values. Typically prices in those neighborhoods that are the most walkable, held up or in a few cases, increased.

Here is a fun link, Walk Score, for you to view just where your current or future home ranks with the rest of Tampa Bay in terms of walkability. You will find important links that show why it is important to walk, how the ratings work, and an explanation to how the score is factored.

So why this is important? Better health, Reduction in greenhouse gas, More transportation options, Increased social capital, Stronger local businesses

What makes a walkable neighborhood? A Center, Density, Mixed income/Mixed Use, Parks and Public Space, Pedestrian-center design, Nearby Schools and workplaces.

Streets Designed for Everyone: Accessible, well-connected, built for the right speed, comfortable.