Weekly Market Update

For the Week Ending December 4, 2015 Please enjoy this quick update on what happened this week in the housing and financial markets. Recent economic data points to a stable and growing economy. Comments from Fed officials have markets anticipating the Fed will raise policy rates this month. The ECB has increased actions to stimulate the European economy. European economic weakness is not expected to prevent a Fed policy rate hike this month. Jobless claims continue to remain at levels consistent with a strengthening labor market. A strong labor market could contribute to the Fed's decision to raise rates. Private residential construction spending continues to rise, hitting the highest level in 8 years. Construction spending has now risen every month this year. New home sales were up significantly in October over September, and up year-over-year. Prices are also up, and supply remains tight but steady. Pending home sales were up slightly in October after falling the two previous months. Homes continue to sell quickly. Where does a snowman keep his money? In a snow bank. Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time. This Update is from my Prefered Lender ...  See Lenders.BillForrest.com

July is Renovation Month in Cross Creek

July is Renovation Month in Cross Creek

 With the dramatic increases in sold prices of updated condos in Cross Creek recently, it has created an environment that is idea for renovation.  As part of this, we have 3 condos coming on the market in July that are eligible for a renovation renew program.  All three have not been updated and are available at a price point that makes complete renovation possible in today’s market with 30 year financing.  

What this means is a buyer now has the opportunity to buy a Cross Creek condo and have it completely renovated to look like a new, fully updated to their taste, and fully financed. The buyer will have the option of choosing everything. From all new kitchen, flooring, movie star bathroom, closet system, lighting and more.  These three condos, once completed, will be the best looking homes in Cross Creek.

We have teamed up with two great partners to achieve this feat.  For this program, we have again teamed up with one of the best lenders in Atlanta to provide the financing.  Jason Randall with First Option Mortgage has been a great lender for us in Cross Creek exceeding client expectation and delivering what they promised time and time again.  Our construction partner is TrueSource.  They have a huge following in Atlanta of satisfied customers. TrueSource is providing the design services, wholesale sourcing, and true expert craftsmanship at a cost effective price.  Both of these great partners, like me, are residents of Cross Creek and are committed to help make our community the best it can possibly be.

       

The properties:

206 Triumph – 1 Bedroom 1 Bath

Is being offered for $105,900 renovated or 79,900 as-is

160 LaBlanc Place – 2 Bedroom 2.5 Bath Townhome with courtyard

This unit is being offered for $165,900 renovated or 145,900 as-is

Adrian Place – 2 Bedroom 1.5 Bath Townhome with courtyard

This unit is being offered for $162,900 renovated or 139,900 as-is

If you are interested in getting more information please give 

Bill a call at 404.353.9233 or email at Bill@BillForrest.com

97% First-Time Homebuyers Loan Now Available!

Good Morning!

The buzz on the street is true- there is a 97% loan we can offer our future clients!  We are hoping by this communication, it helps to answers any questions there may be on this program moving forward. 

Fannie Mae 97% LTV Options

FOM will accept standard Purchase and Limited Cash Out Refinance transactions at the higher LTV with the following criteria:

Purchase and Limited Cash Out Refinances:

• 620 minimum credit score
• DU Approve/Eligible required.  Manual Underwriting is not eligible on this program
• All loans must be fixed-rate, standard balance, and 1-unit principal residences (No Manufactured Homes)
• Reserves will be determined by DU but may be funded by eligible gifts
• Non-Occupying Co-Borrowers not allowed
• 35% MI coverage required
  • Reduced MI not permitted
  • LPMI not permitted

Purchase ONLY:

Only one of the borrower(s) must be a First-Time Home Buyer (declaration M in Section VIII of 1003 must be noted accordingly).

Borrower minimum contributions must be met.

Borrower(s) with a 620-659 FICO MUST attend a First-Time Homebuyer Education course. 

Refinance ONLY:

FNMA

Standard Limited Cash Out Refinances of existing Fannie Mae loans must be evidenced.  The FOM Sales Partner must do their due diligence before disclosing a new origination at this 97% LTV to limit future customer service issues.  Verification of currently owned Fannie Mae mortgages can be provided through the following means:

• The current lender’s servicing system
• The current servicer’s system (if the lender is not the servicer)
• Fannie Mae’s Loan Lookup tool                  OR
• Any other source as confirmed by the current lender

Fannie Mae’s Loan Lookup Tool:  https://knowyouroptions.com/loanlookup

Once confirmed, the FOM Sales Partner must ensure that Fannie Mae owns the existing mortgage by indicating Fannie Mae in the “Owner of Existing Mortgage” field in the online loan application.  In the Desktop Originator® (DO®)/DU User Interface), this field is located on the Additional Data screen in the Full 1003 layout.

FHLMC

The primary advantage to Freddie Mac’s version of this 97% program is that the current loan does not have to be owned by Freddie Mac or Fannie Mae.  Unfortunately, we do not have enough investors to deliver to that offer this high of an LTV on the FHLMC platform.  FHLMC loans at 97% are ineligible. 

FAQ

Is the 97% LTV loan the same program as the previously retired 97% LTV Program?

No, the 97% LTV is different from the “Conventional 97” program which was retired in 2013.  This version is really more forgiving toward new home buyers and allows homeowners to refinance to today's historically lower mortgage rates.

Can first-time buyers use the 97% LTV program to purchase a home?

Yes.  The 97% LTV can be used by first-time home buyers.  It can also be used by repeat buyers.

What is the definition of a "first-time home buyer"?

A first-time home buyer is defined as a person who has not owned a home in the last three years.  A borrower who previously owned a home is still a first-time home buyer if the ownership was greater than three years ago. 

Is the 97% LTV program the same as the MyCommunityMortgage (MCM) program?

No, MyCommunityMortgage (MCM) is a totally different program.  The MCM program is aimed at certain members of the community like teachers and firefighters.  MCM also offers a more flexible underwriting standards than what is evidenced in the 97% LTV program. 

Are down payments larger than 3% allowed with the 97% LTV program?

Yes, there is no limit to the size of the down payment with the 97% LTV program.  With a down payment of 5% or more, however, a borrower would no longer qualify for the 97% LTV program.

What is a borrower contribution and how much is it for this program?

A borrower contribution is the total amount contributed by the borrower(s) to the Down Payment, Closing Costs, Financing Costs and Prepaids/Escrows of the proposed transaction.  The borrower minimum contribution of the 97% LTV program is 3%.   

What mortgage products are available via the 97% LTV program?

The 97% LTV program allows mortgage applicants to use the 30-year fixed rate mortgage only.

What is the loan limit on the 97% LTV program?

The 97% LTV program is limited to loan sizes of $417,000 or less.  Loans in high-cost areas are permitted, but loan sizes remain capped at local conforming loan limits.

What is the maximum number of units for a home under the 97% LTV program?

The 97% LTV program is for single-unit homes only.  This includes single-family detached homes and single-family attached homes such as condominiums and town homes.  2-unit homes, 3-unit homes, and 4-unit homes are not eligible. 

Are homes which are not Primary Residences eligible under the 97% LTV program?

No, the 97% LTV program is for primary residences only.  Vacation/second homes and investment properties are not allowed.

Is private mortgage insurance required with the 97% LTV program?

Yes, mortgage applicants are required to pay private mortgage insurance (PMI).  

Can I refinance a non-Fannie Mae loan with Fannie Mae under the 97% LTV program?

No, Fannie Mae requires loans refinanced under the 97% LTV program to be “Fannie Mae-backed”.

Are cash-out refinances allowed with the 97% LTV program?

No, the 97% LTV program does not allow cash-out refinances. 

How is this program better than a non-Conventional Product?

Before this new 97% LTV program, most homeowners with less than 5-10% equity in their homes would need to apply for an FHA refinance to help reduce their monthly payments.  Unfortunately, FHA loans come with permanent, high-cost mortgage insurance.  Mortgage insurance on the 97% LTV program automatically drops off when the loan balance reaches 78% of the last appraised value.  At the end of the day, the 97% LTV program ends up being more cost-effective. 

Why was this 97% LTV Program rolled out?

Research performed by the GSEs supported there was no significant difference in default rates between homeowners with 10% equity and those with only 3%.  This is one of the primary reasons why the LTV/CLTV/HCLTV restrictions were loosened up. 

How does this 97% LTV Program help ineligible HARP homeowners?

Published HARP rules state that homeowners who opened a mortgage on June 1, 2009 and later are not eligible.  The 97% LTV program has no such rule for ownership requirements.

ALL OF US BECOME BETTER, WHEN EACH OF US DOES BETTER.

For more info Reach out to Jason Randall 

my preferred lender at

Lenders.BillForrest.com

Does a Kitchen Remodel Provide a Return on Investment?

Does a Kitchen Remodel Provide a Return on Investment?
-Bill Forrest, Atlanta Realtor

The short answer is YES
But the bigger questions are what type of remodel and how much of a return...

As the home owner the actual cost of a remodel is dependent upon your own skill sets and how much of the labor you can complete yourself. A lot of these projects can be a sense of great pride in knowing "I did that."
A lot of our local Home Depots, Lowes, and Ace Hardwares provide free or low cost classes teaching and providing hands on training to expand these skill sets.

But first, CALL ME or another favorite REALTOR to evaluate your proposed project if the return on investment is a major goal or concern. We can help you maximize the return by providing helpful insight into what is a 'real trend' v. a 'fading fad' especially in countertops, finishes, flooring types, colors, etc. We can also make recommendations of subs and service providers that have a proven track record. But, most importantly, We can alert you to market conditions so you do not over-improve and diminish your return.

In a lot of cases a Kitchen Remodel can be defined as minor but impactful

There is a lot of talk about reuse, recycle, and sustainability these days and that can have the biggest impact on defining the scope and costs. In a lot of cases the current kitchen cabinets are very functional and just look dated. Replacing the entire cabinet box and exterior can be very costly and push the project into the "Major" category. Simply refacing the cabinets can be an effective technique to save a lot of money and time without losing the wow factor. Of course knocking out walls and complete reorientation of a kitchen design can in some cases eliminate the ability to reuse the current cabinetry.

Costs and Returns

Research for Atlanta, Georgia has provided some interesting results according to the Remodeling 2014 Cost vs. Value Report (www.costvsvalue.com). They studied minor vs. major kitchen remodels in the area
The findings are that a Minor Remodel has a higher return at 79.7% and a Major Remodel has a 74.9% return.  The average minor remodel had a cost of $18,889 and major tipped the scale at a average cost of $54,798. As you can see there is a big difference in costs.

The question of return is a market and marketability question that only your REALTOR can answer.  Give me a call at 404-353-9233 and I would be happy to help you evaluate your plan, possible options, and provide insightful suggestions.

Home in the Picture is Available for Sale: Click here for Details

My Recommended Service Providers can be found by clicking here


Other costs info and definitions:
MINOR KITCHEN REMODEL DEFINED: In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware.Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.
MAJOR KITCHEN REMODEL Update outmoded 200-square-foot kitchen with 30 linear feet of top-of-the-line custom cherry cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic- or glasstile backsplash; built-in refrigerator, cooktop, and 36-inch commercial grade range and vent hood; built-in warming drawer, trash compactor, and built-in combination microwave and convection oven. Install
high-end undermount sink with designer faucets and built-in water filtration system. Add new general and task lighting including low-voltage undercabinet lights. Install cork flooring, cherry trim.

Decluttering - Is so important when preparing to sell your home - here's how

One of the most difficult tasks in getting a home ready for sale is decluttering.  Decluttering is crucial to presenting your home at its best to perspective buyers. The only thing more important is cleanliness. So to help with this I wanted to share this great article from one of our great service providers Drab to Fab Organizing.  -Bill  

Organizing 101: Using the 3 M’s to C.O.P.E.

In a world filled with so much information, literally at our fingertips, how do we narrow our focus to practical and applicable tools for our daily lives?  And how is that different in the world of ADHD?

The solution I use with my clients: the 3 M’s will help you COPE.

Clutter represents deferred decisions. Nowadays, we move so fast we are often distracted. We can’t or don’t exercise the discipline needed to make quick, in-the-moment decisions and follow-through on making them happen. This is especially true of the flood of stuff in our homes. Consequently, surfaces are covered and piles accumulate.

When we do decide to buckle-down and get organized, many of us lack the ability to create order out of chaos, to choose the right system of containers & tools. We are overwhelmed by the merethought of where to start.

To reduce clutter and create some breathing room, set a goal to tackle the 3 M’s: Minimize, Maximize, & Maintain.

Minimize To find some peace in your hectic life, you must minimize. This is easier said than done with ADHD in the mix, so consider finding a “Body Double” who will help you purge, and then you do the same for her. This can be a friend, or a paid organizer. Think in terms of 4 piles: trash, recycling, keep or donate.

Maximize Learn to maximize the way space is used and take advantage of the available space you have. Start small, with one area at a time, and tackle your home surface by surface, closet by closet.

Maintain Order is a constant process, fluid and changeable, and there is joy in the journey. When we continually minimize the amount of items in a space, maximize the use of the available space, and pay attention to keeping it maintained, we have a plan to keep things organized and peaceful.  Once you’ve decided what to keep, and are on the path to maintenance, it’s time to take things to the next level of detail and C.O.P.E:

• Categorize (group like items together)
• Order (put things in order)
• Proximity (put things near where they will be used)
• Ease of Use (make sure things are easy to access)

Don’t underestimate how simple this sounds—it’s really effective to put a little bit of extra thought into where and how to store items you decide to keep.

Now, some people would prefer to have someone else handle organization, leaving them free to do other things that are more natural and enjoyable, and there’s no shame in that! When you have ADHD it can be particularly helpful to have support and assistance in the process. Just in case you want to tackle organization on your own – and remember to consider a body double if you do — here are a few more tips to keep you on track:

1. Set boundaries around when, where, and for how long you are going to “get organized.” Set an appointment with yourself, use a timer, and be specific about where you are going to focus your energy. If you tend to get caught in “zigzag organizing” — jumping from room to room or area to area – then take on two projects at a time and when one gets boring, move to the other. But limit yourself to only those projects! Set a timer for 15 minutes before the end of your scheduled session, and begin to straighten up so that you can leave the space livable until your next session.
2. Start with the obvious by working with items that are already out in the open, on the floor, countertops, entry-ways, spilling out of baskets/containers, etc. Do not go pulling stuff out of drawers and closets before you have cleared out the obvious clutter. It could lead to overwhelm and possibly abandoning the effort entirely.
3. Set yourself up for success by making sure you are free from distractions. Turn off the phone, get coverage for the kids (or give them a job), don’t plan to leave in the middle of the process for another appointment, and be sure to have supplies like sorting containers, big trash bags, sticky notes for labeling, a big black marker, cleaning stuff, and the vacuum for those dust bunnies that will pop up during the process!
4. Make sure the organizing session is fun by playing inspirational music (whatever that means for you), making sure there is enough light in the space to see what you are doing, having scheduled breaks with special goodies to snack on, and having a reward in place for when you complete the task!

Finally, remember that there is no shame in asking for help, either from a professional or from a trusted friend who will keep you on track, without judgment. It helps make organizing happen more quickly, and with greater success.

The simple skills outlined above are applicable to numerous areas of life, not just getting organized. Learning them and teaching them to your children will have wide-reaching and lasting benefits.  Good luck and Happy Organizing!