Radon In Homes- What Are The Risks?

Copyright 2016 New Home Buyers Brokers / Realty Pros

What Is Radon?

Radon gas is colorless, odorless and tasteless radioactive gas. It is formed by the breakdown of uranium, a natural radioactive material found in soil, rock and groundwater.

What Is The Threat of Radon?

Radon is the second leading cause of lung cancer after smoking. In the United States, the EPA estimates that about 21,000 lung cancer deaths each year are radon related and in Canada that number stands at approximately 3000.

How Does Radon Get Into The Home?

When radon is released from the ground into the outdoor air, it gets diluted to low concentrations and is not a concern. Within homes, it typically moves up through the flooring system and other openings between the ground and living spaces. Your home traps radon inside, where it can build up. Any home may have a radon problem – this means new and old homes, well-sealed and drafty homes, and homes with or without basements. Even if you live in an area with fairly low environmental radon, you could still have significant levels in your home.

What Are The Radon Threshold Limits?

Organization
Becquerel per cubic meter
Picocuries per litre

World Health Organization
100 Bq/m³
2.7 pCi/L

Environmental Protection Agency (USA)
150 Bq/m³
4.0 pCi/L – The USA standard is 4.0 Pico Curie Liters or less-

Health Canada
200 Bq/m³
5.4 pCi/L

Why

Should I Test for Radon?

Radon testing is the only way to know if you and your family are at risk from radon. Radon is a radioactive gas that has been found in homes all over the United States and Canada. Any home can have a radon problem. This means new and old homes, well-sealed and drafty homes, and homes with or without basements. In fact, you and your family are most likely to get your greatest radiation exposure at home because that is where you spend most of your time.

Nearly 1 out of every 15 homes in the United States and Canada is estimated to have an elevated radon level. This may be higher in your local area, contact your Realtor for a recommendation for a licensed radon Inspector or your local health department for localized information.

How do Licensed Radon Home Inspectors Test for Radon?

In a real estate transaction, the Home Inspector conducts a short term test using a continuous monitor to provide a snapshot of the home to see if it has elevated levels of Radon. Testing takes approximately 2-3 days and results are provided, interpreted and the report is sent directly to the client.

If you’re buying a home, both the EPA and Health Canada recommend you have a radon inspection along with your home inspection. Homeowners who are planning on selling their home can also show potential buyers proof of a radon inspection, which is a good idea as radon gains more awareness.

Reason for Using Continuous Monitors Versus Charcoal Canisters in Testing Radon

• Employs internal sensors to detect and report movement during test.
• Interval information logged to determine environment around the monitor was not altered.
• Records evidence of tampering such as movement and sudden change in environment.
• Report is available immediately with no need for shipment or reading of anything by a lab.
• Faster for use in real estate transactions with a short transaction period.

Radon Questions and Answers

My home was built on a slab. Could I still have radon?

Yes, homes built on a slab can still have radon. Whether the home is old, new, insulated or not and regardless of construction materials it can have radon. All homes regardless of type of construction should be tested for radon once per year per the EPA and Health Canada.

We are moving to a new area soon and are buying a home. We recently looked at a Radon Map with zones on it and see that some areas are not in a high risk zones. Should we still test our home for radon if not in a high risk area?

Since radon levels can change from town to town and even from home to home, radon maps should not be considered the definitive source for radon level information. The EPA and Health Canada suggest all homeowners test their home for radon even if they are not in the high risk zone and that the map should not be used in lieu when there is a real estate transaction. In fact, a home can test high for radon even if the house right next door tested low. Radon is more prevalent in some areas more than others- in mountainous or outlying areas, and more in basement than non-basement excavations. Sometimes Radon could test high when dirt has been recently disturbed (such as when building a new home, for example), and it can dissipate over time- or increase.

We recently had our home tested for radon and it came back high when tested in the basement. As long as we spend little to no time in the basement, is the radon really dangerous to us?

Yes, having a high radon level in the basement can affect you in other areas of the home by the gas moving through the home via air ducts for air conditioning and the furnace, as well as natural convection.

Which homes are more likely to have higher radon levels, new homes or old homes?

All homes regardless of new or old, single or multi story, slab or with basement can have radon.

The home we bought has a radon mitigation system in it. Do I need to still test my home for radon levels?

Yes, even if a home has a radon mitigation system in it, you need to test your home for radon as the EPA and Health Canada suggests. Regular testing will ensure that the radon mitigation system is working effectively.

We have granite countertops in our kitchen and our bathrooms in our home. Will this increase the amount of radon in our home to an unsafe amount?

While the EPA and Health Canada suggest all homes should be tested for radon it also believes that currently they have insufficient data to conclude that the types of granite commonly used in countertops will significantly increase the indoor radon levels. Both EPA and Health Canada believe that the radon from granite will be insignificant.

Does it matter what time of year I test my home for radon?

No, testing can be done at any time of the year. Testing does require the home to have all of its windows and doors kept closed during the test, but central heating and air conditioning can operate. If the windows and doors cannot be kept closed during the test, it would be best to wait until the conditions allow for it.

I’ve heard radon testing is expensive. Are the risks significant enough to justify the test?

Radon testing is done by a professional and at a relatively minor cost. Tests cost less than a few hundred dollars, and knowing the results should bring you significant peace of mind.

Our radon level came in very close to 4.0 pCi/L (the US standard) or 200 bequerels (Canadian standard) and we see that’s well above the World Health Organization standard of 2.7 pCi/L (100 bequerels). Should we take steps to lower the level even though it’s below 4.0 pCi/L?

Less radon in your home is always better. Both the EPA and Health Canada recommend taking action above those levels, but for your own peace of mind, you should consider mitigation systems at any significant level of radon. Consult with your radon professional for more advice.

My home is built over a crawl space. Do I need to have it tested for radon?

Yes, all homes need to be tested for radon. Radon can still enter the home through floor penetrations and the HVAC system and accumulate to elevated levels in the home.

How can radon affect my health?

The only known health risk associated with exposure to high levels of radon in indoor air is an increased lifetime risk of developing lung cancer. The risk from radon exposure is long term and depends on the level of radon, how long a person is exposed and their smoking habits. If you are a smoker and are exposed to elevated levels of radon your risk of developing lung cancer increases significantly.

How much will it cost to mitigate my house?

The cost of reducing radon in your house depends on how your home was built and the extent of the radon problem. The average radon remediation process, typically done using a contractor, will cost between $1500 – $3000. The cost is much less if a passive system was installed during construction. There are also less expensive radon mitigation systems available through most big box hardware stores (such as Home Depot and Lowes), though most Realtors recommend a professionally installed system so you will have the peace of mind that the system is working at top efficiency.

I am a smoker. Does radon affect me more than a non-smoker?

Yes. The risk from radon exposure for a smoker (including those exposed to second hand smoke) is much greater than for a non-smoker. For example, if you are a lifelong smoker but are not exposed to radon, your risk of getting lung cancer is one in ten. If you add exposure to a high level of radon, your risk becomes one in three. On the other hand, if you are a non-smoker, your lifetime lung cancer risk at the same high radon level is only one in twenty.

Are children more at risk from radon than adults?

Children have been reported to be at greater risk than adults for certain types of radiation exposure, but there is currently no conclusive data on whether children are at greater risk than adults from radon.

What about drinking water that contains radon?

Research has shown that drinking water that contains radon is far less harmful than breathing radon. When the ground produces radon, it can dissolve and accumulate in water from underground sources, such as wells. When water that contains radon is agitated when used for daily household requirements radon gas escapes from the water and goes into the air. The health risk is not from ingestion but from radon inhalation.

If you would like more information on Radon visit:
USA: www.epa.gov/radon

 

 

Kristen Haynes, Realtor / Broker NC / SC, BIC, GC, CMRS

Direct: 704-905-4062

Toll-Free: 1-877-372-2252

Email: khaynes@newhomesnc-sc.com

Web: www.NewHomesNC-SC.com

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Garage Door Security Tips To Prevent A Break In Or Theft

October 14, 2015

You have checked all the windows to make sure they are closed and locked, doubled-checked the doors, let the neighbors know you are out of town, informed the mail so it does not pile up out front, and activated all the passive security systems in your home. However, one area is often overlooked as you pull out of your garage and leave; the garage you just left.

The modern-day garage is a favorite place for thieves to gain access to your home.

There are three main types of garages that your home may have and each one requires its own safety measure. The first two are attached garages, and they can be divided into two categories: 1) the front of the house garage that faces the street and 2) the rear garage, which is out of view from the street.

The third type of garage is the detached garage. It is particularly dangerous if it is not secured properly because it allows a staging ground for thieves to enter the premises.

Here are a few pieces of advice that will help protect your home:

Use Your Garage. Park your car inside the garage when it is not being used or if you are leaving by other means. Many people leave their garage door opener in their car and all it takes is something like a broken window in your car, which can give a thief access to your home. To combat this, you can also make sure to remove the remote if you leave your car outside of the garage.

Disable the Electric Motor. If you are leaving for an extended period of time, detach your electric garage door opener. This is usually a very simple thing to do. Most electric garage door openers have a rope or chain you pull down to disconnect the electric motor from the chain that operates the door. This protects you in two ways. First, if a thief used a frequency scanning device to obtain your code, it will be of no use since it is not operable. Second, it would require a thief to physically go to the door, which the neighbors could see.

Bolt It. Use a manual sliding bolt-style lock on the inside of your garage door that can only be opened from the inside.

Keep It In Good Condition. Make sure the garage door is properly functioning and that there is no damage to the panels which a thief can use to get in.

Keep It Contained.– Do not leave important items in the garage and make sure to lock the door into your home. If thieves do break into the garage, you want to make sure that is all they can access. Place a deadbolt and anti-kick device on the door which leads to the garage from the home on a connected garage.

For the detached garage make sure you follow the same principles as if it was connected to your home. If the garage is out of view it is even more important. Most importantly, do not keep valuables in your garage.

 

Kristen Haynes, Broker In Charge, GC, CMRS 

Platinum, Multi Million Dollar Producer, Selling Carolinas Real Estate since 1992 

Direct: 704-905-4062    Toll-Free: 1-877-372-2252

Email: khaynes@newhomesnc-.com    Web: www.NewHomesNC-SC.com

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Should We Get A Loan Pre-Approval Or A Loan Pre-Qualification?

July 24, 2015
Copyright 2015 New Home Buyers Brokers / Realty Pros

WHAT’S THE DIFFERENCE BETWEEN A LOAN PRE-APPROVAL AND A LOAN PRE-QUALIFICATION?

There is a big difference between obtaining a full “loan pre-approval” or having a quick “loan pre-qualification” letter from your lender.

1. Your pre-approval letter is far more reliable than a pre-qualification letter. Receiving a basic loan pre-qualification letter is easy. You simply provide basic financial information to a lender and wait a few minutes for the letter to be sent back to you. Obtaining a “pre-qual” from a random mortgage website is just as easy- just enter some information, click “submit” and voilà you are pre-qualified.

A pre-approval letter, on the other hand, involves verification of the information. Rather than taking your word on faith, the lender will ask for documentation to confirm your employment, the source of your down payment, and other aspects of your financial circumstances. Granted, a pre-approval is more time-consuming than a pre-qualification, but the additional due diligence is exactly why the pre-approval carries more weight with sellers when submitting an offer.

Think of the difference between and IOU note and an actual check. With the first, a seller hopes that they can count on your offer to be valid and with the second, they know that your offer is backed by the word of your lender. When the home you want is on the line, you don’t want to take chances against other, stronger offers.

2. You know how much money you can borrow. You likely have a rough idea of how much you would feel comfortable paying each month for your home mortgage. However, there’s no effective way to translate that monthly payment into a specific maximum mortgage amount because other factors such as down payment percentage, mortgage insurance, property taxes, adjustable interest rates and so on may not be part of your original calculation. Being pre-approved takes the guesswork out of how much you hope to borrow depending on your income, debts and credit history.

3. You will have more leverage when negotiating with the seller! Sellers prefer to negotiate with pre-approved buyers because they know you are financially qualified to obtain the loan needed to close on their home. You will feel more confident about making your offer with a pre-approval letter and that can make all the difference in negotiating the price and extras! A pre-approval letter is an especially favorable point in a multiple offer situation.

4. Your real estate agent will consider you a serious buyer and will be prepared to go to contract immediately when you find the right home. A pre-approval letter signals to your real estate agent that you’re a well-qualified buyer who is serious about purchasing a home and that they need to be prepared to write up an offer at any time. The increased likelihood of a closed sale, and not just months and months of “hauling and hoping” will naturally motivate your agent to devote more time and energy to you, rather than to less serious, qualified buyers.

5. A pre-approval doesn’t take more of your time, but changes the order in which you send in your paperwork. Obtaining pre-approval is simply starting the paperwork earlier – it’s not extra paperwork. It also alleviates stress after you make an offer. In order to buy your home, you will have to collect all your financial documents for your loan officer. Whether you do that before you find a house, or wait until the pressure is on once you are under contract is up to you.

Here are some additional tips on things to avoid during the home buying process to assure your transaction goes as smoothly as possible:
• Don’t apply for new credit of any kind
• Don’t close credit card accounts
• Don’t max out or over charge existing cards
• Don’t consolidate debt
• Don’t change or quit job
• Don’t make any large deposits into accounts
• Don’t make any large purchases
• DO stay current on existing accounts

Our Agents here at New Home Buyers Brokers / Realty Pros have been selling Carolinas Real Estate since 1992. We have the experience and know-how to educate you on all things necessary for you to find, build, mortgage and buy the home of your dreams. We’ll explain the process and will be there to guide you every step of the way.

Call or contact us today to get any questions answered about the mortgage loan or home buying process!

  Kristen Haynes, Broker In Charge, GC, CMRS 

Realtor / Broker NC / SC since 1992  Platinum, Multi Million Dollar Producer

Direct: 704-905-4062  *  Toll-Free: 1-877-372-2252

Email: khaynes@newhomesnc-.com  *  Web: www.NewHomesNC-SC.com

START YOUR HOME SEARCH, TODAY!

Are you shopping for a new home online? I’d like to introduce you to the Home Buyers Scouting Report® (HBSR) provided by Home Buyers Marketing II, Inc. With the HBSR you can search for all the available homes for sale in this market that match your personal search criteria.Click on the link, below, to start your search or contact me for more information.

Please call us or use the contact form, below, for additional information or with questions on the home buying or mortgage pre-qualification or pre-approval process:

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SEARCH HOMES FOR SALE OR SOLD HOMES FOR FREE IN CHARLOTTE, NC AND CHARLESTON, SC- AD AND SPAM FREE!

Curious about what homes have sold for in your neighborhood? Or are you “thinking about” looking for a new home or selling your current one? Most people don’t know that Zillow, Trulia, and even Realtor.com are not “HOME SEARCH” sites- they are MARKETING sites. EVERY TIME that you log in to search for a home or a value, they “SELL” your contact information and email address to the highest bidder! Hello, SPAM! Many people also don’t realize that Zillow and Trulia also only show… 50 % of the homes available on the market, and their information is usually old or inaccurate, to boot! Here’s a better way to search-guaranteed accurate and spam free. Your information will NOT be sold and you can search here safely, right from the curb in front of any home, or on your desktop. Check out everything that is selling around you and even get a up to date monthly “Home Sold” marketing alert so you can keep up with what is selling around you! Search for homes in your desired cities, neighborhoods, counties and zip codes. Save homes you like to your “Favorites” and any time something changes, like a price reduction or market change, you will be notified. Tap on the “Find Homes Near Me” on your phone’s GPS and pull up every home’s MLS sheet and all selling / sold prices that are comparable within a ten mile radius, including the one you are in front of! Tap on the “Agent” tab, and contact me right away for immediate information on any house, or to schedule an immediate appointment before someone else makes an offer. I am using this as much as my own MLS- and it’s more user friendly! You will have access to direct, accurate, on time MLS feeds, just like Professional Realtors, PLUS courthouse and foreclosure sales that never made it into the MLS that other people don’t know about or have to dig to find. It’s 100 % Free, and Ad and Spam free, guaranteed! You can search all Charlotte, NC and Charleston, SC area listings. SIMPLY GO TO YOUR APP OR PLAY STORE ON YOUR SMARTPHONE, AND DOWNLOAD THE “HOME SCOUTING” APP. THEN ENTER MY REFERRAL VIP CODE: 7049054062. Create your own anonymous user name and password, and you’re off to the races!

Lack of Home Inventory Is Making It Hard For Buyers To Find Homes

 

Date: May 20, 2014 | Category: Market Trends | Author: Camille Salama

After rising at the end of 2013, for-sale inventory has fallen for four straight months to begin 2014. Inventory remains tight nationwide, with the number of homes listed for sale on Zillow down 0.4 percent annually in April and more than half of metros in the U.S. currently seeing a similar downward trend.

In many metros, inventory is tightest in the lower-end of the market, which represents the homes most commonly sought by first-time home buyers. According to Zillow Chief Economist Dr. Stan Humphries this shortage of inventory is driven by a couple of factors, most notably by stubbornly high negative equity, particularly at the lower end of the market, which is preventing many sellers from listing their homes.

National home values in April were also down 0.1 percent from March to a Zillow Home Value Index of $170,200, marking the first monthly decline in more than two years. Among the 35 largest metros covered by Zillow, home values in a dozen were down on a monthly basis and were flat in two more. Year-over-year, U.S. home values rose 5.3 percent in April. The Zillow Home Value Forecast calls for another 2.2 percent increase in national home values by April 2015, further confirming that the market is slowing down.

For a deeper analysis from Humphries, visit Zillow Research at: http://www.zillow.com/research

For more information on how this is affecting our local North and South Carolina market and for a free, local market report for your neighborhood and area of town, contact Kristen Haynes, Broker In Charge, Realtor NC / SC:

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Copyright © 2014 New Home Buyers Brokers, Inc. / Realty Pros

 

Charlotte, NC Just Ranked # 1 City For High Pay, Low Expenses!

Stretching Your Money: The Best Cities For High Pay And Low Expenses
By Jane Wells

March 20, 2014 3:51 PM
Top/CNBC | Yahoo Finance.

It’s great to get a good-paying job. It’s even better when you live in a city where that good-paying job buys more. After all, $60,000 goes a lot further in Boise, Idaho, than Boston.

Wallethub has looked at average incomes across the country.

The most compelling information—for us at Top/Best/Most—is the list of cities with the highest annual incomes when adjusted for cost of living. One hint: they’re all in the middle of the country, and none gives you an ocean view, though one comes close.

No. 5: Colorado Springs, Colo.

The home of the Air Force Academy is also a hub for defense-related firms, and there are more than a few ice skaters here beneath Pikes Peak aspiring to become Olympians. The average annual income is $69,844 based on the 2012 census numbers, and the cost of living index is 92.8. (The lower an index score is below 100, the better.) When adjusted for that cheaper-than-average cost of living, it’s actually like making $75,263, according to WalletHub. But while all those Air Force types may be flying high in Colorado Springs, not everyone else is. Unlike Denver, here in Colorado’s second-largest city, the sale of recreational pot is banned despite a new state law legalizing marijuana.

No. 4: Houston

Here’s the one city in the top five where you will get an occasional ocean breeze … or just a lot of humidity. Houston makes the list because America’s in the middle of an energy boom. Oil, natural gas, wind, you name it, the boom is powering up average incomes to $69,421, with a cost of living index number of 92.2. Adjusted for cost of living, that’s like making $75,303 per year. Even though Houston incomes are slightly lower than the average in Colorado Springs, there are no state income taxes in Texas, helping Houstonians take home more cash.

No. 3: Austin, Texas

See above for an explanation of tax breaks stretching dollars in Texas. Austin makes the list because incomes are going higher as the state capital becomes a hub for tech and music and all things hipster-y. Austin is headquarters for Whole Foods, adding to the whole quinoa-eating, fedora-wearing, cage-free celebrating vibe. The city is also home to the nation’s largest urban bat population, and we all know how hip the whole vampire thing is. The cost of living index in Austin is 95.4, but the average income is $74,860, which can buy you a lot of organic gluten-free veggies. (I keep making fun of Austin because I’m jealous.)

No. 2: Atlanta

Hotlanta! This town is a peach of a place to live! Atlanta is headquarters to a wide range of successful empires like Coke, Home Depot, Delta Air Lines and Nene Leakes.

The cost of living index number is 95.5, the highest on the Wallet Hub list. But how affordable is housing? The average income in Atlanta is $78,505. The usual rule of thumb in determining home affordability is to multiply one’s annual income by 2.5. That would mean the average home price should be $196,000. Good news! It’s only $144,000, leaving Atlantans’ with more money to afford a high-end lifestyle worthy of a “Real Housewife.”

AND- TA-DA!!! INTRODUCING THE NUMBER 1 RANKED CITY: Charlotte, N.C.

WHAT?? WHERE?? WHO??? And what do bananas have to do with it all? Charlotte is the best city in America for good salaries and low cost of living. Turns out this town is a banking powerhouse, the second-largest financial center in the country behind New York, and New York is NOT affordable… at all.

  

 

Charlotte, NC (www.charmeck.org/city/charlotte/Pages/default.aspx) is headquarters for institutions like Bank of America, and is a major center for Wells Fargo, but Chiquita International also calls the city home, because Charlotte is so … wait for it … a-peeling. Hahaha. And why not? The cost of living index number is 93.2, the average annual income is $76,914 (which might feel more like $82,526 based on cost of living), unemployment is 6.6 percent and the so-called Queen City has even designated a local Dairy Queen a historic site. How cool is that? Source: WalletHub – www.wallethub.com

So- if you want to live large, and live it less expensively- check out the cities, above!

For more information on the lifestyle in Charlotte, NC or Charleston, SC (or other areas- we have a wealth of information on each city that we can share with you!)- Contact: Kristen Haynes, Realtor / Broker, GC, Certified Military Residential Specialist:

Direct: 704-905-4062 or Toll Free: 1-877-372-2252 or: khaynes@NewHomesNC-SC.com

Kristen Haynes, Broker In Charge, GC, Certified Military Residential Specialist, Realtor / Broker NC / SC

        

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NEW FICO ‘SCORE NINE’ CREDIT SCORING SYSTEM ANNOUNCED, AND AN FHA LOAN MARKET UPDATE

NEW FICO SCORING SYSTEM ANNOUNCED AND FHA LOAN MARKET UPDATE March 18, 2014 Breaking News. FICO has announced that it will release the next broadly available version of the FICO Scoring System beginning this summer. INTRODUCING FICO ‘SCORE NINE”: Using a new, multi-faceted modeling approach, which combines sophisticated in-house analytic technology with insights gained over 50 years of building credit risk models, FICO ‘Score Nine’ will provide the best-in-class predictive power across all of the major credit product lines—home loans, auto loans, credit cards and personal loans—from loan originations, all of the way through managing and servicing the loan. FICO has also addressed lenders’ concerns regarding score consistency across the three major credit bureaus, and compatibility with previous FICO Score versions to ease adoption. The FICO Score continues to help keep lenders aligned with key compliance objectives and relevant government regulations. The FICO Score is the most widely used credit score in North America. Lenders purchased more than 10 billion FICO Scores in 2013, and 90 percent of all U.S. consumer lending decisions use the FICO Score. WHO WILL UTILIZE THE NEW FICO SYSTEM?: The 25 largest credit card issuers, the 25 largest auto lenders and tens of thousands of other businesses rely on the FICO Score for consumer credit risk analysis and federal regulatory compliance. “To become a widely adopted industry standard, a credit score must work well across industries, across all lending product lines and across the entire credit lifecycle,” said James Wehmann, executive vice president of Scores at FICO. “The major changes in the lending environment over the last few years demanded that we take a different approach to building a score that will continue to perform consistently well in various situations. We devised an innovative approach to developing FICO Score Nine that enabled us to leapfrog our own industry-standard benchmark. Our goal is to continue to support a financial ecosystem that includes lenders, securitization investors, rating agencies, regulators and other stakeholders who need a common risk benchmark.” Source: NAMP Daily – www.nampdaily.com HOMEPATH AND HOME STEPS OFFER FREE CLOSING COSTS AND OTHER INCENTIVES: Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac recently introduced new incentives to bolster home sales through their HomePath and HomeSteps programs, respectively, which are designed to help the firms liquidate the real-estate owned (REO) properties they hold in their portfolios. Specifically, Fannie Mae is offering up to 3.5% in closing cost assistance on HomePath properties available in 27 states during the FirstLook period. During the FirstLook period, owner-occupant or public entity buyers are able to submit offers on HomePath properties, giving them the opportunity to purchase homes without competition from investors. Fannie Mae recently announced the extension of the FirstLook period from 15 days to 20 days. To be eligible for the incentive, the initial offer must be submitted between now and March 31, 2014, so there’s not a lot of time left to utilize this program (unless it’s extended). Homes using this incentive must also close on or before May 31, 2014. The incentive will offer qualified buyers up to 3.5% of the final sales price to pay closing costs. In addition, home buyers have a choice of $500 incentives they can use towards condominium association dues, flood insurance premiums or the home warranty of their choice. To qualify for these additional incentives, the closing must settle on or before May 30, 2014. The promotion does not apply to investor purchases, auction sales, sealed-bid sales and bulk sales, Freddie Mac reports. Source: MortgageOrb, www.mortgageorb.com For a list of available properties, call your local Realtor or go to: http://www.homepath.com.   AN FHA UPDATE AND PREDICTIONS FOR THE UPCOMING YEAR: Following the first-ever Treasury draw required by the Federal Housing Administration this year, the agency says it is back on stable footing and does not anticipate requiring Treasury assistance in fiscal year 2015. As reflected in the Obama Administration’s proposed budget for the coming fiscal year, both FHA’s forward and reverse lending programs are expected to be cash flow positive with the Home Equity Conversion Mortgage program anticipated to have a negative subsidy rate at -0.23%. A positive credit subsidy indicates the program would require cash to cover losses. In this case, however, the HECM program is expected to perform on its own, slightly above its break-even point. The earlier bailout to the tune of $1.7 billion was largely attributed to losses in FHA’s reverse portfolio. “The budget estimates the Mutual Mortgage Insurance Fund will have a positive capital reserve balance of $7.8 billion,” said FHA Commissioner Carol Galante of the entire fund outlook following the budget release. “We will not require a mandatory appropriation from the Treasury this year.” FHA touted its performance and positive outlook in the coming year, pointing to achievements such as reducing chronic homelessness by 16% and assisting 450,000 homeowners facing foreclosure through loss mitigation assistance in the midst of last year’s budget sequester. “This is more remarkable given the context in 2013,” Housing Secretary Shaun Donovan said. “Given the sequestration that cut across the entire federal government budget, HUD was faced with finding ways to cut 5% from our budget with very little time to prepare and just seven months left in the fiscal year. We made some extremely difficult choices. We’re proud of what we did to provide best possible outcomes.” Source: Reverse Mortgage Daily – www.reversemortgagedaily.com Congress’s lack of progress on reforming the U.S. housing-finance system shouldn’t be “an excuse” to delay rebuilding the market for private-label mortgage securities, a senior U.S. Treasury Department official said recently. “Many investors have told us that they can and want to take mortgage credit risk,” said Michael Stegman, housing-finance counselor to the Treasury secretary, in prepared remarks at a research conference in New York. Adding simplicity and transparency is a key first step, he said. “To get back to an efficient, responsible, and sustainable level of complexity, and to rebuild trust, the new issue non-agency market must first follow a path of greater standardization and transparency,” Stegman said. Federally controlled buyers Fannie Mae and Freddie Mac have been in a conservatorship since 2008, an arrangement that has lingered with U.S. lawmakers disagreed over the appropriate role for government in housing finance. Source: Market Watch – www.marketwatch.com. EASIER QUALIFYING EXPECTED FOR FHA MORTGAGE BORROWERS: First-time and low-income borrowers may have an easier time qualifying for a Federal Housing Administration loan. Ginnie Mae, a government agency that issues bonds backed by FHA loans, reports that the average credit score on FHA-backed loans fell to 680 in 2013, and the average debt-to-income ratio rose to 40.3 percent — both indicators that credit may be easing. In comparison, Ginnie Mae reported in January 2013 that the average score was 701 and the debt-to-income ratio was 38 percent. “The FHA theoretically allows scores as low as 580,” the L.A. Times reports. “But lenders, buffeted by defaulted loans and demands that they buy back troubled loans that they sold, generally have set standards higher since the financial meltdown.” Source: The Los Angeles Times – http://www.latimes.com A Note from Kristen: Actually FHA allows scores down to 500, but requires a down payment of 10% below 580. But many lenders do not want to underwrite loans under 640 (580 is the absolute minimum I have seen here in Charlotte, NC, and those loans also come with higher loan origination fees and interest rates). While many lenders have lowered minimum scores, FHA’s quality assurance initiatives ensure that lenders will still be underwriting their files under a microscope and looking at the loans carefully, because lenders now have to buy back their “bad” or defaulted loans if any errors are found in the original underwriting process.  Copyright © 2014 Realty Pros / New Home Buyers Brokers, Inc. Kristen Haynes, Broker In Charge, GC, CMRS  Web: www.NewHomesNC-SC.com         Name(required) Email(required) Website Comment(required) Submit Δ

 

FANNIE MAE IS NOW GIVING AWAY A FREE 3.50 % DOWN PAYMENT FOR A LIMITED TIME TO HOME BUYERS WHO QUALIFY!

 FANNIE MAE IS OFFERING A FREE 3.50% DOWN PAYMENT (AND OTHER INCENTIVES) FOR A VERY LIMITED TIME!

Please distribute to your network, so as many people as possible have the opportunity to benefit from this unique, one-time deal, never before offered by the federal government!

To reduce its inventory of foreclosed homes, Fannie Mae is now offering qualified owner-occupant purchasers cash incentives toward closing costs in the amount of 3.5% of the purchase price of a home!

By Kenneth R. Harney February 27, 2014, 5:00 a.m.

WASHINGTON — If you’re planning to shop for a home in the next few weeks, here’s an early spring buying season come-on that just might save you some money if you qualify. Fannie Mae, the largest mortgage investor in the country, has a bulging portfolio of houses acquired through foreclosures nationwide. About 31,000 of these properties are listed on its resale marketing site.

To move them quickly out of inventory, Fannie Mae temporarily is offering qualified owner-occupant purchasers — but not investors until after a waiting period — cash incentives toward closing costs of 3.5% of the purchase price. But you have to submit your initial offer no later than March 31 and close by May 31.

What sort of houses are we talking about? Have your Realtor send you information or go to: www.homepath.com and you’ll see. They run the gamut — from a one-bedroom condo in San Diego to a four-bedroom, four-bath single-family home in suburban Montgomery Village, Md. Some states have thousands of HomePath listings online: Florida has nearly 12,000; Illinois, 4,360; Ohio, 2,800; California, more than 2,300; Washington state, nearly 1,800; and Nevada, about 1,400.

Asking prices range from $30,000 to $600,000 or more. On a $400,000 house, the 3.5% closing cost incentive would amount to $14,000. • Also • Finding ways to help young adults make their first home purchases • Strategies for getting a mortgage amid tougher federal rules • Mortgage servicer shenanigans keep consumer watchdogs busy. To ensure that buyers who intend to occupy its homes get an opportunity to fully check them out and bid without competition from investment groups offering all-cash deals, Fannie has instituted what it calls a First Look program. It essentially prohibits bids from investors on properties during the first 20 days after listing (30 days in Nevada).

After that, investors are free to jump in. Each First Look listing has a countdown clock attached to it that indicates the number of days remaining before bidding is opened to all comers. The new 3.5% closing cost offer is available only during active First Look periods from mid-February through March, so there’s not a lot of time to get involved. Bidders will need to indicate upfront that they want to be considered for a closing-cost discount. Who is eligible? First, you’ve got to be a bona fide owner-occupant purchaser and commit to live in the house as a primary residence for at least a year.

You’ll need to fill out a certification to that effect that can be found on the site. Properties are not available in all states. You don’t have to be a first-time buyer, though the Fannie program is likely to attract substantial numbers of them. The 3.5% closing cost discount helps with one of the biggest problems faced by first-timers — upfront cash. As with most home purchases, you’ll need to be able to qualify for mortgage financing. Though Fannie may end up owning or securitizing the loan you obtain, it won’t be financing you directly.

On HomePath purchases, you shop for a mortgage just as you would on any other house. Ideally, you nail down a financing source and get prequalified for mortgage money up to a specific dollar limit at current interest rates. If you’ve already located a First Look property and qualify, the lender is likely to take the 3.5% closing cost incentive into consideration in evaluating your application.

While you shop on HomePath, however, keep this important factor in mind: These are foreclosed, previously occupied homes. Though some of them are repaired, painted and spiffed up before they are listed, many could use some additional work. They are sold “as is” and that’s built into the pricing. Fannie identifies what it calls “improved” properties on the HomePath site — those that have undergone significant repairs — with either the “Home Depot” logo (when repairs have been made by contractors from that company) or a hammer and roof symbol (when repairs have been completed by independent contractors hired by Fannie).

Your Realtor will help you make a bid on the property of your choice. It’s best to use the service of an experienced Realtor due to the myriad of contract provisions that need to be met throughout the process (like home inspections, de-winterizing a property for inspections, using an approved lender and attorney, etc). You may also want to check out other sources for distressed properties with your Realtor, such as HUD homes: www.HUD.gov.

Your Realtor / Broker will be experienced with distressed properties, such as foreclosures, pre-foreclosures, and HUD homes, and will be a vital resource to help you navigate through the maze of these type of purchases (one thing is for sure- these deals do not work like “normal” home purchases).

If you can’t find the First Look house you want, don’t give up. Freddie Mac, the other giant federal mortgage investor, also has thousands of foreclosed homes that it’s trying to dispose of — and its own First Look program — at its Home Path marketing site. Though Freddie Mac currently has no closing cost incentive offer, it does provide a $500 allowance toward the purchase of a home warranty policy, and it promotes special mortgage financing options on houses in some areas. If you qualify, that could mean a loan with no mortgage insurance, no appraisal and a 5% maximum down payment.

Want to know how much home you can qualify to buy? Contact Jenny Stoner or Kim Venable of Fairway Independent Mortgage Corporation: http://fairwaync.com

These are definitely worth checking out, whether you are on the fence about buying a home, or you are a seasoned investor looking for an extra-special deal!

Contact me for a list of properties in your area:

Direct: 704-905-4062 or Toll-Free: 1-877-372-2252.

Kristen Haynes, Realtor, BIC, GC, CMRS New Home Buyers Brokers / Realty Pros

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Email: khaynes@newhomesnc-sc.com

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http://www.youtube.com/watch?v=0VT-dxbePQs&feature=youtu.be

Broker In Charge, Unlimited Building General Contractor, Certified Military Residential Specialist
Boards: 2009-2014, Professional Standards Committee, Charlotte Regional Realtor Association
2008-2009, Independent Broker Owner Council, Charlotte Regional Realtor Association
Member: Charlotte Regional Multiple Listing Service,Charleston-Trident Multiple Listing Service, National Association of Realtors, National HUD Broker, Charlotte Regional Realtor Association, NC Licensing Board for General Contractors, BBB. EHO